Appropriations: omnibus; appropriations for multiple departments and branches for fiscal year 2026-2027; provide for. Creates appropriation act.

HB-5619, As Passed House, April 22, 2026

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SUBSTITUTE FOR
HOUSE BILL NO. 5619
A bill to make, supplement, adjust, and consolidate
appropriations for various state departments and agencies, the
judicial branch, and the legislative branch for the fiscal year
ending September 30, 2027; to provide for certain conditions on
appropriations; and to provide for the expenditure of the
appropriations.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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ARTICLE 1
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of
agriculture and rural development for the fiscal year ending
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September 30, 2027, from the following funds:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 483.5
Full-time employees 495.0
Limited-term employees 4.0
Noncareer/per diem employees 25.0
Part-time employees 0.0
Permanent-intermittent employees 3.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 132,213,600
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 306,600
ADJUSTED GROSS APPROPRIATION $ 131,907,000
Federal revenues:
Total federal revenues 15,292,000
Special revenue funds:
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 42,392,800
State general fund/general purpose $ 74,222,200
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 29.3
Unclassified salaries--FTEs 6.0 $ 760,900
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Accounting service center 1,177,400
Commissions and boards 15,000
Emergency management--FTEs 8.0 2,774,100
Emerging contaminants in food and agriculture--
FTEs 6.0 1,141,600
Executive direction--FTEs 15.3 2,532,200
Property management 832,500
Departmentwide economic adjustments 1,454,800
GROSS APPROPRIATION $ 10,688,500
Appropriated from:
IDG from LARA (LCC), liquor quality testing
fees 2,000
Federal revenues:
Deferred federal revenue funding 15,000
HHS, multiple grants 525,300
USDA, multiple grants 600,000
Special revenue funds:
Agriculture licensing and inspection fees 86,500
Dairy and food safety fund 479,800
Feed control fund 600
Freshwater protection fund 52,600
Gasoline inspection and testing fund 102,500
Industry support funds 58,300
Private forestland enhancement fund 19,600
State general fund/general purpose $ 8,746,300
Sec. 103. INFORMATION TECHNOLOGY
Information technology services and projects $ 1,193,200
GROSS APPROPRIATION $ 1,193,200
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Appropriated from:
Special revenue funds:
Dairy and food safety fund 124,500
State general fund/general purpose $ 1,068,700
Sec. 104. FOOD SAFETY AND ANIMAL HEALTH
Full-time equated classified positions 197.3
Animal disease prevention and response--FTEs 58.7 $ 10,844,800
Animal feed safety--FTEs 9.2 1,670,000
Food safety and quality assurance--FTEs 100.6 19,407,500
Indemnification - livestock depredation 15,000
Milk safety and quality assurance--FTEs 28.8 5,658,800
GROSS APPROPRIATION $ 37,596,100
Appropriated from:
Federal revenues:
HHS, multiple grants 2,761,400
USDA, multiple grants 1,211,100
Special revenue funds:
Agriculture licensing and inspection fees 73,300
Animal welfare fund 150,000
Consumer and industry food safety education
fund 242,500
Dairy and food safety fund 7,545,400
Feed control fund 562,400
Industry food safety education fund 114,100
Marihuana regulatory fund 50,600
State general fund/general purpose $ 24,885,300
Sec. 105. ENVIRONMENT AND SUSTAINABILITY
Full-time equated classified positions 97.5
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Environmental stewardship - MAEAP--FTEs 16.9 $ 6,726,500
Local conservation districts 3,500,000
Pesticide and plant pest management--FTEs 69.1 13,032,000
Right-to-farm--FTEs 6.5 1,012,300
Soil health/Regenerative agriculture--FTEs 5.0 2,024,900
GROSS APPROPRIATION $ 26,295,700
Appropriated from:
Interdepartmental grant revenues:
IDG from MDEGLE, biosolids 65,800
Federal revenues:
Department of Interior 96,300
EPA, multiple grants 1,093,100
USDA, multiple grants 2,097,700
Special revenue funds:
Agriculture licensing and inspection fees 3,186,600
Fertilizer control fund 1,569,800
Freshwater protection fund 4,310,500
Horticulture fund 70,000
Industrial hemp fund 592,300
Industry support funds 228,100
State general fund/general purpose $ 12,985,500
Sec. 106. AGRICULTURE DEVELOPMENT
Full-time equated classified positions 58.4
Agricultural preservation easement grants $ 1,900,000
Agricultural support--FTEs 3.7 1,000,000
Agriculture development--FTEs 11.4 4,179,000
Fair food network - double up food bucks 4,000,000
Farm to family--FTEs 3.0 3,000,000
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Farmland and open space preservation--FTEs 8.0 1,210,600
Food and agriculture investment program 2,449,300
Fruit and vegetable inspections--FTEs 8.0 960,500
Intercounty drain--FTEs 4.7 883,800
Migrant labor housing--FTEs 8.0 1,244,400
Producer security/grain dealers--FTEs 5.6 685,500
Qualified forest program--FTEs 4.0 1,080,100
Office of rural prosperity--FTE 1.0 2,299,400
Rural development fund grant program--FTE 1.0 2,009,500
GROSS APPROPRIATION $ 26,902,100
Appropriated from:
Federal revenues:
USDA, multiple grants 3,615,900
Special revenue funds:
Agricultural preservation fund 3,110,600
Agriculture licensing and inspection fees 5,100
Commodity inspection fees 352,700
Grain dealers fee fund 526,700
Industry support funds 193,600
Private forestland enhancement fund 1,080,100
Rural development fund 2,009,500
State general fund/general purpose $ 16,007,900
Sec. 107. LABORATORY AND CONSUMER PROTECTION
Full-time equated classified positions 101.0
Consumer protection program--FTEs 39.0 $ 6,929,000
Integrated solutions--FTEs 22.1 1,540,000
Laboratory services--FTEs 31.0 7,218,700
USDA monitoring--FTEs 8.9 1,518,100
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GROSS APPROPRIATION $ 17,205,800
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing
fees 238,800
Federal revenues:
EPA, multiple grants 180,600
HHS, multiple grants 1,576,300
USDA, multiple grants 1,519,300
Special revenue funds:
Agricultural preservation fund 44,600
Agriculture licensing and inspection fees 440,000
Dairy and food safety fund 390,400
Feed control fund 157,000
Fertilizer control fund 23,500
Freshwater protection fund 78,900
Gasoline inspection and testing fund 291,900
Grain dealers fee fund 8,400
Industrial hemp fund 322,200
Migratory labor housing fund 29,900
Refined petroleum fund 3,250,700
Testing fees 361,700
Weights and measures regulation fees 763,100
State general fund/general purpose $ 7,528,500
Sec. 108. FAIRS AND EXPOSITIONS
County fairs, shows, and expositions $ 3,000,000
Fairs and racing 201,600
Purses and supplements - fairs/licensed tracks 4,073,600
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Standardbred breeders' awards 345,900
Standardbred purses and supplements - licensed
tracks 991,100
Standardbred sire stakes 720,000
GROSS APPROPRIATION $ 9,332,200
Appropriated from:
Special revenue funds:
Agriculture equine industry development fund 9,332,200
State general fund/general purpose $ 0
Sec. 109. ONE-TIME APPROPRIATIONS
Michigan Animal Agriculture Alliance $ 3,000,000
GROSS APPROPRIATION $ 3,000,000
Appropriated from:
State general fund/general purpose $ 3,000,000

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$116,615,000.00 and total state spending under part 1 from state
sources to be paid to local units of government is $10,900,100.00.
The following itemized statement identifies appropriations from
which spending to local units of government will occur:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
Agriculture preservation easement grants $ 1,900,000
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Environmental stewardship/MAEAP 4,100,000
Local conservation districts 3,500,000
Qualified forest program 100
Rural development fund grant program 1,400,000
TOTAL $ $10,900,100
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in part 1 and this part:
(a) "Department" means the department of agriculture and rural
development.
(b) "Director" means the director of the department.
(c) "Fiscal agencies" means the Michigan house fiscal agency
and the Michigan senate fiscal agency.
(d) "FTE" means full-time equated.
(e) "IDG" means interdepartmental grant.
(f) "MAEAP" means the Michigan agriculture environmental
assurance program.
(g) "MDEGLE" means the Michigan department of environment,
Great Lakes, and energy.
(h) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on agriculture and rural development, the senate and
house fiscal agencies, the senate and house policy offices, and the
state budget office.
(i) "Subcommittees" means all members of the subcommittees of
the house and senate appropriations committees with jurisdiction
over the budget for the department.
(j) "TB" means tuberculosis.
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(k) "USDA" means the United States Department of Agriculture.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
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searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
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Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
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(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) Not later than April 1, the department shall
maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
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pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $3,000,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $2,000.000.00 for local
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $6,633,500.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $6,633,500.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
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expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
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against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
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work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
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with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
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office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
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director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
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and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.

DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. (1) The department may establish a fee schedule and
collect fees for the following work activities and services:
(a) Pesticide and plant pest management propagation and
certification of virus-free foundation stock.
(b) Fruit and vegetable inspection and grading services at
shipping and termination points and processing plants.
(c) Laboratory support analyses of food, livestock, and
agricultural products for disease, foreign products for disease,
toxic materials, foreign substances, and quality standards.
(d) Laboratory support test samples for other state and local
agencies and public or private organizations.
(2) The department may receive and expend revenue from the
fees authorized under subsection (1), subject to appropriation, to
recover expenses associated with the work activities and services
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described in subsection (1). Fee revenue collected by the
department under subsection (1) does not lapse to the state general
fund at the end of the fiscal year but carries forward for
appropriation by the legislature in the subsequent fiscal year.
(3) The department shall notify the standard report recipients
30 days before proposing changes in fees authorized under this
section or under section 5 of 1915 PA 91, MCL 285.35.
(4) On or before February 1 of each year, the department shall
provide a report to the subcommittees, the fiscal agencies, and the
state budget office detailing all the fees charged by the
department under the authorization provided in this section,
including, but not limited to, rates, number of individuals paying
each fee, and the revenue generated by each fee in the previous
fiscal year.
Sec. 302. (1) The department may contract with or provide
grants to local units of government, institutions of higher
education, or nonprofit organizations to support activities
authorized by appropriations in part 1.
(2) The department shall notify members of the legislature of
grants or contracts awarded to recipients located within a member's
legislative district.
(3) As used in this section:
(a) "Contracts" includes, but is not limited to, contracts for
delivery of groundwater/freshwater programs, MAEAP technical
assistance, forest management, invasive species monitoring, and
wildlife risk mitigation.
(b) "Grants" includes, but is not limited to, grants promoting
proper pesticide disposal and research grants for the purpose of
enhancing the agricultural industries in this state.
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Sec. 303. (1) From the funds appropriated in part 1 for
emerging contaminants in food and agriculture the department shall
support efforts to identify and respond to the impacts of emerging
contaminants to the food and agriculture sector, help address and
mitigate current issues caused by emerging contaminants, and work
to prevent and minimize future impacts. The department shall
coordinate these efforts with other state agencies, federal
agencies, tribal governments, local governments, institutions of
higher learning, and the food and agriculture sector. Emerging
contaminants include but are not limited to pesticides, dioxins,
and per- and polyfluoroalkyl substances.
(2) The unexpended funds appropriated in part 1 for emerging
contaminants in food and agriculture are designated as a work
project appropriation, and any unencumbered or unallotted funds do
not lapse at the end of the fiscal year and are available for
expenditures for projects under this section until the projects
have been completed. 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 project is to support efforts to
identify and respond to the impacts of emerging contaminants to the
food and agriculture sector, help address and mitigate current
issues caused by emerging contaminants, and work to prevent and
minimize future impacts.
(b) The project will be accomplished by utilizing state
employees or contracts with service providers, or both.
(c) The estimated cost of this project is $1,141,600.00.
(d) The tentative completion date for the work project is
September 30, 2029.
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BUREAU OF FOOD SAFETY AND ANIMAL HEALTH
Sec. 401. Not later than April 1, the department shall report
on the previous calendar year's activities of the bureau of food
safety and animal health. The report must include the following:
(a) Information on activities and outcomes of the dairy safety
and inspection program, the food safety inspection program, the
foodborne illness and emergency response program, and the food
service program.
(b) Significant foodborne outbreaks and emergencies, including
any significant enforcement actions taken related to food safety.
(c) All indemnification payments for livestock depredation
made, including all of the following:
(i) The reason for the indemnification.
(ii) The amount of the indemnification.
(iii) The person for whom the indemnification was paid.
Sec. 402. From the funds appropriated in part 1, the
department shall pay for all whole herd bovine TB testing costs and
individual animal testing costs in the modified accredited zone and
buffer counties as referenced in the current memorandum of
understanding between the department and the USDA to maintain
split-state status requirements. These costs include indemnity and
compensation for injury causing death or downer to animals.
Sec. 403. The department shall collaborate with the USDA to
monitor bovine TB, consistent with the current required memorandum
of understanding between the department and the USDA.
Sec. 404. From the funds appropriated in part 1 for animal
disease prevention and response, the department shall use
$200,000.00 to cover costs associated with testing of registered
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privately owned cervid facilities as follows:
(a) Required surveillance testing for chronic wasting disease.
(b) Infected herd bovine TB testing.
Sec. 405. (1) Not later than October 15, the department shall
provide to the standard report recipients a report on bovine TB
status and department activities.
(2) For each fiscal quarter following the report required in
subsection (1), the department shall provide an update that
identifies the following:
(a) Significant impacts to the program, including new
incidence of bovine TB in this state, department activity
associated with specific new incidence of bovine TB, any changes in
USDA requirements or movement orders, and information and data on
wildlife risk mitigation plan implementation in the modified
accredited zone.
(b) Implementation of a movement certificate process.
(c) Progress toward annual surveillance test requirements.
(d) Efforts to work with slaughter facilities in this state,
as well as those that slaughter a significant number of animals
from this state, and educational programs and information for this
state's livestock community.
Sec. 406. From the funds appropriated in part 1 for Michigan
animal agriculture alliance, the department shall work with animal
industry representatives and state research universities for an
animal research grant program.

BUREAU OF ENVIRONMENT AND SUSTAINABILITY
Sec. 501. The department shall report on the previous calendar
year's activities of the bureau of environment and sustainability
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on or before April 1.
Sec. 502. (1) The purpose of the part 1 appropriation for soil
health/regenerative agriculture is to advance the adoption and
implementation of best regenerative agricultural practices and new
environmentally sustainable technologies, promoting soil health and
regenerative agriculture principles throughout the state.
(2) From the funds appropriated in part 1 for soil
health/regenerative agriculture, the department shall do both of
the following:
(a) Promote the principles of soil health and regenerative
agriculture through at least the following:
(i) The maintenance of soil cover.
(ii) The minimization of soil disturbance.
(iii) The maximization of plant and crop diversity.
(iv) The maximization of the presence of living roots.
(v) The integration of livestock into the cropping systems.
(b) Ensure that program outcomes include at least the
following:
(i) The increase of soil organic matter content.
(ii) The improvement of soil water infiltration capacity.
(iii) The increase in soil water holding capacity.
(iv) The improvement of soil biological capacity to break down
plant residue and other substances and to maintain soil
aggregation.
(v) The improvement of soil nutrient sequestration and cycling
capacity.
(vi) The reduction of nutrient losses.
(3) From the funds appropriated in part 1 for soil
health/regenerative agriculture, the department shall promote
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practices of soil health and regenerative agriculture, including
the use of no-till farming, intercropping, cover crops,
multispecies cover crops, roller crimping, managed rotational
grazing, and other practices identified that utilize natural
biological processes to advance the goals of soil health and
regenerative agriculture.
(4) No funds appropriated in part 1 for soil
health/regenerative agriculture may be used for applied research
into the precision application of fertilizer, pesticides, or
herbicides.
(5) It is the intention of the legislature that the department
engage with program partners to achieve the purposes of the soil
health/regenerative agriculture programs through research,
education, and outreach. Agreements with program partners receiving
funds through soil health/regenerative agriculture appropriations
must describe intended outcomes and how intended outcomes will be
measured and require the provision of a report to the department on
uses of funding received and a progress report on outcomes.
(6) In the report required under section 501 of this part, the
department shall provide information on the program described in
this section, including department activities, uses of program
funds by activity or project, contractors, grantees, and a summary
of projects and project results.
(7) Of the funds appropriated in part 1 for soil
health/regenerative agriculture, not less than $1,000,000.00 must
be used by the department to partner with the state land grant
university through MSU Extension and AgBioResearch to develop,
implement, and evaluate a soil health/regenerative agriculture
program. The partnership described in this subsection must be
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focused on researching and assisting the agricultural industry in
implementing soil health/regenerative agricultural principles and
techniques. Partnership goals must include, but are not limited to,
establishing program priorities, developing metrics, implementing
goals, evaluating outcomes, and engaging with stakeholders.
Sec. 503. Not later than April 1, the department shall prepare
a report to be posted on the department's website and provided to
the relevant house and senate standing committees and
appropriations subcommittees as well as to the fiscal agencies and
state budget office. The report must contain the following
information for agriculture nutrient best management voluntary
practices program:
(a) The number and location of acres enrolled in nutrient
management or other best management practices.
(b) The number of acres enrolled that were not previously
verified under the MAEAP.
(c) A summary of practices implemented and available incentive
programs.
(d) The starting and ending balances of the program.
(e) A summary of outreach and training efforts.
(f) Testing results.
Sec. 505. The funds appropriated in part 1 for environmental
stewardship/MAEAP must be used to support department agriculture
pollution prevention programs, including groundwater and freshwater
protection programs under part 87 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.8701 to
324.8717, and technical assistance in implementing conservation
grants available under the federal farm bill.
Sec. 506. The department may receive and expend federal
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revenues up to a total of $1,000,000.00 in excess of the federal
revenue appropriated in part 1 for environmental stewardship and
MAEAP activities. The department shall notify the subcommittees,
the fiscal agencies, and the state budget office prior to expending
federal revenues authorized under this section.
Sec. 507. (1) From the appropriations in part 1 for local
conservation districts, $3,500,000.00 must be distributed through a
grant program to local conservation districts in this state that
were in operation in the previous fiscal year based upon criteria
established by the department.
(2) On or before April 1, the department shall report on the
previous calendar year's activities of local conservation
districts. The report must include descriptions of local
conservation district activities and the use of funding. In
preparing this report, the department shall coordinate with
representatives of local conservation districts.

AGRICULTURE DEVELOPMENT BUREAU
Sec. 601. (1) From the funds appropriated in part 1 for the
food and agriculture investment program, the department shall
operate a food and agriculture investment program.
(2) The food and agriculture investment program shall do all
of the following:
(a) Expand the Michigan food and agriculture sector.
(b) Promote food security.
(c) Develop local and regional food systems.
(d) Grow Michigan exports.
(e) Promote the development of value-added agricultural
production.
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(f) Support urban farms, food hubs, food incubators, and
community-based processing facilities with a focus on new and
expanding protein processors.
(g) Promote the expansion of farm markets, flower markets, and
urban agriculture, including hoop houses.
(h) Increase food processing activities within this state by
accelerating investment projects and infrastructure development
that support growth in production agriculture and food and
agriculture processing, expand opportunity to new agricultural
producers and processors, promote agriculture tourism and
agricultural heritage, and develop agricultural education and
interpretation activities.
(3) In addition to the funds appropriated in part 1, the
department may receive and expend funds received from outside
sources for the food and agriculture investment program.
(4) Before the allocation of funding, all projects must
receive approval from the Michigan commission of agriculture and
rural development, except for projects selected through a
competitive process by a joint evaluation committee selected by the
director and consisting of representatives that have agriculture,
food security, local and regional food systems, business, and
economic development expertise. Projects funded through the food
and agriculture investment program are required to have a grant
agreement that outlines milestones and activities that must be met
in order to receive a disbursement of funds. Projects must also
identify measurable project outcomes.
(5) The department shall include, in the agriculture
development annual report, a report on the food and agriculture
investment program for the previous fiscal year that includes a
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listing of the grantees, award amounts, match funding, project
locations, and project outcomes.
(6) The unexpended funds appropriated in part 1 for the food
and agriculture investment program are designated as a work project
appropriation, and any unencumbered or unallotted funds do not
lapse at the end of the fiscal year and are available for
expenditures for projects under this section until the projects
have been completed. 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 project is to promote and expand the
Michigan food and agriculture sector, grow Michigan exports, and
increase food processing activities within the state.
(b) The project will be accomplished by utilizing state
employees or contracts with service providers, or both.
(c) The estimated cost of this project is identified in the
appropriation line item.
(d) The tentative completion date for the work project is
September 30, 2028.
(7) The department may expend money from the funds
appropriated in part 1 for the food and agriculture investment
program, including all of the following activities:
(a) Grants.
(b) Loans or loan guarantees.
(c) Infrastructure development.
(d) Other economic assistance.
(e) Program administration.
(f) Export assistance.
(8) The department shall expend no more than 3% from the funds
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appropriated in part 1 for the food and agriculture investment
program for administrative purposes.
(9) In awarding grants under the food and agriculture
investment program, the department shall identify and encourage
applications from women, veterans, and beginning farmers and
ranchers. In awarding grants under the food and agriculture
investment program, the department must also prioritize Michigan-
based small businesses, nonprofits, and organizations promoting
agriculture and food security activities.
Sec. 602. (1) From the funds appropriated in part 1 for fair
food network – double up food bucks, the department shall work with
the fair food network to ensure that at least 95% of the funds
allocated to the double up food bucks program are directly used for
the payments to participating vendors.
(2) The department shall work with the department of health
and human services to do the following:
(a) Notify recipients of food assistance program benefits that
food assistance program benefits can be accessed at many farmer's
markets in this state with bridge cards.
(b) Notify recipients of food assistance program benefits
about the double up food bucks program and that it is administered
by the fair food network. Food assistance program recipients shall
receive information about the double up food bucks program.
(3) The department shall work with the fair food network to
expand access to the double up food bucks program in each of this
state's counties with grocery stores or farmer's markets that meet
the program's eligibility requirements.
(4) Not later than June 1, the department shall submit a
report on activities and outcomes of the double up food bucks
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program. The report must contain the following:
(a) Counties in this state with participating double up food
bucks vendors, the number of vendors by county, and the name of
location of vendors, as of May 1, 2027. The report must identify
counties and vendors added to the program or removed from the
program since May 1, 2026.
(b) Number of individuals participating in the program, by
county.
(c) A description of efforts to expand the program, including
new grocers and farm markets added to the program during the
previous calendar year.
Sec. 603. (1) By not later than April 1, the department shall
report on the previous calendar year's activities of the
agriculture development bureau.
(2) The report described in subsection (1) must include the
following information on any grants awarded during the prior fiscal
year:
(a) The name of the grantee.
(b) The amount of the grant.
(c) The purpose of the grant, including measurable outcomes.
(d) Additional state, federal, private, or local funds
contributed to the grant project.
(e) The completion date of grant-funded activities.
(3) The report must include the following information on the
Michigan craft beverage council established under section 303 of
the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1303:
(a) Council activities and accomplishments for the previous
fiscal year.
(b) Council expenditures for the previous fiscal year by
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category of administration, industry support, research and
education grants, and promotion and consumer education.
(c) Grants awarded during the previous fiscal year and the
results of research grant projects completed during the previous
fiscal year.
Sec. 604. Unexpended industry support fund revenues at the end
of the fiscal year may be carried forward into the industry support
fund in the succeeding fiscal year and do not lapse to the general
fund.
Sec. 605. (1) The appropriations in part 1 for the qualified
forest program are for the purpose of increasing the knowledge of
nonindustrial private forestland owners regarding sound forest
management practices and increasing the amount of commercial timber
production from those lands.
(2) The department shall work in partnership with stakeholder
groups and other state and federal agencies to increase the active
management of nonindustrial private forestland to foster the growth
of this state's timber product industry.
Sec. 606. From the funds appropriated in part 1, the
department shall maintain coordination with the department of
treasury to improve the timely processing and issuance of tax
credits under section 36109 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.36109, for the
Michigan's farmland and open space preservation program under parts
361 and 362 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.36101 to 324.36116 and 324.36201 to
324.36207. The improvement of timely processing and issuance, as
described in this section, includes, but is not limited to:
(a) Timely review of mailed applications and paperwork.
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(b) Timely and proactive communications to applicants on the
status of their application.
(c) The provision of a clear and understood timeline for the
issuance of any tax credits.
Sec. 607. The department shall collaborate with the department
of labor and economic opportunity's office of rural prosperity on
the rural development fund grant program as part of the state's
coordinated strategy for achieving rural prosperity across the
state.

LABORATORY AND CONSUMER PROTECTION BUREAU
Sec. 701. The department shall report by April 1 on the previous
calendar year's activities of the laboratory bureau.
Sec. 702. No funds from the appropriations in part 1 may be
used for the purpose of consolidating state-run laboratories.

FAIRS AND EXPOSITIONS
Sec. 801. All appropriations from the agriculture equine
industry development fund must be spent on equine-related purposes.
No funds from the agriculture equine industry development fund may
be expended for non-equine-related purposes without prior approval
of the legislature.
Sec. 802. From the funds appropriated in part 1 from
agriculture equine industry development funds, available revenue
must be allocated in the following priority order:
(a) To support all administrative, contractual, and regulatory
costs incurred by the department and the Michigan gaming control
board.
(b) Any remaining funds collected through September 30, 2026,
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after the obligations in subdivision (a) have been met, must be
prorated among the county fairs, supplements, breeders' awards, and
sire stakes awards to eligible race meeting licensees in accordance
with section 20 of the horse racing law of 1995, 1995 PA 279, MCL
431.320.
Sec. 805. (1) From the funds appropriated in part 1 for county
fairs, shows, and expositions, the department shall establish and
administer a county fairs, shows, and expositions grant program.
The program must have the following objectives:
(a) Assist in the financing of building improvements or other
capital improvements at county fairgrounds of this state.
(b) Provide financial support, promotion, prizes, and premiums
of equine, livestock, and other agricultural commodity expositions
in this state.
(2) The department shall award grants on a competitive basis
to county fairs or other organizations from the funds appropriated
in part 1 for county fairs, shows, and expositions grants. Grantees
will be required to provide a 50% cash match with grant awards and
identify measurable project outcomes. A county fair organization
that received a county fair capital improvement grant in the prior
fiscal year must not receive a grant from the appropriation in part
1.
(3) From the amount appropriated in part 1 for county fairs,
shows, and expositions, up to $25,000.00 must be expended for the
purpose of financial support, promotion, prizes, and premiums of
equine, livestock, and other agricultural commodity expositions and
festivals in this state.
(4) All fairs receiving grants under this section must provide
a report to the department on the financial impact resulting from
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the capital improvement project on both fair and nonfair events.
These reports are due for 3 years immediately following the
completion of the capital improvement project.
(5) The department shall identify criteria, evaluate
applications, and provide recommendations to the director for final
approval of grant awards.
(6) The department may expend money from the funds
appropriated in part 1 for the county fairs, shows, and expositions
for administering the program.
(7) The unexpended portion of the appropriation in part 1 for
county fairs, shows, and expositions grants are designated as a
work project appropriation and any unencumbered or unallotted funds
do not lapse at the end of the fiscal year and are available for
expenditures for projects under this section until the projects
have been completed. 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 project is to support building
improvements or other capital improvements at county fairgrounds of
this state.
(b) All grants will be distributed in accordance with this
section and the grant guidelines published prior to the request for
proposals.
(c) The project will be accomplished by utilizing state
employees or contracts with service providers, or both.
(d) The estimated cost of the project is $3,000,000.00.
(e) The tentative completion date for the work project is
September 30, 2029.
(8) The department shall provide a year-end report on the
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county fairs, shows, and expositions grants no later than December
1, 2027 that includes a listing of the grantees, award amounts,
match funding, project outcomes, and department costs of grant
administration.

ARTICLE 2
DEPARTMENT OF CORRECTIONS
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of
corrections for the fiscal year ending September 30, 2027, from the
following funds:
DEPARTMENT OF CORRECTIONS
APPROPRIATION SUMMARY
Full-time equated unclassified positions 16.0
Full-time equated classified positions 12,302.9
Full-time employees 10,365.0
Limited-term employees 48.0
Non-career/per diem employees 22.0
Part-time employees 6.0
Permanent-intermittent employees 2.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 2,122,408,400
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 2,122,408,400
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Federal revenues:
Total federal revenues 5,222,600
Special revenue funds:
Total local revenues 275,000
Total private revenues 0
Total other state restricted revenues 30,108,900
State general fund/general purpose $ 2,086,801,900
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 16.0
Full-time equated classified positions (41.1)
Unclassified salaries--FTEs 16.0 $ 1,898,900
Administrative hearings officers 4,070,200
Budget and operations administration--FTEs 317.0 45,272,300
Budgetary savings--FTEs (455.1) (79,585,200)
County jail reimbursement program 14,564,600
Departmentwide economic adjustments 35,693,600
Employee wellness programming--FTEs 9.0 2,570,600
Equipment and special maintenance 603,400
Executive direction--FTEs 28.0 5,060,500
Judicial data warehouse user fees 3,300
New custody staff training 23,566,700
Prison industries operations--FTEs 60.0 10,309,100
Property management 2,473,000
Prosecutorial and detainer expenses 1,922,900
Worker's compensation 8,770,900
GROSS APPROPRIATION $ 77,194,800
Appropriated from:
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Federal revenues:
DOJ, prison rape elimination act grant 674,700
Federal education revenues 11,000
Federal revenues and reimbursements 7,900
Special revenue funds:
Correctional industries revolving fund 10,449,400
Correctional industries revolving fund 110 737,100
Jail reimbursement program fund 5,900,000
Resident stores 99,900
State general fund/general purpose $ 59,314,800
Sec. 103. OFFENDER SUCCESS ADMINISTRATION
Full-time equated classified positions 330.9
Community residential services $ 13,376,100
Criminal justice reinvestment 1,448,400
Education/skilled trades/career readiness
programs--FTEs 249.9 38,396,100
Enhanced food technology program--FTEs 11.0 1,454,000
Higher education in prison 1,250,000
Offender success community partners 18,925,000
Offender success federal grants 751,000
Offender success programming 15,742,200
Offender success services--FTEs 70.0 15,905,400
GROSS APPROPRIATION $ 107,248,200
Appropriated from:
Federal revenues:
DOJ, prisoner reintegration 751,000
Federal education revenues 1,632,800
State general fund/general purpose $ 104,864,400
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Sec. 104. FIELD OPERATIONS ADMINISTRATION
Full-time equated classified positions 1,701.5
Field operations--FTEs 1,670.5 $ 229,249,100
Parole board operations--FTEs 31.0 3,361,600
Parole/probation services 940,000
GROSS APPROPRIATION $ 233,550,700
Appropriated from:
Special revenue funds:
Community tether program reimbursement 275,000
Reentry center offender reimbursements 10,000
Supervision fees 6,630,500
Supervision fees set-aside 940,000
State general fund/general purpose $ 225,695,200
Sec. 105. CORRECTIONAL FACILITIES ADMINISTRATION
Full-time equated classified positions 678.0
Body-worn cameras--FTEs 8.0 $ 3,821,800
Central records--FTEs 43.0 4,911,100
Contraband prevention 2,750,000
Correctional facilities administration--FTEs 37.0 6,910,000
Housing inmates in federal institutions 511,000
Inmate legal services 224,100
Intelligence unit--FTEs 30.0 4,068,700
Prison food service--FTEs 324.0 77,370,600
Prison store operations--FTEs 32.0 3,645,400
Transportation--FTEs 204.0 35,932,600
GROSS APPROPRIATION $ 140,145,300
Appropriated from:
Federal revenues:
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DOJ-BOP, federal prisoner reimbursement 411,000
SSA-SSI, incentive payment 272,000
Special revenue funds:
Correctional industries revolving fund 110 886,400
Resident stores 3,645,400
State general fund/general purpose $ 134,930,500
Sec. 106. HEALTH CARE
Full-time equated classified positions 1,475.3
Clinical complexes--FTEs 1,000.8 $ 181,705,900
Health care administration--FTEs 18.0 3,765,900
Healthy Michigan plan administration--FTEs 12.0 890,400
Hepatitis C treatment 6,081,200
Interdepartmental grant to health and human
services, eligibility specialists 120,200
Mental health and substance use disorder
treatment services--FTEs 444.5 68,080,200
Prisoner health care services 117,540,700
Vaccination program 691,200
GROSS APPROPRIATION $ 378,875,700
Appropriated from:
Federal revenues:
Federal revenues and reimbursements 427,400
Special revenue funds:
Prisoner health care co-payments 257,200
State general fund/general purpose $ 378,191,100
Sec. 107. CORRECTIONAL FACILITIES
Full-time equated classified positions 8,158.3
Alger Correctional Facility - Munising--FTEs 259.0 $ 32,805,000
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Baraga Correctional Facility - Baraga--FTEs 279.8 37,589,000
Bellamy Creek Correctional Facility - Ionia--
FTEs 414.1 54,570,100
Carson City Correctional Facility - Carson
City--FTEs 422.4 55,294,600
Central Michigan Correctional Facility - St.
Louis--FTEs 385.0 53,477,300
Charles E. Egeler Correctional Facility -
Jackson--FTEs 374.6 52,918,000
Chippewa Correctional Facility - Kincheloe--
FTEs 443.6 58,868,600
Cooper Street Correctional Facility - Jackson--
FTEs 254.6 31,111,800
Earnest C. Brooks Correctional Facility -
Muskegon--FTEs 248.2 35,196,300
G. Robert Cotton Correctional Facility -
Jackson--FTEs 375.0 47,549,700
Gus Harrison Correctional Facility - Adrian--
FTEs 285.4 41,677,200
Ionia Correctional Facility - Ionia--FTEs 286.3 39,964,900
Kinross Correctional Facility - Kincheloe--FTEs 222.0 33,852,800
Lakeland Correctional Facility - Coldwater--
FTEs 272.4 38,226,700
Macomb Correctional Facility - New Haven--FTEs 313.3 43,326,900
Marquette Branch Prison - Marquette--FTEs 319.7 39,729,700
Muskegon Correctional Facility - Muskegon--FTEs 217.3 31,806,000
Newberry Correctional Facility - Newberry--FTEs 200.1 28,319,600
Oaks Correctional Facility - Eastlake--FTEs 289.4 40,701,900
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Parnall Correctional Facility - Jackson--FTEs 262.5 33,877,400
Richard A. Handlon Correctional Facility -
Ionia--FTEs 268.3 37,046,700
Saginaw Correctional Facility - Freeland--FTEs 268.6 38,521,700
Special Alternative Incarceration Program -
Jackson--FTEs 26.2 3,639,000
St. Louis Correctional Facility - St. Louis--
FTEs 302.9 43,821,100
Thumb Correctional Facility - Lapeer--FTEs 295.6 41,526,300
Women's Huron Valley Correctional Complex -
Ypsilanti--FTEs 494.8 67,125,200
Woodland Correctional Facility - Whitmore Lake-
-FTEs 287.2 42,564,300
Deferred maintenance at correctional facilities 39,464,000
Northern region administration and support--
FTEs 42.0 4,594,100
Southern region administration and support--
FTEs 48.0 18,469,800
GROSS APPROPRIATION $ 1,167,635,700
Appropriated from:
Federal revenues:
DOJ, state criminal assistance program 1,034,800
Special revenue funds:
State restricted fees, revenues, and
reimbursements 102,100
State general fund/general purpose $ 1,166,498,800
Sec. 108. INFORMATION TECHNOLOGY
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Correctional facility count and callout process
automation $ 1,946,400
Information technology services and projects 15,811,600
GROSS APPROPRIATION $ 17,758,000
Appropriated from:
Special revenue funds:
Correctional industries revolving fund 110 91,500
Supervision fees set-aside 359,400
State general fund/general purpose $ 17,307,100

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$2,116,910,800.00 and total state spending under part 1 from state
sources to be paid to local units of government is $106,471,500.00.
The following itemized statement identifies appropriations from
which spending to local units of government will occur:
DEPARTMENT OF CORRECTIONS
Community residential services $ 13,376,100
County jail reimbursement program 14,564,600
Field Operations 76,607,900
Prosecutorial and detainer expenses 1,922,900
TOTAL $ 106,471,500
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
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to 18.1594.Sec. 203. As used in this part and part 1:
(a) "Administrative segregation" means confinement for
maintenance of order or discipline to a cell or room apart from
accommodations provided for inmates who are participating in
programs of the facility.
(b) "Department" means the department of corrections.
(c) "Director" means the director of the department.
(d) "DOJ" means the United States Department of Justice.
(e) "DOJ-BOP" means the DOJ Bureau of Prisons.
(f) "Evidence-based" means a decision-making process that
integrates the best available research, clinician expertise, and
client characteristics.
(g) "FTE" means full-time equated position in the classified
service of this state.
(h) "Jail" means a facility operated by a local unit of
government for the physical detention and correction of individuals
charged with or convicted of criminal offenses.
(i) "OCC" means the office of community corrections.
(j) "Offender success" means that an offender has, with the
support of the community, intervention of the field agent, and
benefit of any participation in programs and treatment, made an
adjustment while at liberty in the community such that the offender
has not been sentenced to or returned to prison for the conviction
of a new crime or the revocation of probation or parole.
(k) "Recidivism" means that term as defined in section 1 of
2017 PA 5, MCL 798.31.
(l) "Serious emotional disturbance" means that term as defined
in section 100d(3) of the mental health code, 1974 PA 258, MCL
330.1100d.
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(m) "Serious mental illness" means that term as defined in
section 100d(4) of the mental health code, 1974 PA 258, MCL
330.1100d.
(n) "SSA" means the United States Social Security
Administration.
(o) "SSA-SSI" means SSA supplemental security income.
(p) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on corrections and judiciary, the senate and house
fiscal agencies, the senate and house policy offices, the
legislative corrections ombudsman, and the state budget office.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
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required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
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with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
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(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
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Sec. 214. (1) Not later than April 1, the department shall
maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $2,500,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $133,039,600.00. From this amount, total
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appropriations for pension-related legacy costs for the department
are estimated at $133,039,600.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
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that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department or a prisoner because the
employee or prisoner communicates with a member of the legislature
or legislative staff unless the communication is prohibited by law
and the department is exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
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each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
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spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
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office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
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reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
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individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.

DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. For 3 years after a felony offender is released from
the department's jurisdiction, the department shall maintain the
offender's file on the offender tracking information system and
make it publicly accessible in the same manner as the file of the
current offender. The department shall immediately remove the
offender's file from the offender tracking information system upon
determination that the offender was wrongfully convicted and the
offender's file is not otherwise required to be maintained on the
offender tracking information system.
Sec. 302. From the funds appropriated in part 1, the
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department shall submit a report not later than March 1 on the
department's staff retention strategies. The report must include,
but not be limited to, all of the following:
(a) Mechanisms by which the department receives employee
feedback and how the department considers suggestions made by
employees.
(b) Steps the department has taken, and future plans and goals
the department has for retention.
Sec. 303. From the funds appropriated in part 1, the
department shall submit a report not later than March 1 on the
number of employee departures. The report must include all of the
following:
(a) The number of corrections officers that departed from
employment at a state correctional facility in the previous fiscal
year and the number of years they worked for the department.
(b) A chart that shows the normal distribution of employee
departures in the positions described under subdivision (a) based
on years of service. Years of service must be grouped into the
following ranges: 1 to 3 years, 3 to 5 years, 5 to 10 years, 10 to
15 years, 15 to 20 years, and 20 and more years.
(c) A section that shows the distinction between all of the
following:
(i) Recruits who are in training at the academy that depart
employment.
(ii) Recruits who are in training at a facility that depart
employment.
(iii) Employees who have been on the job that depart employment.
(d) A summary of the primary reasons for departure for each of
the ranges of years of service described under subdivision (1)(b)
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based on the available responses.
Sec. 304. Funds appropriated in part 1 for prosecutorial and
detainer expenses must be used to 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.
Sec. 305. The department shall provide fiduciary oversight of
funds received under the local corrections officers training act,
2003 PA 125, MCL 791.531 to 791.546.
Sec. 306. From the funds appropriated in part 1, the
department shall issue a report not later than March 1 for all
vendor contracts with a value of $500,000.00 or more and include
all of the following:
(a) The original start date and the current expiration date of
each contract.
(b) The number of available option years.
(c) The number, if any, of contract compliance monitoring site
visits completed by the department for each vendor in the previous
fiscal year.
(d) The number and amount of fines in the previous fiscal year
for service-level agreement noncompliance for each vendor broken
down by area of noncompliance.
Sec. 307. The department must ensure that a prisoner telephone
system is maintained. The prisoner telephone system must meet
ongoing operational needs of the department while maintaining the
lowest per-minute rate possible. The department must provide notice
at least 45 days in advance of each of the following taking effect:
(a) Changes to telephone rates.
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(b) Extending the telephone contract, including the department
exercising the option to extend the contract.
(c) Rebidding the telephone contract.
Sec. 308. From the funds appropriated in part 1, the
department shall provide for the training of all custody staff in
effective and safe ways of handling prisoners with mental illness
and referring prisoners to mental health treatment programs. Mental
health awareness training must be incorporated into the training of
new custody staff.
Sec. 309. From the funds appropriated in part 1, the
department shall issue a report on all correctional facilities not
later than January 1 that includes all of the following information
for each facility:
(a) The name, street address, and date of construction.
(b) The current maintenance costs.
(c) Any maintenance planned.
(d) The current utility costs.
(e) The expected future capital improvement costs.
(f) The current unspent balance of any authorized capital
outlay projects, including the original authorized amount.
(g) The expected future useful life.
Sec. 310. From the funds appropriated in part 1, the
department shall provide a report on the Michigan state industries
program not later than December 1. The report must include, but is
not limited to, all of the following information:
(a) The locations of the programs.
(b) The total number of participants at each location.
(c) A description of job duties and typical inmate schedules,
and the products that are produced.
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(d) How the program provides marketable skills that lead to
employable outcomes after release from a department facility.
Sec. 311. (1) Funds appropriated in part 1 for employee
wellness programming must be used for post-traumatic stress
outreach, treating mental health issues, peer support programs, and
providing mental health programming for all department staff,
including former employees.
(2) Not later than December 15, the department shall submit a
report on programs the department has established, the level of
employee involvement, and expenditures made by the department for
employee wellness programming.
Sec. 312. (1) From the funds appropriated in part 1 for new
custody staff, the department shall work to hire and train new
corrections officers to address attrition of corrections officers
and to decrease overtime costs. The department shall submit
quarterly reports on new employee schools. The reports must include
all of the following information for the immediately preceding
fiscal quarter, and as much of the information as possible for the
current and next fiscal year:
(a) The number of new employee schools that took place and the
location of each.
(b) The number of recruits that started in each employee
school.
(c) The number of recruits that graduated from each employee
school and continued employment with the department.
(2) Third quarter reports must outline steps the department
has taken to obtain the highest number of recruits possible for
each new employee school. A report prepared under this subsection
must include, but is not limited to, all of the following
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information:
(a) Internal sources of recruitment, including transfers and
promotions.
(b) External sources of recruitment, including advertisements.
(c) Job portals, social networking platforms, placement
agencies, job fairs, campus placements, or professional entities
used for recruitment.
(d) Whether the department's website was used to advertise
vacancies.
Sec. 313. From the funds appropriated in part 1, the
department shall submit a quarterly report on the number of
overtime hours worked by all custody staff, by facility. The report
must include, for each facility, the reasons for overtime hours
worked and the average number of overtime hours worked by active
employees.
Sec. 314. From the funds appropriated in part 1, the
department may establish agreements and exchange offender data with
local, state, and federal agencies, law enforcement, community
service and treatment providers, and research partners in order to
improve offender success, reduce recidivism risk, and enhance
public safety. This data sharing may include, but is not limited
to, efforts to support all of the following:
(a) Providing continuing access to behavioral health, physical
health, and medication needs through community-based providers.
(b) Establishing assistance program eligibility and
participation.
(c) Collaborating with community service providers for
continued care and access to services for offenders.
(d) Providing ongoing cognitive and behavioral treatment
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programming in the community.
(e) Providing substance abuse testing and referrals for
counseling services and treatment.
(f) Providing vocational skill training, job placement
support, and monitoring employment attainment.
(g) Determining educational attainment and needs.
(h) Establishing accurate offender identification, criminal
histories, and monitoring new criminal activity.
(i) Measuring and evaluating treatment programs and services
in support of evidence-based practices.
Sec. 315. From the funds appropriated in part 1, the
department shall submit 3-year and 5-year prison population
projection updates not later than April 1, including explanations
of the methodology and assumptions used in developing the
projection updates.
Sec. 316. From the funds appropriated in part 1, the
department shall provide an annual statistical report for the
preceding calendar year not later than June 30 that includes, but
is not limited to, the types of information as provided in the 2022
statistical report.
Sec. 317. From the funds appropriated in part 1, the
department shall report the reincarceration recidivism rates of
offenders based on available data.
Sec. 318. (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 certain felons
who otherwise would have been sentenced to prison.
(2) The county jail reimbursement program must be used to
reimburse counties for convicted felons in the custody of the
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sheriff 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 or a nonperson crime in crime class F 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 under the sentencing guidelines described in
subdivision (a).
(c) The felon was sentenced to jail for a felony committed
while the felon was on parole and under the jurisdiction of the
parole board and for which the sentencing guidelines recommended
range for the minimum sentence has an upper limit of more than 18
months.
(3) State reimbursement under this section must be $70.00 per
diem per diverted offender for offenders with a presumptive prison
guideline score, $60.00 per diem per diverted offender for
offenders with a straddle cell guideline for a group 1 crime, and
$45.00 per diem per diverted offender for offenders with a straddle
cell guideline for a group 2 crime. Reimbursements must be paid for
sentences up to a 1-year total.
(4) County jail reimbursement program expenditures must not
exceed the amount appropriated in part 1 for the county jail
reimbursement program. Payments to counties under the county jail
reimbursement program must be made in the order in which properly
documented requests for reimbursements are received. A request is
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properly documented if it meets departmental requirements for
documentation. Not later than October 15, the department shall
distribute the documentation requirements to all counties.
(5) Any county that receives funding under this section for
the purpose of housing in jails certain felons who otherwise would
have been sentenced to prison shall, as a condition of receiving
the funding, report not later than September 30 an annual average
jail capacity and annual average jail occupancy for the previous
fiscal year.
(6) Not later than February 1, the department shall report all
of the following information:
(a) The number of inmates sentenced to the custody of the
sheriff and eligible for the county jail reimbursement program.
(b) The total amount paid to counties under the county jail
reimbursement program.
(c) The total number of days inmates were in the custody of
the sheriff and eligible for the county jail reimbursement program.
(d) The number of inmates sentenced to the custody of the
sheriff under each of the 3 categories: presumptive prison, group 1
crime, and group 2 crime in subsection (3).
(e) The total amount paid to counties under each of the 3
categories: presumptive prison, group 1 crime, and group 2 crime in
subsection (3).
(f) The total number of days inmates were in the custody of
the sheriff under each of the 3 categories: presumptive prison,
group 1 crime, and group 2 crime in subsection (3).
(g) The estimated cost of housing inmates sentenced to the
custody of the sheriff and eligible for the county jail
reimbursement program as inmates of a state prison.
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(7) As used in this section:
(a) "Group 1 crime" means a crime in 1 or more of the
following offense categories: arson, assault, assaultive other,
burglary, criminal sexual conduct, homicide or resulting in death,
other sex offenses, robbery, and weapon possession as determined by
the department based on specific crimes for which counties received
reimbursement under the county jail reimbursement program in fiscal
year 2007 and fiscal year 2008, and listed in the county jail
reimbursement program document titled "FY 2007 and FY 2008 Group
One Crimes Reimbursed", dated March 31, 2009.
(b) "Group 2 crime" means a crime that is not a group 1 crime,
including larceny, fraud, forgery, embezzlement, motor vehicle
offenses, malicious destruction of property, controlled substance
offense, felony drunk driving, and other nonassaultive offenses.
(c) "In the custody of the sheriff" means that the convicted
felon has been sentenced to the county jail and either is housed in
a county jail, is in custody but is being housed at a hospital or
medical facility for a medical or mental health purpose, or has
been released from jail and is being monitored through the use of
the sheriff's electronic monitoring system.
Sec. 319. (1) From the funds appropriated in part 1, the
department shall provide all of the following information on the
offender population in a monthly report:
(a) Prison population by facility and security level,
including the population of prisoners under the department's
jurisdiction housed in county jails.
(b) Net operating capacity according to the most recent
certification report.
(c) Electronic monitoring populations.
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(d) Parole populations.
(e) Probation populations, with identification of the number
of offenders in special alternative incarceration.
(2) From the funds appropriated in part 1, the department
shall provide all of the following information on the offender
population in a quarterly report:
(a) The number of closed housing units and beds in those
units, including the security level of closed beds.
(b) The number of prisoners serving life sentences.
(c) The number of prisoners classified as past their earliest
release date.
(d) The number of prisoner intakes during the previous
quarter.
(e) The number of prisoner exits, including paroles, maximum
discharges, and other exits during the previous quarter.
(3) If the department knows it will not meet the reporting
requirements under this section, the department shall immediately
issue a report that states that fact and that lists the reasons for
not meeting the reporting requirements.
Sec. 320. On a quarterly basis, the department shall report on
all of the following:
(a) A detailed accounting of all correction officer positions
at each correctional facility, including positions that are filled
and positions that are vacant by facility.
(b) A detailed accounting of all vacant positions that are
health care related.
Sec. 321. 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, parolee loans,
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academic/vocational services, custody escorts, compassionate
visits, union steward activities, and public works programs and
services provided to local units of government or private nonprofit
organizations. The revenues and fees collected are appropriated for
all expenses associated with these services and activities.
Sec. 322. From the funds appropriated in part 1, the
department shall work with the necessary employee groups and the
office of the state employer to implement 12-hour shifts at all
correctional facilities. Not later than July 1, 2027, the
department shall report on progress the department has made in
implementing this section.
Sec. 323. (1) The negative appropriation for budgetary savings
in part 1 must be satisfied through savings and reductions
identified by the director and approved by the state budget
director.
(2) Adjustments to appropriation authorizations necessary to
implement the requirements of subsection (1) must be made only
after approval of transfers under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(3) The state budget director is authorized to reduce federal,
local, private, and state restricted appropriation amounts in part
1 to reflect savings from those fund sources associated with
reductions made to state general fund/general purpose
appropriations under subsection (2).
Sec. 324. According to the terms of payment section of
contract number MA240000000326 with the State of Michigan, the
provider services director at VitalCore Physicians Group of
Michigan, PLLC, is responsible for ensuring that all approved
claims are submitted, paid within 45 days, and that all collection
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notices are resolved within 90 days of notification of the
collection notice. As a condition of receiving the full amount of
funding appropriated in part 1 for budget and operations
administration and health care administration, the department shall
ensure VitalCore Physicians Group of Michigan, PLLC, approves
claims submitted, pays claims within 45 days, and resolves all
collection notices within 90 days of notification.

OFFENDER SUCCESS ADMINISTRATION
Sec. 401. (1) From the funds appropriated in part 1, the
department shall provide a report not later than March 1 on
offender success expenditures, allocations, and performance. The
report must include, but not be limited to, details on prior-year
expenditures, including amounts spent on each project funded,
itemized by service provided and service provider. Reported
performance factors must be reported by region and must include,
but not be limited to, all of the following:
(a) The number of individuals who received transitional
housing services.
(b) The average length of stay in transitional housing.
(c) The number of individuals who received a referral for
economic stability assistance and the number of referred
individuals who secured employment or enrolled in
education/training to increase economic stability.
(d) The number of referred individuals who maintained
employment for 12 months or more.
(e) The total amount of leveraged services secured by the
contractor.
(2) As used in this section, "leveraged services" means
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services that benefit clients that are not directly paid for by the
department, such as educational scholarships or grants, workforce
training grants, or housing choice vouchers.
(3) The department may accept cash or in-kind donations to
supplement funds for prison education training, supplies, and
materials necessary to complete the academic and jobs skills
related programs. All funds received are appropriated and may be
expended by the department. Any unexpended or unencumbered
donations at the end of the fiscal year shall not lapse to the
general fund but shall be carried forward to the subsequent fiscal
year.
Sec. 402. From the funds appropriated in part 1 for offender
success services, the department, when reasonably possible, shall
ensure that inmates have potential employer matches in the
communities to which they will return prior to each inmate's
initial parole hearing.
Sec. 403. (1) From the funds appropriated in part 1, the
department shall design services for offender success and
vocational education programs, collaborating with the department of
labor and economic opportunity and local entities to the extent
deemed necessary by the director. The department shall ensure the
program provides relevant professional development opportunities to
prisoners that are high quality, demand driven, locally receptive,
and responsive to the needs of communities where the prisoners are
expected to reside after their release from correctional
facilities.
(2) Not later than March 1, the department shall provide a
report detailing the results of the workforce development program.
Sec. 404. Funds awarded for community residential services in
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part 1 must provide for all of the following:
(a) An initial client assessment reimbursement of $200.00.
(b) A per diem reimbursement of not more than $70.00.
Sec. 407. From the funds appropriated in part 1, the
department shall establish and maintain policies and procedures
that assist prisoners with obtaining a birth certificate, duplicate
Social Security card, if eligible, DD Form 214 or other military
documentation, state identification card, and operator's license
before parole or discharge.
Sec. 408. (1) Funds appropriated in part 1 for higher
education in prison must be used by the department in collaboration
with accredited universities or colleges to provide incarcerated
individuals the opportunity to participate in comprehensive
bachelor's degree programs at no cost to the incarcerated
individual. The funds must be used for eligible expenses including
staffing, supplies, and tuition.
(2) Universities and colleges that receive funding under this
section must report not later than July 1 on all of the following,
by correctional facility:
(a) Expenditure of funds.
(b) Number of participants served.
(c) Enrollments, by race and gender.
(d) Number of participants who completed the program.
Sec. 409. From the funds appropriated in part 1 for enhanced
food technology program, the department shall maintain a program
that provides on-the-job training in prison kitchens that provides
prisoners the opportunity to earn food service training credentials
recognized by the restaurant industry. The department shall use the
funds appropriated in part 1 for enhanced food technology program
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to collaborate with the Michigan Restaurant and Lodging Association
and other restaurant industry stakeholders to provide job placement
assistance to individuals on probation or parole.
Sec. 410. From the funds appropriated in part 1, the
department shall ensure that any inmate with a diagnosed mental
illness is referred to a local mental health care provider that is
able and willing to treat the inmate upon parole or discharge. Upon
referral, the department shall ensure that the provider is informed
of the inmate's current treatment plan including any medications
that are currently prescribed to the inmate.
Sec. 411. From the funds appropriated in part 1, the
department shall report not later than March 1 on academic and
vocational programs, including, but not limited to, all of the
following:
(a) The number of instructors and the number of instructor
vacancies, by program and facility.
(b) 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.
(c) The racial demographics of prisoners enrolled in each
program.
(d) The steps the department has undertaken to improve
programs, track records, accommodate transfers and prisoners with
health care needs, and reduce waiting lists.
(e) The number of prisoners paroled without a high school
diploma or a high school equivalency.
(f) The number of prisoners not paroled at their earliest
release date because of a lack of a high school equivalency and the
reason those prisoners have not obtained a high school equivalency.
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Sec. 412. From the funds appropriated in part 1, priority may
be given to funding reentry or rehabilitation programs, including
faith-based initiatives, that have been demonstrated to reduce
prison violence and recidivism.
Sec. 413. (1) Funds appropriated in part 1 for criminal
justice reinvestment must be used only to fund data collection and
evidence-based programs designed to reduce recidivism among
probationers, parolees, and prisoners.
(2) The department shall report on programs described under
this section not later than March 30. The report must include all
of the following:
(a) The reincarceration recidivism rate of program
participants.
(b) The employment rate of participants who complete the
program.
(c) The cost of the program per participant.
Sec. 414. Revenues appropriated and collected for program and
special equipment funds must be considered state restricted revenue.
Funding must be used for prisoner programming, special equipment,
and security projects. Not less than 75% of funding must be used for
prisoner programming. Unexpended funds remaining at the close of the
fiscal year must not lapse to the general fund but must be carried
forward and made available for appropriation in subsequent fiscal
years.
Sec. 415. From the funds appropriated in part 1, the
department shall report on the department's plans to eliminate
programming for prisoners. The report must be provided as soon as
reasonably possible before program elimination. As used in this
section, "programming for prisoners" means a department core
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program or career and technical education program funded in part 1.

FIELD OPERATIONS ADMINISTRATION
Sec. 501. (1) From the funds appropriated in part 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, from the
funds appropriated in part 1, 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) Not later than April 1, the department shall provide a
report on the number of all parolees returned to prison and
probationers sentenced to prison for either a technical violation
or new sentence during the previous fiscal year. The report must
include the following information for probationers, for parolees
after their first parole, and for parolees who have been paroled
more than once:
(a) The numbers of parole and probation violators returned to
or sent to prison for a new crime with a comparison of original
versus new offenses by major offense type: assaultive,
nonassaultive, drug, and sex.
(b) The numbers of parole and probation violators returned to
or sent to prison for a technical violation and the type of
violation, including, but not limited to, zero gun tolerance and
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substance use disorder violations. For parole technical rule
violators, the report must list violations by type, by length of
time since release from prison, by the most recent violation, and
by the number of violations occurring since release from prison.
(c) The educational history of those offenders, including the
number of offenders who had a high school equivalency or high
school diploma before incarceration in prison, the number of
offenders who received a high school equivalency while in prison,
and the number of offenders who received a vocational certificate
while in prison.
(d) The number of offenders who participated in the reentry
program versus the number of those who did not.
(e) The unduplicated number of offenders who participated in
substance use disorder treatment programs, mental health treatment
programs, or both, while in prison, itemized by diagnosis.
Sec. 502. From the funds appropriated in part 1, the
department shall issue quarterly reports for the previous 4
quarters detailing outcomes of prisoners who have been reviewed for
parole. The report must include all of the following:
(a) The number of prisoners in each quarter who were reviewed.
(b) The number of prisoners who were granted parole.
(c) The number of prisoners who were denied parole.
(d) The number of parole decisions that were deferred.
(e) The distribution of the total number of prisoners reviewed
during that quarter grouped by whether the prisoner had been
interviewed for the first, second, third, fourth, fifth, sixth, or
more than sixth time.
(f) The number of paroles granted, denied, or deferred for
each of the parole guideline scores of low, average, and high.
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(g) The reason for denying or deferring parole.
Sec. 503. From the funds appropriated in part 1, the
department shall submit a report not later than March 1 on the
medically frail parole process for the previous fiscal year. The
report must include, but not be limited to, the following:
(a) A de-identified list of incarcerated individuals who were
considered for medically frail parole the previous year, including
the following:
(i) Demographic data, including race or ethnicity, gender, and
age.
(ii) The controlling offense of the individual.
(iii) A categorization of the medical condition that resulted in
the individual being considered for medically frail parole.
(iv) If the individual was granted medically frail parole or
not, and if not, the reason why medically frail parole was denied.
(b) The number of individuals who were previously granted
medically frail parole that were returned to prison for a new
offense or technical violation of parole.
(c) The number of individuals who were previously granted
medically frail parole that were discharged from further parole
supervision.

HEALTH CARE
Sec. 601. Not later than April 1, the department shall provide
a report on all of the following:
(a) Physical and mental health care, pharmaceutical services,
and durable medical equipment for prisoners. A report under this
section must detail previous fiscal year expenditures itemized by
vendor, allocations, status of payments from contractors to
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vendors, and projected year-end expenditures from accounts. A
report under this section must include a breakdown of all payments
to the integrated care provider and to other providers itemized by
physical health care, mental health care, pharmaceutical services,
and durable medical equipment expenditures.
(b) Pharmaceutical prescribing practices, including a detailed
accounting of expenditures on antipsychotic medications, and any
changes that have been made to the prescription drug formularies.
(c) A status report on efforts to develop measurable data and
outcomes for physical and mental health care within the prisoner
population.
Sec. 602. (1) From the funds appropriated in part 1, the
department shall provide prisoners with a brochure that explains
the purpose and importance of signing a medical release of
information form. The department shall ensure that all prisoners,
upon any health care treatment funded from appropriations in part
1, are given the opportunity to sign a medical release of
information form designating a family member or other individual to
whom the department shall release records and information regarding
the prisoner upon the request of the prisoner. The prisoner may
elect to withdraw or amend the medical release of information form
at any time.
(2) The department shall ensure that a signed medical release
of information form follows a prisoner upon transfer to another
department facility or to the supervision of a parole officer.
(3) The medical release of information form must be placed
online on a public website managed by the department.
Sec. 603. From the funds appropriated in part 1, the
department shall provide a report not later than April 1 on
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prisoner health care utilization in the previous fiscal year, by
facility, that includes all of the following:
(a) The number of inpatient hospital days.
(b) The number of outpatient visits.
(c) The number of emergency room visits.
(d) The number of prisoners receiving off-site inpatient
medical care.
Sec. 604. Funds appropriated in part 1 for Hepatitis C
treatment must be used only to purchase specialty medication for
Hepatitis C treatment in the prison population. In addition to the
above appropriation, any rebates received from the medications used
must be used only to purchase specialty medication for Hepatitis C
treatment. Not later than February 15, the department shall issue a
report for the previous fiscal year that includes all of the
following:
(a) The total amount spent on specialty medication for the
treatment of Hepatitis C.
(b) The number of prisoners who were treated for Hepatitis C.
(c) The amount of any rebates that were received from the
purchase of specialty medication, and what, if any, outstanding
rebates are expected to be received.
(d) The Hepatitis C status of all incoming prisoners and the
number of prisoners who are reinfected while incarcerated and
require retreatment for Hepatitis C.
(e) The number of those treated and released and then
retreated upon reincarceration.
Sec. 605. Not later than March 1, the department shall provide
an annual report on the utilization of Medicaid benefits for
prisoners.
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Sec. 606. (1) From the funds appropriated in part 1, the
department shall support medication-assisted treatment clinics at
designated correctional facilities that allow the department to
treat prisoners with opioid and alcohol use disorder while
incarcerated. The department shall collaborate with substance use
disorder treatment providers and community-based clinics to provide
postrelease assessment and treatment. Funding must be used by the
department to support costs of staff, including nurses, qualified
mental health professionals, recovery coaches, and corrections
officers, and costs of medication and supplies. Participating
prisoners must be encouraged to receive 1 injection of nonaddictive
medication, if clinically appropriate, before being released from
prison into the community.
(2) The department shall submit quarterly reports on the
operation of medication-assisted treatment clinics. A report under
this subsection must include, but not be limited to, all of the
following:
(a) Clinic site locations.
(b) A listing of medications used in medication-assisted
therapies at each clinic site.
(c) The number of prisoners prescribed each medication under
subdivision (b), including if the medication is an oral or
injectable treatment.
(d) Total expenditures on clinic medications, including oral
and injectable medications.
(e) The number of prisoners who received treatment in the
community for a duration of at least 3 months.
Sec. 607. From the funds appropriated in part 1, the
department shall submit a report not later than March 1 that
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includes for the previous fiscal year the total amount of all
medical co-payments collected by prisoners under section 67a of the
corrections code of 1953, 1953 PA 232, MCL 791.267a.
Sec. 608. From the funds appropriated in part 1, the
department shall submit a biannual report, by not later than March
1 and September 1 of each year, that contains a de-identified list
of prisoner deaths that occurred in the previous 6 months within
correctional facilities. This report must include, but not be
limited to, all of the following:
(a) The date of death.
(b) The correctional facility or other location at which the
death occurred.
(c) The official cause of death, as documented on the death
certificate.
(d) In cases where the cause of death is determined to be a
drug overdose, the type of drug used, if known.

CORRECTIONAL FACILITIES AND ADMINISTRATION
Sec. 701. From the funds appropriated in part 1 for prison
food service, the department shall report not later than January 15
on the following:
(a) Average per-meal cost for prisoner food service. Per-meal
cost includes all costs directly related to the provision of food
for the prisoner population, including, but not limited to, actual
food costs, total compensation for all food service workers,
including benefits and legacy costs, and inspection and compliance
costs for food service.
(b) Food service-related contracts, including goods or
services to be provided and the vendor.
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(c) Major sanitation violations.
Sec. 702. From the funds appropriated in part 1, the
department shall calculate the cost per prisoner per day for each
security custody level. This calculation must include all actual
direct and indirect costs for the previous fiscal year. To
calculate the cost per prisoner per day, the department shall
divide the prisoner-related costs by the total number of prisoner
days for each custody level and correctional facility. For
multilevel facilities, costs that cannot be accurately allocated to
each custody level may be included in the calculation on a per-
prisoner basis for each facility. A report summarizing these
calculations must be submitted not later than January 15. Prisoner-
related costs included in the cost per prisoner per day calculation
must include all expenditures for the following, from all fund
sources:
(a) New custody staff training.
(b) Prison industries operations.
(c) Education/skilled trades/career readiness programs.
(d) Enhanced food technology program.
(e) Higher education in prison.
(f) Offender success programming.
(g) Central records.
(h) Correctional facilities administration.
(i) Housing inmates in federal institutions.
(j) Inmate legal services.
(k) Prison food service.
(l) Prison store operations.
(m) Transportation.
(n) Health care.
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(o) Correctional facilities.
(p) Northern and southern region administration and support.
Sec. 703. (1) From the funds appropriated in part 1 for
deferred maintenance at correctional facilities, the department
shall prioritize planned maintenance and basic facility improvement
projects consistent with, but not limited to, those projects listed
in the department's most recent 5-year capital assessment plan
summary report. Funds must be utilized for projects at the
following facilities:
(a) Chippewa Correctional Facility.
(b) Women's Huron Valley Correctional Facility.
(c) Charles E. Egeler Correctional Facility.
(d) Richard A. Handlon Correctional Facility.
(e) Lakeland Correctional Facility.
(f) Earnest C. Brooks Correctional Facility.
(2) The department shall report by facility on all
expenditures made and projects completed. The report must be
submitted not later than April 1.
Sec. 704. The department shall allow the Michigan Braille
transcribing fund program to operate at designated locations. The
department shall continue to encourage the Michigan Braille
transcribing fund program to produce high-quality materials for use
by the visually impaired.
Sec. 705. (1) From the funds appropriated in part 1, the
department shall report all of the following regarding critical
incidents by facility:
(a) Within 72 hours of occurrence, any critical incident
occurring at a correctional facility. The report must identify the
facility at which the incident occurred.
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(b) Not later than March 1, the number of critical incidents
occurring each month at each facility during the previous calendar
year, categorized by type and severity of each incident.
(2) As used in this section, "critical incident" includes a
prisoner assault on staff that results in a serious physical injury
to staff, an escape or attempted escape, a prisoner disturbance
that causes facility operation concerns, the implementation of a
phase plan or similar significant restriction on activity within a
facility, a drug overdose or suspected overdose that results in
inpatient hospitalization, and an unexpected death of a prisoner.
Sec. 706. From the funds appropriated in part 1, the
department shall report not later than March 1 on all of the
following ratios for each correctional facility:
(a) Corrections officers to prisoners.
(b) Shift command staff to line custody staff.
(c) Noncustody institutional staff to prisoners.
Sec. 707. (1) From the funds appropriated in part 1, the
department shall focus on providing required programming to
prisoners as early as possible during the prisoner's sentence to
impact the prisoner's behavior while incarcerated and prioritize
individuals who are past their earliest release date and have not
been paroled because of not having received the required
programming. Programming includes, but is not limited to, violence
prevention programming, sexual abuse prevention programming,
substance use disorder programming, thinking for a change
programming, and any other programming that is required as a
condition of parole. Nothing in this section makes parole denial
appealable in court.
(2) The department shall submit a quarterly report detailing
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enrollment in sex abuse prevention programming, violence prevention
programming, and thinking for a change programming. At a minimum,
the report must include all of the following:
(a) A full accounting, from the date of entrance to prison, of
the number of individuals who are required to complete the
programming but have not yet done so.
(b) The number of individuals who have reached their earliest
release date, but who have not completed required programming.
(c) A plan of action for addressing any waiting lists or
backlogs for programming that may exist.
Sec. 708. If a pregnant prisoner in a facility funded from
appropriations in part 1 consents to a visitor being present, the
department shall allow 1 person to be present during the prisoner's
labor and delivery, in addition to a doula being present if the
pregnant prisoner wants to work with a doula. The person allowed to
accompany the prisoner must be an immediate family member, legal
guardian, spouse, or domestic partner. The department is authorized
to deny access to a visitor if the department has a safety concern
with that visitor's access. The department is authorized to conduct
a criminal background check on the visitor.
Sec. 709. From the funds appropriated in part 1, the
department shall evaluate all prisoners at intake for substance use
disorders, serious developmental disorders, serious mental illness,
and other mental health disorders. Prisoners with serious mental
illness or serious developmental disorders must not be removed from
the general population as a punitive response to behavior caused by
their serious mental illness or serious developmental disorder. A
prisoner with serious mental illness or serious developmental
disorder that is unresponsive to treatment who presents a
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persistent high violence risk or engages in severe disruptive
behavior may be placed in secure residential housing programs that
facilitate access to institutional programming and ongoing mental
health services funded from appropriations in part 1. A prisoner
with serious mental illness or serious developmental disorder who
is confined in these specialized housing programs must be evaluated
or monitored by a medical professional at a frequency of not less
than every 12 hours.
Sec. 710. (1) From the funds appropriated in part 1, the
department shall report not later than March 1 on the number of
prisoners during the previous fiscal year in administrative
segregation and, of those, the number who at any time during the
current or previous prison term were diagnosed with serious mental
illness or have a developmental disorder and the number of days
each of the prisoners with serious mental illness or a
developmental disorder have been confined to administrative
segregation.
(2) The report required in subsection (1) must include a chart
listing the number of prisoners housed in administrative
segregation for each of the following time periods:
(a) A continuous period exceeding 3 months but less than 6
months.
(b) A continuous period exceeding 6 months but less than 12
months.
(c) A continuous period exceeding 12 months or longer.
(3) For any prisoner housed in administrative segregation for
12 months or longer, an explanation of the circumstances
surrounding the prisoner's placement in administrative segregation.
Sec. 711. From the funds appropriated in part 1, the
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department shall do all of the following:
(a) Ensure that any inmate care and control staff in contact
with prisoners less than 18 years of age are adequately trained
with regard to the developmental and mental health needs of
prisoners less than 18 years of age. Not later than April 1, the
department shall report on the training curriculum used and the
number and types of staff receiving annual training under that
curriculum.
(b) Provide appropriate placement for prisoners less than 18
years of age who have serious mental illness, serious emotional
disturbance, or a serious developmental disorder and need to be
housed separately from the general population. Prisoners less than
18 years of age who have serious mental illness, serious emotional
disturbance, or a serious developmental disorder must not be
removed from an existing placement as a punitive response to
behavior caused by their serious mental illness, serious emotional
disturbance, or a serious developmental disorder. A prisoner who is
less than 18 years of age with serious mental illness or a serious
developmental disorder that is unresponsive to treatment who
presents a persistent high violence risk or engages in severe
disruptive behavior may be placed in secure residential housing
programs that facilitate access to institutional programming and
ongoing mental health services. A prisoner less than 18 years of
age with serious mental illness, serious emotional disturbance, or
a serious developmental disorder who is confined in these
specialized housing programs must be evaluated or monitored by a
medical professional at a frequency of not less than every 12
hours.
(c) Implement a specialized offender success program that
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recognizes the needs of prisoners less than 18 years of age for
supervised offender success.
Sec. 712. From the funds appropriated in part 1, the
department shall submit quarterly reports on the number of youth in
prison. The report must include, but not be limited to, all of the
following information:
(a) The total number of inmates less than 18 years of age who
are not on Holmes youthful trainee act status.
(b) The total number of inmates less than 18 years of age who
are on Holmes youthful trainee act status.
(c) The total number of inmates between the ages of 18 and 23
who are on Holmes youthful trainee act status.
Sec. 713. From the funds appropriated in part 1, the
department must submit a report on the number of prisoners who lost
visiting privileges. The report required under this section must be
submitted not later than November 15 and include data for the
previous fiscal year. The report must include all of the following
information:
(a) The number of prisoners who lost visiting privileges by
race and by violation type.
(b) The number of prisoners who applied to have visiting
privileges restored.
(c) The number of prisoners who had visiting privileges
restored.
(d) The number of prisoners who had visiting restrictions
extended.
Sec. 714. Funds appropriated in part 1 for intelligence unit
must be used by the department to maintain an intelligence unit to
conduct investigatory and intelligence operations for the
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department. Intelligence operations must include, but not be
limited to, intelligence operations for prisoner phone services.
Savings that result from transferring responsibility for
intelligence operations from the contractor to the department must
be passed on to prisoners and prisoners' families as the department
continues to negotiate lower phone call rates in all future
contracts. The department must continue to pursue all opportunities
for reducing further the cost of phone calls for prisoners and
prisoners' families.
Sec. 715. (1) From the funds appropriated in part 1, the
department must submit a preliminary report on the department's
plans to close, consolidate, or relocate any correctional facility
in the state. The preliminary report must be provided as soon as
reasonably possible before program closure, consolidation, or
relocation. The preliminary report must include the projected
savings to the state from closure, consolidation, or relocation of
the facility and must include a projection of the potential impact
on staff positions.
(2) After a prison closure, consolidation, or relocation, the
department must submit a report on the actual savings achieved by
the department and the impact on staff positions. Savings amounts
and impact on staff positions must be itemized by facility. The
report required under this subsection must be submitted as soon as
reasonably possible after the prison closure, consolidation, or
relocation.
Sec. 716. From the funds appropriated in part 1, the
department shall consult with the legislature and other appropriate
state agencies to develop a framework to provide investment in
communities that have formerly operational state correctional
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facilities that have been closed. This framework must include plans
to ensure that vacant state correctional facilities do not become a
nuisance or danger to the community.
Sec. 717. From the funds appropriated in part 1, the
department shall make an information packet for the families of
incoming prisoners available on the department's website. The
information packet must be reviewed not later than February 1 and
updated as necessary. The department may partner with external
advocacy groups and actual families of prisoners in the packet-
writing process to ensure that the information is useful and
complete. The packet must provide information on topics including,
but not limited to, all of the following:
(a) How to put money into prisoner accounts.
(b) How to make telephone calls or create Jpay email accounts.
(c) How to visit in person.
(d) Proper procedures for filing complaints or grievances.
(e) The rights of prisoners to physical and mental health
care.
(f) The purpose and importance of prisoners signing a medical
release of information form.
(g) How to utilize the offender tracking information system
(OTIS).
(h) Truth in sentencing and how it applies to minimum
sentences.
(i) The parole process.
(j) Guidance on the importance of the role of families in the
reentry process.
Sec. 718. From the funds appropriated in part 1, the
department must pursue all opportunities to reduce costs for
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prisoners and prisoners' families for financial deposit fees and
commissary fees when the department negotiates or renews any
contract to provide these services.
Sec. 719. (1) Funds appropriated in part 1 for contraband
prevention must be used by the department to enhance a multifaceted
approach to contraband prevention that combines technology,
rigorous policies, vigilant staff, intelligence gathering, and a
commitment to addressing the root causes of contraband, all of
which are necessary for preventing contraband introductions and
maintaining safe and secure correctional facilities.
(2) Funds appropriated in part 1 for contraband prevention
must be used by the department to support the prevention of
contraband in correctional facilities, including increasing the
frequency and enhancing the methods of screening all items and all
individuals entering into correctional facilities. Under this
section, individuals who must be screened include, but are not
limited to, all department employees, contractors, and third-party
vendors. Emergency response personnel are exempt from being
screened when arriving at correctional facilities in response to
emergent emergencies.
(3) From the funds appropriated in part 1, the department
shall develop and implement contraband prevention policies that are
uniform across all correctional facilities.
(4) From the funds appropriated in part 1 for contraband
prevention, the department must submit a report not later than
March 1 on contraband and prevention efforts in correctional
facilities. The report must include, but not be limited to, all of
the following:
(a) Prevention efforts and strategies utilized by the
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department.
(b) Challenges faced by correctional staff and other staff in
addressing contraband.
(c) Ideas and recommendations on how the legislature can
better assist the department with contraband prevention efforts and
strategies.
Sec. 720. The department shall ensure that Policy Directive
04.01.110 "Access to Correctional Facilities" does not require
active legislative members in good standing to provide prior notice
before being granted access to a department facility when
conducting official legislative business.

ARTICLE 3
DEPARTMENT OF EDUCATION
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of
education for the fiscal year ending September 30, 2027, from the
following funds:
DEPARTMENT OF EDUCATION
APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 458.0
Full-time employees 405.0
Limited-term employees 21.0
Noncareer/per diem employees 8.0
Part-time employees 0.0
Permanent-intermittent employees 3.0
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Seasonal employees 39.0
GROSS APPROPRIATION $ 139,976,400
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 139,976,400
Federal revenues:
Total federal revenues 76,010,700
Special revenue funds:
Total local revenues 4,884,400
Total private revenues 877,700
Total other state restricted revenues 10,052,000
State general fund/general purpose $ 48,151,600
Sec. 102. STATE BOARD OF EDUCATION/OFFICE OF THE
SUPERINTENDENT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 9.0
Unclassified salaries--FTE positions 6.0 $ 1,114,500
Education commission of the states 120,800
State board of education, per diem payments 24,400
State board/superintendent operations--FTEs 9.0 2,534,100
GROSS APPROPRIATION $ 3,793,800
Appropriated from:
Federal revenues:
Federal revenues 304,100
Special revenue funds:
Private foundations 80,000
Certification fees 832,700
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State general fund/general purpose $ 2,577,000
Sec. 103. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated classified positions 37.0
Central support operations--FTEs 34.0 $ 6,823,100
Federal and private grants 75,300
Grant and contract operations--FTEs 3.0 1,902,400
Property management 3,956,800
Terminal leave payments 188,600
Training and orientation workshops 141,900
Worker's compensation 6,800
Departmentwide employee economic adjustments 1,366,900
GROSS APPROPRIATION $ 14,461,800
Appropriated from:
Federal revenues:
Federal indirect revenues 2,318,900
Federal revenues 4,101,300
Special revenue funds:
Local cost sharing (schools for deaf/blind) 53,100
Gifts, bequests, and donations 4,500
Private foundations 26,100
Certification fees 705,000
Teacher testing fees 81,200
Training and orientation workshop fees 141,900
State general fund/general purpose $ 7,029,800
Sec. 104. INFORMATION TECHNOLOGY
Information technology services and projects $ 2,466,600
GROSS APPROPRIATION $ 2,466,600
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Appropriated from:
Federal revenues:
Federal indirect revenues 1,722,700
Federal revenues 48,600
Special revenue funds:
Certification fees 695,300
State general fund/general purpose $ 0
Sec. 105. SPECIAL EDUCATION SERVICES
Full-time equated classified positions 40.0
Special education operations--FTEs 40.0 $ 7,640,100
GROSS APPROPRIATION $ 7,640,100
Appropriated from:
Federal revenues:
Federal revenues 7,505,600
Special revenue funds:
Private foundations 93,000
Certification fees 41,500
State general fund/general purpose $ 0
Sec. 106. MICHIGAN SCHOOLS FOR THE DEAF AND
BLIND
Full-time equated classified positions 55.0
ASL literacy resources $ 500,000
Camp Tuhsmeheta--FTE 1.0 604,500
Low incidence outreach program 382,700
Michigan Schools for the Deaf and Blind
operations--FTEs 54.0 11,299,800
Private gifts - blind 68,000
Private gifts - deaf 1,600
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GROSS APPROPRIATION $ 12,856,600
Appropriated from:
Federal revenues:
Federal revenues 6,299,300
Special revenue funds:
Local cost sharing (schools for deaf/blind) 4,831,300
Gifts, bequests, and donations 674,100
Low incidence outreach fund 382,700
Student insurance revenue 169,200
State general fund/general purpose $ 500,000
Sec. 107. EDUCATOR EXCELLENCE
Full-time equated classified positions 35.0
Educator excellence operations--FTEs 34.0 $ 7,369,500
Educator recruitment and preparation programs--
FTE 1.0 1,089,900
GROSS APPROPRIATION $ 8,459,400
Appropriated from:
Federal revenues:
Federal revenues 3,083,100
Special revenue funds:
Certification fees 4,088,500
Teacher testing fees 197,900
State general fund/general purpose $ 1,089,900
Sec. 108. SYSTEMS, EVALUATION, AND TECHNOLOGY
Full-time equated classified positions 19.0
Office of systems, evaluation, and technology
operations--FTEs 19.0 $ 3,275,200
GROSS APPROPRIATION $ 3,275,200
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Appropriated from:
Federal revenues:
Federal indirect revenues 138,100
Federal revenues 2,018,700
Special revenue funds:
Certification fees 10,400
State general fund/general purpose $ 1,108,000
Sec. 109. STRATEGIC PLANNING AND IMPLEMENTATION
Full-time equated classified positions 6.0
Strategic planning and implementation
operations--FTEs 6.0 $ 1,190,800
GROSS APPROPRIATION $ 1,190,800
Appropriated from:
Federal revenues:
Federal revenues 637,700
State general fund/general purpose $ 553,100
Sec. 110. ADMINISTRATIVE LAW SERVICES
Full-time equated classified positions 2.0
Administrative law operations--FTEs 2.0 $ 1,154,200
GROSS APPROPRIATION $ 1,154,200
Appropriated from:
Federal revenues:
Federal revenues 500,900
Special revenue funds:
Certification fees 653,300
State general fund/general purpose $ 0
Sec. 111. ACCOUNTABILITY SERVICES
Full-time equated classified positions 45.0
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Accountability services operations--FTEs 45.0 $ 11,867,900
GROSS APPROPRIATION $ 11,867,900
Appropriated from:
Federal revenues:
Federal revenues 11,867,900
State general fund/general purpose $ 0
Sec. 112. SCHOOL SUPPORT SERVICES
Full-time equated classified positions 73.0
Adolescent and school health $ 334,400
Office of health and safety--FTEs 9.0 3,048,800
Office of nutrition services--FTEs 64.0 13,073,100
GROSS APPROPRIATION $ 16,456,300
Appropriated from:
Federal revenues:
Federal revenues 13,265,200
Special revenue funds:
Commodity distribution fees 150,000
State general fund/general purpose $ 3,041,100
Sec. 113. EDUCATIONAL SUPPORTS
Full-time equated classified positions 72.0
Educational supports operations--FTEs 72.0 $ 16,867,200
School board member training 150,000
GROSS APPROPRIATION $ 17,017,200
Appropriated from:
Federal revenues:
Federal revenues 13,285,600
Special revenue funds:
Certification fees 1,602,400
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State general fund/general purpose $ 2,129,200
Sec. 114. CAREER AND TECHNICAL EDUCATION
Full-time equated classified positions 17.0
Career and technical education operations--FTEs 17.0 $ 5,052,400
GROSS APPROPRIATION $ 5,052,400
Appropriated from:
Federal revenues:
Federal revenues 3,550,500
State general fund/general purpose $ 1,501,900
Sec. 115. LIBRARY OF MICHIGAN
Full-time equated classified positions 33.0
Library of Michigan operations--FTEs 31.0 $ 5,122,200
Library services and technology programs--FTE 1.0 5,248,000
Michigan eLibrary--FTE 1.0 1,849,600
Renaissance zone reimbursements 1,830,000
State aid to libraries 16,567,700
GROSS APPROPRIATION $ 30,617,500
Appropriated from:
Federal revenues:
Federal revenues 5,248,000
Special revenue funds:
Library fees 300,000
State general fund/general purpose $ 25,069,500
Sec. 116. PARTNERSHIP DISTRICT SUPPORT
Full-time equated classified positions 15.0
Partnership district support operations--FTEs 15.0 $ 3,666,600
GROSS APPROPRIATION $ 3,666,600
Appropriated from:
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Federal revenues:
Federal revenues 114,500
State general fund/general purpose $ 3,552,100

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$58,203,600.00 and state spending under part 1 from state sources
to be paid to local units of government is $18,547,700.00. The
following itemized statement identifies appropriations from which
spending to local units of government will occur:
DEPARTMENT OF EDUCATION
Renaissance zone reimbursements $ 1,830,000
School board member training 150,000
State aid to libraries 16,567,700
TOTAL $ 18,547,700
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "Department" means the department of education.
(b) "DHHS" means the department of health and human services.
(c) "District" means a local school district as that term is
defined in section 6 of the revised school code, 1976 PA 451, MCL
380.6, or a public school academy as that term is defined in
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section 5 of the revised school code, 1976 PA 451, MCL 380.5.
(d) "FTE" means full-time equated position in the classified
service of this state.
(e) "HHS" means the United States Department of Health and
Human Services.
(f) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on the department, the senate and house fiscal
agencies, the senate and house policy offices, and the state budget
office.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
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report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
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estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of the funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
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civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) The department shall maintain, on a publicly
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accessible website, a department scorecard that identifies, tracks,
and updates on a quarterly basis key metrics that are used to
monitor and improve the department's performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $5,000,000.00 for
federal contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $400,000.00 for state
restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
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and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $250,000.00 for local
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $1,500,000.00 for private
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $6,940,300.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $6,940,300.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
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account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff,
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require the employees to serve in
their capacities outside of an office shall be monitored each pay
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period to ensure all work hours reported on the timesheet were
actually worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
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all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
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department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
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department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
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employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
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Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.

DEPARTMENT-SPECIFIC GENERAL SECTIONS
Sec. 301. From the funds appropriated in part 1, the
department shall provide through the internet the state board of
education agenda and all supporting documents, and shall notify the
state budget director and the senate and house fiscal agencies that
the agenda and supporting documents are available on the internet,
at the time the agenda and supporting documents are provided to
state board of education members.
Sec. 302. From the funds appropriated in part 1, the
department may assist DHHS, other departments, intermediate school
districts, 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 DHHS for reimbursement.
Sec. 303. From the funds appropriated in part 1, the
department shall do both of the following:
(a) Post on its website a link to the federal Institute of
Education Sciences' What Works Clearinghouse.
(b) Disseminate knowledge about the What Works Clearinghouse
to districts and intermediate school districts so that it may be
used to improve reading proficiency for pupils in grades K to 3.
Sec. 304. From the funds appropriated in part 1, the
department shall coordinate with the other departments to
streamline state services and resources, reduce duplication, and
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increase efficiency, including, but not limited to, all of the
following:
(a) Working with the department of treasury to coordinate with
the financial independence team and overseeing deficit districts.
(b) Working with DHHS and the department of lifelong
education, advancement, and potential to coordinate with early
childhood programs and overseeing child care providers.
Sec. 305. (1) As a condition of receiving appropriations in
part 1, the department shall, in collaboration with DHHS, promote
and support initiatives in schools and other educational
organizations that include, but are not limited to, training for
educators, teachers, and other personnel in school settings for all
of the following:
(a) Using trauma-informed practices.
(b) Age-appropriate education and information on human
trafficking.
(c) Age-appropriate education and information on sexual abuse
prevention.
(2) If requested by the department, the department of state
police and the department of attorney general shall consult with
the department in the promotion and support of initiatives in
schools and other educational organizations under subsection (1).
Sec. 306. From the funds appropriated in part 1, the
department shall ensure that the most recently issued report of
regional in-demand occupations issued by the department of
technology, management, and budget is distributed in electronic or
paper form to all high schools in each school district,
intermediate school district, and public school academy, to the
standard report recipients, and to the members of the senate and
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house standing committees on education.
Sec. 307. Funds appropriated in part 1 are prohibited from
being provided to the Michigan Organization on Adolescent Sexual
Health.

STATE BOARD OF EDUCATION/OFFICE OF THE SUPERINTENDENT
Sec. 351. (1) The department may use the appropriations from
the state board of education, per diem payments in part 1 for per
diem payments to the state board members for meetings at which a
quorum is present or for performing official business authorized by
the state board. The per diem payments are set at the following
rates:
(a) State board of education - president - $110.00 per day.
(b) State board of education - member other than president -
$100.00 per day.
(2) The department shall not pay a state board of education
member a per diem for more than 30 days per year.

SPECIAL EDUCATION SERVICES
Sec. 401. From the funds appropriated in part 1 for special
education operations, the department shall use $100,000.00 to
design and distribute to all parents and legal guardians of a
student with a disability information on federal and state mandates
regarding the rights and protections of students with disabilities,
including, but not limited to, individualized education programs to
ensure that parents and legal guardians are fully informed about
laws, rules, procedural safeguards, and problem-solving options.

MICHIGAN SCHOOLS FOR THE DEAF AND BLIND
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Sec. 451. From the funds appropriated in part 1, the employees
at the Michigan Schools for the Deaf and Blind who work on a
school-year basis are considered annual employees for purposes of
service credits, retirement, and insurance benefits.
Sec. 452. 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, excluding room and
board related costs and the cost of weekend transportation between
the school and the student's home.
Sec. 456. (1) From the funds appropriated in part 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. From the
funds appropriated in part 1, the Michigan Schools for the Deaf and
Blind shall distribute information detailing its services to all
intermediate school districts in this state.
(2) If an intermediate school district knows 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) Parents will continue to have a choice regarding the
educational placement of their deaf or hard-of-hearing children.
Sec. 457. Revenue received by the Michigan Schools for the
Deaf and Blind from gifts, bequests, and donations that is
unexpended at the end of the state fiscal year may be carried over
to the succeeding fiscal year and does not revert to the general
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fund.
Sec. 458. (1) The funds appropriated in part 1 for the low
incidence outreach fund are appropriated from money collected by
the Michigan Schools for the Deaf and Blind and the low incidence
outreach program for providing qualified services and may be used
for any expenses necessary to provide the qualified services. Any
money that is unexpended at the end of the current fiscal year does
not revert to the general fund and may be carried forward into the
succeeding fiscal year.
(2) As used in this section, "qualified services" means any of
the following:
(a) Document reproduction and services.
(b) Conducting conferences, workshops, and training classes.
(c) Providing specialized equipment, facilities, and software.
Sec. 459. When conducting a due process hearing resulting from
a parent's appeal of that parent's child's individualized education
program team's decision on the child's educational placement, a
state administrative law judge shall consider designating the
Michigan School for the Deaf as 1 of the options for the least
restrictive environment under federal law for the parent's child
who is deaf, deafblind, or hard of hearing.
Sec. 460. From the funds appropriated in part 1 for ASL
literacy resources, the department shall expend the funds to comply
with all requirements in section 1705 of the revised school code,
1976 PA 451, MCL 380.1705.

EDUCATOR EXCELLENCE
Sec. 501. From the funds appropriated in part 1 for educator
excellence, the department shall maintain certificate revocation
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and felony conviction files of educational personnel.
Sec. 503. From the funds appropriated in part 1, the
department shall, if requested by the Michigan Virtual Learning
Research Institute, consult with the Michigan Virtual Learning
Research Institute and external stakeholders in connection with the
department's implementation and administration of professional
development training described in section 35a of the state school
aid act of 1979, 1979 PA 94, MCL 388.1635a, including, but not
limited to, the online training of educators of pupils in grades K
to 3 described in that section.
Sec. 504. (1) From the funds appropriated in part 1 for
educator recruitment and preparation programs, the department shall
award $1,000,000.00 to districts and nonpublic schools for both of
the following:
(a) Educator preparation program tuition, program fees,
testing fees, and substitute permit costs for any individual
employed in grades pre-K to 12 working toward certification or an
additional endorsement.
(b) Program costs associated with hands-on learning
experiences for students in grades 6 to 12 interested in the field
of education, with supervision and mentoring from educators who are
champions of, and committed to, the success of the profession.
(2) Not later than September 30, the department shall prepare
and submit a report to the standard report recipients that includes
the districts and nonpublic schools that received funds awarded
under this section and how much each district or nonpublic school
received.
Sec. 505. From the funds appropriated in part 1 for educator
recruitment and preparation programs, not less than $190,000.00 and
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not fewer than 1.0 FTE position is allocated for educator
recruitment and preparation programs. Not later than September 30,
the department shall prepare and submit a report to the standard
report recipients that includes how funds allocated under this
section were spent.
Sec. 506. Revenue received from teacher testing fees that is
unexpended at the end of the current fiscal year may be carried
over to the succeeding fiscal year and does not revert to the
general fund.
Sec. 507. From the funds appropriated in part 1, the
department shall adopt a teacher certification test that ensures
that all newly certified elementary teachers have the skills to
deliver evidence-based literacy instruction grounded in the science
of reading. The department may use teacher certification or teacher
testing fee revenue to the extent allowable under law to implement
this section, or may pass along increased testing fees to teachers
as allowable and appropriate.

SCHOOL SUPPORT SERVICES
Sec. 601. From the funds appropriated in part 1 for adolescent
and school health, the department shall use the funds to replace
federal funding reductions from the HHS - Centers for Disease
Control and Prevention to the department and section 39a(2)(a) of
the state school aid act of 1979, 1979 PA 94, MCL 388.1639a.
Sec. 602. (1) From the funds appropriated in part 1 for school
board member training, there is appropriated $150,000.00 for school
board member training. The department shall approve 1 or more
training programs for school board members that include courses of
instruction for school board members in 1 or more of the following
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topic areas:
(a) Conflicts of interest, including, but not limited to, the
application of section 1203 of the revised school code, 1976 PA
451, MCL 380.1203.
(b) Labor relations, including, but not limited to, a school
board's role in collective bargaining agreements in 1947 PA 336,
MCL 423.201 to 423.217, and in other laws related to employment.
(c) Education law, including, but not limited to, the revised
school code, 1976 PA 451, MCL 380.1 to 380.1852, the state school
aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1896, the open
meetings act, 1976 PA 267, MCL 15.261 to 15.275, and 1937 (Ex Sess)
PA 4, MCL 38.71 to 38.191, dealing with teacher tenure.
(d) School finance, including, but not limited to, the
creation and management of school district budgets.
(e) Board governance, including, but not limited to, roles and
responsibilities, parliamentary procedure, and best practices.
(f) Rater reliability training.
(g) Teacher training requirements related to the science of
reading and numeracy.
(2) On completion of an eligible training program, a school
board member may apply for reimbursement for the cost of the
eligible training program through the board member's local
district, up to $100.00 per course. The department may determine
the form and manner of the application to reimburse the district
for the cost.
(3) The department shall create a process for the provider of
a course in a topic listed in subsection (1) to apply to the
department to have the course approved and be eligible for a school
board member to be reimbursed for completing that course as
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provided under subsection (2).
(4) As used in this section:
(a) "Eligible training program" means a training program that
is approved under subsection (1).
(b) "School board member" means a member of the board of a
school district or intermediate school district or a member of the
board of directors of a public school academy in this state.
Sec. 604. (1) From the funds appropriated in part 1, not less
than $159,500.00 and not fewer than 1.0 FTE position shall provide
technical assistance to all eligible districts to make them
effective at using Medicaid dollars for mental health.
(2) As used in this section, "eligible district" means a
school district or intermediate school district that receives
funding under section 31n of the state school aid act of 1979, 1979
PA 94, MCL 388.1631n.

EDUCATIONAL SUPPORTS
Sec. 701. (1) From the funds appropriated in part 1 for
educational supports, the department shall produce a report
detailing the progress made by districts with grades K to 12
receiving at-risk funding under section 31a of the state school aid
act of 1979, 1979 PA 94, MCL 388.1631a, in doing both of the
following:
(a) Implementing multi-tiered systems of supports in the
previous school fiscal year for grades K to 12.
(b) Providing reading intervention services described in
section 1280f of the revised school code, 1976 PA 451, MCL
380.1280f, for pupils in grades K to 12.
(2) The department shall include, at a minimum, all of the
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following in the report described in subsection (1):
(a) A description of the training, coaching, and technical
assistance offered by the department to districts to support the
implementation of effective multi-tiered systems of supports and
reading intervention programs.
(b) A list of districts determined by the department to have
successfully implemented multi-tiered systems of supports and
reading intervention programs.
(c) A list of districts determined by the department that have
the need to implement multi-tiered systems of supports and reading
intervention programs.
(d) A list of best practices that the department has
identified that may be used by districts to implement multi-tiered
systems of supports and reading intervention programs.
(e) Other information the department determines would be
useful to understanding the status of districts' implementation of
effective multi-tiered systems of supports and reading intervention
programs.
(3) The department shall provide the report described in
subsection (1) to the state budget director, the house and senate
subcommittees that oversee the department and school aid budgets,
and the house and senate fiscal agencies by September 30 of the
current fiscal year.
Sec. 702. From the funds appropriated in part 1, there is
appropriated an amount not less than $1,000,000.00 for
implementation costs associated with programs for literacy funded
under section 35a of the state school aid act of 1979, 1979 PA 94,
MCL 388.1635a.

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CAREER AND TECHNICAL EDUCATION
Sec. 750. From the funds appropriated in part 1 for career and
technical education operations, the department shall develop and
implement a reporting mechanism for school districts to report on
career and technical education participation and workforce
development participation. The department shall prepare and submit
a report to the standard report recipients detailing all of the
following:
(a) The number of students participating in career and
technical education programs.
(b) The number of students in the graduating class of the
current school year that took at least 1 career and technical
education course while in high school.
(c) The number of students in the graduating class of the
previous school year that enrolled in a postsecondary workforce
development program in the current school year.

LIBRARY OF MICHIGAN
Sec. 801. (1) The funds appropriated in part 1 for library
fees are appropriated from money collected by the library of
Michigan for providing qualified services and may be used for any
expenses necessary to provide the qualified services. Any money
that is unexpended at the end of the current fiscal year does not
lapse to the general fund and may be carried forward into the
succeeding fiscal year.
(2) As used in this section, "qualified services" means any of
the following:
(a) Document reproduction and services.
(b) Conducting conferences, workshops, and training classes.
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(c) Providing specialized equipment, facilities, and software.
Sec. 804. (1) The department shall use the funds appropriated
in part 1 for renaissance zone reimbursements to reimburse public
libraries under section 12 of the Michigan renaissance zone act,
1996 PA 376, MCL 125.2692, for taxes levied in 2026. The department
shall allocate the funds 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.
(2) If the amount appropriated under this section is not
sufficient to fully pay obligations under this section, the
department shall prorate payments on an equal basis among all
eligible recipients.

ARTICLE 4
DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of
environment, Great Lakes, and energy for the fiscal year ending
September 30, 2027, from the following funds:
DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND
ENERGY
APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 1,514.8
Full-time employees 1,514.0
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Limited-term employees 49.0
Noncareer/per diem employees 49.0
Part-time employees 1.0
Permanent-intermittent employees 9.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 470,613,600
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 4,099,300
ADJUSTED GROSS APPROPRIATION $ 466,514,300
Federal revenues:
Total federal revenues 148,639,000
Special revenue funds:
Total local revenues 0
Total private revenues 1,750,600
Total other state restricted revenues 213,954,800
State general fund/general purpose $ 102,169,900
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 93.6
Unclassified salaries--FTEs 6.0 $ 952,900
Accounting service center 1,480,600
Administrative hearings officers 553,800
Departmentwide employee economic adjustments 7,609,200
Environmental investigations--FTEs 12.0 2,432,800
Environmental support--FTEs 52.0 9,623,300
Executive direction--FTEs 17.1 4,480,800
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Facilities management 1,000,000
Financial support--FTEs 12.5 6,091,400
Michigan geological survey 2,700,000
Property management 7,694,000
GROSS APPROPRIATION $ 44,618,800
Appropriated from:
Interdepartmental grant revenues:
IDG from department of licensing and regulatory
affairs 700
IDG from department of state police 112,700
IDG from state transportation department 169,500
Federal revenues:
Federal funds 1,241,600
Special revenue funds:
Private funds 1,199,900
Air emissions fees 1,202,200
Aquatic nuisance control fund 81,000
Asbestos inspection fund 17,300
Campground fund 27,800
Cleanup and redevelopment fund 5,136,300
Coal ash care fund 19,600
Electronic waste recycling fund 27,600
Environmental education fund 239,900
Environmental pollution prevention fund 456,800
Fees and collections 18,100
Financial instruments 6,103,100
Great Lakes protection fund 550,600
Groundwater discharge permit fees 183,100
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Infrastructure construction fund 4,200
Laboratory services fees 777,500
Land and water permit fees 225,400
Medical waste emergency response fund 39,200
Metallic mining surveillance fee revenue 5,300
Mineral well regulatory fee revenue 13,600
Nonferrous metallic mineral surveillance 19,300
NPDES fees 378,000
Oil and gas regulatory fund 514,200
Orphan well fund 21,900
Public swimming pool fund 58,200
Public utility assessments 221,900
Public water supply fees 398,000
Refined petroleum fund 3,032,100
Renew Michigan fund 4,815,600
Sand extraction fee revenue 5,200
Scrap tire regulatory fund 395,100
Septage waste program fund 54,500
Settlement funds 898,400
Sewage sludge land application fees 77,500
Soil erosion and sedimentation control training
fund 10,400
Solid waste management fund - staff account 651,000
Stormwater permit fees 187,300
Technologically enhanced naturally occurring
radioactive material 56,600
Underground storage tank cleanup fund 286,200
Wastewater operator training fees 49,900
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Water pollution control revolving fund 200
Water quality protection fund 7,100
Water use reporting fees 23,700
State general fund/general purpose $ 14,603,500
Sec. 103. WATER RESOURCES DIVISION
Full-time equated classified positions 387.1
Aquatic nuisance control program--FTEs 6.0 $ 939,000
Federal - Great Lakes remedial action plan
grants 289,500
Fish contaminant monitoring 316,100
Great Lakes restoration initiative--FTEs 9.0 9,240,500
Nonpoint source pollution prevention and
control project program 2,873,900
Technology advancements for water monitoring 500,000
Water quality programs--FTEs 211.8 31,120,600
Water quality protection grants 49,700
Water resource programs--FTEs 160.3 27,854,700
Watershed council grants 51,400
GROSS APPROPRIATION $ 73,235,400
Appropriated from:
Interdepartmental grant revenues:
IDG from state transportation department 2,056,400
Federal revenues:
Federal funds 31,592,800
Special revenue funds:
Aquatic nuisance control fund 939,000
Environmental response fund 590,000
Groundwater discharge permit fees 2,246,900
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Infrastructure construction fund 52,000
Land and water permit fees 4,007,400
Refined petroleum fund 456,000
Sewage sludge land application fees 918,900
Soil erosion and sedimentation control training
fund 143,500
Stormwater permit fees 1,428,000
Wastewater operator training fees 317,400
Water pollution control revolving fund 152,500
Water quality protection fund 49,700
State general fund/general purpose $ 28,284,900
Sec. 104. AIR QUALITY DIVISION
Full-time equated classified positions 206.5
Air quality programs--FTEs 206.5 $ 34,729,100
GROSS APPROPRIATION $ 34,729,100
Appropriated from:
Federal revenues:
Federal funds 7,762,700
Special revenue funds:
Air emissions fees 7,289,200
Asbestos inspection fund 2,000,000
Fees and collections 214,300
Oil and gas regulatory fund 148,700
Public utility assessments 150,000
Refined petroleum fund 2,138,500
State general fund/general purpose $ 15,025,700
Sec. 105. REMEDIATION AND REDEVELOPMENT DIVISION
Full-time equated classified positions 329.0
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Contaminated site remediation and redevelopment
programs--FTEs 329.0 $ 58,713,400
Emergency cleanup actions 223,200
Environmental cleanup and redevelopment program 17,395,700
Superfund cleanup 482,100
GROSS APPROPRIATION $ 76,814,400
Appropriated from:
Federal revenues:
Federal funds 8,241,300
Special revenue funds:
Cleanup and redevelopment fund 17,200,000
Environmental response fund 1,442,100
Laboratory services fees 14,392,000
Public water supply fees 330,700
Refined petroleum fund 33,108,300
State brownfield redevelopment fund 2,100,000
State general fund/general purpose $ 0
Sec. 106. UNDERGROUND STORAGE TANK AUTHORITY
Full-time equated classified positions 8.8
Underground storage tank cleanup program--FTEs 8.8 $ 22,129,000
GROSS APPROPRIATION $ 22,129,000
Appropriated from:
Special revenue funds:
Underground storage tank cleanup fund 22,129,000
State general fund/general purpose $ 0
Sec. 107. RENEWING MICHIGAN'S ENVIRONMENT
Full-time equated classified positions 115.7
Information management--FTEs 22.0 $ 3,913,400
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Renew Michigan program--FTEs 93.7 27,004,000
GROSS APPROPRIATION $ 30,917,400
Appropriated from:
Interdepartmental grant revenues:
IDG from department of state police 8,800
IDG from state transportation department 13,600
Federal revenues:
Federal funds 5,800
Special revenue funds:
Air emissions fees 92,900
Aquatic nuisance control fund 7,000
Campground fund 2,600
Cleanup and redevelopment fund 60,700
Coal ash care fund 1,900
Electronic waste recycling fund 2,300
Environmental pollution prevention fund 28,800
Fees and collections 1,700
Financial instruments 6,100
Great Lakes protection fund 3,600
Groundwater discharge permit fees 14,900
Infrastructure construction fund 400
Laboratory services fees 55,700
Land and water permit fees 21,200
Medical waste emergency response fund 3,200
Metallic mining surveillance fee revenue 500
Mineral well regulatory fee revenue 1,000
Nonferrous metallic mineral surveillance 1,500
NPDES fees 29,600
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Oil and gas regulatory fund 43,300
Orphan well fund 1,500
Public swimming pool fund 5,300
Public utility assessments 18,900
Public water supply fees 37,600
Renew Michigan fund 27,187,100
Sand extraction fee revenue 500
Scrap tire regulatory fund 36,500
Septage waste program fund 4,300
Sewage sludge land application fees 6,400
Soil erosion and sedimentation control training
fund 1,000
Solid waste management fund - staff account 46,300
Stormwater permit fees 15,500
Technologically enhanced naturally occurring
radioactive material 5,400
Underground storage tank cleanup fund 26,100
Wastewater operator training fees 4,100
Water quality protection fund 700
Water use reporting fees 2,100
State general fund/general purpose $ 3,111,000
Sec. 108. INFORMATION TECHNOLOGY
Information technology services and projects $ 5,219,900
GROSS APPROPRIATION $ 5,219,900
Appropriated from:
Interdepartmental grant revenues:
IDG from department of state police 12,800
IDG from state transportation department 22,200
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Federal revenues:
Federal funds 1,031,200
Special revenue funds:
Air emissions fees 129,400
Aquatic nuisance control fund 8,000
Campground fund 3,800
Cleanup and redevelopment fund 909,100
Coal ash care fund 2,700
Electronic waste recycling fund 1,200
Environmental pollution prevention fund 1,000
Fees and collections 2,100
Financial instruments 302,200
Great Lakes protection fund 4,200
Groundwater discharge permit fees 23,800
Infrastructure construction fund 600
Laboratory services fees 58,600
Land and water permit fees 30,900
Medical waste emergency response fund 3,600
Metallic mining surveillance fee revenue 600
Mineral well regulatory fee revenue 300
Nonferrous metallic mineral surveillance 1,700
NPDES fees 31,700
Oil and gas regulatory fund 54,600
Public swimming pool fund 7,200
Public utility assessments 42,800
Public water supply fees 50,400
Refined petroleum fund 402,500
Renew Michigan fund 712,100
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Sand extraction fee revenue 1,000
Scrap tire regulatory fund 75,000
Septage waste program fund 5,200
Sewage sludge land application fees 7,300
Soil erosion and sedimentation control training
fund 1,200
Solid waste management fund - staff account 17,300
Stormwater permit fees 16,700
Technologically enhanced naturally occurring
radioactive material 10,000
Underground storage tank cleanup fund 35,800
Wastewater operator training fees 4,900
Water pollution control revolving fund 16,500
Water quality protection fund 800
Water use reporting fees 3,100
State general fund/general purpose $ 1,173,800
Sec. 109. DRINKING WATER AND ENVIRONMENTAL
HEALTH
Full-time equated classified positions 160.0
Drinking water and environmental health--FTEs 160.0 $ 38,467,100
GROSS APPROPRIATION $ 38,467,100
Appropriated from:
Federal revenues:
Federal funds 13,755,900
Special revenue funds:
Campground fund 388,200
Fees and collections 34,700
Public swimming pool fund 762,200
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Public water supply fees 3,067,800
Refined petroleum fund 761,100
Septage waste program fund 828,900
Wastewater operator training fees 267,700
State general fund/general purpose $ 18,600,600
Sec. 110. MATERIALS MANAGEMENT DIVISION
Full-time equated classified positions 120.0
Material management programs--FTEs 120.0 $ 27,221,600
GROSS APPROPRIATION $ 27,221,600
Appropriated from:
Interdepartmental grant revenues:
IDG from department of state police 1,590,500
Federal revenues:
Federal funds 3,487,600
Special revenue funds:
Private funds 510,700
Cleanup and redevelopment fund 3,890,500
Coal ash care fund 268,100
Community pollution prevention fund 1,250,000
Electronic waste recycling fund 333,700
Environmental pollution prevention fund 4,167,300
Medical waste emergency response fund 454,500
Public utility assessments 247,900
Scrap tire regulatory fund 5,647,300
Small business pollution prevention revolving
loan fund 134,400
Solid waste management fund - staff account 3,991,600
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Technologically enhanced naturally occurring
radioactive material 465,500
State general fund/general purpose $ 782,000
Sec. 111. GEOLOGIC RESOURCES MANAGEMENT DIVISION
Full-time equated classified positions 70.6
Geologic resources management--FTEs 70.6 $ 10,827,800
GROSS APPROPRIATION $ 10,827,800
Appropriated from:
Interdepartmental grant revenues:
IDG from department of licensing and regulatory
affairs 112,100
Federal revenues:
Federal funds 153,100
Infrastructure investment and jobs act fund 5,155,400
Special revenue funds:
Private funds 40,000
Water use reporting fees 300
State general fund/general purpose $ 5,366,900
Sec. 112. WATER INFRASTRUCTURE
Full-time equated classified positions 23.5
Lead service line replacement $ 9,601,300
Municipal assistance--FTEs 23.5 3,598,100
Water state revolving funds 93,233,700
GROSS APPROPRIATION $ 106,433,100
Appropriated from:
Federal revenues:
Federal funds 76,211,600
Special revenue funds:
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Revolving loan revenue bonds 15,000,000
State general fund/general purpose $ 15,221,500

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state resources is
$316,124,700.00 and state spending under part 1 from state sources
to be paid to local units of government is $41,273,300.00. The
following itemized statement identifies appropriations from which
spending to local units of government will occur:
DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND
ENERGY
Brownfield grants $ 1,000,000
Drinking water and environmental health 8,786,000
Emergency cleanup actions 116,000
Lead service line replacement 9,601,300
Material management programs 1,270,000
Renew Michigan program 20,000,000
Technology advancements for water monitoring 500,000
TOTAL $ $41,273,300
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "Department" means the department of environment, Great
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Lakes, and energy.
(b) "Director" means the director of the department.
(c) "FTE" means full-time equated.
(d) "IDG" means interdepartmental grant.
(e) "NPDES" means the national pollutant discharge elimination
system.
(f) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on environment, Great Lakes, and energy, the senate
and house fiscal agencies, the senate and house policy offices, and
the state budget office.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
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required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
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with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
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(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
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Sec. 214. (1) Not later than April 1, the department shall
maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $3,000,000.00 for
state restricted contingency authorization. Amounts appropriated
are not available for expenditure until they have been transferred
to another line item in part 1 under section 393(2) of the
management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $19,364,100.00. From this amount, total
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appropriations for pension-related legacy costs for the department
are estimated at $19,364,100.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations in part 1 until all existing authorized work
project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
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that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
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each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
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spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
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office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
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reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
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individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.
Sec. 250. (1) The department may expend amounts remaining from
the current and prior fiscal year appropriations to meet funding
needs of the environmental cleanup and redevelopment program,
environmental cleanup support, contaminated site remediation and
redevelopment programs, contaminated site cleanup, contaminated
site cleanup contingency reserve, premcor remediation activities,
PFAS remediation grant program, the renew Michigan program, the
refined petroleum product cleanup program, brownfield grants and
loans, waterfront grants, and the environmental bond site
reclamation program.
(2) Unexpended and unencumbered amounts remaining from
appropriations from the clean Michigan initiative fund - response
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activities contained in 2011 PA 63, 2013 PA 59, 2014 PA 252, 2015
PA 84, 2016 PA 268, 2017 PA 107, and 2025 PA 22 are appropriated
for expenditure.
(3) Unexpended and unencumbered amounts remaining from
appropriations from the refined petroleum fund activities contained
in 2013 PA 59, 2014 PA 252, 2015 PA 84, 2016 PA 268, 2017 PA 107,
2018 PA 207, 2019 PA 57, 2020 PA 166, 2021 PA 87, 2022 PA 166, 2023
PA 119, 2024 PA 121, and 2025 PA 22 are appropriated for
expenditure.
(4) Unexpended and unencumbered amounts remaining from the
appropriations from the strategic water quality initiatives fund
contained in 2011 PA 50, 2011 PA 63, 2012 PA 200, 2013 PA 59, 2014
PA 252, 2015 PA 84, 2016 PA 268, 2017 PA 107, and 2018 PA 207, are
appropriated for expenditure.
(5) For the strategic water quality initiatives fund, funds
not yet disbursed are appropriated for expenditure for the same
program under sections 5201, 5202, and 5204e of the natural
resources and environmental protection act, 1994 PA 451, MCL
324.5201, 324.5202, and 324.5204e.
(6) Unexpended and unencumbered amounts remaining from the
appropriations from the renew Michigan fund contained in 2018 PA
207, 2019 PA 57, 2020 PA 166, 2021 PA 87, 2022 PA 166, 2023 PA 119,
2024 PA 121, and 2025 PA 22 are appropriated for expenditure.
(7) Unexpended and unencumbered amounts remaining from the
appropriations from the contaminated site cleanup contingency fund
contained in 2021 PA 87 and 2022 PA 166, are appropriated for
expenditure.
(8) Unexpended and unencumbered amounts remaining from the
appropriations from the cleanup and redevelopment fund contained in
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2022 PA 166, 2023 PA 119, 2024 PA 121, and 2025 PA 22 are
appropriated for expenditure.
Sec. 252. (1) Semiannually, the department shall prepare a
report that contains information regarding all remediation and
redevelopment efforts funded from part 1.
(2) The report must contain the following information:
(a) List of sites where work is planned to occur, including
the county for each site.
(b) The type of site, whether refined petroleum cleanup,
nonrefined petroleum cleanup, brownfield, or a combination of
types.
(c) A brief description of how the issue will be addressed,
including whether contractors will be utilized.
(d) The estimated date for project completion.
(e) The amount and funding source or sources allocated to the
site.
(3) The report must be submitted to the senate and house of
representatives subcommittees on the environment, Great Lakes, and
energy and the state budget director.
Sec. 253. The department shall submit a report to the senate
and house of representatives standing committees and appropriations
subcommittees with primary responsibility for issues under the
jurisdiction of the department that details departmental activities
of the most recent fiscal year in administering permitting
programs. The report must include, at a minimum, all of the
following:
(a) The number of FTEs assigned to each permitting program and
the number of unfilled positions at the beginning and end of the
most recent fiscal year.
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(b) The number of permit applications received by the
department in the preceding year, including applications for new
and increased uses and reissuances.
(c) The number of permits for each program approved.
(d) The number of permits for each program denied.
(e) The percentage and number of permit applications that were
reviewed for administrative completeness within statutory time
frames.
(f) The percentage and number of permit applications for which
a final action was taken by the department within statutory time
frames for new and increased uses and reissuances.
(g) Activities to reduce any backlog of permits that exceed
the statutory time frames and the average time frame for permit
approvals for each program.
(h) Activities to reduce the percentage of permit applications
submitted as incomplete, in need of modification, or additional
information before final determination.
(i) Under conditions in which the department states a permit
is incomplete or denied, the department shall provide an
explanation as to the reason or reasons the permit is insufficient
and how the permit can be strengthened or made complete.
Sec. 254. If the department responds to a significant incident
to protect life or property, as soon as possible and within 24
hours after the department responds to the significant incident,
the department shall notify, in writing, the senate and house of
representatives members whose district includes the site.
Sec. 255. (1) Funds appropriated in part 1 must not be used by
the department to promulgate a rule that will apply to small
businesses and have a disproportionate economic impact on small
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businesses because of the size of those businesses if the
department fails to reduce the disproportionate economic impact of
the rule on small businesses as provided under section 40 of the
administrative procedures act of 1969, 1969 PA 306, MCL 24.240.
(2) As used in this section:
(a) "Rule" means that term as defined under section 7 of the
administrative procedures act of 1969, 1969 PA 306, MCL 24.207.
(b) "Small business" means that term as defined under section
7a of the administrative procedures act of 1969, 1969 PA 306, MCL
24.207a.
Sec. 256. The department must issue permits in accordance with
each permit's statutory timeline and shall report progress under
this section to the standard report recipients on a quarterly
basis.
Sec. 257. From the funds appropriated in part 1, the
department shall annually update the permitting guidebooks funded
in 2025 PA 22 and annually submit updated paper copies to the
standard report recipients.
Sec. 258. (1) To the extent allowed under state and federal
law, applicants shall receive a 10% discount on permit fees for
every 30 days a permit review process remains incomplete beyond the
permit application review time frame as defined in statute or
administrative rules.
(2) The department shall report quarterly on the fiscal impact
of discounts given under this section to the standard report
recipients.

REMEDIATION AND REDEVELOPMENT DIVISION
Sec. 302. The unexpended funds appropriated in part 1 for
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contaminated site remediation and redevelopment programs, emergency
cleanup actions, and environmental cleanup and redevelopment
program are designated as work project appropriations, and any
unencumbered or unallotted funds shall not lapse at the end of the
fiscal year and shall be available for expenditures for projects
under this section until the projects have been completed. The
following is in compliance with section 451a of the management and
budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the projects is to provide contaminated
site cleanup.
(b) The projects will be accomplished by utilizing contracts
with service providers.
(c) The total estimated cost of all projects is identified in
each line-item appropriation.
(d) The tentative completion date is September 30, 2030.
Sec. 304. (1) In addition to the money appropriated in part 1,
the department may receive and expend money from the subaccounts of
the cleanup and redevelopment fund as described under section 20108
of the natural resources and environmental protection act, 1994 PA
451, MCL 324.20108, including the environmental response fund or
the natural resource damages fund, to provide funding for actions
by the department that are authorized by a court of competent
jurisdiction and set forth in a final court order or judgment in an
action to which the department is a party.
(2) Not later than January 30, the department shall submit a
report to the appropriations subcommittees, the fiscal agencies,
and the state budget office that provides a summary of the
expenditures incurred under this section during the preceding
fiscal year.
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Sec. 305. It is the intent of the legislature to repay the
refined petroleum fund for the $70,000,000.00 that was transferred
to the environmental protection fund created in section 503a of the
natural resources and environmental protection act, 1994 PA 451,
MCL 324.503a, as part of the resolution for the fiscal year 2006-
2007 budget.

WATER RESOURCES DIVISION
Sec. 402. The department shall report the following to the
standard report recipients:
(a) The number of permit application decision appeals filed in
the previous fiscal year.
(b) The number of permit applications approved within 30 days,
60 days, 90 days, 6 months, and 1 year after an application is
determined to be administratively complete.
Sec. 405. 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 324.11721, then the
department may spend funds appropriated in part 1 for drinking
water and environmental health in accordance with section 11716 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.11716.
Sec. 410. From the funds appropriated in part 1, the
department shall compile a report by November 1 of every fiscal
year ending in an odd number on the status of the implementation
plan for the western Lake Erie basin collaborative agreement. In an
effort to learn more about the presence and timing of harmful algal
blooms, the report must contain all of the following:
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(a) An estimated cost of removal of total phosphorus per pound
at the 4 major wastewater treatment plants.
(b) A description of the grants that have been awarded.
(c) A description of the work that has commenced on the issue
of dissolved reactive phosphorus, the expected objectives and
outcomes of that work, and a list of the parties involved in that
effort.
(d) A description of the efforts and outcomes aimed at the
total phosphorus reduction for the River Raisin watershed.

UNDERGROUND STORAGE TANK AUTHORITY
Sec. 701. The unexpended funds appropriated in part 1 for the
underground storage tank cleanup program are designated as a work
project appropriation, and any unencumbered or unallotted funds
shall not lapse at the end of the fiscal year and shall be
available for expenditures for projects under this section until
the projects have been completed. The following is in compliance
with section 451a of the management and budget act, 1984 PA 431,
MCL 18.1451a:
(a) The purpose of the project is to provide underground
storage tank cleanup.
(b) The project will be accomplished by utilizing contracts
with service providers.
(c) The total estimated cost of the project is $20,000,000.00.
(d) The tentative completion date is September 30, 2029.

MATERIALS MANAGEMENT DIVISION
Sec. 901. In addition to the money appropriated in part 1, the
department may receive and expend money from the Volkswagen
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Environmental Mitigation Trust Agreement to provide funding for
activities as outlined within the State's Mitigation Plan. The
department shall prepare a report to the appropriations
subcommittees, the fiscal agencies, and the state budget office by
February 1, 2027 of the expenditures incurred under this section
during the fiscal year ending September 30, 2026.

WATER INFRASTRUCTURE
Sec. 951. The funds appropriated in part 1 for lead service
line replacement must be used to support water infrastructure
projects, including, but not limited to, lead service line
replacement and associated activities, drinking water projects,
wastewater management, or stormwater management to promote
coordinated water infrastructure work.
Sec. 952. From the funds appropriated in part 1 for water
state revolving funds, a minimum of 25% of the funds must be
awarded to communities with populations of less than 20,000.

ARTICLE 5
GENERAL GOVERNMENT
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the legislature, the
executive, the department of the attorney general, the department
of state, the department of treasury, the department of technology,
management, and budget, the department of civil rights, and certain
state purposes related to those branches and departments for the
fiscal year ending September 30, 2027, from the following funds:
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TOTAL GENERAL GOVERNMENT
APPROPRIATION SUMMARY
Full-time equated unclassified positions 44.0
Full-time equated classified positions 6,988.9
Full-time employees 6,971.0
Limited-term employees 386.0
Noncareer/per diem employees 138.0
Part-time employees 4.0
Permanent-intermittent employees 4.0
Seasonal employees 2.0
GROSS APPROPRIATION $ 4,664,556,200
Total interdepartmental grants and
intradepartmental transfers 864,156,200
ADJUSTED GROSS APPROPRIATION $ 3,800,400,000
Federal revenues:
Total federal revenues 29,790,600
Special revenue funds:
Total local revenues 14,864,500
Total private revenues 1,917,700
Total other state restricted revenues 2,714,961,600
State general fund/general purpose $ 1,038,865,600
Sec. 102. DEPARTMENT OF ATTORNEY GENERAL
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 626.4
Full-time employees 595.0
Limited-term employees 37.0
Noncareer/per diem employees 29.0
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Part-time employees 2.0
Permanent-intermittent employees 0.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 118,609,400
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 39,899,600
ADJUSTED GROSS APPROPRIATION $ 78,709,800
Federal revenues:
Total federal revenues 10,710,500
Special revenue funds:
Total local revenues 0
Total private revenues 961,400
Total other state restricted revenues 30,893,000
State general fund/general purpose $ 36,144,900
(2) ATTORNEY GENERAL OPERATIONS
Full-time equated unclassified positions 6.0
Full-time equated classified positions 626.4
Attorney general $ 112,500
Unclassified salaries--FTEs 5.0 993,100
Alcohol and gambling enforcement--FTEs 15.6 2,881,800
Assistance with convictions and expungements--
FTEs 27.0 4,133,500
Child elder family financial crimes--FTEs 18.8 5,008,900
Child support enforcement--FTEs 22.9 3,938,600
Children and Youth Services--FTEs 26.6 5,300,000
Civil rights and elections--FTEs 11.0 2,152,300
Collections--FTEs 14.2 2,775,000
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Corporate oversight--FTEs 44.0 8,352,400
Corrections--FTEs 36.6 7,015,900
Criminal appellate and parole appeals--FTEs 15.6 2,054,800
Criminal investigations--FTEs 42.1 2,759,900
Criminal trials--FTEs 33.9 8,479,100
Departmentwide employee economic adjustments 1,636,700
Environment, natural resources and agriculture-
-FTEs 31.1 5,852,900
Executive office--FTEs 7.0 1,232,900
Finance--FTEs 10.1 2,315,600
Fiscal management--FTEs 8.2 1,082,100
Health care fraud--FTEs 32.0 6,208,900
Health education and family services--FTEs 34.0 5,591,100
Human resources--FTEs 6.4 961,400
Labor--FTEs 31.1 5,233,800
Licensing and regulation--FTEs 35.8 4,876,000
Office of communications--FTEs 8.2 1,017,400
Office of legislative affairs--FTEs 1.8 362,800
Opinions review board--FTE 1.0 284,500
Public administration--FTEs 2.7 418,900
Public service division--FTEs 12.8 2,438,300
Revenue and tax--FTEs 24.7 5,256,300
Sexual assault law enforcement--FTEs 5.0 1,493,700
Solicitor general--FTEs 3.7 1,444,300
Special litigation--FTEs 4.6 2,091,900
State operations--FTEs 39.5 8,286,500
Transportation--FTEs 9.2 2,544,400
Victim rights/victim services--FTEs 9.2 1,168,300
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GROSS APPROPRIATION $ 117,756,500
Appropriated from:
Interdepartmental grant revenues:
IDG from MDOC 745,700
IDG from MDE 832,000
IDG from EGLE 2,468,400
IDG from MDHHS, health policy 332,100
IDG from MDHHS, human services 7,049,000
IDG from MDHHS, medical services administration 792,000
IDG from MDHHS, WIC 380,100
IDG from MDIFS, financial and insurance
services 1,644,800
IDG from LEO, Michigan occupational safety and
health administration 213,100
IDG from LEO, workforce development 102,300
IDG from MDLARA, bureau of marijuana regulatory
agency 2,562,700
IDG from MDLARA, fireworks safety fund 92,300
IDG from MDLARA, health professions 3,187,600
IDG from MDLARA, licensing and regulation fees 803,700
IDG from MDLARA, remonumentation fees 118,600
IDG from MDLARA, securities fees 788,600
IDG from MDLARA, unlicensed builders 1,209,000
IDG from MDMVA 185,100
IDG from MDOS, children's protection registry 45,000
IDG from MDOT, comprehensive transportation
fund 112,600
IDG from MDOT, state aeronautics fund 196,900
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IDG from MDOT, state trunkline fund 2,269,800
IDG from MDSP 291,400
IDG from MDTMB 1,371,100
IDG from MDTMB, civil service commission 347,900
IDG from MDTMB, risk management revolving fund 1,424,900
IDG from MILEAP 1,024,500
IDG from Michigan state housing development
authority 1,305,800
IDG from Michigan strategic fund 203,800
IDG from treasury 7,798,800
Federal revenues:
DAG, state administrative match grant/food
stamps 137,000
Federal funds 3,858,500
HHS, medical assistance, medigrant 425,900
HHS-OS, state Medicaid fraud control units 6,289,100
Special revenue funds:
Criminal property seizures 961,400
Antitrust enforcement collections 869,600
Attorney general's operations fund 4,127,800
Attorney general support fund 8,112,200
Auto repair facilities fees 376,900
Franchise fees 434,900
Game and fish protection fund 693,300
Human trafficking commission fund 170,000
Liquor purchase revolving fund 1,673,900
Michigan employment security act -
administrative fund 2,550,700
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Michigan merit award trust fund 550,800
Michigan opioid healing and recovery 203,100
Mobile home code fund 278,600
Prisoner reimbursement 804,300
Public utility assessments 2,255,900
Reinstatement fees 293,600
Retirement funds 1,184,600
Second injury fund 680,500
Self-insurers security fund 414,700
Silicosis and dust disease fund 119,800
State building authority revenue 135,100
State casino gaming fund 2,018,700
State lottery fund 397,800
Utility consumer representation fund 1,974,300
Waterways account 156,300
Worker's compensation administrative revolving
fund 415,600
State general fund/general purpose $ 35,292,000
(3) INFORMATION TECHNOLOGY
Information technology services and projects $ 852,900
GROSS APPROPRIATION $ 852,900
Appropriated from:
State general fund/general purpose $ 852,900
Sec. 103. DEPARTMENT OF CIVIL RIGHTS
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 160.0
Full-time employees 98.0
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Limited-term employees 88.0
Noncareer/per diem employees 2.0
Part-time employees 0.0
Permanent-intermittent employees 0.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 23,263,500
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 23,263,500
Federal revenues:
Total federal revenues 3,427,700
Special revenue funds:
Total local revenues 0
Total private revenues 18,700
Total other state restricted revenues 58,500
State general fund/general purpose $ 19,758,600
(2) CIVIL RIGHTS OPERATIONS
Full-time equated unclassified positions 6.0
Full-time equated classified positions 160.0
Unclassified salaries--FTEs 6.0 $ 829,500
Complaint investigation and enforcement--FTEs 102.0 14,301,600
Departmentwide employee economic adjustments 504,600
Disability rights and compliance--FTEs 11.0 1,729,000
Division on deaf, deafblind, and hard of
hearing--FTEs 6.0 761,400
Executive office--FTEs 26.0 2,665,300
Public affairs--FTEs 15.0 1,697,600
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GROSS APPROPRIATION $ 22,489,000
Appropriated from:
Federal revenues:
EEOC, state and local antidiscrimination agency
contracts 1,768,500
HUD, grant 1,651,700
Special revenue funds:
Private revenues 18,700
State restricted indirect funds 58,500
State general fund/general purpose $ 18,991,600
(3) INFORMATION TECHNOLOGY
Information technology services and projects $ 774,500
GROSS APPROPRIATION $ 774,500
Appropriated from:
Federal revenues:
EEOC, state and local antidiscrimination agency
contracts 7,500
State general fund/general purpose $ 767,000
Sec. 104. EXECUTIVE OFFICE
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 10.0
Full-time equated classified positions 86.2
Full-time employees 0.0
Limited-term employees 79.0
Noncareer/per diem employees 0.0
Part-time employees 0.0
Permanent-intermittent employees 0.0
Seasonal employees 0.0
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GROSS APPROPRIATION $ 9,890,200
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 9,890,200
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 $ 9,890,200
(2) EXECUTIVE OFFICE OPERATIONS
Full-time equated unclassified positions 10.0
Full-time equated classified positions 86.2
Unclassified salaries--FTEs 8.0 $ 1,720,800
Governor 159,300
Lieutenant governor 111,600
Executive office--FTEs 86.2 7,898,500
GROSS APPROPRIATION $ 9,890,200
Appropriated from:
State general fund/general purpose $ 9,890,200
Sec. 105. LEGISLATURE
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION $ 242,076,800
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 7,668,900
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ADJUSTED GROSS APPROPRIATION $ 234,407,900
Federal revenues:
Total federal revenues 0
Special revenue funds:
Total local revenues 0
Total private revenues 488,900
Total other state restricted revenues 6,815,500
State general fund/general purpose $ 227,103,500
(2) LEGISLATURE
Senate $ 52,837,900
Senate automated data processing 3,339,300
Senate fiscal agency 5,054,500
House of representatives 77,597,300
House automated data processing 3,339,300
House fiscal agency 5,054,500
Legislative security 735,700
GROSS APPROPRIATION $ 147,958,500
Appropriated from:
State general fund/general purpose $ 147,958,500
(3) LEGISLATIVE COUNCIL
Legislative corrections ombudsman $ 1,657,900
Legislative council 17,221,200
Legislative service bureau automated data
processing 3,880,800
Michigan veterans' facility ombudsman 385,300
Sentencing commission 100
Office of tribal legislative liaison 522,700
Worker's compensation 185,200
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GROSS APPROPRIATION $ 23,853,200
Appropriated from:
State general fund/general purpose $ 23,853,200
(4) LEGISLATIVE RETIREMENT SYSTEM
Actuarially determined contribution $ 100
General nonretirement expenses 6,565,500
GROSS APPROPRIATION $ 6,565,600
Appropriated from:
Special revenue funds:
Court fees 1,527,800
State general fund/general purpose $ 5,037,800
(5) PROPERTY MANAGEMENT
Binsfeld Office Building and other properties $ 10,313,400
Cora Anderson Building 7,135,200
GROSS APPROPRIATION $ 17,448,600
Appropriated from:
State general fund/general purpose $ 17,448,600
(6) STATE CAPITOL HISTORIC SITE
Bond/lease obligations $ 100
General operations 6,872,800
Restoration, renewal, and maintenance 4,020,500
GROSS APPROPRIATION $ 10,893,400
Appropriated from:
Special revenue funds:
Private - gifts and bequests 488,900
State general fund/general purpose $ 10,404,500
(7) DIGITAL OVERSIGHT OFFICE
Digital oversight office $ 2,700,000
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GROSS APPROPRIATION $ 2,700,000
Appropriated from:
Special revenue funds:
Lawsuit settlement proceeds fund 2,700,000
State general fund/general purpose $ 0
(8) OFFICE OF THE AUDITOR GENERAL
Unclassified positions $ 453,200
Field operations 32,204,300
GROSS APPROPRIATION $ 32,657,500
Appropriated from:
Interdepartmental grant revenues:
IDG, commercial mobile radio system emergency
telephone fund 46,900
IDG, contract audit administration fees 85,900
IDG, deferred compensation funds 118,300
IDG, emp ben div postemployment life insurance
benefit 24,000
IDG from LEO, self-insurers security fund 101,400
IDG from DHHS, human services 39,800
IDG from MDLARA, liquor purchase revolving fund 137,600
IDG from MDMVA, Michigan veterans' facility
authority 109,600
IDG from MDOT, comprehensive transportation
fund 49,200
IDG from MDOT, Michigan transportation fund 399,800
IDG from MDOT, state aeronautics fund 38,700
IDG from MDOT, state trunkline fund 928,600
IDG, legislative retirement system 41,900
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IDG, Michigan economic development corporation 159,500
IDG, Michigan education trust fund 76,600
IDG, Michigan finance authority 323,700
IDG, Michigan justice training commission fund 61,700
IDG, Michigan strategic fund 261,100
IDG, office of retirement services 937,700
IDG, other restricted funding sources 26,800
IDG, pension schedules of employer allocations
funds 127,600
IDG, single audit act 3,484,100
IDG, state sponsored group insurance fund 88,400
Special revenue funds:
21st century jobs trust fund 122,200
Brownfield development fund 35,700
Game and fish protection account 39,800
MDTMB, civil service commission 225,300
Michigan state housing development authority
fees 143,900
Michigan veterans' trust fund 2,000
Michigan veterans' trust fund income and
assessments 23,000
Motor transport revolving fund 9,300
Office services revolving fund 12,900
State disbursement unit, office of child
support 72,600
State services fee fund 1,886,700
Waterways account 14,300
State general fund/general purpose $ 22,400,900
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Sec. 106. DEPARTMENT OF STATE
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 1,477.0
Full-time employees 1,480.0
Limited-term employees 25.0
Noncareer/per diem employees 2.0
Part-time employees 0.0
Permanent-intermittent employees 0.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 249,314,200
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 249,314,200
Federal revenues:
Total federal revenues 1,460,000
Special revenue funds:
Total local revenues 0
Total private revenues 50,100
Total other state restricted revenues 239,104,300
State general fund/general purpose $ 8,699,800
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 118.0
Secretary of state $ 112,500
Unclassified salaries--FTEs 5.0 600,100
Departmentwide employee economic adjustments 4,504,300
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Executive direction--FTEs 27.0 5,165,900
Operations--FTEs 91.0 27,191,900
Property management 10,508,700
Worker's compensation 139,200
GROSS APPROPRIATION $ 48,222,600
Appropriated from:
Special revenue funds:
Abandoned vehicle fees 239,800
Auto repair facilities fees 181,000
Children's protection registry fund 274,400
Driver fees 2,593,300
Enhanced driver license and enhanced official
state personal identification card fund 3,529,900
Expedient service fees 17,400
Marine safety fund 17,300
Mobile home commission fees 1,600
Motorcycle safety fund 2,900
Personal identification card fees 101,900
Scrap tire fund 78,600
Transportation administration collection fund 40,664,400
Vehicle theft prevention fees 9,000
State general fund/general purpose $ 511,100
(3) LEGAL SERVICES
Full-time equated classified positions 163.0
Operations--FTEs 163.0 $ 24,483,100
GROSS APPROPRIATION $ 24,483,100
Appropriated from:
Special revenue funds:
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Auto repair facilities fees 3,250,600
Driver education provider and instructor fund 150,000
Driver fees 1,658,500
Enhanced driver license and enhanced official
state personal identification card fund 2,902,200
Reinstatement fees - operator licenses 598,500
Transportation administration collection fund 15,174,700
Vehicle theft prevention fees 748,600
State general fund/general purpose $ 0
(4) CUSTOMER DELIVERY SERVICES
Full-time equated classified positions 1,117.0
Branch operations--FTEs 827.0 $ 99,789,100
Central operations--FTEs 288.0 50,826,000
Motorcycle safety education administration--
FTEs 2.0 598,200
Motorcycle safety education grants 1,940,700
Organ donor program 51,900
GROSS APPROPRIATION $ 153,205,900
Appropriated from:
Interdepartmental grant revenues:
Federal revenues:
DOT 860,000
OHSP 600,000
Special revenue funds:
Private funds 100
Thomas Daley gift of life fund 50,000
Abandoned vehicle fees 450,900
Auto repair facilities fees 763,700
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Child support clearance fees 100,000
Driver fees 22,881,500
Driver improvement course fund 800,000
Enhanced driver license and enhanced official
state personal identification card fund 14,577,300
Expedient service fees 2,996,700
Marine safety fund 1,579,000
Michigan state police auto theft fund 123,000
Mobile home commission fees 511,200
Motorcycle safety and education awareness fund 293,500
Motorcycle safety fund 1,945,400
Off-road vehicle title fees 170,700
Parking ticket court fines 518,400
Personal identification card fees 2,399,500
Recreation passport fee revenue 1,000,000
Reinstatement fees - operator licenses 1,028,200
Snowmobile registration fee revenue 390,000
Transportation administration collection fund 98,379,000
Vehicle theft prevention fees 786,000
State general fund/general purpose $ 1,800
(5) ELECTION REGULATION
Full-time equated classified positions 79.0
County clerk education and training fund $ 66,000
Election administration and services--FTEs 79.0 23,335,400
Fees to local units 1,200
GROSS APPROPRIATION $ 23,402,600
Appropriated from:
Special revenue funds:
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Election administration support fund 14,949,700
Notary education and training fund 66,000
Notary fee fund 200,000
State general fund/general purpose $ 8,186,900
Sec. 107. DEPARTMENT OF TECHNOLOGY, MANAGEMENT,
AND BUDGET
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 2,948.8
Full-time employees 3,082.0
Limited-term employees 115.0
Noncareer/per diem employees 70.0
Part-time employees 2.0
Permanent-intermittent employees 3.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 1,407,465,300
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 804,302,000
ADJUSTED GROSS APPROPRIATION $ 603,163,300
Federal revenues:
Total federal revenues 4,493,200
Special revenue funds:
Total local revenues 3,094,500
Total private revenues 354,300
Total other state restricted revenues 125,169,900
State general fund/general purpose $ 470,051,400
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT
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Full-time equated unclassified positions 6.0
Full-time equated classified positions 894.3
Unclassified salaries--FTEs 6.0 $ 1,134,600
Administrative services--FTEs 142.3 23,569,400
Budget and financial management--FTEs 194.0 43,332,700
Building operation services--FTEs 275.0 116,395,600
Business support services--FTEs 97.0 16,689,900
Design and construction services--FTEs 54.0 9,861,500
Departmentwide employee economic adjustments 5,983,000
Executive operations--FTEs 32.5 5,556,100
Michigan center for data and analytics--FTEs 38.0 6,933,200
Motor vehicle fleet--FTEs 38.0 107,494,600
Office of the state employer--FTEs 9.0 1,678,300
Property management 10,117,000
State archives--FTEs 14.5 2,134,900
GROSS APPROPRIATION $ 350,880,800
Appropriated from:
Interdepartmental grant revenues:
IDG from accounting service centers user
charges 6,937,300
IDG from building occupancy and parking charges 119,583,000
IDG from MDHHS 759,100
IDG from MDLARA 100,000
IDG from motor transport fund 107,598,800
IDG from technology user fees 15,347,600
IDG from user fees 10,101,800
Federal revenues:
Federal funds 4,493,200
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Special revenue funds:
Local funds 35,000
Local - MPSCS subscriber and maintenance fees 59,100
Private funds 354,300
Deferred compensation 100,600
Health management funds 443,200
Other agency charges 1,329,600
Pension trust funds 362,600
SIGMA user fees 2,156,100
Special revenue, internal service, and pension
trust funds 24,316,700
State restricted funds 1% 408,700
State restricted indirect funds 3,856,300
State sponsored group insurance 165,800
State general fund/general purpose $ 52,372,000
(3) TECHNOLOGY SERVICES
Full-time equated classified positions 1,387.5
Enterprise user experience--FTEs 14.0 $ 4,260,500
Homeland security initiative/cyber security--
FTEs 53.0 20,206,400
Information technology investment fund 3,765,500
Information technology services--FTEs 1,190.5 538,785,600
Michigan public safety communication system--
FTEs 130.0 51,511,500
GROSS APPROPRIATION $ 618,529,500
Appropriated from:
Interdepartmental grant revenues:
IDG from technology user fees 538,785,600
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Special revenue funds:
Local - MPSCS subscriber and maintenance fees 3,000,400
State general fund/general purpose $ 76,743,500
(4) STATEWIDE APPROPRIATIONS
Professional development fund - AFSCME $ 10,900
Professional development fund - MPE, SEIU,
scientific and engineering unit 33,700
Professional development fund - MPE, SEIU,
technical unit 900
Professional development fund - NEREs 200,000
Professional development fund - UAW 110,400
GROSS APPROPRIATION $ 355,900
Appropriated from:
Interdepartmental grant revenues:
IDG from employer contributions 355,900
State general fund/general purpose $ 0
(5) SPECIAL PROGRAMS
Full-time equated classified positions 209.0
Michigan digital service office--FTEs 15.0 $ 3,708,500
Office of the child advocate--FTEs 21.0 4,018,000
Property management executive 1,496,000
Retirement services--FTEs 173.0 26,334,000
GROSS APPROPRIATION $ 35,556,500
Appropriated from:
Special revenue funds:
Deferred compensation 5,246,600
Pension trust funds 21,014,600
State general fund/general purpose $ 9,295,300
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(6) STATE BUILDING AUTHORITY RENT
State building authority rent - community
colleges $ 38,116,500
State building authority rent - state agencies 81,465,200
State building authority rent - universities 142,153,900
GROSS APPROPRIATION $ 261,735,600
Appropriated from:
State general fund/general purpose $ 261,735,600
(7) CIVIL SERVICE COMMISSION
Full-time equated classified positions 458.0
Agency services--FTEs 108.0 $ 18,243,700
Employee benefits--FTEs 28.0 6,323,100
Executive direction--FTEs 32.0 9,911,500
Human resources operations--FTEs 290.0 39,620,800
Information technology services and projects 6,099,800
GROSS APPROPRIATION $ 80,198,900
Appropriated from:
Special revenue funds:
State restricted funds 1% 29,977,900
State restricted indirect funds 14,310,600
State sponsored group insurance 11,390,400
State general fund/general purpose $ 24,520,000
(8) CAPITAL OUTLAY
Enterprisewide special maintenance for state
facilities $ 24,000,000
Major special maintenance, remodeling, and
addition for state agencies 3,800,000
GROSS APPROPRIATION $ 27,800,000
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Appropriated from:
Interdepartmental grant revenues:
IDG from building occupancy charges 3,800,000
State general fund/general purpose $ 24,000,000
(9) INFORMATION TECHNOLOGY
Information technology services and projects $ 26,408,100
GROSS APPROPRIATION $ 26,408,100
Appropriated from:
Interdepartmental grant revenues:
IDG from building occupancy and parking charges 723,200
IDG from user fees 209,700
Special revenue funds:
Deferred compensation 2,600
Pension trust funds 3,259,500
SIGMA user fees 2,037,700
Special revenue, internal service, and pension
trust funds 2,706,500
State restricted indirect funds 2,083,900
State general fund/general purpose $ 15,385,000
(10) ONE-TIME APPROPRIATIONS
EMS health strategies fund $ 6,000,000
GROSS APPROPRIATION $ 6,000,000
Appropriated from:
State general fund/general purpose $ 6,000,000
Sec. 108. DEPARTMENT OF TREASURY
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 10.0
Full-time equated classified positions 1,690.5
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Full-time employees 1,716.0
Limited-term employees 42.0
Noncareer/per diem employees 35.0
Part-time employees 0.0
Permanent-intermittent employees 1.0
Seasonal employees 2.0
GROSS APPROPRIATION $ 2,613,936,800
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 12,285,700
ADJUSTED GROSS APPROPRIATION $ 2,546,074,400
Federal revenues:
Total federal revenues 9,699,200
Special revenue funds:
Total local revenues 11,770,000
Total private revenues 44,300
Total other state restricted revenues 2,312,920,400
State general fund/general purpose $ 267,217,200
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions 10.0
Full-time equated classified positions 374.5
Unclassified salaries--FTEs 10.0 $ 1,013,100
Bureau of accounting and financial services--
FTEs 67.0 9,835,100
Bureau of operational excellence--FTEs 23.0 4,363,100
Collections services bureau--FTEs 137.0 28,819,600
Department services--FTEs 67.0 10,151,400
Departmentwide employee economic adjustments 3,403,300
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Executive direction and operations--FTEs 21.5 5,048,700
Office of security and data risk management--
FTEs 27.0 4,079,700
Property management 6,992,600
Unclaimed property--FTEs 32.0 5,681,800
Worker's compensation 15,200
GROSS APPROPRIATION $ 79,403,600
Appropriated from:
Interdepartmental grant revenue:
IDG, data/collection services fees 339,100
IDG, fiscal agent service fees 400
IDG from accounting service center user charges 424,900
IDG from MDHHS, title IV-D 846,500
IDG, levy/warrant cost assessment fees 3,774,400
IDG from MDOT, Michigan transportation fund 55,700
IDG, state agency collection fees 2,574,100
Federal revenues:
DED-OPSE, federal lenders allowance 540,700
DED-OPSE, higher education act of 1965, insured
loans 579,400
HHS-SSA, low-income energy assistance 8,300
Special revenue funds:
Local - assessor training fees 1,300
Local - audit charges 8,100
Local - city income tax fund 273,800
Brownfield redevelopment fund 400
Casino gambling agreements 10,500
Delinquent tax collection revenue 42,750,500
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Equine development fund 9,600
Escheats revenue 5,767,700
Fantasy contest fund 3,500
Garnishment fees 2,915,500
Insurance provider fund 11,300
Internet gaming fund 169,300
Internet sports betting fund 27,900
Justice system fund 458,800
Land reutilization fund 1,700
Marihuana regulation fund 1,352,900
Marihuana regulatory fund 197,300
MFA, bond and loan program revenue 704,100
Municipal finance fees 9,000
Qualified heavy equipment rental personal
property exemption reimbursement fund 2,600
Retirement funds 155,500
School bond fees 15,600
State building authority revenue 8,600
State lottery fund 1,125,200
State restricted indirect funds 288,900
State services fee fund 749,500
Tobacco tax revenue 24,400
Treasury fees 66,900
State general fund/general purpose $ 13,149,700
(3) LOCAL GOVERNMENT PROGRAMS
Full-time equated classified positions 79.0
Flint settlement payment $ 35,000,000
Local finance--FTEs 14.0 2,309,500
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Michigan infrastructure council 3.0 3,031,400
Property tax assessor training--FTE 1.0 702,800
Supervision of the general property tax law--
FTEs 61.0 16,839,100
GROSS APPROPRIATION $ 57,882,800
Appropriated from:
Interdepartmental grant revenue:
IDG from MDOT, Michigan transportation fund 254,700
Special revenue funds:
Local - assessor training fees 702,800
Local - audit charges 623,500
Local - equalization study charge-backs 40,000
Local - revenue from local government 100,000
Delinquent tax collection revenue 1,667,600
Land reutilization fund 2,073,800
Municipal finance fees 353,300
State general fund/general purpose $ 52,067,100
(4) TAX PROGRAMS
Full-time equated classified positions 674.0
Bottle act implementation $ 250,000
Home heating assistance 3,026,100
Insurance provider assessment program--FTEs 6.0 955,700
Living donor tax credit 750,000
Office of revenue and tax analysis--FTEs 23.0 4,034,900
Tax and economic policy--FTEs 69.0 10,604,900
Tax compliance--FTEs 223.0 42,193,400
Tax processing--FTEs 342.0 46,210,200
Tobacco tax enforcement--FTEs 11.0 1,632,800
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GROSS APPROPRIATION $ 109,658,000
Appropriated from:
Interdepartmental grant revenue:
IDG from MDOT, Michigan transportation fund 2,894,100
IDG from MDOT, state aeronautics fund 72,200
Federal revenues:
HHS-SSA, low-income energy assistance 3,026,100
Special revenue funds:
Bottle deposit fund 250,000
Brownfield redevelopment fund 213,800
Comprehensive road funding fund 500,000
Delinquent tax collection revenue 74,033,100
Insurance provider fund 955,700
Marihuana regulation fund 2,665,700
Marihuana regulatory fund 119,300
Qualified heavy equipment rental personal
property exemption reimbursement fund 422,900
Tobacco tax revenue 4,277,300
Waterways account 107,100
State general fund/general purpose $ 20,120,700
(5) FINANCIAL PROGRAMS
Full-time equated classified positions 113.0
Investments--FTEs 80.0 $ 22,751,500
State and authority finance--FTEs 10.0 3,492,500
Student financial assistance programs--FTEs 23.0 4,954,500
GROSS APPROPRIATION $ 31,198,500
Appropriated from:
Interdepartmental grant revenue:
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IDG, fiscal agent service fees 215,200
Federal revenues:
DED-OPSE, federal lenders allowance 3,429,300
DED-OPSE, higher education act of 1965, insured
loans 1,525,200
Special revenue funds:
Defined contribution administrative fee revenue 300,000
MFA, bond and loan program revenue 1,666,800
Retirement funds 17,409,900
School bond fees 938,500
Treasury fees 5,271,100
State general fund/general purpose $ 442,500
(6) DEBT SERVICE
Clean Michigan initiative $ 7,098,000
Great Lakes water quality bond 89,761,000
Quality of life bond 620,000
GROSS APPROPRIATION $ 97,479,000
Appropriated from:
State general fund/general purpose $ 97,479,000
(7) GRANTS
Convention facility development distribution $ 125,017,900
Election administration support fund 14,949,700
Emergency 911 payments 49,147,300
Qualified heavy equipment rental personal
property exemption reimbursement distribution 27,000,000
Recreational marihuana grants 51,575,500
Senior citizen cooperative housing tax
exemption program 12,215,500
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Wrongful imprisonment compensation fund 2,800,000
GROSS APPROPRIATION $ 282,705,900
Appropriated from:
Special revenue funds:
Convention facility development fund 125,017,900
Counties, equally 911 fund 9,701,700
Counties, per capita 911 fund 14,553,100
Marihuana regulation fund 51,575,500
Public safety answer point (PSAP) training 911
fund 2,092,500
Qualified heavy equipment rental personal
property exemption reimbursement fund 27,000,000
Reimburse local exchange providers 911 fund 21,300,000
State police administrator and coordinator 911
fund 900,000
State police dispatch operator 911 fund 600,000
State general fund/general purpose $ 29,965,200
(8) BUREAU OF STATE LOTTERY
Full-time equated classified positions 194.0
Lottery information technology services and
projects $ 1,928,900
Lottery operations--FTEs 194.0 33,454,200
GROSS APPROPRIATION $ 35,383,100
Appropriated from:
Special revenue funds:
State lottery fund 35,383,100
State general fund/general purpose $ 0
(9) CASINO GAMING
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Full-time equated classified positions 203.0
Casino gaming control operations--FTEs 179.0 $ 42,660,500
Gaming information technology services and
projects 2,685,000
Horse racing--FTEs 4.0 890,400
Michigan gaming control board 84,400
Millionaire party regulation--FTEs 20.0 3,190,100
GROSS APPROPRIATION $ 49,510,400
Appropriated from:
Special revenue funds:
Casino gambling agreements 1,025,300
Equine development fund 1,011,200
Fantasy contest fund 1,082,600
Internet gaming fund 15,939,500
Internet sports betting fund 3,011,600
State services fee fund 27,440,200
State general fund/general purpose $ 0
(10) PAYMENTS IN LIEU OF TAXES
Commercial forest reserve $ 3,269,800
Purchased lands 13,235,600
Swamp and tax reverted lands 22,031,100
GROSS APPROPRIATION $ 38,536,500
Appropriated from:
Special revenue funds:
Private funds 44,300
Game and fish protection account 3,846,300
Michigan natural resources trust account 3,618,700
Waterways account 417,700
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State general fund/general purpose $ 30,609,500
(11) REVENUE SHARING
City, village, and township revenue sharing $ 379,386,000
Constitutional state general revenue sharing
grants 1,045,337,700
County revenue sharing 310,889,200
Financially distressed cities, villages, or
townships 2,500,000
Public safety revenue sharing grants 60,000,000
GROSS APPROPRIATION $ 1,798,112,900
Appropriated from:
Special revenue funds:
Sales tax 1,788,112,900
State general fund/general purpose $ 10,000,000
(12) STATE BUILDING AUTHORITY
Full-time equated classified positions 4.0
State building authority--FTEs 4.0 $ 1,026,200
GROSS APPROPRIATION $ 1,026,200
Appropriated from:
Special revenue funds:
State building authority revenue 1,026,200
State general fund/general purpose $ 0
(13) CITY INCOME TAX ADMINISTRATION PROGRAM
Full-time equated classified positions 49.0
City income tax administration program--FTEs 49.0 $ 7,746,000
GROSS APPROPRIATION $ 7,746,000
Appropriated from:
Special revenue funds:
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Local - city income tax fund 7,746,000
State general fund/general purpose $ 0
(14) INFORMATION TECHNOLOGY
Treasury operations information technology
services and projects $ 25,293,900
GROSS APPROPRIATION $ 25,293,900
Appropriated from:
Interdepartmental grant revenue:
IDG from MDOT, Michigan transportation fund 834,400
Federal revenues:
DED-OPSE, federal lenders allowance 590,200
Special revenue funds:
Local - city income tax fund 2,274,500
Delinquent tax collection revenue 6,469,200
Marihuana regulation fund 778,200
Retirement funds 829,700
Tobacco tax revenue 134,200
State general fund/general purpose $ 13,383,500

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. (1) In accordance with section 30 of article IX of
the state constitution of 1963 for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$3,753,827,200.00 and state spending under part 1 from state
sources to be paid to local units of government is
$2,155,772,000.00. The following itemized statement identifies
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appropriations from which spending to local units of government
will occur:
DEPARTMENT OF STATE
Election administration and services $ 10,000,000
Fees to local units 500
Motorcycle safety education grants 1,415,900
Subtotal $ 11,416,400
DEPARTMENT OF TREASURY
Airport parking distribution pursuant to section
909 $ 46,000,000
City, village, and township revenue sharing 379,386,000
Commercial forest reserve 3,269,800
Constitutional state general revenue sharing
grants 1,045,337,700
Convention facility development fund
distribution 125,017,900
County revenue sharing 310,889,200
Emergency 9-1-1 payments 49,147,300
Financially distressed cities, villages, or
townships 2,500,000
Public safety revenue sharing grants 56,750,000
Purchased lands 13,235,600
Qualified heavy equipment rental personal
property exemption reimbursement distribution 27,000,000
Recreational marihuana grants 51,575,500
Senior citizen cooperative housing tax exemption 12,215,500
Swamp and tax reverted lands 22,031,100
Subtotal $ 2,144,355,600
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29
TOTAL $ 2,155,772,000
(2) In accordance with section 30 of article IX of the state
constitution of 1963, in the appropriations acts for the fiscal
year ending September 30, 2027, total state spending from state
sources is estimated at $43,747,623,200.00 and total state spending
from state sources to be paid to local units of government is
estimated at $26,635,211,300.00. The proportion of total state
spending from state sources to be paid to local units is estimated
at 60.9%.
(3) If payments to local units of government and state
spending from state sources for the fiscal year ending September
30, 2027 are different than the amounts estimated in subsection
(2), the state budget director shall report the payments to local
units of government and state spending from state sources that were
made for the fiscal year ending September 30, 2027 to the standard
report recipients and to the senate and house of representatives
standing committees on appropriations not later than 30 days after
the final book-closing for the fiscal year ending September 30,
2027.
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "COBRA" means the consolidated omnibus budget
reconciliation act of 1985, Public Law 99-272.
(b) "DAG" means the United States Department of Agriculture.
(c) "DED" means the United States Department of Education.
(d) "DED-OPSE" means the DED Office of Postsecondary
Education.
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(e) "EEOC" means the United States Equal Employment
Opportunity Commission.
(f) "FTE" means full-time equated.
(g) "Geographically disadvantaged business enterprise" means a
geographically-disadvantaged business enterprise as that term is
defined by Executive Directive No. 2023-1.
(h) "GF/GP" means general fund/general purpose.
(i) "HHS" means the United States Department of Health and
Human Services.
(j) "HHS-OS" means the HHS Office of the Secretary.
(k) "HHS-SSA" means the Social Security Administration.
(l) "HUD" means the United States Department of Housing and
Urban Development.
(m) "IDG" means interdepartmental grant.
(n) "JCOS" means the joint capital outlay subcommittee.
(o) "MCL" means the Michigan Compiled Laws.
(p) "MDE" means the Michigan department of education.
(q) "MDHHS" means the Michigan department of health and human
services.
(r) "MDIFS" means the Michigan department of insurance and
financial services.
(s) "MDLARA" means the Michigan department of licensing and
regulatory affairs.
(t) "MDLEO" means the Michigan department of labor and
economic opportunity.
(u) "MDMVA" means the Michigan department of military and
veterans affairs.
(v) "MDOC" means the Michigan department of corrections.
(w) "MDOS" means the Michigan department of state.
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(x) "MDOT" means the Michigan department of transportation.
(y) "MDSP" means the Michigan department of state police.
(z) "MDTMB" means the Michigan department of technology,
management, and budget.
(aa) "MEDC" means the Michigan economic development
corporation, which is the public body corporate created under
section 28 of article VII of the state constitution of 1963 and the
urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512, by contractual interlocal agreement effective April 5,
1999, between local participating economic development corporations
formed under the economic development corporations act, 1974 PA
338, MCL 125.1601 to 125.1636, and the Michigan strategic fund.
(bb) "MEGA" means the Michigan economic growth authority.
(cc) "MFA" means the Michigan finance authority.
(dd) "MPE" means the Michigan public employees.
(ee) "MPSCS" means the Michigan public safety communications
system.
(ff) "MSF" means the Michigan strategic fund.
(gg) "NERE" means nonexclusively represented employees.
(hh) "PA" means public act.
(ii) "RFP" means a request for a proposal.
(jj) "SEIU" means Service Employees International Union.
(kk) "SIGMA" means statewide integrated governmental
management applications.
(ll) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on general government, the senate and house fiscal
agencies, the senate and house policy offices, and the state budget
office.
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(mm) "WIC" means women, infants, and children.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) A department or agency shall use the internet to
fulfill the reporting requirements of this part and shall make each
report readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
or agency's website not later than the due date required for each
report.
(2) In addition to placing all reports required in the current
fiscal year on the department's or agency's website, a department
or agency shall maintain on its website all reports placed on the
website from previous fiscal years posted by fiscal year in the
same single archivable location.
(3) A department or agency shall transmit all required reports
for the current fiscal year to the standard report recipients and
any other required recipients by email. The email shall include a
copy of the report and a link to access the report online.
Sec. 206. A department or agency shall receive and retain
copies of all reports funded from appropriations in part 1. A
department or agency shall follow federal and state law and
guidelines for short-term and long-term retention of records. A
department or agency shall electronically retain copies of reports
unless otherwise required by federal and state guidelines.
Sec. 207. (1) A department or agency shall cooperate with the
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MDTMB to maintain a searchable website accessible by the public at
no cost that includes, but is not limited to, all of the following
for the department or agency:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) A department or agency shall cooperate with the MDTMB to
update the searchable website on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total GF/GP appropriation lapses at the close of the previous
fiscal year. The report must summarize the projected year-end GF/GP
appropriation lapses by major departmental program or program
areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, a department or agency shall
cooperate with the state budget office to provide an annual report
on estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, a department or agency
shall report on private and other third-party funds received by the
department or agency in the previous fiscal year. The report must
include the amount of funding received, the specific source of
funding received, the purpose for which funding was expended, and
the amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
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budget act, 1984 PA 431, MCL 18.1217, a department or agency shall
prepare a report on out-of-state travel expenses by not later than
January 1. The report must list all travel outside this state by
classified and unclassified employees in the previous fiscal year
that was funded in whole or in part with funds appropriated in the
department's or agency's budget. The report must include all of the
following information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state GF/GP revenues,
state restricted revenues, federal revenues, local revenues, and
private revenues, including specific sources of state restricted,
federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, a department or agency and the
office of the auditor general shall report on all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department or agency at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
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(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, a department or agency shall
report on each specific policy change made to implement a public
act affecting the department or agency that took effect during the
previous calendar year. The report must include reference to the
public act that necessitates the policy change. The department or
agency shall submit the report to the standard report recipients,
to the senate and house standing committees responsible for
addressing issues affected by the public acts, and to the joint
committee on administrative rules.
Sec. 214. (1) Not later than April 1, a department or agency
shall maintain, on a publicly accessible website, a department or
agency scorecard that identifies, tracks, and updates on a
quarterly basis key metrics that are used to monitor and improve
the department's or agency's performance.
(2) A department or agency shall notify the standard report
recipients when the quarterly updates to the department or agency
scorecard are available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
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approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the relevant department or agency shall notify the
legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 218. To the extent possible, a department or agency shall
not expend appropriations under part 1 until all existing
authorized work project funds available for the same purposes are
exhausted.
Sec. 219. A department or agency shall submit reports that
summarize all work project accounts not later than December 31,
March 30, June 30, and September 30. The reports must include all
of the following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
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(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. A department or agency shall not take disciplinary
action against an employee of the department or agency because the
employee communicates with a member of the legislature or
legislative staff unless the communication is prohibited by law and
the department or agency is exercising its authority as provided by
law.
Sec. 222. (1) A department or agency shall maximize the
efficiency of the state workforce and utilization and occupancy of
office space, leased or owned, for each division within the
department. Employees with job responsibilities that require
employees to serve in their capacities outside of an office shall
be monitored each pay period to ensure all work hours reported on
timesheets are actually worked.
(2) A department or agency shall comply with requirements set
forth by the office of the state employer on in-person work and
utilization and occupancy rates of state buildings to ensure at
least 80% of employees are in person and building occupancy and
utilization rates are at least 80% or higher.
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(3) A department or agency shall submit reports not later than
January 15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) A department or agency shall require as a
condition of each contract or subcontract that the prequalified
contractor or prequalified subcontractor agree to use the E-Verify
system to verify that all persons hired during the contract term by
the contractor or subcontractor are legally present and authorized
to work in the United States.
(2) A department or agency may verify this information
directly or may require contractors and subcontractors to verify
the information and submit a certification to the department or
agency. A department or agency shall submit a report not later than
March 1 that describes the processes it has developed and
implemented under this section.
(3) A department or agency shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
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(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
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how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
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(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, a
department or agency shall do the following:
(a) Report on any amounts of severance pay for a director,
deputy director, or other high-ranking official of the department
or agency not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department or agency employees
during the previous fiscal year and the total number of former
department or agency employees that were remitted severance pay
during the previous fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
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(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit a department,
political subdivision, state university, or other state agency from
expending funds for the purpose of detaining individuals who are
not citizens of the United States, including any costs associated
with housing such individuals in county jails or state correctional
facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. A department or agency shall use the same
precontract risk assessment program utilized by the MDTMB to
evaluate financial compliance, security risks, and insurance
requirements prior to contract execution.
Sec. 250. Funds appropriated in part 1 must not be used by
this state or a department, agency, or authority of this state to
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purchase an ownership interest in a casino enterprise or a gambling
operation as those terms are defined in the Michigan Gaming Control
and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226.
Sec. 251. (1) In accordance with section 352 of the management
and budget act, 1984 PA 431, MCL 18.1352, which provides for a
transfer of state general fund revenue into or out of the
countercyclical budget and economic stabilization fund, the
calculations required by section 352 of the management and budget
act, 1984 PA 431, MCL 18.1352, are determined as follows:
2025 2026 2027
Michigan personal income (millions) $672,972 $695,180 $720,207
Less: transfer payments 151,408 157,704 158,089
Subtotal $521,564 $537,476 $562,118
Divided by: Detroit Consumer Price
Index for 12 months ending December 31 2.979 3.078 3.17
Equals: real adjusted Michigan
personal income $175,089 $174,604 $177,311
Percentage change N/A 0.3% 1.6%
Growth rate in excess of 2% N/A N/A N/A
Equals: calculated transfer to
countercyclical budget and economic
stabilization fund for the fiscal year
ending September 30, 2026 (millions) N/A $0.0
Growth rate less than 0% N/A YES
Appropriation from countercyclical budget
and economic stabilization fund allowed for
the fiscal year ending September 30, 2027
N/A $538.7
(2) Notwithstanding subsection (1), there is appropriated for
the fiscal year ending September 30, 2027 from GF/GP revenue for
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deposit into the countercyclical budget and economic stabilization
fund the sum of $300,000,000.00.
Sec. 252. (1) A department or agency that receives an
appropriation in part 1 shall assign a product owner for each
information technology project that the department or agency
undertakes.
(2) Beginning January 1, a product owner assigned to an
information technology project with a budget of $5,000,000.00 or
more must possess valid certification as a scrum master and be
assigned full time to the information technology project.
(3) As used in this section, "product owner" means an
individual from the sponsoring department or agency who is
responsible for maximizing the value of the product to be developed
by the project and who is responsible for effective product backlog
management. Responsibilities of a product owner include, but are
not limited to, all of the following:
(a) Developing and explicitly communicating the product goal.
(b) Creating and clearly communicating product backlog items.
(c) Prioritizing product backlog items.
(d) Ensuring that the product backlog is transparent, visible,
and understood.
(e) Ensuring that there is frequent and effective
communication among the project manager, vendor, and product owner
to ensure collaboration in addressing all risks and issues as they
arise.
(f) Ensuring that product users are regularly engaged in the
development process for testing and input on development of the
product.
Sec. 253. A department or agency that is appropriated funds in
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part 1 shall delegate all responsibility for the procurement,
development, and maintenance of all information technology services
to the MDTMB unless the department or agency is otherwise delegated
the responsibility by law.
Sec. 254. Funds appropriated in part 1 shall not be expended
for electric vehicle charging stations.

DEPARTMENT OF ATTORNEY GENERAL
Sec. 301. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $750,000.00 for
federal contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $750,000.00 for state
restricted contingency authorization. Amounts appropriated under
this subsection are not available for expenditure until they have
been transferred to another line item in part 1 under section
393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $50,000.00 for local
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $50,000.00 for private
contingency authorization. Amounts appropriated under this
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subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 302. (1) The attorney general shall perform all legal
services, including representation before courts and administrative
agencies, rendering legal opinions, and providing legal advice to a
principal executive department or state agency. A principal
executive department or state agency shall not employ or enter into
a contract with any other person for services described in this
section.
(2) The attorney general shall defend judges of all state
courts if a claim is made or a civil action is commenced for
injuries to persons or property caused by the judge through the
performance of the judge's duties while acting within the scope of
the judge's authority as a judge.
(3) The attorney general shall perform the duties specified in
1846 RS 12, MCL 14.28 to 14.35, and 1919 PA 232, MCL 14.101 to
14.102, and as otherwise provided by law.
Sec. 303. The attorney general may provide not more than 350
copies of the report required under section 30 of 1846 RS 12, MCL
14.30, on a gratis basis. If the attorney general provides 350
copies of the report on a gratis basis, the attorney general may
sell additional copies of the report. The attorney general shall
not provide gratis copies of the report to members of the
legislature. Electronic copies of biennial reports must be made
available on the department of attorney general's website. The
attorney general shall sell copies of the report at not less than
the actual cost of the report and deposit the money received from
the sales into the general fund.
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Sec. 304. The department of attorney general is responsible
for the legal representation of the law of this state and the legal
representation for state of Michigan state employee worker's
disability compensation cases. The risk management revolving fund
revenue appropriation in part 1 must be satisfied by billings from
the department of attorney general for the actual costs of legal
representation, including salaries and support costs.
Sec. 307. (1) In addition to the antitrust enforcement
collections revenues in part 1, not more than $350,000.00 in
antitrust revenues, securities fraud revenues, consumer protection
or class action enforcement revenues, or attorney fees recovered by
the department of attorney general are appropriated to the
department of attorney general for antitrust, securities fraud, and
consumer protection or class action enforcement cases.
(2) Not more than $1,000,000.00 of the unexpended funds from
antitrust revenues, securities fraud revenues, or consumer
protection or class action enforcement revenues at the end of the
fiscal year, including antitrust funds in part 1, may be carried
forward for expenditure in the following fiscal year.
(3) On request, the department of attorney general shall make
available information detailing the amount of revenue described in
subsection (1) recovered by the attorney general and a description
of the source of the revenue and the carryforward amount.
Sec. 308. (1) In addition to the funds appropriated in part 1,
not more than $1,000,000.00 is appropriated from litigation expense
reimbursements awarded to this state.
(2) The funds described in subsection (1) may be expended for
the payment of court judgments, settlements, arbitration awards or
other administrative and litigation decisions, attorney fees, and
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litigation costs, assessed against the office of the governor, the
department of attorney general, the governor, or the attorney
general when acting in an official capacity as the named party in
litigation against this state. The funds described in subsection
(1) may also be expended for the payment of state costs incurred
under section 16 of chapter X of the code of criminal procedure,
1927 PA 175, MCL 770.16.
(3) Unexpended funds at the end of the fiscal year may be
carried forward for expenditure in the following year, but not more
than a maximum authorization of $250,000.00.
Sec. 309. (1) From the prisoner reimbursement funds
appropriated in part 1, the department of attorney general may
expend not more than $804,300.00 on activities related to the state
correctional facility reimbursement act, 1935 PA 253, MCL 800.401
to 800.406. In addition to the funds appropriated in part 1, if the
department of attorney general collects more than $1,131,000.00 in
gross annual prisoner reimbursement receipts provided to the
general fund, not more than $1,000,000.00 of the excess is
appropriated to the department of attorney general and may be spent
on the representation of the MDOC and its officers, employees, and
agents, including, but not limited to, the defense of litigation in
civil actions filed by prisoners against this state, its
departments, officers, employees, or agents.
(2) Not later than March 1, the department of attorney general
shall submit a report to the standard report recipients and the
house of representatives and senate appropriations subcommittees
with jurisdiction over the budget of the MDOC. The report must
include all of the following:
(a) The total amount of reimbursements received under section
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6 of the state correctional facility reimbursement act, 1935 PA
253, MCL 800.406.
(b) A description of each expenditure made from the
reimbursements.
(c) The amount paid to conduct the investigations from the
reimbursements.
(d) The amount credited to the general fund from the
reimbursements.
Sec. 310. (1) For the purposes of providing title IV-D child
support enforcement funding, the attorney general shall maintain a
cooperative agreement with the MDHHS, as the state IV-D agency, for
federal IV-D funding to support the child support enforcement
activities within the department of attorney general.
(2) The attorney general or the attorney general's designee
shall, to the extent allowed under federal law, have access to any
information used by this state to locate parents who fail to pay
court-ordered child support.
Sec. 312. The department of attorney general shall not receive
or expend funds, other than those authorized in part 1, for legal
services provided specifically to other state departments or
agencies except for expert witness costs, court costs, or other
nonsalary litigation costs associated with a pending legal action.
Sec. 313. The department of attorney general shall submit a
quarterly report on the lawsuit settlement proceeds fund described
in section 33 of 1846 RS 12, MCL 14.33, to the standard report
recipients. Each report must include all of the following:
(a) The total amount of revenue deposited in the lawsuit
settlement proceeds fund in the current fiscal year delineated by
case.
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(b) The total amount appropriated from the lawsuit settlement
proceeds fund in the current fiscal year delineated by
appropriation.
(c) Earned settlement proceeds that are anticipated but not
yet deposited in the fund delineated by case.
(d) Any known potential settlement amounts from cases that
have not been decided, delineated by case.
Sec. 315. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are $10,220,500.00. From this amount, total department of
attorney general appropriations for pension-related legacy costs
are estimated at $10,220,500.00. Total department of attorney
general appropriations for retiree health care legacy costs are
estimated at $0.00.
Sec. 316. (1) The department of attorney general shall work
with the state budget director to lapse the remaining unexpended
and unencumbered funds appropriated in 2024 PA 121 for sexual
assault law enforcement and carried forward under work project
account number 27302 and the remaining unexpended and unencumbered
funds appropriated in 2023 PA 119 for sexual assault law
enforcement and carried forward under work project account number
23989. From the work project lapse funds, $1,493,700.00 is
appropriated to the department of attorney general to test
backlogged sexual assault kits across this state. The funding
provided in part 1 must be used for only 1 or more of the following
purposes:
(a) To eliminate all county sexual assault kit backlogs across
this state.
(b) To assist local prosecutors with investigations and
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prosecutions of viable sexual assault cases.
(c) To provide victim services.
(2) Not later than February 1, the department of attorney
general shall submit a report to the standard report recipients.
The report must include all of the following information:
(a) The number of sexual assault kits across this state that
remain untested as of January 31, 2027.
(b) A detailed work plan that outlines the department of
attorney general's action plan to eliminate all outstanding sexual
assault kits and the time frame for completion of testing of all
untested sexual assault kits.
(c) A detailed work and spending plan that outlines
anticipated litigation action and expenditures resulting from
findings of the sexual assault kit testing.
(3) Any funds remaining after the department of attorney
general has met the obligations required under subsection (1) may
be used for the purpose of retesting any previously tested sexual
assault kits across this state using currently available DNA
testing. Funds may be used under this subsection only for DNA
testing on previously tested kits that were not tested for DNA. If
there are remaining untested sexual assault kits on January 31,
2027, funds appropriated in part 1 must be used only for the
testing of those kits.
Sec. 317. (1) The department of attorney general shall submit
a report to the standard report recipients and the state budget
director. The report must include all legal costs and associated
expenses related to the declaration of emergency due to drinking
water contamination and the investigations and any resulting
prosecutions. The state budget director shall include the report in
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the Flint water emergency-financial and activities tracking and
reporting document that is posted by the state budget director on
the public website, https://www.michigan.gov/budget/fiscal-
pages/reports/flint. The tracking and reporting documents must
include the budget line item source for each expenditure.
(2) At the conclusion of all attorney general investigations
related to the declaration of emergency due to drinking water
contamination, all materials related to any investigations shall be
preserved pursuant to applicable document retention policies.
Sec. 318. Not later than November 30, the department of
attorney general shall submit a report to the standard report
recipients and the senate and house of representatives standing
committees on appropriations. The report must include all of the
following information:
(a) The amount of expenditures by line item and work project
account made for any investigation of Native American boarding
schools itemized by purpose.
(b) The number of FTEs assigned to each investigation
described in subdivision (a) and the number of hours expended.
(c) Information on the activities conducted for each
investigation described in subdivision (a) and any contracted
vendors.
(d) The estimated date for completion of each investigation
described in subdivision (a).
Sec. 319. From the funds appropriated in part 1, the attorney
general shall submit a quarterly report to the standard report
recipients on the wrongful imprisonment compensation fund that
includes at least all of the following:
(a) All payments made from the wrongful imprisonment
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compensation fund in each prior quarter of the fiscal year, and the
total of those payments, including if each payment is part of a new
settlement or part of an installment plan.
(b) Total payments made from each prior fiscal year and the
total of all payments to date.
(c) Any settlements that have been decided but have yet to
receive a payment.
(d) The number of known cases seeking a settlement, but do not
have a final judgment, and the dollar amount of each potential
payment for these known cases, and the total of these payments.
(e) The balance of the wrongful imprisonment compensation fund
at the end of the previous quarter.
(f) The percentage of claims received in the immediately
preceding fiscal quarter that were awarded compensation.
(g) The percentage of claims received in the immediately
preceding fiscal year that were awarded compensation.
(h) For claims that did not receive the full amount of
compensation sought, both of the following:
(i) The amount of compensation that was sought.
(ii) The amount of compensation that was received.
Sec. 320. (1) From the funds appropriated in part 1, the
department of attorney general shall do all of the following:
(a) Not later than 14 days after the settlement of a lawsuit
with a fiscal impact of $200,000.00 or more, submit a report on the
settlement to the standard report recipients.
(b) Enforce the laws of this state.
(2) Any proceeds from a lawsuit initiated by or settlement
agreement entered into on behalf of this state against a
manufacturer of tobacco products or manufacturer or distributor of
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opioid products by the attorney general are state funds, unless
otherwise directed by a court or legal agreement, and are subject
to appropriation as provided by law.
Sec. 321. From the funds appropriated in part 1, the
department of attorney general shall maintain a publicly accessible
website dedicated to opioid settlement distributions. The website
must include estimated future amounts payable to local units of
government and estimated amounts received by local units of
government, delineated by case settlement agreement.
Sec. 322. (1) Not later than February 1, the department of
attorney general shall submit a report to the standard report
recipients on the cumulative dollar expenditure amount related to
each of the following initiatives and activities of the department
of attorney general for the immediately preceding fiscal year:
(a) Catholic church investigation.
(b) Elder abuse task force.
(c) Conviction integrity unit.
(d) Opioid litigation.
(e) Hate crimes unit and domestic terrorism unit.
(f) Payroll fraud enforcement unit.
(g) PFAS contamination. As used in this subdivision, "PFAS"
means perfluoroalkyl and polyfluoroalkyl substances.
(h) Human trafficking.
(i) Robocall enforcement.
(j) Job court.
(k) Organized retail crime unit.
(l) Reducing utility rate increases.
(m) Boy Scouts of America investigation.
(n) Address confidentiality program.
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(2) For each expenditure required to be reported under
subsection (1), the report must include the dollar amount spent by
fund source.
(3) For each initiative listed under subsection (1), the
department of attorney general shall provide a summary of
activities, staffing levels, and outcomes as practicable.
Sec. 324. (1) Not later than September 30, the department of
attorney general must make available to the public on its website a
report on the activities and findings, since April 1, 2019, of the
payroll fraud enforcement unit. The report must include all of the
following:
(a) A list of each complaint received by the unit.
(b) For each complaint listed under subdivision (a), whether
the attorney general took enforcement action on the complaint and,
if applicable, a description of the enforcement action.
(2) If the payroll fraud enforcement unit requests that
another department or agency investigate the validity of a report
received by the unit, or if the unit refers a complaint to another
department or agency, the department of attorney general shall
request the department or agency to report back on the department's
or agency's findings to enable the department of attorney general
to comply with this section.
Sec. 325. It is the intent of the legislature that from the
funds appropriated in part 1, the department of attorney general
shall not take any legal action or join or take part in any
multistate lawsuit, lawsuit against the federal government, or
lawsuit against any oil or gas entity except on appropriation or
legislative transfer that is made for those purposes in accordance
with section 393(2) of the management and budget act, 1984 PA 431,
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MCL 18.1393.
Sec. 326. From the funds appropriated in part 1, the
department of attorney general shall not contract for legal
services or for the appointment of a special assistant attorney
general with a person in which compensation and the repayment of
costs to the person are contingent on the successful recovery of
funds obtained in the litigation or services pursued under the
terms of the contract.

DEPARTMENT OF CIVIL RIGHTS
Sec. 401. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $1,000,000.00 for
federal contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $375,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 402. (1) In addition to the appropriations contained in
part 1, the department of civil rights may receive and expend not
more than $600,000.00 in funds from local sources, private sources,
or both, for all of the following purposes:
(a) Developing and presenting training for employers on equal
employment opportunity law and procedures.
(b) Publishing and selling civil rights related informational
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material.
(c) Providing copies of material made available in response to
requests under the freedom of information act, 1976 PA 442, MCL
15.231 to 15.246.
(d) Paying other copy fees, subpoena fees, and witness fees.
(e) Developing, presenting, and participating in mediation
processes for certain civil rights cases.
(f) Providing workshops, seminars, and recognition or award
programs consistent with the programmatic mission of the individual
unit sponsoring or coordinating the programs.
(g) Paying staffing costs for all activities included in this
subsection.
(2) Not later than November 30, the department of civil rights
shall submit a report to the standard report recipients and the
senate and house of representatives standing committees on
appropriations on the amount of funds received and expended for
purposes authorized under this section.
Sec. 403. (1) The department of civil rights may contract with
local units of government to review equal employment opportunity
compliance of potential and existing contractors and may charge for
and expend amounts received from local units of government for the
purpose of developing and providing these contractual services.
(2) Not later than November 30, the department of civil rights
shall submit a report to the standard report recipients and the
senate and house of representatives standing committees on
appropriations on the amount of funds received and expended for
purposes authorized under this section.
Sec. 404. The department of civil rights shall submit
quarterly reports to the standard report recipients that include,
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but are not limited to, all of the following information for the
immediately preceding fiscal quarter:
(a) The number of all complaints received by the department by
basis of complaint.
(b) The number of certified complaint cases initiated by basis
of complaint.
(c) The number of certified complaint cases completed.
(d) The final disposition of certified complaint case
investigations.
(e) The average number of days for a case to be completed
after certification.
(f) The number of FTE positions filled from the FTE
authorization for complaint investigations and enforcement.
(g) The number of open cases that have been open for more than
1 year.
(h) The quotient of the number of certified cases completed
divided by the number of filled FTE positions.
(i) A listing of amounts awarded to claimants.
Sec. 405. On submitting a report or complaint to the United
States Commission on Civil Rights or any other federal department,
the department of civil rights shall submit a copy of the report or
complaint to the standard report recipients not later than the next
business day.
Sec. 406. From the funds appropriated in part 1, not later
than November 30, the department of civil rights shall submit a
report to the standard report recipients on all expenditures
related to the Native American boarding school study. The report
must include both of the following:
(a) Information on the activities conducted for the study by
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the department of civil rights and any contracted university or
entity.
(b) Total expenditures to date.
Sec. 407. The department of civil rights shall not expend
funds appropriated in part 1 for disability rights and compliance
on contracts with private or nonprofit service providers.
Sec. 410. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are $2,255,000.00. From this amount, total department of
civil rights appropriations for pension-related legacy costs are
estimated at $2,255,000.00. Total department of civil rights
appropriations for retiree health care legacy costs are estimated
at $0.00.

LEGISLATURE
Sec. 600. The senate, the house of representatives, or an
entity within the legislative branch may receive, expend, and
transfer funds in addition to those authorized in part 1.
Sec. 601. (1) Funds appropriated in part 1 to an entity within
the legislative branch must not be expended or transferred to
another account without written approval of the authorized agent of
the legislative entity. If the authorized agent of the legislative
entity notifies the state budget director of its approval of an
expenditure or transfer before the year-end book-closing date for
that legislative entity, the state budget director shall
immediately make the expenditure or transfer. The authorized
legislative entity must be designated by the speaker of the house
of representatives for house entities, the senate majority leader
for senate entities, and the legislative council for legislative
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council entities.
(2) Funds appropriated within the legislative branch, to a
legislative council component, must not be expended by any agency
or other subgroup included in that component without the approval
of the legislative council.
Sec. 602. The senate may charge rent and assess charges for
utility costs. The amounts received for rent charges and utility
assessments are appropriated to the senate for the renovation,
operation, and maintenance of the Binsfeld Office Building.
Sec. 604. (1) The appropriation in part 1 to the Michigan
state capitol historic site includes funds to operate the
legislative parking facilities in the capitol area. The Michigan
state capitol commission shall establish rules regarding the
operation of the legislative parking facilities.
(2) The Michigan state capitol commission may collect a fee
from state employees and the general public using certain
legislative parking facilities. The revenues received from the
parking fees are appropriated on receipt and must be allocated by
the Michigan state capitol commission.
(3) As used in this section, "Michigan state capitol
commission" means the Michigan state capitol commission established
in the Michigan state capitol historic site act, 2013 PA 240, MCL
4.1945.
Sec. 606. The unexpended funds appropriated in part 1 for
Binsfeld Office Building and other properties are designated as a
work project appropriation, and any unencumbered or unallotted
funds shall not lapse at the end of the fiscal year and shall be
available for expenditures for projects under this section until
the projects have been completed. The following is in compliance
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with section 451a of the management and budget act, 1984 PA 431,
MCL 18.1451a:
(a) The purpose of the project is to purchase equipment and
services for building maintenance to ensure a safe and productive
work environment.
(b) The project will be accomplished by utilizing state
employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $2,000,000.00.
(d) The tentative completion date is September 30, 2029.
Sec. 608. In addition to funds appropriated in part 1, the
Michigan capitol committee publications save the flags fund account
may accept contributions, gifts, bequests, devises, grants, and
donations. Those funds that are not expended in the fiscal year
ending September 30, 2027 do not lapse at the close of the fiscal
year, and must be carried forward for expenditure in the following
fiscal years.
Sec. 611. (1) From the funds appropriated in part 1 for
senate, $250,000.00 must be allocated for an internship program.
(2) From the funds appropriated in part 1 for house of
representatives, $250,000.00 must be allocated for an internship
program.
Sec. 612. It is the intent of the legislature that, from the
funds appropriated in part 1, the Michigan state capitol commission
established in section 5 of the Michigan state capitol historic
site act, 2013 PA 240, MCL 4.1945, ensure that the Capitol Building
is open for not less than 3 hours on Saturdays that are not state
holidays.
Sec. 615. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
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30, 2027 are estimated at $15,046,800.00. From this amount, total
legislature appropriations for pension-related legacy costs are
estimated at $15,046,800.00. Total legislature appropriations for
retiree health care legacy costs are estimated at $0.00.
Sec. 616. (1) As used in this section:
(a) "Office" means the digital oversight office created under
this section.
(b) "Officer" means the digital oversight officer appointed
under this section.
(c) "State agency" means a department, board, commission,
office, agency, authority, or other unit of state government.
(2) The office of digital oversight is created in the
legislature from funds appropriated from part 1 for office of
digital oversight. The office consists of the officer and staff the
officer appoints to carry out the duties of the office.
(3) The principal executive officer of the office is the
digital oversight officer. The legislature, by a majority vote of
the members elected to and serving in each house, shall appoint a
digital oversight officer to serve for a term of 3 years. The
officer may be removed for cause at any time by a 2/3 vote of the
members elected to and serving in each house.
(4) The office shall do all of the following:
(a) Investigate information technology projects, services, and
purchasing by state agencies.
(b) Overtake, join, or collaborate with state agencies on
information technology projects.
(c) Support adoption of modern software development best
practices, including agile development methodologies and open-
source practices for the development and deployment of new and
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existing digital services. Practices must include advocacy of
modern software development tools and practices, such as DevSecOps,
modular contracting, user-centered design, iterative and
incremental development, unified, development infrastructure,
service-oriented architecture, open-source software, and modern
best practices as described in the following 13 plays of the
Digital Services Playbook published by the United States Digital
Service:
(i) Understand what people need.
(ii) Address the whole experience, from start to finish.
(iii) Make it simple and intuitive.
(iv) Build the service using agile and iterative practices.
(v) Structure budgets and contracts to support delivery.
(vi) Assign 1 leader and hold that individual accountable.
(vii) Bring in experienced teams.
(viii) Choose a modern technology stack.
(ix) Deploy in a flexible hosting environment.
(x) Automate testing and deployments.
(xi) Manage security and privacy through reusable processes.
(xii) Use data to drive decisions.
(xiii) Default to open.
(d) Study innovative procurement practices to the acquisition
of digital products by and for state departments and agencies, to
facilitate the rapid provision of high-quality digital services
that are based on users' needs and that comply with state best
practices and policies regarding data privacy, security, and
accessibility.
(5) The office may commence an investigation or overtake,
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join, or collaborate on information technology projects on either
of the following:
(a) Receipt of a complaint from a state agency or an
individual concerning an information technology project, service,
or purchase by a state agency that is in danger of exceeding
expected costs or deadlines, or where the product may fail to
achieve desired outcomes.
(b) The office's own initiative.
(6) The office shall establish procedures for receiving and
processing complaints and conducting investigations.
(7) On request, a state agency shall give the office access to
physical or electronic copies of all information, records, and
documents in the possession of any state agency that the office
considers necessary in an investigation concerning an information
technology project, service, or purchase.
(8) All of the following apply to confidential information
obtained under this section:
(a) The office is subject to the same duty of confidentiality
imposed by law on the entity providing the confidential
information.
(b) The officer and office staff are subject to any civil or
criminal penalties imposed by law for unlawfully disclosing that
confidential information.
(c) Notwithstanding any other provision of law to the
contrary, state officers and employees of all branches,
departments, offices, boards, commissions, agencies, authorities,
and institutions of this state are not subject to civil or criminal
penalties imposed by state law for providing information requested
by the office.
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(9) This act does not authorize the office to access or
examine records or information subject to the attorney-client
privilege or executive privilege, or subject to a court order
prohibiting disclosure of the content of the record or information.
(10) All records of the office in connection with
investigations are exempt from disclosure under the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246.

LEGISLATIVE AUDITOR GENERAL
Sec. 620. In accordance with section 53 of article IV of the
state constitution of 1963, the auditor general shall conduct
audits of the executive, judicial, and legislative branches.
Sec. 622. From the funds appropriated in part 1 to the office
of the auditor general, the auditor general's salary and the
salaries of the remaining 2.0 FTE unclassified positions must be
set by the speaker of the house of representatives, the senate
majority leader, the house of representatives minority leader, and
the senate minority leader.
Sec. 623. Any audits, reviews, or investigations requested of
the auditor general by the legislature or by legislative
leadership, legislative committees, or individual legislators must
include an estimate of the additional costs involved and, if those
costs exceed $50,000.00, must provide supplemental funding. The
auditor general shall determine whether to perform those activities
in accordance with Operations Manual Policy No. 2-26.
Sec. 625. A branch, department, office, board, commission,
agency, authority, or institution of this state shall not deny the
auditor general access to examine its confidential information. The
auditor general is subject to the same duty of confidentiality
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imposed by law on the entity providing the confidential
information.
Sec. 628. On a quarterly basis, the auditor general shall
submit a report to the standard report recipients, the chairpersons
of the senate and house of representatives appropriations
committees, and the senate and house of representatives oversight
committees that includes all of the following information related
to projects initiated during the immediately preceding quarter:
(a) Audit title.
(b) Audit type.
(c) Audit period.
(d) Audit objectives.
(e) Branch of government being audited.
(f) Whether the auditor general or a contracted auditor is
conducting the audit and, if a contracted auditor is conducting the
audit, the identity of the contracted auditor.
(g) Details regarding the reason for initiating the audit,
including whether it was discretionary or required by statute.
(h) Details regarding any similar audit the auditor general
has completed in the past.
(i) Estimated time frame for completion of the audit.
(j) Estimated total auditor general resources necessary to
complete the audit and release a report.
Sec. 629. On a quarterly basis, the auditor general shall
submit a report to the standard report recipients, the chairpersons
of the senate and house of representatives appropriations
committees, and the senate and house of representatives oversight
committees that includes all of the following information for each
project in progress during the immediately preceding quarter:
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(a) Audit title.
(b) Date the audit was initiated.
(c) Audit status.
(d) Estimated time frame for completion of the audit.
(e) Details regarding the resources spent on the audit to
date.
(f) Estimated total auditor general resources necessary to
complete the audit and release a report.
Sec. 630. On a quarterly basis, the auditor general shall
submit a report to the standard report recipients, the chairpersons
of the senate and house of representatives appropriations
committees, and the senate and house of representatives oversight
committees that contains all of the following information for each
project completed during the immediately preceding quarter:
(a) Audit title.
(b) Date the audit was initiated.
(c) Date the audit report was released.
(d) Results of the audit, including the number and type of
findings.
(e) Details regarding total auditor general resources spent on
the audit.
(f) To the extent authorized by law, details regarding any
inquiry, tip, or request related to the audit that the auditor
general received before initiating the audit.
Sec. 631. From the funds appropriated in part 1 for field
operations, the office of the auditor general shall conduct an
audit of the secretary of state's systematic review of the voter
rolls based on requirements under section 728. The office of the
auditor general shall conduct the audit at least 1 time every 2
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years beginning not later than the fiscal year ending September 30,
2027. The audit must include, but not be limited to, the review of
the proper procedures, process followed, notifications, and
verification that voter notification has been completed as
required.

DEPARTMENT OF STATE
Sec. 701. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $1,500,000.00 for
federal contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $1,500,000.00 for state
restricted contingency authorization. Amounts appropriated under
this subsection are not available for expenditure until they have
been transferred to another line item in part 1 under section
393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $50,000.00 for local
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
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transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 703. From the funds appropriated in part 1, the MDOS
shall submit quarterly reports on record lookup fees to the
standard report recipients. Each report must include the number of
records sold and the revenues collected as authorized in section
208b of the Michigan vehicle code, 1949 PA 300, MCL 257.208b,
section 7 of 1972 PA 222, MCL 28.297, and sections 80130, 80315,
81114, and 82156 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.80130, 324.80315, 324.81114,
and 324.82156.
Sec. 704. Funds appropriated in part 1 must not be used to
advertise or promote department of state activities through radio,
audiorecorded messages, billboards, or other signage to the public.
Sec. 705. (1) The MDOS may accept gifts, donations,
contributions, and grants of money and other property from any
private or public source to underwrite, in whole or in part, the
cost of a departmental publication that is prepared and
disseminated under the Michigan vehicle code, 1949 PA 300, MCL
257.1 to 257.923. A private or public funding source may receive
written recognition in the publication and may furnish a traffic
safety message, subject to approval of the MDOS, for inclusion in
the publication. The MDOS may reject a gift, donation,
contribution, or grant. The MDOS may furnish copies of a
publication underwritten, in whole or in part, by a private source
to the underwriter at no charge.
(2) The MDOS may sell and accept paid advertising for
placement in a departmental publication that is prepared and
disseminated under the Michigan vehicle code, 1949 PA 300, MCL
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257.1 to 257.923. The MDOS may charge and receive a fee for any
advertisement appearing in a departmental publication and shall
review and approve the content of each advertisement. The MDOS may
refuse to accept advertising from any person or organization. The
MDOS may furnish a reasonable number of copies of a publication to
an advertiser at no charge.
(3) Pending expenditure, the funds received under this section
must be deposited in the Michigan department of state publications
fund created in section 211 of the Michigan vehicle code, 1949 PA
300, MCL 257.211. Funds given, donated, or contributed to the MDOS
from a private source are appropriated and allocated for the
purpose for which the revenue is furnished. Funds granted to the
MDOS from a public source are allocated and may be expended on
receipt by the MDOS. The MDOS shall not accept a gift, donation,
contribution, or grant if receipt is conditioned on a commitment of
state funding at a future date. Revenue received from the sale of
advertising is appropriated and may be expended on receipt by the
MDOS.
(4) Any unexpended revenues received under this section must
be carried over into subsequent fiscal years and are available for
appropriation for the purposes described in this section.
(5) If the MDOS receives a gift, contribution, donation, or
grant of money as authorized under section 705 of article 5 of 2025
PA 22, not later than March 1, the MDOS shall submit a report to
the standard report recipients that includes all of the following
information for the immediately preceding fiscal year:
(a) The amount of gifts, contributions, donations, and grants
of money received by the MDOS under section 705 of article 5 of
2025 PA 22.
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(b) A list of the expenditures made from the amounts received
by the MDOS as reported in subdivision (a).
(c) A list of any gift, donation, contribution, or grant of
property other than funding received by the MDOS under section 705
of article 5 of 2025 PA 22.
(d) The total revenue received from the sale of paid
advertising accepted under this section and a statement of the
total number of advertising transactions.
(6) In addition to copies delivered without charge as the
secretary of state considers necessary, the MDOS may sell copies of
manuals and other publications regarding the sale, ownership, or
operation or regulation of motor vehicles, with amendments, at
prices to be established by the secretary of state. As used in this
subsection, the term "manuals and other publications" includes
videos and proprietary electronic publications. All funds received
from sales of these manuals and other publications must be credited
to the Michigan department of state publications fund created in
section 211 of the Michigan vehicle code, 1949 PA 300, MCL 257.211.
Sec. 707. Funds collected by the MDOS under section 211 of the
Michigan vehicle code, 1949 PA 300, MCL 257.211, are appropriated
for all expenses necessary to provide for the costs of the
publication described in section 211 of the Michigan vehicle code,
1949 PA 300, MCL 257.211. Funds are allocated for expenditure when
they are received by the department of treasury and do not lapse to
the general fund at the end of the fiscal year.
Sec. 708. From the funds appropriated in part 1, the MDOS
shall use available balances at the end of the state fiscal year to
provide payment to the MDSP in the amount of $332,000.00 for the
services provided by the traffic accident records program as first
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appropriated in 1990 PA 196 and 1990 PA 208.
Sec. 709. From the funds appropriated in part 1, the MDOS may
restrict funds from miscellaneous revenue to cover cash shortages
created from normal branch office operations. The restricted amount
must not exceed $50,000.00 of the total funds available in
miscellaneous revenue.
Sec. 710. The MDOS shall delegate all responsibility for the
procurement, development, and maintenance of all information
technology services and products to the MDTMB unless otherwise
delegated the responsibility by law in an effort to streamline the
procurement process and to ensure compliance with the management
and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 711. Collector plate and fund-raising registration plate
revenues collected by the MDOS are appropriated and allotted for
distribution to the recipient university or public or private
agency overseeing a state-sponsored goal when received.
Distributions must occur on a quarterly basis or as otherwise
authorized by law. Any revenues remaining at the end of the fiscal
year do not lapse to the general fund and remain available for
distribution to the university or agency in the next fiscal year.
Sec. 713. (1) The MDOS, in collaboration with the Gift of Life
Michigan or its successor federally designated organ procurement
organization, may develop and administer a public information
campaign concerning the Michigan organ donor program.
(2) The MDOS may solicit funds from any private or public
source to underwrite, in whole or in part, the public information
campaign authorized by this section. The MDOS may accept gifts,
donations, contributions, and grants of money and other property
from private and public sources for this purpose. A private or
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public funding source underwriting the public information campaign,
in whole or in substantial part, shall receive sponsorship credit
for its financial backing.
(3) Funds received under this section, including grants from
state and federal agencies, do not lapse to the general fund at the
end of the fiscal year and remain available for expenditure for the
purposes described in this section.
(4) Funding appropriated in part 1 for the organ donor program
must be used to produce a pamphlet regarding organ donations and to
distribute the pamphlet with driver licenses and personal
identification cards. The pamphlet must do both of the following:
(a) Explain the organ donor program and encourage people to
become donors by marking a checkoff on driver license and personal
identification card applications.
(b) Include a return reply form addressed to the gift of life
organization.
(5) Funding appropriated in part 1 for the organ donor program
must be used to pay for return postage costs of the return reply
form described in subsection (4)(b).
(6) In addition to the appropriations in part 1, the MDOS may
receive and expend funds from the organ and tissue donation
education fund for administrative expenses.
(7) Not later than March 1, the department shall submit a
report to the standard report recipients. The report must include
all of the following:
(a) The amount of revenue collected by the MDOS under this
section.
(b) The purpose of each expenditure.
(c) The amount of revenue carried forward.
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Sec. 714. (1) Except as otherwise provided under subsection
(2), not less than 180 days before closing a branch office or
consolidating a branch office and not less than 60 days before
relocating a branch office, the MDOS shall submit a report to the
standard report recipients, the members of the senate and house of
representatives standing committees on appropriations, and
legislators who represent affected areas. The report must include
all of the following:
(a) All analyses done regarding criteria for changes in the
location of branch offices, including, but not limited to, all of
the following:
(i) Branch transactions.
(ii) Revenue.
(iii) The impact on citizens of the affected area, including
information regarding additional distance to branch office
locations resulting from the changes.
(b) Detailed estimates of costs and savings that will result
from the overall changes made to the branch office structure.
(c) Detailed estimates of costs for new leased facilities and
expansions of current leased space.
(2) If the consolidation of a branch office is with another
branch office that is located within the same local unit of
government or the relocation of a branch office is to another
location that is located within the same local unit of government,
the MDOS is not required to submit a report under subsection (1).
(3) As used in this section, "local unit of government" means
a city, village, township, or county.
Sec. 715. (1) Any service assessment collected by the MDOS
from the user of a credit or debit card under section 3 of 1995 PA
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144, MCL 11.23, may be used by the MDOS for necessary expenses
related to that service and may be remitted to a credit or debit
card company, bank, or other financial institution.
(2) The service assessment imposed by the MDOS for credit and
debit card services may be based on a percentage of each individual
credit or debit card transaction or a flat rate per transaction, or
both, scaled to the amount of the transaction. However, the
department shall not charge any amount for a service assessment
that exceeds the costs billable to the MDOS for the service
assessment.
(3) If there is a balance of service assessments received from
credit and debit card services remaining on September 30, the
balance may be carried forward to the following fiscal year and
appropriated for the same purpose.
(4) As used in this section, "service assessment" means costs
associated with service fees imposed by credit and debit card
companies and processing fees imposed by banks and other financial
institutions.
Sec. 716. From the funds appropriated in part 1 for branch
operations, the department of state shall provide adequate in-
person services as defined in section 1a of the Michigan vehicle
code, 1949 PA 300, MCL 257.1a.
Sec. 717. (1) The MDOS may accept gifts, donations, or
contributions of property from any private or public source to
support, in whole or in part, the operation of a departmental
function relating to licensing, regulation, or safety. The MDOS may
recognize a private or public contributor for making the
contribution. The MDOS may reject a gift, donation, or
contribution. Any revenues received under this subsection may be
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expended for the departmental functions relating to licensing,
regulation, or safety.
(2) The MDOS shall not accept a gift, donation, or
contribution under subsection (1) if receipt of the gift, donation,
or contribution is conditioned on a commitment of future state
funding.
(3) If the MDOS receives a gift, donation, or contribution of
property as authorized under this section, not later than March 1,
the MDOS shall submit a report to the standard report recipients.
The report must include a list of each gift, donation, or
contribution received by the department under subsection (1) for
the immediately preceding calendar year.
Sec. 718. From the funds appropriated in part 1 for election
regulation, all money must be spent in accordance with the Michigan
election law, 1954 PA 116, MCL 168.1 to 168.992, and the
instructions, orders, and guidance of the secretary of state
regarding the proper method for the conduct and administration of
elections.
Sec. 719. Not later than February 1, the MDOS shall submit a
report to the standard report recipients on all funding allocated
to counties, cities, and townships from funds appropriated in part
1 for election administration and services. The report must include
the amount and purpose of each payment provided to a county, city,
or township.
Sec. 720. Not later than February 1, the secretary of state
shall submit a report to the standard report recipients that
includes all of the following information:
(a) The total number of notices sent by the clerk under
section 509aa(2) or (3) of the Michigan election law, 1954 PA 116,
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MCL 168.509aa, that were returned as undeliverable as described in
section 509aa(4) of the Michigan election law, 1954 PA 116, MCL
168.509aa.
(b) The total number of electors to whom the secretary of
state mailed a notice under section 509aa(5) of the Michigan
election law, 1954 PA 116, MCL 168.509aa.
(c) The total number of each of the following:
(i) Electors who changed residence and moved out of state.
(ii) Electors who changed residence and moved in state.
(iii) In-state duplicate voter registration records.
(iv) Electors who are determined to be deceased.
(d) The total number of electors who corrected their voter
registration records after being mailed a notice by the secretary
of state under section 509aa(5) of the Michigan election law, 1954
PA 116, MCL 168.509aa.
(e) The number of possible improper votes cast by an elector
at the preceding primary election referred to law enforcement by
the secretary of state.
(f) The number of possible improper votes cast by an elector
at the immediately preceding general election referred to law
enforcement by the secretary of state.
Sec. 724. The MDOS shall reimburse a county, city, or township
for allowable expenses not later than 60 days after the MDOS
receives a bill for allowable expenses and all necessary
documentation from the county, city, or township.
Sec. 725. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $14,617,600.00. From this amount, total
department of state appropriations for pension-related legacy costs
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are estimated at $14,617,600.00. Total department of state
appropriations for retiree health care legacy costs are estimated
at $0.00.
Sec. 727. (1) From the funds appropriated in part 1 for
election administration and services, the department of state shall
not contract or spend funds appropriated in part 1 for third-party
services related to multistate sharing of voter registration
information that requires or allows for use of any voter-related
information to be shared, sold, or used in any way other than to
provide a cross-check verification of voter registration
information and status with the department of state.
(2) The department of state shall send a copy of any
multistate cross-check agreement, contract, membership, memorandum
of understanding, or the like to the house of representatives and
senate standing committees on elections, the house of
representatives and senate appropriations subcommittees on general
government, and the house of representatives and senate
appropriations committees.
(3) The legislature may terminate any agreement, contract,
membership, or memorandum of understanding described in this
section if any requirements of this section are violated.
(4) The department of state shall provide a semiannual report
to the standard report recipients and to the chair of the house of
representatives and senate standing committees on elections on the
activities and voter records information sent and received or
exchanged between or through the interstate compact.
Sec. 728. (1) The department of state shall conduct a
systematic review of the qualified voter file by comparing the
department of state's driver license and state personal
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identification card databases, legal presence documents received
during identification transactions, information from the Systematic
Alien Verification for Entitlements Program of the United States
Citizenship and Immigration Services under the United States
Department of Homeland Security, or any other relevant program to
verify the citizenship status and voter eligibility of registered
electors in the qualified voter file.
(2) The department of state shall conduct a systematic review
to determine if any individuals currently included in the qualified
voter file have been identified by the help America vote
verification system as nonmatching with United States Social
Security Administration records. The department of state shall make
reasonable efforts to determine the eligibility of these
individuals, including, but not limited to, sending a notice to a
nonmatching individual, using available data provided by the
federal government or other sources, seeking the assistance of
appropriate federal, state, or local officials or agencies, and any
other efforts the department of state determines are appropriate.
(3) The department of state shall conduct a systematic review
to identify individuals who have moved to another state or country
and whose primary residence is no longer in Michigan. To conduct
the review, the department of state shall use, in addition to
current processes employed by the department of state, resources,
including but not limited to, the national change of address
program operated by the United States Postal Service and the
qualified voter files of other states
(4) The department of state shall notify each individual in
the qualified voter file identified by the department of state's
systematic reviews as potentially noneligible that the individual's
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voter registration is in question and provide the individual the
opportunity to respond before the individual's voter registration
is cancelled or scheduled for cancellation after 2 federal
elections as appropriate.
(5) Not later than April 1, the department of state shall
submit a report to the standard report recipients, the house of
representatives and senate standing committees on elections, and
the house of representatives and senate appropriations committees
on the reviews conducted under this section and the findings. The
report must include all of the following:
(a) A summary of the systematic review process.
(b) Any databases or resources used.
(c) The number of noncitizen individuals with presence in the
United States who have obtained a driver license or personal state
identification card.
(d) The number of individuals who are in the qualified voter
file but have been identified as nonmatching to the United States
Social Security Administration records.
(e) The total number of individuals by each category, count of
registration, date of registration, and source of registration.
(6) This review must be conducted not less than every 2 years
beginning not later than 2026 and not later than January 31 in
every subsequent even-numbered year.

DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET
Sec. 801. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $2,000,000.00 for
federal contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
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transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $4,000,000.00 for state
restricted contingency authorization. Amounts appropriated under
this subsection are not available for expenditure until they have
been transferred to another line item in part 1 under section
393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $75,000.00 for local
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $50,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 802. Any proceeds that exceed necessary costs incurred in
conducting transfers, auctions, direct sales, or scrapping of state
surplus property under section 267 of the management and budget
act, 1984 PA 431, MCL 18.1267, are appropriated to the MDTMB to
offset any costs incurred in the acquisition and distribution of
surplus property. The MDTMB shall provide consolidated internet
auction services through this state's contractors for all local
units of government.
Sec. 803. (1) The MDTMB may receive and expend funds in
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addition to those authorized by part 1 for maintenance and
operation services provided specifically to other principal
executive departments or state agencies, the legislative branch,
the judicial branch, or private tenants, or provided in connection
with facilities transferred to the operational jurisdiction of the
MDTMB.
(2) The MDTMB may receive and expend funds in addition to
those authorized by part 1 for real estate, architectural, design,
engineering, and project oversight services provided specifically
to other principal executive departments or state agencies, the
legislative branch, the judicial branch, universities, community
colleges, or private tenants.
(3) The MDTMB may receive and expend funds in addition to
those authorized in part 1 for mail pickup and delivery services
provided specifically to other principal executive departments and
state agencies, the legislative branch, or the judicial branch.
(4) The MDTMB may receive and expend funds in addition to
those authorized in part 1 for purchasing services provided
specifically to other principal executive departments and state
agencies, the legislative branch, or the judicial branch.
(5) Any revenue collected by the MDTMB from user fees under
subsections (1) to (4) must be carried forward and does not lapse
to the general fund at the close of the fiscal year.
Sec. 805. To the extent a specific appropriation is required
for a detailed source of financing included in part 1 for the MDTMB
appropriations financed from special revenue and internal service
and pension trust funds, or SIGMA user charges, the specific
amounts are appropriated within the special revenue internal
service and pension trust funds in portions not to exceed the
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aggregate amount appropriated in part 1.
Sec. 807. Funding in part 1 for SIGMA must be funded by
proportionate charges assessed against the respective state funds
benefiting from the SIGMA project in the amounts determined by
MDTMB.
Sec. 808. (1) A deposit against the IDG from building
occupancy and parking charges appropriated in part 1 must be
collected, in part, from state agencies, the legislative branch,
and the judicial branch based on estimated costs associated with
maintenance and operation of buildings managed by MDTMB. To the
extent excess revenue is collected due to estimates of building
occupancy charges exceeding actual costs, the excess revenue may be
carried forward into subsequent fiscal years for the purpose of
returning funds to state agencies.
(2) An appropriation in part 1 for building occupancy and
parking charges may be increased to return excess revenue collected
to state agencies.
Sec. 809. On a biannual basis, the MDTMB shall submit a report
to the standard report recipients on any revisions either
individually or in the aggregate that increase or decrease current
contracts by more than $250,000.00 for computer software
development, hardware acquisition, or quality assurance.
Sec. 810. (1) From the funds appropriated in part 1, the MDTMB
shall maintain an internet website that contains notice of all
solicitations, invitations for bids, and requests for proposals
over $50,000.00 that are issued by the MDTMB or by any state agency
operating under delegated authority, except for solicitations up to
$500,000.00 in accordance with the MDTMB policy regarding providing
opportunities to Michigan small businesses, geographically
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disadvantaged business enterprises, Michigan veteran-owned
business, Michigan service disabled veteran-owned businesses, or
Michigan recognized community rehabilitation organizations, or if
the MDTMB determines and documents that it is in the best interest
of this state. This information must appear on the first page of
each department or state agency dashboard.
(2) The MDTMB shall set the due date for acceptance of an
invitation for bid or request for proposal to not less than 14 days
after the notice is made available on the internet website
described in subsection (1), unless the MDTMB determines and
documents that a different due date is in the best interest of this
state.
(3) In addition to the requirements of this section, the MDTMB
may advertise the solicitations, invitations for bids, and requests
for proposals in any manner that the MDTMB determines is
appropriate to give the greatest number of persons the opportunity
to respond or make bids or requests for proposals.
(4) A new request for a proposal that is publicly displayed on
the internet website must include the proposal's corresponding
department or agency. The internet website must allow for the
searching of requests for proposals by department or agency.
Sec. 811. From the funds appropriated in part 1, the MDTMB
shall maintain a system that interfaces with other departments and
agencies to track the performance of vendors in fulfilling contract
obligations. The performance of these vendors must be recorded and
used as a factor to determine future contracts awarded in the
procurement process.
Sec. 812. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
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30, 2027 are estimated at $42,113,600.00. From this amount, total
MDTMB appropriations for pension-related legacy costs are estimated
at $42,113,600.00. Total MDTMB appropriations for retiree health
care legacy costs are estimated at $0.00.
Sec. 813. (1) Subject to subsection (7), funds in part 1 for
motor vehicle fleet are appropriated to the MDTMB for
administration and the acquisition, lease, operation, maintenance,
repair, replacement, and disposal of state motor vehicles.
(2) The funds described in subsection (1) must be funded by
revenue from rates charged to principal executive departments and
agencies for utilizing vehicle travel services provided by the
MDTMB. Any revenue in excess of the amount appropriated in part 1
from the motor transport fund and any unencumbered funds are
restricted revenues and may be carried over into the succeeding
fiscal year.
(3) The MDTMB shall, not later than 90 days after the close of
the fiscal year, submit an annual report to the standard report
recipients regarding the operation of the motor vehicle fleet. The
report must include all of the following:
(a) The number of vehicles assigned to, or authorized for use
by, state departments and agencies.
(b) The number of vehicles in the motor vehicle fleet.
(c) The number of miles driven by fleet vehicles.
(d) The number of gallons of fuel consumed by fleet vehicles.
(e) A description of fleet garage operations.
(f) The goods sold and services provided by the fleet garage.
(g) The number of employees assigned to each fleet garage.
(h) A comparison between the cost of electric vehicle battery
charging and the cost of gasoline fuel.
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(4) The information provided under subsection (3) may be
adjusted during the fiscal year based on needs and cost savings to
achieve the maximum value and efficiency from the state motor
fleet.
(5) The MDTMB may charge state agencies for fuel cost
increases that exceed 10% of the budgeted price per gallon of motor
vehicle fuels. The MDTMB shall notify state agencies, in writing or
by email, not less than 30 days before implementing additional
charges for fuel cost increases. Any revenue received from these
charges is appropriated on receipt.
(6) The state budget director, on notification to the senate
and house of representatives standing committees on appropriations,
may adjust spending authorization and the IDG from motor transport
fund in the MDTMB to ensure that the appropriations for motor
vehicle fleet in the MDTMB budget equal the expenditures for motor
vehicle fleet in the budgets for all executive branch agencies.
(7) The funds described in subsection (1) must not be expended
for the lease or purchase of electric or hybrid electric vehicles
in the state fleet. All leases and purchases of state fleet
vehicles must be for vehicles powered exclusively by internal
combustion engines.
Sec. 815. (1) The legal services fund is created within the
state treasury.
(2) Funds may be spent from the legal services fund only on
appropriation, or legislative transfer pursuant to section 393(2)
of the management and budget act, 1984 PA 431, MCL 18.1393.
(3) Funds in the legal services fund at the close of the
fiscal year remain in the legal services fund and do not lapse to
the general fund.
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(4) Subject to subsection (2), funds appropriated in this part
for deposit into the legal services fund are available to provide
support for major litigation involving the governor and the
attorney general in their official capacities, and for securing
outside legal advice, as identified by the attorney general, on
major statewide issues not unique to a single department or agency.
(5) The unexpended and unencumbered funds appropriated in 2021
PA 87 for legal services funding and carried forward under work
project account number 17458, titled "legal services", or any
subsequent reauthorization of the work project, are appropriated
for deposit into the legal services fund created in subsection (1).
(6) The MDTMB shall report quarterly to the standard report
recipients on legal services fund expenditures. The report must
itemize expenditures by case, purpose, and department involved and
must include expenditures related to all previously appropriated
funds.
Sec. 816. From the funds appropriated in part 1, the office of
the state employer shall work with all state departments and
agencies to set requirements on in-person work and utilization and
occupancy rates of state buildings to ensure at least 80% of
employees are in-person and building occupancy and utilization
rates are at least 80% or higher. As used in this section,
"occupancy" means that term as defined in section 222(4).
Sec. 820. The MDTMB shall post on its website and make
available to the public a list of all parcels of real property
owned by this state that are available for purchase.
Sec. 821. (1) From the funds appropriated in part 1, the
office of retirement services within the MDTMB shall prepare a
report by September 30 on the judges' retirement system, the
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military retirement system, the Michigan public school employees'
retirement system, the state employees' retirement system, and the
state police retirement system. The report must be submitted to the
standard report recipients.
(2) The report must include, but is not limited to, all of the
following information for each of the retirement systems described
in subsection (1):
(a) A chart and table that details annual required
contribution flow per year for fiscal year 2025-2026 and the
subsequent 24 fiscal years.
(b) Separate annual required contribution payment charts and
tables for pension and other postemployment benefits.
(c) Separate annual required contribution payment charts and
tables for the current annualized rate of return, an annualized
rate of return 50 basis points less than the current annualized
rate of return, and an annualized rate of return 100 basis points
less than the current annualized rate of return.
(d) Separate annual required contribution payment charts and
tables by normal cost and unfunded actuarial accrued liability.
(e) A justification if the payroll growth assumption is
maintained at or above 0% for any pension or OPEB plan. The report
must include an analysis of active employee plan member forecasts.
(3) The report must include the following items specific to
the Michigan public school employees' retirement system:
(a) A copy of the retirement plan election guide that is
provided to new Michigan public school employees' retirement system
hires as of the due date of the report.
(b) The number of new Michigan public school employees'
retirement system employees who entered the defined contribution
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plan and pension plus II plan not later than 14 days after the end
of the current fiscal year.
(c) An explanation of how the retirement plan election guide
explains that pension plus II members must pay 50% of any future
unfunded actuarial accrued liability payments.
(d) An explanation of how the retirement plan election guide
explains that defined contribution plan members have annuity
options that allow for guaranteed retirement income available
through a private insurance company.
(e) If any calculations are provided to plan members for
expected retirement income, then the following items must be
included:
(i) An explanation of how the retirement plan election guide
demonstrates a range of potential outcomes.
(ii) The underlying assumptions the retirement plan election
guide uses to calculate expected future retirement income.
(iii) How underlying assumptions are disclosed in the guide.
(4) The report must include the amount of money that each
school district received, on a per pupil basis, in foundation
allowances that was spent on Michigan public school employees'
retirement system costs in the immediately preceding fiscal year.
(5) The office of retirement services must post the most
recent year's comprehensive annual financial report for each plan
described in subsection (1) not later than 90 days after the end of
the fiscal year.
Sec. 822. Not later than January 1, the MDTMB shall submit a
report to the standard report recipients related to the salaries of
unclassified employees and gubernatorial appointees within all
state departments and agencies. The report must enumerate each
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unclassified employee and gubernatorial appointee and the
employee's or appointee's annual salary rounded to the nearest
thousand dollars.
Sec. 822c. The funds appropriated in part 1 must not be used
to support any staff effort, projects, consultant expenses, or any
other activity related to the development, financing, construction,
operation, or implementation of the Gordie Howe International
Crossing or any successor project unless the approval of the
project is enacted into law.
Sec. 822d. Not later than December 31, the MDTMB shall submit
a report to the standard report recipients that includes all of the
following:
(a) The fee and rate schedules to be used by state departments
and agencies for services, including information technology,
provided by the MDTMB during the current fiscal year.
(b) The changes from fees and rates charged in the immediately
preceding fiscal year.
(c) An explanation of the factors that justify each fee and
rate increase described in subdivision (b).
Sec. 822e. (1) In addition to the funds appropriated in part
1, the funds collected by the MDTMB for supplying census-related
information and technical services, publications, statistical
studies, population projections and estimates, and other
demographic products are appropriated for all expenses necessary to
provide the required services. These funds are available for
expenditure when they are received and may be carried forward into
the next fiscal year.
(2) Not later than March 1, the MDTMB shall submit a report to
the standard report recipients that provides the amount of revenue
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collected by the MDTMB from the authorization in subsection (1) and
the amount of revenue carried forward.
Sec. 822g. (1) From the funds appropriated in part 1 for
business support services, not more than $1,200,000.00 must be used
to expand a comprehensive supplier and provider risk and
information subscription used for the pre-contract and monitoring
risk assessment program to all state departments and agencies. The
subscription must include access to real-time operational and
financial signals to enable monitoring of vendors and providers on
a daily basis.
(2) All state departments and agencies shall subscribe to the
subscription described in subsection (1) and must be given access
to its services not later than November 1 to reduce fraud and risk
when entering into contracts or any agreements with a vendor or
provider.
(3) Before entering into an agreement or contract, including
those for legislatively directed spending items and services of
attendance-based childcare providers, state departments and
agencies shall submit the name of the vendor, entity, or provider
through the risk assessment system described in subsection (1).

MEMORIALS
Sec. 822k. The MDTMB may receive and expend funds from the
Vietnam veterans memorial monument fund in accordance with the
Michigan Vietnam veterans memorial act, 1988 PA 234, MCL 35.1051 to
35.1057. The funds are appropriated and allocated when received by
the MDTMB and may be expended on receipt.
Sec. 822l. The Michigan veterans' memorial park commission may
receive and expend money from any source, public or private,
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including, but not limited to, gifts, grants, donations of money,
and government appropriations, for the purposes described in
Executive Order No. 2001-10. The funds are appropriated and
allocated when received by the Michigan veterans' memorial park
commission and may be expended on receipt. Any deposit made under
this section and any unencumbered funds are restricted revenues and
may be carried over into subsequent fiscal years.
Sec. 822m. In addition to the funds appropriated in part 1,
the MDTMB may receive and expend money from the Michigan law
enforcement officers memorial monument fund in accordance with the
Michigan law enforcement officers memorial act, 2004 PA 177, MCL
28.781 to 28.786. Any deposit made into the fund is restricted
revenues and must be carried over into succeeding fiscal years.
Sec. 822n. (1) A new request for proposals or other
arrangements for the installation of solar energy projects, or the
purchase of solar energy through utility voluntary green pricing
programs authorized by the Michigan public service commission, for
use at state-owned or state-leased facilities may consider the
value of the life cycle carbon emissions in the manufacturing of
the solar equipment as part of the selection process. Information
requested through bidding processes and standards for the
independent measurement and verification of life cycle carbon
emissions, such as the Global Electronics Council's Electronic
Product Environmental Assessment Tool, may be used in the selection
process.
(2) Not later than June 30, the MDTMB shall submit a report to
the standard report recipients on the implementation of this
section.

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INFORMATION TECHNOLOGY
Sec. 824. The MDTMB may enter into agreements to provide
spatial information and technical services to other principal
executive departments, state agencies, local units of government,
and other organizations. The MDTMB may receive and expend funds in
addition to those authorized in part 1 for providing information
and technical services, publications, maps, and other products. The
MDTMB may expend amounts received for salaries, supplies, and
equipment necessary to provide informational products and technical
services.
Sec. 825. (1) The legislature shall have access to all
historical and current data contained within SIGMA, or its
predecessor, pertaining to state departments and to the judicial
branch.
(2) State departments shall have access to all historical and
current data contained within SIGMA or its predecessor.
Sec. 826. As used in this part and part 1, "information
technology services" means services that involve all aspects of
managing and processing information, including, but not limited to,
all of the following:
(a) Application and mobile development and maintenance.
(b) Desktop computer support and management.
(c) Cybersecurity.
(d) Social media.
(e) Mainframe computer support and management.
(f) Cloud services support and management, including, but not
limited to, infrastructure as a service, platform as a service, and
software as a service.
(g) Local area network support and management, including, but
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not limited to, wired and wireless network build-out, support, and
management.
(h) Information technology project management.
(i) Information technology procurement and contract
management.
(j) Telecommunication services, security, infrastructure, and
support.
(k) Server support and management.
(l) Information technology planning and budget management.
Sec. 827. (1) The MDTMB shall assess all subscribers of the
Michigan public safety communications system reasonable access and
maintenance fees and deposit the fees in the Michigan public safety
communications systems fees fund.
(2) All money received by the MDTMB under this section must be
expended for the support and maintenance of the Michigan public
safety communications system.
(3) Any deposits made under this section and unencumbered
funds are restricted revenues and must be carried forward into
succeeding fiscal years.
(4) The MDTMB shall prepare a report that indicates the amount
of revenue collected under this section and expended for support
and maintenance of the Michigan public safety communication system
for the immediately preceding 6-month period. The report must be
submitted to the standard report recipients not later than April
15.
Sec. 828. Not later than 45 days after the end of the current
fiscal year, the MDTMB shall submit a report to the standard report
recipients that includes both of the following:
(a) The estimated total amount of funding appropriated for
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information technology services and projects, by funding source,
for all principal executive departments and agencies for the
immediately preceding fiscal year.
(b) A listing of the expenditures made from the amounts
received by the MDTMB as reported in subdivision (a).
Sec. 829. The MDTMB shall prepare a report that analyzes and
makes recommendations on the life cycle of information technology
hardware and software. The report must be submitted to the standard
report recipients not later than March 1.
Sec. 830. (1) Any revenue collected from licenses issued under
the antenna site management project shall be deposited in the
antenna site management revolving fund created for this purpose in
the MDTMB. The MDTMB may receive and expend money from the fund for
costs associated with the antenna site management project,
including the cost of a third-party site manager. Any excess
revenue remaining in the fund at the close of the fiscal year must
be proportionately transferred to the appropriate state restricted
funds as designated in a PA or the state constitution of 1963.
(2) An antenna must not be placed on any site under this
section without complying with the respective local zoning codes
and local unit of government processes.
Sec. 831. If the MDTMB provides information technology
services to a department or agency directly, the MDTMB shall submit
a monthly invoice to the department or agency for the information
technology services provided. If the MDTMB provides information
technology services to a department or agency through a contracted
vendor, the MDTMB shall submit an invoice to the department or
agency not later than 45 days after the MDTMB receives approval to
pay the vendor invoice.
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Sec. 832. (1) The MDTMB shall inform the senate and house of
representatives appropriations subcommittees on general government
and the senate and house fiscal agencies not later than 30 days
after learning of the proposal of a potential penalty proposed or
the assessment of an actual penalty assessed by the federal
government for failure of the Michigan child support enforcement
system to achieve certification by the federal government.
(2) If a potential penalty is proposed by the federal
government, the MDTMB shall submit a report to the standard report
recipients not later than 90 days after the date the potential
penalty is proposed specifying the MDTMB's plans to avoid the
assessment of an actual penalty and ensure federal certification of
the Michigan child support enforcement system.
Sec. 833. (1) The state budget director, on notification to
the standard report recipients and the senate and house of
representatives standing committees on appropriations, may adjust
spending authorization and user fees in the MDTMB to ensure that
the appropriations for information technology in the MDTMB equal
the appropriations for information technology in the budgets for
all executive branch agencies.
(2) If, during the fiscal year, a supplemental appropriation
or transfer is made under section 393(2) of the management and
budget act, 1984 PA 431, MCL 18.1393, to or from an information
technology line item in an agency budget, there is appropriated an
equal amount of user fees in the MDTMB to accommodate an increase
or decrease in spending authorization.
Sec. 834. (1) The MDTMB shall not contract with a vendor for a
commercial-off-the-shelf product if the potential vendor would need
to write software code to enable the product to meet the
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requirements and specifications of the applicable department or
agency work procured under the contract and if 1 of the following
conditions applies:
(a) The contract would involve labor costs that exceed the
base price of the commercial-off-the-shelf product, including, but
not limited to, licensing and hosting fees.
(b) The potential vendor is not able to provide more than 1
example of successful implementation of the offered commercial-off-
the-shelf product.
(2) As used in this section, "commercial-off-the-shelf
product" means a software product that is commercially ready-made
and available for sale, lease, or license to the general public.
Sec. 835. From the funds appropriated in part 1, the MDTMB
shall not enter into a contract with a vendor for software
development services that has a value greater than $10,000,000.00
or that is effective for a period longer than 3 years except on
appropriation or legislative transfer in accordance with section
393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 836. (1) From the funds appropriated in part 1 for
technology services, the department shall contract for independent
verification and validation services for each information
technology project that meets either of the following conditions:
(a) The project has a contract value that is greater than
$5,000,000.00.
(b) The project has a contract value that is greater than
$1,000,000.00 and 1 or more of the following conditions applies:
(i) The project spans across more than 1 department or agency.
(ii) The project involves multiple vendors.
(iii) The project has an accelerated schedule.
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(iv) The impact is high if the project were to fail or be
delayed.
(2) A contract for independent verification and validation
services must require the independent verification and validation
vendor to report on a monthly basis and 2 times each year. In
addition to the MDTMB and sponsoring department or agency, all
independent verification and validation reporting must be submitted
to each technology vendor on the project and to the standard report
recipients.
Sec. 837. All information technology projects funded by
appropriations in part 1 must do both of the following:
(a) Use information technology project management best
practices and services as defined or recommended by the enterprise
portfolio management office of the MDTMB.
(b) Comply with the requirements of the state unified
information technology environment methodology as it applies to all
information technology project management processes.
Sec. 838. (1) The funds appropriated in part 1 for information
technology investment fund must be used for the modernization of
state information technology systems, improvement of this state's
cybersecurity framework, and to achieve efficiencies.
(2) The MDTMB shall develop a plan regarding the use of the
funds appropriated in part 1 for the information technology
investment fund.
(3) The plan described in subsection (2) must include all of
the following:
(a) A description of proposed information technology
investment projects.
(b) The time frame for completion of the information
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technology investment projects.
(c) The initial budgeted amount for each project.
(d) The number of employees assigned to implement each
information technology investment project.
(e) The contracts entered into for each information technology
investment project.
(f) Any other information the MDTMB considers necessary.
(4) The MDTMB shall submit a report to the standard report
recipients that includes the plan and the anticipated spending
reductions or overages for each of the proposed information
technology investment projects. The report must also include both
of the following:
(a) A comparison of the initial budgeted amounts and
cumulative costs, both by project and in total for all projects.
(b) The amount of any transfer of budgeted funds from 1
project to another.
Sec. 840. (1) From the funds appropriated in part 1, the MDTMB
shall use the United States General Services Administration's
Contract-Awarded Labor Category Tool for calculating expected labor
costs for information technology software project contracts before
soliciting bids, RFPs, or solutions for those contracts.
(2) Each RFP for a contract described in subsection (1) must
include a clear statement of objective that is not longer than 5
pages and that communicates all essential operational requirements
of the contracted service.
Sec. 841. (1) As used in this section:
(a) "Chief digital service officer" means the individual
appointed under subsection (13).
(b) "Chief information officer" means that term as defined in
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section 2 of the cyber civilian corps act, 2017 PA 132, MCL 18.222.
(c) "Department" means the department of technology,
management, and budget.
(d) "Digital service office" means the state digital service
office created under this section.
(e) "Director" means the director of the department.
(f) "Product manager" means an individual from a state
department or agency who is responsible for ensuring that the
product developed from a software development project delivers
measurable value to users and achieves strategic objectives through
evidence-based decision-making and continuous user engagement.
(2) The state digital service office is created within the
department.
(3) The digital service office shall implement this act. The
digital service office shall exercise its powers, duties,
functions, and responsibilities independently of the director.
(4) The digital service office shall do both of the following:
(a) Develop strategies and practices that aim to achieve the
maximum effect on critical systems and programs.
(b) Work to foster cultural change in the technology workforce
of this state, conducive to implementing the adoption of modern
software development strategies and practices, as described in
subsection (7).
(5) The digital service office shall advise and collaborate
with the chief information officer, the department's central
procurement office, the department's enterprise portfolio
management office, and any office under the chief information
officer to adopt modern software development strategies and
practices, as described in subsection (7), for building and
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deploying technology and digital services that improve the lives of
the residents of this state.
(6) The digital service office shall advise and collaborate
with the department's central procurement office and the director
to study innovative procurement practices for the acquisition of
digital products by and for state departments and agencies to
facilitate the rapid provision of high-quality digital services
that are based on users' needs and that comply with the
department's best practices and policies regarding data privacy,
security, and accessibility.
(7) The digital service office shall advise and collaborate
with the chief information officer, the executive office of the
governor or lieutenant governor, the director, and state
departments and agencies to support adoption of modern software
development strategies and practices, including, but not limited
to, all of the following:
(a) Agile development methodologies.
(b) Open-source practices for the development and deployment
of new and existing digital services.
(c) Advocacy of modern software development tools and
practices that include, but are not limited to, all of the
following:
(i) Development, security, and operations.
(ii) Modular contracting.
(iii) Active product management.
(iv) User-centered design.
(v) Iterative and incremental development.
(vi) User research and testing.
(vii) Unified development infrastructure.
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(viii) Service-oriented architecture.
(ix) Open-source software.
(x) Unified development infrastructure.
(xi) The modern best practices described in the 13 plays of the
Digital Services Playbook, published by United States Digital
Service.
(8) The digital service office shall do all of the following:
(a) Except as otherwise provided in this subdivision, review
requests from state departments and agencies for software
development projects that have an estimated cost of $1,000,000.00
or more to evaluate and advise on the optimal design and
development approach, including development approaches that
encourage in-house development. The digital service office may
review software development projects that have an estimated cost of
less than $1,000,000.00 if requested by a state department or
agency or if the digital service office determines that a review is
beneficial.
(b) Promote the most effective means for improving digital
services based on quantitative and qualitative assessments of user
needs.
(c) Coordinate training for state departments and agencies on
effective management and collaboration in software development
projects, including, but not limited to, training on the role of
product managers.
(d) Provide all of the following for information technology
activities within state departments and agencies that have a cost
of more than $500,000.00:
(i) Oversight, monitoring, and recommendations that promote
modern software development strategies and practices.
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(ii) Standards for the management, organization, and tracking
of the information technology activities.
(9) Not later than February 1 of each year, the digital
service office shall submit a report to the standard report
recipients that includes all of the following:
(a) Actions taken to pursue and implement responsibilities
provided in this act.
(b) The status of progress made toward achieving full adoption
of the modern software development strategies and practices
described in subsection (7).
(c) Actions recommended to the department and the status and
outcomes of the recommendations.
(d) A summary of any actions that resulted in reductions or
avoidances of costs to this state and estimates of the amounts and
of the savings to this state.
(e) Whether the chief digital service officer has blocked or
redirected the advancement of a technology project under subsection
(16), including a description of the decision.
(10) The digital service office shall, not later than February
1 of each year, prepare a report on resident-centered outcomes for
projects that the digital service office reviewed under subsection
(8)(a) in the immediately preceding calendar year. The digital
service office shall submit the report to the standard report
recipients and make the report available to the public on the
department's website. For purposes of this subdivision, "resident-
centered outcomes" includes, but is not limited to, all of the
following:
(a) Time saved.
(b) Applications completed without error.
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(c) Percentage of users accessing services successfully.
(11) The digital service office shall submit a report to the
standard report recipients and the chief information officer if a
project with a budget of more than $500,000.00 encounters problems
that result in any of the following:
(a) The project is at risk of exceeding the project budget or
schedule.
(b) The project has exceeded the project budget or schedule.
(c) There is a risk of significant disruption of efficient and
reliable services to residents of this state.
(12) The report described in subsection (11) must identify the
reason for the problem and provide recommendations to resolve the
problem.
(13) The chief digital service officer shall lead the digital
service office. The governor shall appoint the chief digital
service officer with the advice and consent of the senate majority
leader and the speaker of the house of representatives.
(14) The chief digital service officer shall be a full voting
member of the board that governs the information technology
investment fund described in section 838 of 2025 PA 22.
(15) The chief digital service officer shall build and commit
to a talent strategy that attracts, recruits, competitively
compensates, and retains interdisciplinary expertise in technology,
strategy, business, and management to import world-class digital
services into state information technology services and projects.
(16) The chief digital service officer may block or redirect
the advancement of a technology project that poses a risk of
significant unnecessary costs to this state or significant
disruption of efficient and reliable services to the residents of
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this state.
(17) The digital service office shall exist for the 5-year
period immediately following the effective date of this act.

STATE BUILDING AUTHORITY RENT
Sec. 842. (1) Funds appropriated in part 1 for state building
authority rent may, in addition to this purpose, be expended for
the payment of required premiums for insurance on facilities owned
by the state building authority or payment of costs that may be
incurred as the result of any deductible provisions in the
applicable insurance policies.
(2) If the amount appropriated in part 1 for state building
authority rent is not sufficient to pay the rent obligations and
insurance premiums and deductibles identified in subsection (1) for
state building authority projects, there is appropriated from the
general fund of this state the amount necessary to pay the
obligations.

OFFICE OF THE STATE EMPLOYER
Sec. 843. (1) The funds appropriated in part 1 for statewide
appropriations must be funded by assessments against longevity and
insurance appropriations throughout state government in a manner
prescribed by the MDTMB. The funds must be used as specified in
joint labor/management agreements, or through the coordinated
compensation hearings process. Any deposits of assessments made
under this subsection and any unencumbered funds are restricted
revenues, may be carried over into the succeeding fiscal years, and
are appropriated.
(2) In addition to the funds appropriated in part 1 for
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statewide appropriations, the MDTMB may receive and expend funds in
the additional amounts specified in joint labor/management
agreements, or through the coordinated compensation hearings
process, in the same manner and subject to the same conditions as
prescribed in subsection (1).
Sec. 844. In addition to the funds appropriated in part 1, the
MDTMB may receive and expend funds from other principal executive
departments and state agencies to implement administrative leave
bank transfer provisions specified in joint labor/management
agreements. The funds may also be transferred to other principal
executive departments and state agencies under the joint
labor/management agreement and any amounts transferred under the
joint labor/management agreement are authorized for receipt and
expenditure by the receiving principal executive department or
state agency. Any funds received by the MDTMB under this section
and intended, under the joint labor/management agreements, to be
available for use beyond the close of the fiscal year, and any
unencumbered funds, may be carried over into the next fiscal year.

CIVIL SERVICE COMMISSION
Sec. 850. (1) In accordance with section 5 of article XI of
the state constitution of 1963, all restricted funds must be
assessed a sum not less than 1% of the total aggregate payroll paid
from those funds for financing the civil service commission on the
basis of actual 1% restricted sources total aggregate payroll of
the classified service for the preceding fiscal year. This
includes, but is not limited to, restricted funds appropriated in
part 1 of any appropriations act. The civil service commission
shall return any unexpended funds appropriated under this
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subsection to each 1% fund source not later than 6 months after the
end of the fiscal year.
(2) The appropriations in part 1 are estimates of actual
charges based on payroll appropriations. With the approval of the
state budget director, the civil service commission may adjust
financing sources for civil service charges based on actual payroll
expenditures, if the adjustments do not increase the total
appropriation for the civil service commission.
(3) The financing from restricted sources must be credited to
the civil service commission by the end of the second fiscal
quarter.
Sec. 851. Except where specifically appropriated for this
purpose, financing from restricted sources must be credited to the
civil service commission. For restricted sources of funding within
the general fund that have the legislative authority for carryover,
if current spending authorization or revenues are insufficient to
accept the charge, the shortage must be taken from carryforward
balances of that funding source. Restricted revenue sources that do
not have carryforward authority must be utilized to satisfy civil
service commission operating deductions first and civil service
commission obligations second. General fund dollars are
appropriated for any shortfall, if approved by the state budget
director.
Sec. 852. The appropriation in part 1 to the civil service
commission, for state-sponsored group insurance, flexible spending
accounts, and COBRA, represents amounts, in part, included within
the various appropriations throughout state government for the
current fiscal year to fund the flexible spending account program
included within the civil service commission. Deposits against
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state-sponsored group insurance, flexible spending accounts, and
COBRA for the flexible spending account program must be made from
assessments levied during the fiscal year in a manner prescribed by
the civil service commission. Unspent employee contributions to the
flexible spending accounts may be used to offset administrative
costs for the flexible spending account program, and any remaining
balance of unspent employee contributions lapses to the general
fund.
Sec. 853. From the funds appropriated in part 1, the Michigan
civil service commission shall continue to work toward completing
its review of current employee classifications and educational
requirements necessary for employment. On completion of the review,
the commission, where possible, shall substitute relevant
experience for the default educational requirement of a bachelor's
degree.

CAPITAL OUTLAY
Sec. 860. As used in sections 861 through 875 of this part:
(a) "Board" means the state administrative board created in
section 1 of 1921 PA 2, MCL 17.1.
(b) "Community college" means a community college organized
under the community college act of 1966, 1966 PA 331, MCL 389.1 to
389.195, or under part 25 of the revised school code, 1976 PA 451,
MCL 380.1601 to 380.1607, and does not include a state agency or
university.
(c) "Director" means the director of the MDTMB.
(d) "State agency" means an agency of state government. State
agency does not include a community college or university.
(e) "State building authority" means the authority created in
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section 2 of 1964 PA 183, MCL 830.412.
(f) "University" means a 4-year university supported by this
state. University does not include a community college or a state
agency.
Sec. 861. Each capital outlay project authorized in this part
and part 1 or any previous capital outlay act shall comply with the
procedures required by the management and budget act, 1984 PA 431,
MCL 18.1101 to 18.1594.
Sec. 862. (1) The MDTMB shall submit a report to the standard
report recipients and the JCOS on the status of each planning or
construction project financed by the state building authority, this
part and part 1, or a previous PA.
(2) Before the end of the fiscal year, the MDTMB shall submit
a report to the standard report recipients and the JCOS for each
capital outlay project other than lump sums that includes all of
the following:
(a) The account number and name of each construction project.
(b) The balance remaining in each account.
(c) The date of the last expenditure from the account.
(d) The anticipated date of occupancy if the project is under
construction.
(e) The appropriations history for the project.
(f) The professional service contractor.
(g) The amount of the project financed with federal funds.
(h) The amount of the project financed through the state
building authority.
(i) The total authorized cost for the project and the state
authorized share if different than the total.
(3) Before the end of the fiscal year, the MDTMB shall submit
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a report to the standard report recipients and the JCOS on all of
the following for each project by a state agency, university, or
community college that is authorized for planning but is not yet
authorized for construction:
(a) The name of the project and account number.
(b) Whether a program statement is approved.
(c) Whether schematics are approved by the MDTMB.
(d) Whether preliminary plans are approved by the MDTMB.
(e) The name of the professional service contractor.
(4) As used in this section, "project" includes appropriation
line items made for purchase of real estate.
Sec. 863. The MDTMB shall work with all state departments and
agencies to evaluate their current office building and space usage
to identify any projected changes for the current and next fiscal
year. The MDTMB shall report the following information to the
standard report recipients not later than May 1:
(a) Projected changes in state-owned property being utilized
by each department and agency for the current and next fiscal year.
(b) Projected changes to leased property being utilized by
each department and agency for the current and next fiscal year.
(c) A comparative analysis of 2022 occupancy levels to
expected levels for the current and next fiscal year.
(d) All of the following information for the immediately
preceding fiscal year:
(i) A list of expenditures related to space optimization as a
result of remote work, including costs associated with divesting
state-owned property and vacating leased facilities.
(ii) Net savings as a result of property divestment or vacated
leased facilities.
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(iii) A description of each divested property or location of
each vacated leased facility.
Sec. 864. The appropriations in part 1 for capital outlay must
be carried forward at the end of the fiscal year in accordance with
section 248 of the management and budget act, 1984 PA 431, MCL
18.1248.
Sec. 865. (1) A site preparation economic development fund is
created in the MDTMB. The MEDC board and the state budget director
shall determine whether a specific state-owned site qualifies for
inclusion in the site preparation economic development fund.
(2) Any proceeds from the sale of an economic development site
must be deposited in the site preparation economic development fund
and are available for site preparation expenditures, unless
otherwise provided by law. The economic development sites are
authorized for sale consistent with state law. Expenditures from
the site preparation economic development fund are authorized for
site preparation activities that enhance the marketable sale value
of the economic development sites.
(3) A cash advance in an amount of not more than
$25,000,000.00 is authorized from the general fund to the site
preparation economic development fund.
(4) Not later than December 31, the MDTMB shall submit a
report to the standard report recipients and the senate and house
of representatives standing committees on appropriations that
includes both of the following:
(a) The revenue and expenditure activity in the site
preparation economic development fund for the immediately preceding
fiscal year.
(b) The sites identified as economic development sites.
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(5) As used in this section:
(a) "Economic development site" means a state-owned site that
is declared as surplus property under section 251 of the management
and budget act, 1984 PA 431, MCL 18.1251, and would provide
economic benefit to the area of the site or to this state.
(b) "Site preparation activities" includes, but is not limited
to, demolition, environmental studies and abatement, utility
enhancement, and site excavation.
Sec. 866. (1) The energy efficiency revolving fund is created
within the state treasury. The state treasurer may receive money or
other assets from any source for deposit into the energy efficiency
revolving fund. The state treasurer shall direct the investment of
the energy efficiency revolving fund. The state treasurer shall
credit to the energy efficiency revolving fund interest and
earnings from energy efficiency revolving fund investments.
(2) Money in the energy efficiency revolving fund at the close
of the fiscal year remains in the energy efficiency revolving fund
and does not lapse to the general fund.
(3) The MDTMB shall provide oversight and direction for the
energy efficiency revolving fund, coordinate a call for projects,
and prioritize the award of projects that will contribute to a
reduction in this state's carbon footprint. State administrative
costs must be not more than 10% of the total project cost.
(4) The MDTMB shall set terms with agencies participating in
the energy efficiency revolving fund program that include the scope
of each project, funding commitments, data collection and reporting
requirements, and any other financial terms related to realization
of energy savings related to implementation of the project. The
MDTMB may enter into a memorandum of understanding to memorialize
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these terms.
(5) Not later than February 1, the MDTMB shall submit a report
to the standard report recipients on projects funded under this
section in the immediately preceding fiscal year. The report must
list each approved project, the amount provided from the energy
efficiency revolving fund for each project, the department or
agency under which the project belongs, anticipated annual savings
from each project, and revenue from savings deposited into the
energy efficiency revolving fund by project.

CAPITAL OUTLAY - UNIVERSITIES AND COMMUNITY COLLEGES
Sec. 873. (1) This section applies only to projects for
community colleges.
(2) State support is directed towards the remodeling and
additions, special maintenance, or construction of certain
community college buildings. The community college shall obtain or
provide for site acquisition and initial main utility installation
to operate the facility. The funding must be composed of local and
state shares and not more than 50% of a capital outlay project, not
including a lump-sum special maintenance project or remodeling and
addition project, for a community college may be appropriated from
state and federal funds, unless otherwise appropriated by the
legislature.
(3) An expenditure under this part and part 1 is authorized
when the release of the appropriation is approved by the board on
the recommendation of the director. The director may recommend to
the board the release of any appropriation in part 1 only after the
director is assured that the legal entity operating the community
college to which the appropriation is made has complied with this
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part and part 1 and has matched the amounts appropriated as
required by this part and part 1. A release of funds in part 1 must
not exceed 50% of the total cost of planning and construction of
any project, not including lump-sum remodeling and additions and
special maintenance, unless otherwise appropriated by the
legislature. Further planning and construction of a project
authorized by this part and part 1 or applicable sections of the
management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594,
must be in accordance with the purpose and scope as defined and
delineated in the approved program statements and planning
documents. This part and part 1 are applicable to all projects for
which planning appropriations were made in previous PAs.
(4) The community college shall take the steps necessary to
secure available federal construction and equipment money for
projects funded for construction in this part and part 1 if an
application was not previously made. If there is a reasonable
expectation that a previous year unfunded application may receive
federal money in a subsequent year, the community college shall
take whatever action necessary to keep the application active.
Sec. 874. If university and community college matching
revenues are received in an amount less than the appropriations for
capital projects contained in this part and part 1, the state funds
must be reduced in proportion to the amount of matching revenue
received.
Sec. 875. (1) The director may require that community colleges
and universities that have an authorized project described in part
1 submit documentation regarding the project match and governing
board approval of the authorized project not more than 60 days
after the beginning of the fiscal year.
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(2) If the documentation required by the director under
subsection (1) is not submitted, or does not adequately
authenticate the availability of the project match or governing
board approval of the authorized project, the director may
terminate the authorization. The authorization terminates 30 days
after the director notifies the JCOS of the intent to terminate the
project unless the JCOS approves an extension of the authorization.

ONE-TIME APPROPRIATIONS
Sec. 890. (1) Funds appropriated in part 1 for EMS health strategies
fund shall be allocated to a health strategies fund operated by a
statewide organization representing Michigan EMS agencies that existed
before April 1, 2020.
(2) The EMS health strategies fund shall be used to provide
grants to EMS agencies who have been engaged in the transport of
incarcerated individuals in the state. The statewide organization
representing Michigan EMS agencies that operates the EMS health
strategies fund created under this section shall provide a report
on expenditures to the senate and house appropriations committees,
the senate and house fiscal agencies, the state budget office, and
the state treasurer by August 15, 2027. At a minimum, the report
shall include the total amount of grants awarded and the number of
licensed EMS agencies that received grant funding.

DEPARTMENT OF TREASURY
OPERATIONS
Sec. 901. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $500,000.00 for
federal contingency authorization. Amounts appropriated under this
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subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $10,000,000.00 for state
restricted contingency authorization. Amounts appropriated under
this subsection are not available for expenditure until they have
been transferred to another line item in part 1 under section
393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 for local
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $20,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 902. (1) Amounts needed to pay for interest, fees,
principal, mandatory and optional redemptions, arbitrage rebates as
required by federal law, and costs associated with the payment,
registration, trustee services, credit enhancements, and issuing
costs in excess of the amount appropriated to the department of
treasury in part 1 for debt service on notes and bonds that are
issued by this state under sections 14, 15, or 16 of article IX of
the state constitution of 1963, as implemented by 1967 PA 266, MCL
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17.451 to 17.455, are appropriated.
(2) In addition to the amount appropriated to the department
of treasury for debt service in part 1, there is appropriated an
amount for fiscal year cash-flow borrowing costs to pay for
interest on interfund borrowing authorized under 1967 PA 55, MCL
12.51 to 12.53.
(3) In addition to the amount appropriated to the department
of treasury for debt service in part 1, all repayments received by
this state on loans made from the school bond loan fund that the
state treasurer determines are not required to be deposited in the
school loan revolving fund under section 4 of 1961 PA 112, MCL
388.984, are appropriated to the department of treasury for the
payment of debt service, including, but not limited to, optional
and mandatory redemptions, on bonds, notes, or commercial paper
issued by this state under 1961 PA 112, MCL 388.981 to 388.985.
Sec. 902a. As a condition of receiving the appropriations in
part 1, not later than 30 days after a refunding or restructuring
bond issue is sold, the department of treasury must submit a report
to the standard report recipients and the senate and house of
representatives standing committees on appropriations. The report
must include all of the following:
(a) A comparison of the annual debt service before the
refinancing or restructuring to the annual debt service after the
refinancing or restructuring.
(b) The change in the principal and interest over the duration
of the debt.
(c) The projected change in the present value of the debt
service as a result of the refinancing and restructuring.
Sec. 902b. As a condition of receiving the appropriations in
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part 1, not later than 30 days after the state of Michigan annual
comprehensive financial report under section 494 of the management
and budget act, 1984 PA 431, MCL 18.1494, is published, the
department of treasury shall submit a report to the standard report
recipients on all funds that are controlled or administered by the
department of treasury and not appropriated in part 1. The current
and all previous reports prepared as required under this section
must be saved and made available on the department of treasury's
public website and stored in a common location with all other
reports that the department of treasury is required by law to
prepare. The link to the location of the reports must be clearly
indicated on the main page of the department of treasury's internet
website. The report must include all of the following information
for each fund for the immediately preceding fiscal year:
(a) The starting balance.
(b) Total revenue generated by transfers in and investments.
(c) Total expenditures.
(d) The ending balance.
Sec. 903. (1) From the funds appropriated in part 1, the
department of treasury may contract with law firms or private
collection agencies to collect taxes and other accounts due this
state or due a city for which the department of treasury has
entered into an agreement to provide tax administration services.
In addition to the amounts appropriated in part 1 to the department
of treasury, there are appropriated amounts necessary to fund the
cost of these collections, including infrastructure costs. The
additional amounts appropriated under this subsection must not
exceed 25% of the collections or 2.5% plus operating costs, as
applicable. Each contract must prescribe the applicable amount. The
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amounts appropriated to fund collection costs and fees under this
subsection are appropriated from the fund or account to which the
corresponding taxes and other accounts being collected are recorded
or dedicated. However, if the taxes and other accounts collected
are dedicated for a specific purpose under the state constitution
of 1963, the amounts appropriated under this subsection are
appropriated from the general purpose account of the general fund.
(2) From the funds appropriated in part 1, the department of
treasury may contract with law firms or private collections
agencies to collect defaulted student loans and other accounts due
the Michigan guaranty agency. In addition to the amounts
appropriated in part 1 to the department of treasury, there are
appropriated amounts necessary to fund collection costs and fees
not to exceed 24.34% of the collection or a lesser amount as
prescribed by the contract. The amounts appropriated under this
subsection are appropriated from the fund or account to which the
revenues being collected are recorded or dedicated.
(3) By November 30, the department of treasury shall submit a
report to the standard report recipients and the senate and house
of representatives standing committees on appropriations. The
report must include all of the following information for the
immediately preceding fiscal year:
(a) The name of each law firm and each private collection
agency that the department of treasury contracted with under
subsection (1) or (2).
(b) The amount collected under each contract.
(c) The costs of collection under each contract.
(d) Any other information that is pertinent to determining
whether the authority described in subsection (1) or (2) should be
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continued.
Sec. 904. (1) The bureau of investments of the department of
treasury may charge an investment service fee against the
applicable retirement funds. The revenue from the investment
service fees charged under this subsection may be expended for
necessary salaries, wages, contractual services, supplies,
materials, equipment, travel, worker's compensation insurance
premiums, and grants to the civil service commission retirement
fund and the state employees' retirement fund. If the bureau of
investments of the department of treasury charges a total amount of
investment service fees under this subsection that is greater than
the aggregate amount appropriated in part 1, the bureau of
investments of the department of treasury shall periodically repay
the surplus revenue to the applicable retirement funds. The
department of treasury shall maintain accounting records in
sufficient detail to enable repayment under this subsection.
(2) In addition to the funds appropriated in part 1 from the
retirement funds to the department of treasury, there is
appropriated from retirement funds an amount sufficient to pay for
the services of money managers, investment advisors, investment
consultants, custodians, or other outside professionals that the
state treasurer considers necessary to prudently manage the
retirement funds' investment portfolios. The state treasurer shall
submit an annual report to the standard report recipients and the
senate and house of representatives standing committees on
appropriations regarding the performance of each portfolio
delineated by investment advisor.
(3) Not later than November 30, the department of treasury
shall submit a report to the standard report recipients that
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identifies the service fees assessed against each retirement system
under subsection (1) and the methodology used for assessment.
Sec. 904a. (1) There is appropriated an amount sufficient to
recognize and pay expenditures for financial services provided by
financial institutions or equivalent vendors that perform these
financial services, including the department of treasury, as
provided under section 1 of 1861 PA 111, MCL 21.181.
(2) The appropriations under subsection (1) must be funded by
restricting revenues from common cash interest earnings and
investment earnings in an amount sufficient to cover these
expenditures. If the amounts of common cash interest earnings are
insufficient to cover these expenditures, miscellaneous revenues
must be used to fund the remaining balance of these expenditures.
Sec. 905. The municipal finance fee fund is created in the
department of treasury as a revolving fund. The department of
treasury shall deposit the fees that the department of treasury
collects under the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821, into the municipal finance fee fund. The
money in the fund at the end of the fiscal year may be carried
forward for future appropriation.
Sec. 906. (1) The department of treasury shall charge for
audits as allowed under state or federal law or under a contract
between the department of treasury and a local unit of government,
other principal executive department, or state agency. However, the
department of treasury shall not charge more than the actual cost
for performing the audit. Not later than November 30, the
department of treasury shall submit a report to the standard report
recipients that includes details of the audits performed and audit
charges for the immediately preceding fiscal year.
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(2) The audit charges fund is created in the department of
treasury as a revolving fund. The department of treasury shall
deposit the contractual charges collected under subsection (1) into
the audit charges fund. The money in the fund at the end of the
fiscal year may be carried forward for future appropriation.
Sec. 907. (1) The department of treasury shall create and
operate a property assessor certification and training program. The
purpose of the program is to offer courses in assessment
administration.
(2) The assessor certification and training fund is created in
the department of treasury as a revolving fund. The department of
treasury shall use the money in the assessor certification and
training fund to create and operate the property assessor
certification and training program described in subsection (1).
(3) Each participant in the program shall pay to the
department of treasury an examination fee not to exceed $50.00 per
examination and a certification fee not to exceed $175.00. In
addition, each participant shall pay a fee to cover the expenses
incurred in offering the program to certified assessing personnel
and other individuals interested in an assessment career
opportunity. The department of treasury shall deposit the fees
collected under this subsection into the property assessor
certification and training program fund.
Sec. 908. The amount appropriated in part 1 for the home
heating assistance program is to cover the costs, including data
processing, of administering federal home heating credits to
eligible claimants and of administering the supplemental fuel cost
payment program for eligible tax credit and welfare recipients.
Sec. 909. Revenue from the airport parking tax act, 1987 PA
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248, MCL 207.371 to 207.383, is appropriated and must be
distributed in accordance with section 7a of the airport parking
tax act, 1987 PA 248, MCL 207.377a.
Sec. 910. The disbursement by the department of treasury from
the bottle deposit fund to dealers as required by section 3c(3) of
1976 IL 1, MCL 445.573c, is appropriated.
Sec. 911. (1) There is appropriated an amount sufficient to
recognize and pay refundable tax credits, tax refunds, and interest
as provided by law.
(2) The appropriations under subsection (1) must be funded by
restricting tax revenue in an amount sufficient to cover these
expenditures.
Sec. 912. A plaintiff in a garnishment action involving this
state shall pay to the state treasurer 1 of the following:
(a) A fee of $6.00 at the time a writ of garnishment of
periodic payments is served on the state treasurer, as provided in
section 4012 of the revised judicature act of 1961, 1961 PA 236,
MCL 600.4012.
(b) A fee of $6.00 at the time any other writ of garnishment
is served on the state treasurer. However, the fee must be reduced
to $5.00 for each writ of garnishment for individual income tax
refunds or credits that is filed electronically.
Sec. 913. (1) The department of treasury may contract with
private firms to appraise and, if necessary, appeal the assessments
of senior citizen cooperative housing units. Payment for this
service must be made from the savings that result from the
appraisal or appeal process being conducted by private firms.
(2) The department of treasury may use a portion of the funds
appropriated in part 1 for the senior citizen cooperative housing
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tax exemption program for an audit of the program. The department
of treasury shall submit copies of any completed audit report to
the standard report recipients. The department of treasury may use
not more than 1% of the funds for administering and auditing the
program.
Sec. 914. The department of treasury may provide a $200.00
annual prize from the Ehlers internship award account in the gifts,
bequests, and deposit fund to the runner-up of the Rosenthal prize
for interns. The Ehlers internship award account is interest
bearing.
Sec. 915. As required under section 61 of the Michigan
campaign finance act, 1976 PA 388, MCL 169.261, there is
appropriated from the general fund to the state campaign fund an
amount equal to the amounts designated for the 2023 tax year.
Except as otherwise provided in this section, the amount
appropriated does not revert to the general fund and remains in the
state campaign fund. Any amount that remains in the state campaign
fund in excess of $10,000,000.00 on December 31 reverts to the
general fund.
Sec. 916. (1) The department of treasury may make available to
an interested entity a customized list of otherwise unavailable
nonconfidential information regarding unclaimed property that is in
the department of treasury's possession. The department of treasury
shall charge for this information as follows:
(a) For 1 to 100,000 records, 2.5 cents per record.
(b) For 100,001 or more records, 0.5 cents per record.
(2) The revenue received under subsection (1) must be
deposited in the revenue account or fund that is associated with
the applicable unclaimed property.
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(3) Not later than June 1, the department of treasury shall
submit a report to the standard report recipients and the senate
and house of representatives standing committees on appropriations
that states the amount of revenue received from the sale of the
information under this section.
Sec. 917. (1) There is appropriated for write-offs and
advances an amount equal to total write-offs and advances for
departmental programs. The amount appropriated under this
subsection must not exceed current year authorizations that would
otherwise lapse to the general fund.
(2) Not later than November 30, the department of treasury
shall submit a report to the standard report recipients. The report
must include all of the following information for the immediately
preceding fiscal year:
(a) The amounts appropriated for write-offs and advances under
subsection (1).
(b) An explanation for each write-off or advance under
subsection (1).
Sec. 919. (1) From funds appropriated in part 1, the
department of treasury may contract with private auditing firms to
audit for and collect unclaimed property due this state in
accordance with the uniform unclaimed property act, 1995 PA 29, MCL
567.221 to 567.265. In addition to the amounts appropriated in part
1 to the department of treasury, there are appropriated amounts
necessary to fund auditing and collection costs and fees not to
exceed 12% of the collections or a lesser amount as prescribed by
the applicable contract. The appropriation to fund collection costs
and fees for the auditing and collection of unclaimed property due
this state is from the fund or account to which the revenues being
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collected are recorded or dedicated.
(2) Not later than November 30, the department of treasury
shall submit a report to the standard report recipients and the
senate and house of representatives standing committees on
appropriations. The report must include all of the following
information for the immediately preceding fiscal year:
(a) The name of each auditing firm that the department of
treasury contracted with under subsection (1).
(b) The amount collected by each of the auditing firms.
(c) The costs of collection.
(d) Any other information that is pertinent to determining
whether the authority under subsection (1) should be continued.
Sec. 920. Not later than June 30, from the funds appropriated
in part 1, the department of treasury shall do both of the
following:
(a) Produce a list of all personal property tax reimbursement
payments to be distributed in the current fiscal year by the local
community stabilization authority.
(b) Post the list produced under subdivision (a) on the
department of treasury's public website.
Sec. 921. From the funds appropriated in part 1, the
department of treasury shall, for each revenue administrative
bulletin, administrative rule that involves tax administration or
collection, and notice interpreting a change in law, submit a
notification to every member of the legislature. The department of
treasury shall submit the notification not later than 3 days after
the department of treasury posts the notification. Each
notification must include all of the following:
(a) A summary of the proposed changes from current procedures.
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(b) Identification of industries that will or might be
affected by the bulletin, rule, or notice.
(c) A statement of the potential fiscal implications of the
bulletin, rule, or notice. This subdivision does not apply to a
bulletin, rule, or notice that is a routine update of a tax or
interest rate required by statute.
(d) A summary of the reason for the proposed change.
Sec. 924. (1) In addition to the funds appropriated in part 1,
the department of treasury may receive and expend principal
residence audit fund revenue for administration of principal
residence audits under the general property tax act, 1893 PA 206,
MCL 211.1 to 211.155.
(2) Not later than December 31, the department of treasury
shall submit a report to the standard report recipients that
includes the amount of exemptions denied and the revenue received
under the program described in subsection (1) for the immediately
preceding fiscal year.
Sec. 927. The department of treasury shall submit a progress
report regarding essential service assessment audits to the
standard report recipients. The report must include all of the
following:
(a) The number of audits.
(b) The revenue generated from the audits.
(c) The number of complaints received by the department of
treasury related to the audits.
Sec. 928. The department of treasury may provide receipt,
check and cash processing, data, collection, investment, fiscal
agent, levy and check cost assessment, writ of garnishment, and
other user services on a contractual basis for other principal
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executive departments and state agencies. Funds for the services
provided are appropriated and must be expended for salaries, wages,
fees, supplies, and equipment necessary to provide the services.
Money in the fund that is unobligated at the end of the fiscal year
lapses to the general fund.
Sec. 930. (1) The department of treasury shall provide
accounts receivable collections services to other principal
executive departments and state agencies in accordance with 1927 PA
375, MCL 14.131 to 14.134, or to a city with which the department
of treasury has contracted to provide tax administration services.
The department of treasury shall deduct a fee equal to the cost of
collections from all receipts except for unrestricted general fund
collections. Fees must be credited to a restricted revenue account
and are appropriated to the department of treasury to pay for the
cost of collections. If the department of treasury deducts fees
under this subsection that total an amount that is greater than the
actual cost of the collections, the department of treasury shall
periodically repay the surplus to the respective account. The
department of treasury shall maintain accounting records in
sufficient detail to enable repayment under this subsection.
(2) Not later than November 30, the department of treasury
shall submit a report to the standard report recipients that
includes the following information regarding subsection (1) for the
immediately preceding fiscal year:
(a) The principal executive departments and state agencies
served.
(b) The funds collected.
(c) The costs of collection.
Sec. 931. (1) Except as otherwise provided in this subsection,
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the appropriation in part 1 to the department of treasury for
treasury fees must be assessed against all restricted funds that
receive common cash earnings or other investment income. This
subsection does not apply to federal or state restricted funds that
are temporary in nature or otherwise do not qualify to be assessed
treasury fees. The fee assessed against each restricted fund must
be based on the size of the restricted fund, calculated as the
absolute value of the average daily cash balance plus the market
value of investments in the immediately preceding fiscal year, and
the level of resources necessary to maintain the restricted fund as
required by each department. Not later than November 30, the
department of treasury shall submit a report to the standard report
recipients that identifies the fees assessed against each
restricted fund and the methodology used for the assessment.
(2) In addition to the funds appropriated in part 1, the
department of treasury may receive and expend investment fees that
are related to new restricted funding sources that participate in
common cash earnings or other investment income during the current
fiscal year.
(3) As used in this section, "treasury fees" includes all
costs, including administrative overhead, that are related to the
investment of a restricted fund.
Sec. 932. The board of directors of the Michigan education
trust may expend revenue received under the Michigan education
trust act, 1986 PA 316, MCL 390.1421 to 390.1442, for necessary
salaries, wages, supplies, contractual services, equipment,
worker's compensation insurance premiums, and grants to the civil
service commission retirement fund and the state employees'
retirement fund.
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Sec. 934. (1) The department of treasury may expend revenues
received under the hospital finance authority act, 1969 PA 38, MCL
331.31 to 331.84, the shared credit rating act, 1985 PA 227, MCL
141.1051 to 141.1076, the higher education facilities authority
act, 1969 PA 295, MCL 390.921 to 390.934, the Michigan public
educational facilities authority, Executive Reorganization Order
No. 2002-3, MCL 12.192, the Michigan tobacco settlement finance
authority act, 2005 PA 226, MCL 129.261 to 129.279, the land bank
fast track act, 2003 PA 258, MCL 124.751 to 124.774, part 505 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.50501 to 324.50522, the state housing development
authority act of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c, and
the MFA, Executive Reorganization Order No. 2010-2, MCL 12.194, for
necessary salaries, wages, supplies, contractual services,
equipment, worker's compensation insurance premiums, grants to the
civil service commission retirement fund and the state employees'
retirement fund, and other expenses as allowed under those acts or
executive reorganization orders.
(2) Not later than January 31, the department of treasury
shall submit a report to the standard report recipients that
includes both of the following for the immediately preceding fiscal
year:
(a) The amount and purpose of expenditures of $250,000.00 or
more that are made under subsection (1) from funds received by the
department of treasury that are in addition to those appropriated
in part 1.
(b) A list of reimbursement of revenue, if any.
Sec. 935. The position of student loan ombudsman is created in
the department of treasury's advocacy services team. The student
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loan ombudsman serves as an advocate for borrowers and shall work
with the financial resource navigator within the department of
lifelong education, advancement, and potential to provide technical
assistance to individuals taking out or paying off student loans.
Sec. 936. Revenue collected in the state forensic laboratory
fund is appropriated and shall be distributed in accordance with
section 7 of the forensic laboratory funding act, 1994 PA 35, MCL
12.207.
Sec. 937. As a condition of receiving funds in part 1, not
later than March 31, the department of treasury shall submit a
report to the standard report recipients and the senate and house
standing committees on appropriations regarding the department of
treasury's collection efforts for delinquent accounts. The report
must include all of the following:
(a) Information regarding the effectiveness of the department
of treasury's current collection strategies, including the use of
vendors or contractors.
(b) The amount of delinquent accounts.
(c) The liquidation rates for declining delinquent accounts.
(d) The profile of uncollected delinquent accounts, including
specific uncollected amounts by category.
(e) The department of treasury's strategy to manage delinquent
accounts when those accounts exceed the collectible period.
(f) A summary of the strategies used in other states,
including, but not limited to, secondary placement services, and
assessing the benefits of those strategies.
Sec. 938. Revenue collected in the qualified heavy equipment
rental personal property exemption reimbursement fund is
appropriated and must be distributed in accordance with section 9
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of the qualified heavy equipment rental personal property specific
tax act, 2022 PA 35, MCL 211.1129.
Sec. 939. Revenue deposited in the local government
reimbursement fund is appropriated and must be distributed in
accordance with section 3a of the Michigan trust fund act, 2000 PA
489, MCL 12.253a.
Sec. 940. (1) The election administration support fund is
created in the state treasury.
(2) Any unexpended funds in the election administration
support fund must be carried forward and are available for
expenditure under this section.
(3) Funds may be spent from the election administration
support fund only on appropriation, or legislative transfer
pursuant to section 393(2) of the management and budget act, 1984
PA 431, MCL 18.1393.
(4) The state treasurer may receive money or other assets from
any source for deposit in the election administration support fund.
The state treasurer shall direct the investment of the election
administration support fund. The state treasurer shall credit to
the election administration support fund interest and earnings from
the election administration support fund.
(5) Funds in the election administration support fund at the
close of the fiscal year remain in the election administration
support fund and do not lapse to the general fund.
(6) Funds appropriated in part 1 for election administration
support fund must be deposited in the election administration
support fund.
Sec. 941. (1) Not later than November 1, from the funds
appropriated in part 1, the department of treasury, in conjunction
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with the MSF, shall submit a report to the standard report
recipients and the senate and house of representatives standing
committees on appropriations on the annual cost of the MEGA tax
credits. The report must include, for each year from 1995 to the
expiration of the MEGA tax credit program, the board-approved
credit amount, adjusted for credit amendments if applicable, and
the actual and projected value of tax credits. For years for which
credit claims are complete, the report must include the total of
actual certificated credit amounts. For years for which claims are
still pending or not yet submitted, the report must include a
combination of actual credits if available and projected credits.
Credit projections must be based on updated estimates of employees,
wages, and benefits for eligible companies.
(2) In addition to the report under subsection (1), not later
than November 1, the department of treasury, in conjunction with
the MSF, shall submit a report to the standard report recipients
and the senate and house of representatives standing committees on
appropriations on the annual cost of all other certificated credits
by program for each year until the credits expire or can no longer
be collected. The report must include estimates on the brownfield
redevelopment credit, film credits, MEGA photovoltaic technology
credit, MEGA polycrystalline silicon manufacturing credit, MEGA
vehicle battery credit, and other certificated credits.
Sec. 944. From the funds appropriated in part 1, if the
department of treasury hires a pension plan consultant using any of
the funds appropriated in part 1, the department of treasury shall
do all of the following:
(a) Retain each report provided to the department of treasury
by that consultant.
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(b) Notify the standard report recipients that the department
of treasury has hired a pension plan consultant, including the
reason why the department of treasury hired the pension plan
consultant.
(c) Make a report described in subdivision (a) available to a
standard report recipient if requested by the standard report
recipient.
Sec. 945. From the funds appropriated in part 1, audits of
local unit assessment administration practices, procedures, and
records must be conducted in each assessment jurisdiction a minimum
of 1 time every 5 years and in accordance with section 10g of the
general property tax act, 1893 PA 206, MCL 211.10g.
Sec. 946. Revenue collected in the convention facility
development fund is appropriated and must be distributed in
accordance with sections 8, 9, and 10 of the state convention
facility development act, 1985 PA 106, MCL 207.628, 207.629, and
207.630.
Sec. 947. It is the intent of the legislature that financial
independence teams cooperate with the financial responsibility
section to coordinate and streamline efforts in identifying and
addressing fiscal emergencies in school districts and intermediate
school districts.
Sec. 948. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $22,584,500.00. From this amount, total
department of treasury appropriations for pension-related legacy
costs are estimated at $22,584,500.00. Total department of treasury
appropriations for retiree health care legacy costs are estimated
at $0.00.
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Sec. 949. (1) From the funds appropriated in part 1, the
department of treasury may contract with private agencies to
prevent the disbursement of fraudulent tax refunds. In addition to
the amounts appropriated in part 1 to the department of treasury,
there are appropriated amounts necessary to pay the costs of the
contracts or to fund operations designed to reduce fraudulent
income tax refund payments. The additional amount appropriated
under this subsection must not be greater than $2,000,000.00. The
appropriation to fund fraud prevention efforts under this
subsection is from the fund or account to which the revenues being
collected are recorded or dedicated.
(2) Not later than November 30, the department of treasury
shall submit a report to the standard report recipients and the
senate and house of representatives standing committees on
appropriations. The report must include all of the following for
the immediately preceding fiscal year:
(a) The number of refund claims denied because of the fraud
prevention operations.
(b) The amount of refunds denied.
(c) The costs of the fraud prevention operations.
(d) Any other information that is pertinent to determining
whether the authority under subsection (1) should be continued.
Sec. 949a. From the funds appropriated in part 1 for city
income tax administration program, the department of treasury may
expand its individual income tax administration for any additional
cities that enter into service-level agreements with the department
of treasury for this purpose. In addition to the funds appropriated
in part 1, any additional local funds received as part of the
service-level agreements are appropriated to the department for
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staffing and administration of the program.
Sec. 949b. Tax capture revenues collected in accordance with
written agreements under the good jobs for Michigan program and
transferred from the general fund for deposit into the good jobs
for Michigan fund, including tax capture revenues collected for
calculated payments from the good jobs for Michigan fund to
authorized businesses and distributions to the MSF for
administrative expenses, are appropriated in accordance with
chapter 8D of the Michigan strategic fund act, 1984 PA 270, MCL
125.2090g to 125.2090j.
Sec. 949c. From the funds appropriated in part 1, funds must
be expended in coordination with the department of agriculture and
rural development to improve the timely processing and issuance of
tax credits from the Michigan's farmland and open space
preservation program created under section 36109 of the natural
resources and environmental protection act, 1994 PA 451, MCL
324.36109, for the Michigan's farmland and open space preservation
program under parts 361 and 362 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.36101 to
324.36116 and 324.36201 to 324.36207.
Sec. 949d. (1) From the funds appropriated in part 1 for
financial review commission, the department of treasury shall
continue financial review commission efforts under the Michigan
financial review commission act, 2014 PA 181, MCL 141.1631 to
141.1643, in the current fiscal year. The purpose of the funding is
to cover ongoing costs associated with the operation of the
commission.
(2) The department of treasury shall identify specific
outcomes and performance measures for this initiative, including,
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but not limited to, the department of treasury's ability to perform
a critical fiscal review to ensure the city of Detroit does not
reenter distress following its exit from bankruptcy and to ensure
that the community district does not enter distress and maintains a
balanced budget.
(3) Not later than March 15, the department of treasury shall
submit a report to the standard report recipients that includes
both of the following:
(a) A description of the specific outcomes and measures
required in subsection (1).
(b) The results and data related to these outcomes and
measures.
Sec. 949e. From the funds appropriated in part 1 for the state
essential services assessment program, the department of treasury
shall administer the state essential services assessment program.
The purpose of the program is to provide a phased-in replacement of
locally collected personal property taxes on eligible manufacturing
personal property. The program must provide the department of
treasury with the ability to collect the state essential services
assessment.
Sec. 949f. Revenue from the tobacco products tax act, 1993 PA
327, MCL 205.421 to 205.436, related to counties with a population
of more than 2,000,000 according to the 2000 federal decennial
census is appropriated and must be distributed in accordance with
section 12(2)(e) of the tobacco products tax act, 1993 PA 327, MCL
205.432.
Sec. 949h. Revenue from part 6 of the medical marihuana
facilities licensing act, 2016 PA 281, MCL 333.27601 to 333.27605,
is appropriated and must be distributed in accordance with part 6
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of the medical marihuana facilities licensing act, 2016 PA 281, MCL
333.27601 to 333.27605.
Sec. 949i. Revenue from the Michigan Regulation and Taxation
of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967, is
appropriated and must be distributed in accordance with the
Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL
333.27951 to 333.27967.
Sec. 949j. All funds in the wrongful imprisonment compensation
fund created in the wrongful imprisonment compensation act, 2016 PA
343, MCL 691.1751 to 691.1757, are appropriated and available for
expenditure. Expenditures are limited to support wrongful
imprisonment compensation payments under section 6 of the wrongful
imprisonment compensation act, 2016 PA 343, MCL 691.1756.
Sec. 949k. There is appropriated an amount equal to the tax
captured revenues due under approved transformational brownfield
plans created under the brownfield redevelopment financing act,
1996 PA 381, MCL 125.2651 to 125.2670.
Sec. 949m. (1) From the funds appropriated in part 1, the
Michigan infrastructure council shall plan, conduct, and contract
for asset management improvement activities, including, but not
limited to, all of the following:
(a) Infrastructure data collection activities.
(b) Asset manager training.
(c) Development of a 30-year asset management plan for this
state.
(d) Assistance in asset management improvement projects,
including maintaining an asset management portal.
(e) Any other projects that promote improved asset management
for infrastructure in this state.
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(2) As used in this section, "Michigan infrastructure council"
means the Michigan infrastructure council created in section 3 of
the Michigan infrastructure council act, 2018 PA 323, MCL 21.603.
Sec. 949n. In addition to the funds appropriated in part 1,
the money in the fostering futures scholarship trust fund,
including any money received as gifts or donations to the fostering
futures scholarship trust fund, is appropriated and the department
of treasury may issue payments in compliance with the fostering
futures scholarship trust fund act, 2008 PA 525, MCL 722.1021 to
722.1031.

REVENUE SHARING
Sec. 950. The department of treasury shall distribute the
funds appropriated in part 1 for constitutional revenue sharing to
cities, villages, and townships, as required under section 10 of
article IX of the state constitution of 1963. Revenue collected in
accordance with section 10 of article IX of the state constitution
of 1963 in excess of the amount appropriated in part 1 for
constitutional revenue sharing is appropriated for distribution to
cities, villages, and townships, on a population basis as required
under section 10 of article IX of the state constitution of 1963.
Sec. 952. (1) The funds appropriated in part 1 for city,
village, and township revenue sharing are for grants to cities,
villages, and townships and must be distributed as provided in this
section.
(2) From the first $299,126,400.00 appropriated in part 1 for
city, village, and township revenue sharing, each city, village, or
township shall receive an amount equal to 100.0% of the revenue
sharing payment for which the city, village, or township received
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under section 952(2) of article 5 of 2025 PA 22 rounded to the
nearest dollar.
(3) The remaining amount appropriated in part 1 for city,
village, and township revenue sharing after the distributions under
subsection (2) must be distributed as follows:
(a) 1/3 shall be distributed as taxable value payments as
provided under subsection (4).
(b) 1/3 must be distributed as unit type population payments
as provided under subsection (5).
(c) 1/3 must be distributed as yield equalization payments as
provided under subsection (6).
(4) A taxable value payment must be made to each city,
village, and township, determined as follows:
(a) Determine the per capita taxable value for each city,
village, and township by dividing the taxable value of that city,
village, or township by the population of that city, village, or
township.
(b) Determine the statewide per capita taxable value by
dividing the total taxable value of all cities, villages, and
townships by the total population of all cities, villages, and
townships.
(c) Determine the per capita taxable value ratio for each
city, village, and township by dividing the statewide per capita
taxable value by the per capita taxable value for that city,
village, or township.
(d) Determine the adjusted taxable value population for each
city, village, and township by multiplying the per capita taxable
value ratio as determined under subdivision (c) for that city,
village, or township by the population of that city, village, or
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township.
(e) Determine the total statewide adjusted taxable value
population, which is the sum of all adjusted taxable value
population for all cities, villages, and townships.
(f) Determine the taxable value payment rate by dividing the
amount to be distributed under this subsection by the total
statewide adjusted taxable value population as determined under
subdivision (e).
(g) Determine the taxable value payment for each city,
village, and township by multiplying the result under subdivision
(f) by the adjusted taxable value population for that city,
village, or township.
(5) A unit type population payment must be made to each city,
village, and township, determined as follows:
(a) Determine the unit type population weight factor for each
city, village, and township as follows:
(i) For a township with a population of 5,000 or less, 1.0.
(ii) For a township with a population of more than 5,000 but
less than 10,001, 1.2.
(iii) Except as otherwise provided in subparagraph (xix), for a
township with a population of more than 10,000 but less than
20,001, 1.44.
(iv) For a township with a population of more than 20,000 but
less than 40,001, 4.32.
(v) For a township with a population of more than 40,000 but
less than 80,001, 5.18.
(vi) For a township with a population of more than 80,000,
6.22.
(vii) For a village with a population of 5,000 or less, 1.5.
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(viii) For a village with a population of more than 5,000 but
less than 10,001, 1.8.
(ix) For a village with a population of more than 10,000, 2.16.
(x) For a city with a population of 5,000 or less, 2.5.
(xi) For a city with a population of more than 5,000 but less
than 10,001, 3.0.
(xii) For a city with a population of more than 10,000 but less
than 20,001, 3.6.
(xiii) For a city with a population of more than 20,000 but less
than 40,001, 4.32.
(xiv) For a city with a population of more than 40,000 but less
than 80,001, 5.18.
(xv) For a city with a population of more than 80,000 but less
than 160,001, 6.22.
(xvi) For a city with a population of more than 160,000 but
less than 320,001, 7.46.
(xvii) For a city with a population of more than 320,000 but
less than 640,001, 8.96.
(xviii) For a city with a population of more than 640,000,
10.75.
(xix) For a township that has a population of not less than
10,000 and certifies to the department of treasury that the
township provides for or makes available all of the following, the
township must receive the unit type population weight factor for a
city with the same population:
(A) Fire services.
(B) Police services on a 24-hour basis either through
contracting for or directly employing personnel.
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(C) Water services to 50% or more of its residents.
(D) Sewer services to 50% or more of its residents.
(b) Determine the adjusted unit type population for each city,
village, and township by multiplying the unit type population
weight factor for that city, village, or township as determined
under subdivision (a) by the population of the city, village, or
township.
(c) Determine the total statewide adjusted unit type
population, which is the sum of the adjusted unit type population
for all cities, villages, and townships.
(d) Determine the unit type population payment rate by
dividing the amount to be distributed under this subsection by the
total statewide adjusted unit type population as determined under
subdivision (c).
(e) Determine the unit type population payment for each city,
village, and township by multiplying the result under subdivision
(d) by the adjusted unit type population for that city, village, or
township.
(6) A yield equalization payment must be made to each city,
village, and township in an amount that is sufficient to provide
the guaranteed tax base for a local tax effort, but not to exceed
0.02. The payment must be determined as follows:
(a) The guaranteed tax base is the maximum combined state and
local per capita taxable value that can be guaranteed in a state
fiscal year to each city, village, and township for a local tax
effort, not to exceed 0.02, if an amount equal to the amount
described in subsection (3)(c) is distributed to cities, villages,
and townships whose per capita taxable value is below the
guaranteed tax base.
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(b) The full yield equalization payment to each city, village,
and township is the product of the amounts determined under
subparagraphs (i) and (ii):
(i) An amount greater than zero that is equal to the difference
between the guaranteed tax base determined in subdivision (a) and
the per capita taxable value of the city, village, or township.
(ii) The local tax effort of the city, village, or township,
not to exceed 0.02, multiplied by the population of that city,
village, or township.
(7) For purposes of this section, any city, village, or
township that completely merges with another city, village, or
township must be treated as a single entity, so that when
determining the eligible city, village, and township revenue
sharing payment under section 952(2) of article 5 of 2025 PA 22 for
the combined single entity, the city, village, and township revenue
sharing amount that each of the merging local units of government
was eligible to receive under section 952(2) of article 5 of 2025
PA 22 is summed.
Sec. 954. (1) Cities, villages, and townships receiving a
payment under section 952(2) and counties receiving a payment under
section 955(2) shall receive 1/6 of their total payment on the last
business day of October, December, February, April, June, and
August. On the last business day of February 2027, cities,
villages, and townships receiving a payment under section 952(3)
and counties receiving a payment under section 955(3) shall receive
50% of the estimated payment to be received under section 952(3) or
955(3), as applicable. On the last business day of June 2027,
cities, villages, and townships receiving a payment under section
952(3) and counties receiving a payment under 955(3) shall receive
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any remaining payment calculated under section 952(3) or 955(3), as
applicable.
(2) Payments distributed under section 952 or section 955 may
be withheld in accordance with sections 17a and 21 of the Glenn
Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.917a
and 141.921.
(3) If a city, village, or township that receives a payment
under section 952 is determined to have a retirement pension
benefit system in underfunded status under section 5 of the
protecting local government retirement and benefits act, 2017 PA
202, MCL 38.2805, the city, village, or township must allocate to
its pension unfunded liability an amount equal to 50% of the
difference between its current year payment under section 952 and
the amount the city, village or township would have been eligible
to receive under section 952 of article 5 of 2025 PA 22, rounded to
the nearest dollar. A city, village, or township that has issued a
municipal security under section 518 of the revised municipal
finance act, 2001 PA 34, MCL 141.2518, is exempt from this
requirement.
(4) If a county that receives a payment under section 955 is
determined to have a retirement pension benefit system in
underfunded status under section 5 of the protecting local
government retirement and benefits act, 2017 PA 202, MCL 38.2805,
the county must allocate to its pension unfunded liability an
amount equal to 50% of the difference between its current year
payment under section 955 and the amount the county would have been
eligible to receive under section 955 of article 5 of 2025 PA 22,
rounded to the nearest dollar. A county that has issued a municipal
security under section 518 of the revised municipal finance act,
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2001 PA 34, MCL 141.2518, is exempt from this requirement.
Sec. 955. (1) The funds appropriated in part 1 for county
revenue sharing are for grants to counties and must be distributed
as provided in this section.
(2) From the first $261,069,700.00 appropriated in part 1,
each county shall receive an amount equal to 100.0% of the revenue
sharing payment for which the county received under section 955 of
article 5 of 2025 PA 22, rounded to the nearest dollar.
(3) From the remaining amount appropriated in part 1 for
county revenue sharing after the distributions under subsection
(2), a taxable value payment must be made to each county,
determined as follows:
(a) Determine the per capita taxable value for each county by
dividing the taxable value of that county by the population of that
county.
(b) Determine the statewide per capita taxable value by
dividing the total taxable value of all counties by the total
population of all counties.
(c) Determine the per capita taxable value ratio for each
county by dividing the statewide per capita taxable value by the
per capita taxable value for that county.
(d) Determine the adjusted taxable value population for each
county by multiplying the per capita taxable value ratio as
determined under subdivision (c) for that county by the population
of that county.
(e) Determine the total statewide adjusted taxable value
population, which is the sum of the adjusted taxable value
population for all counties.
(f) Determine the taxable value payment rate by dividing the
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amount to be distributed under this subsection by the total
statewide adjusted taxable value population as determined under
subdivision (e).
(g) Determine the taxable value payment for each county by
multiplying the result under subdivision (f) by the adjusted
taxable value population for that county.
Sec. 956. (1) From the funds appropriated in part 1 for
financially distressed cities, villages, or townships, the
department of treasury shall create and operate a grant program to
award grants to cities, villages, and townships that have 1 or more
conditions that indicate probable financial distress, as determined
by the department of treasury. A city, village, or township with 1
or more conditions that indicate probable financial distress may
apply in a manner determined by the department of treasury for a
grant to pay for specific projects or services that move the city,
village, or township toward financial stability. Grants must be
used for specific projects or services that move the city, village,
or township toward financial stability. The city, village, or
township must use the grants under this section to do 1 or more of
the following:
(a) Make payments to reduce unfunded accrued liability.
(b) Repair or replace critical infrastructure and equipment
owned or maintained by the city, village, or township.
(c) Reduce debt obligations.
(d) Pay for costs associated with a transition to shared
services with another jurisdiction.
(e) Administer other projects that move the city, village, or
township toward financial stability.
(2) The department of treasury shall award not more than
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$2,000,000.00 to any city, village, or township under this section.
(3) Not later than March 31, the department of treasury shall
submit a report to the standard report recipients that includes all
of the following for each grant recipient.
(a) The name of the grant recipient.
(b) The date the grant was approved.
(c) The amount of the grant.
(d) A description of the project or projects that will be paid
by the grant.
(4) The unexpended funds appropriated in part 1 for
financially distressed cities, villages, or townships are
designated as a work project appropriation, and any unencumbered or
unallotted funds shall not lapse at the end of the fiscal year and
shall be available for expenditure for projects under this section
until the projects have been completed. The following is in
compliance with section 451a of the management and budget act, 1984
PA 431, MCL 18.1451a:
(a) The purpose of the project is to provide assistance to
financially distressed cities, villages, and townships under this
section.
(b) The projects will be accomplished by grants to cities,
villages, and townships approved by the department of treasury.
(c) The total estimated cost of all projects is $2,500,000.00.
(d) The tentative completion date is September 30, 2029.
Sec. 957. A term that is defined in the Glenn Steil state
revenue sharing act, 1971 PA 140, MCL 141.901 to 141.921, has the
same meaning when used in sections 950 to 956.
Sec. 959. (1) The department of treasury shall distribute
funds appropriated in part 1 for public safety revenue sharing
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grants as provided for in subsection (9) and as follows:
(a) $3,250,000.00 to the MDHHS to establish and administer a
grant program to award funds to community violence intervention
programs.
(b) $42,562,500.00 for a public safety assistance payment to
each city, village, or township. The public safety assistance
payment must be calculated as follows:
(i) Determine the average violent crime count for each city,
village, and township by adding the 2 highest annual violent crime
counts for each city, village, and township from the 3 most
recently available annual crime reports published by the MDSP as of
the first day of the current fiscal year and dividing by 2.
(ii) Determine the statewide total violent crime count by
summing the average violent crime count for each city, village, and
township as determined under subparagraph (i).
(iii) Determine the proportional factor for each city, village,
and township by dividing the average violent crime count for each
city, village, and township as determined under subparagraph (i) by
the statewide total violent crime count determined under
subparagraph (ii).
(iv) Multiply the proportional factor determined in
subparagraph (iii), for each city, village, and township by the total
amount available for distribution under this subdivision, and round
to the nearest dollar.
(2) A public safety assistance payment to a city, village, or
township as determined under subsection (1)(b) is limited to not
more than 25% of the total amount available for distribution under
subsection (1)(b).
(3) All of the following apply to a distribution under
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subsection (1)(b):
(a) A city, village, or township must use the distribution
only for operational and capital expenditures that serve the
purposes of public safety.
(b) Not less than 75% of a public safety assistance payment
distributed under subsection (1)(b) to a city, village, or township
must be used to fund, either directly or indirectly through a
subgrant to another governmental entity, a law enforcement agency
or law enforcement officers as defined in section 2 of the Michigan
commission on law enforcement standards act, 1965 PA 203, MCL
28.602.
(c) Not more than 25% of a public safety assistance payment
distributed under subsection (1)(b) to a city, village, or township
must be used to fund other non-law-enforcement-related public
safety purposes, which include, but are not limited to: public
safety initiatives to improve recruitment or retention efforts;
training programs; equipment purchases; programs designed to reduce
identified risks to public safety; crime diversion programs;
operational emergency medical or firefighter services; or capital
improvements to public safety buildings or structures. All local
public safety initiative expenses must be related to public safety
and designed to reduce identified risks to public safety and cannot
include unproven intervention solutions to community violence.
(d) A distribution made under subsection (1)(b) must not be
used for the following nonoperating expenses:
(i) Pension and other post employee benefit (OPEB) payments.
(ii) Lawsuits and claims payments.
(iii) Debt service payments.
(iv) The acquisition or use of a vehicle weighing more than
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15,000 pounds that is designed or used for a tactical police
purpose.
(v) The acquisition or use of facial recognition technology.
(vi) The acquisition or use of a chemical weapon.
(4) A city, village, or township may subgrant all or part of
the distribution under subsection (1)(b) if the subgrant is used
for the purpose of public safety as described under subsection (3).
(5) Subject to subsections (6), (7), and (8), not later than
November 30, the director of the MDSP shall provide the department
of treasury with a certified list that contains all of the
following:
(a) Base crime level.
(b) Current violent crime counts.
(c) Current violent crime rates, as determined by the director
of the MDSP.
(6) The current violent crime data described in subsection
(5)(b) and (c) mean the calendar year annual violent crime data for
each city, village, and township received and finalized by the MDSP
during the immediately preceding state fiscal year and the 2
immediately preceding calendar years before the immediately
preceding state fiscal year.
(7) Crimes reported by a city, village, township, or reported
by a county on behalf of the city, village, or township, must be
included in the certified list under subsection (5), but crimes
reported by other authorities must be omitted from the certified
list under subsection (5).
(8) The certified list under subsection (5) must contain all
cities, villages, and townships in this state and must report a
zero for cities, villages, and townships that did not submit crime
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data.
(9) $14,187,500.00 must be used for public safety assistance
payments to counties. The payment to each county must be calculated
by dividing the amount to be distributed under this subsection by
the total statewide adjusted taxable value population as determined
under section 955(3)(e) and multiplying the result by the adjusted
taxable value population for that county as determined under
section 955(3)(d). All of the following apply to a distribution
made under this subsection:
(a) A county must use the distribution only for operational
and capital expenditures that serve the purposes of public safety.
(b) Not less than 75% of a public safety assistance payment
distributed to a county under this subsection must be used to fund,
either directly or indirectly through a subgrant to another
governmental entity, a law enforcement agency or law enforcement
officers as defined in section 2 of the Michigan commission on law
enforcement standards act, 1965 PA 203, MCL 28.602.
(c) Not more than 25% of a public safety assistance payment
distributed to a county under this subsection must be used to fund
other non-law-enforcement-related public safety purposes, which
include, but are not limited to: public safety initiatives to
improve recruitment or retention efforts; training programs;
equipment purchases; programs designed to reduce identified risks
to public safety; crime diversion programs; operational emergency
medical or firefighter services; or capital improvements to public
safety buildings or structures. All local public safety initiative
expenses must be related to public safety and designed to reduce
identified risks to public safety and cannot include unproven
intervention solutions to community violence.
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(d) A distribution made under this subsection must not be used
for the following nonoperating expenses:
(i) Pension and other post employee benefit (OPEB) payments.
(ii) Lawsuits and claims payments.
(iii) Debt service payments.
(iv) The acquisition or use of a vehicle weighing more than
15,000 pounds that is designed or used for a tactical police
purpose.
(v) The acquisition or use of facial recognition technology.
(vi) The acquisition or use of a chemical weapon.
(10) A county may subgrant all or part of the distribution
under subsection (9) if the subgrant is used for the purpose of
public safety as described in subsection (9).
(11) As used in subsections (1) to (8):
(a) "Base crime level" means the average of a city, village,
or township's 2 highest annual rates of violent crime, as certified
by the director of the MDSP and determined by the annual crime
reports published by the MDSP in the 3 calendar years immediately
preceding the current calendar year.
(b) "Population" means the counts, as defined by the Federal
Bureau of Investigation and used by the director of the MDSP, to
determine the population for each city, village, and township.
(c) "Violent crime" means that term as defined by the director
of the MDSP in accordance with the department's incident crime
reporting program and the corresponding annual crime reports.
(d) "Violent crime count" means the number of violent crimes
based on victim counts, as certified by the director of the MDSP.
When a victim is connected to multiple offenses, the victim is
counted under the highest-ranked offense, as defined by the
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director of the MDSP.
(e) "Violent crime rate" means the number of crimes per
100,000 people, determined by dividing a particular city, village,
or township violent crime count by the population, then multiplying
by 100,000 and rounding to the nearest whole number.
(12) As used in this section:
(a) "Chemical weapon" means a munition or device that is
specifically designed to cause death or other harm through a toxic
chemical that would be released as a result of the employment of
the munition or device.
(b) "Facial recognition technology" means an automated or a
semiautomated technological process that assists in identifying or
verifying an individual based on the individual's face.
(13) The department of treasury shall submit a report to the
standard report recipients by March 1 that includes the following
information for each grant authorized under this section:
(a) The date the grant was disbursed.
(b) The grant recipient.
(c) The planned use of grant funds, including whether the
grant is to be used as a subgrant.
(14) It is the intent of the legislature that not less than
$50,000,000.00 be appropriated for the purposes outlined in this
section in fiscal years 2026-2027, and 2027-2028.

BUREAU OF STATE LOTTERY
Sec. 960. In addition to the funds appropriated in part 1 to
the bureau of state lottery, there is appropriated from state
lottery fund revenues the amount necessary for, and directly
related to, implementing and operating lottery games under the
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McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL
432.1 to 432.47, and activities under the Traxler-McCauley-Law-
Bowman bingo act, 1972 PA 382, MCL 432.101 to 432.152, including
expenditures for contractually mandated payments for vendor
commissions, contractually mandated payments for instant tickets
intended for resale, the contractual costs of providing and
maintaining the online system communications network, and incentive
and bonus payments to lottery retailers.
Sec. 964. For the bureau of state lottery, there is
appropriated 1% of the lottery's immediately preceding fiscal
year's gross sales for promotion and advertising.

MICHIGAN GAMING CONTROL BOARD
Sec. 970. As used in sections 971 to 979:
(a) "Compulsive gaming prevention fund" means the compulsive
gaming prevention fund created in section 3 of the compulsive
gaming prevention act, 1997 PA 70, MCL 432.253.
(b) "Fantasy contest fund" means the fantasy contest fund
created in section 16 of the fantasy contests consumer protection
act, 2019 PA 157, MCL 432.516.
(c) "First responder presumed coverage fund" means the first
responder presumed coverage fund created in section 405 of the
worker's disability compensation act of 1969, 1969 PA 317, MCL
418.405.
(d) "Internet gaming fund" means the internet gaming fund
created in section 16 of the lawful internet gaming act, 2019 PA
152, MCL 432.316.
(e) "Internet sports betting fund" means the internet sports
betting fund created in section 16 of the lawful sports betting
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act, 2019 PA 149, MCL 432.416.
Sec. 971. (1) From the revenue collected by the Michigan
gaming control board from the total annual assessment of each
casino licensee, funds are appropriated and must be distributed as
described in section 12a(5) of the Michigan Gaming Control and
Revenue Act, 1996 IL 1, MCL 432.212a.
(2) The revenue collected in the internet sports betting fund
is appropriated and must be distributed in accordance with the
lawful sports betting act, 2019 PA 149, MCL 432.401 to 432.419.
(3) The revenue collected in the internet gaming fund is
appropriated and must be distributed in accordance with the lawful
internet gaming act, 2019 PA 152, MCL 432.301 to 432.322, and the
Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.101 to
432.152.
Sec. 972. After all other required expenditures described in
section 16(3) of the fantasy contests consumer protection act, 2019
PA 157, MCL 432.516, section 16(4) of the lawful internet gaming
act, 2019 PA 152, MCL 432.316, and section 16(4) of the lawful
sports betting act, 2019 PA 149, MCL 432.416 are made, any money
remaining in the fantasy contest fund, internet gaming fund, and
internet sports betting fund is appropriated and must be deposited
in the state school aid fund as described in section 16(3)(b) of
the fantasy contests consumer protection act, 2019 PA 157, MCL
432.516, section 16(4) of the lawful internet gaming act, 2019 PA
152, MCL 432.316, and section 16(4) of the lawful sports betting
act, 2019 PA 149, MCL 432.416.
Sec. 973. (1) Funds appropriated in part 1 for local
government programs may be used to provide assistance to a local
revenue sharing board referenced in an agreement authorized by the
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Indian gaming regulatory act, Public Law 100-497.
(2) A local revenue sharing board described in subsection (1)
shall comply with the open meetings act, 1976 PA 267, MCL 15.261 to
15.275, and the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246.
(3) A county treasurer may receive and administer funds on
behalf of a local revenue sharing board. Funds appropriated in part
1 for local government programs may be used to audit local revenue
sharing board funds held by a county treasurer. This section does
not limit the ability of local units of government to enter into
agreements with federally recognized Indian tribes to provide
financial assistance to local units of government or to jointly
provide public services.
(4) A local revenue sharing board described in subsection (1)
shall comply with all applicable provisions of any agreement
authorized by the Indian gaming regulatory act, Public Law 100-497,
in which the local revenue sharing board is referenced, including,
but not limited to, the disbursal of tribal casino payments
received in accordance with applicable provisions of the tribal-
state class III gaming compact under which those funds are
received.
(5) The director of the MDSP and the executive director of the
Michigan gaming control board may assist the local revenue sharing
boards in determining allocations to be made to local public safety
organizations.
(6) Not later than September 30, the Michigan gaming control
board shall submit a report to the standard report recipients and
the senate and house of representatives standing committees on
appropriations on the receipts and distribution of revenues by
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local revenue sharing boards.
Sec. 974. If revenues collected in the state services fee fund
created in section 12a of the Michigan Gaming Control and Revenue
Act, 1996 IL 1, MCL 432.212a, are less than the amounts
appropriated from the state services fee fund, available revenues
must be used to fully fund the appropriation in part 1 for casino
gaming regulation activities before distributions are made to other
state departments and agencies. If the remaining revenue in the
state services fee fund is insufficient to fully fund
appropriations to other state departments or agencies, the
shortfall must be distributed proportionally among those
departments and agencies.
Sec. 975. In expending the funds appropriated in part 1 for
advertising for responsible gaming, the Michigan gaming control
board shall engage with MDHHS on strategies to support addiction
prevention and education efforts in addition to advertising for
responsible gaming. Not later than September 1, the Michigan gaming
control board shall submit a report to the standard report
recipients on the expenditures and programming funded from the
appropriations in part 1 for advertising for responsible gaming.
Sec. 976. The executive director of the Michigan gaming
control board may pay rewards of not more than $5,000.00 to a
person who provides information that results in the arrest and
conviction on a felony or misdemeanor charge for a crime that
involves the horse racing industry. A reward paid under this
section must be paid out of the appropriation in part 1 for the
racing commission.
Sec. 977. All appropriations from the equine industry
development fund created in section 20 of the horse racing law of
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1995, 1995 PA 279, MCL 431.320, except for the racing commission
appropriations, must be reduced proportionately if revenues to the
equine industry development fund decline during the current fiscal
year to a level lower than the amount appropriated in part 1.
Sec. 978. The Michigan gaming control board shall use actual
expenditure data in determining the actual regulatory costs of
conducting racing dates and shall submit a report of that data to
the standard report recipients and the senate and house of
representatives appropriations subcommittees on agriculture. The
Michigan gaming control board may not be reimbursed for more than
the actual regulatory cost of conducting race dates. In determining
actual costs, the Michigan gaming control board shall take into
account that each specific breed of horse may require different
regulatory mechanisms.
Sec. 979. From the funds appropriated in part 1 for
millionaire party regulation, the Michigan gaming control board may
receive and expend internet gaming fund revenue in an amount that
is not more than the amount appropriated in part 1 for necessary
expenses incurred in the licensing and regulation of millionaire
parties under article 2 of the Traxler-McCauley-Law-Bowman bingo
act, 1972 PA 382, MCL 432.132 to 432.152. Any unused internet
gaming fund revenues are subject to the distribution requirements
in section 16 of the lawful internet gaming act, 2019 PA 152, MCL
432.316. Not later than March 1, the Michigan gaming control board
shall submit a report to the standard report recipients that
includes all of the following:
(a) The total expenditures related to the licensing and
regulating of millionaire parties.
(b) The steps taken to ensure charities are receiving revenue
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due to them.
(c) A description of the progress on promulgating rules to
ensure compliance with the Traxler-McCauley-Law-Bowman bingo act,
1972 PA 382, MCL 432.101 to 432.152.
(d) Any enforcement actions taken.

STATE BUILDING AUTHORITY
Sec. 1100. (1) Subject to section 242 of the management and
budget act, 1984 PA 431, MCL 18.1242, and on the approval of the
state building authority, the department of treasury may expend
from the general fund of this state during the fiscal year an
amount necessary to meet the cash flow requirements of those state
building authority projects solely for lease to a state agency
identified in both part 1 and this section, and for which state
building authority bonds or notes have not been issued, and for the
sole acquisition by the state building authority of equipment and
furnishings for lease to a state agency as permitted by 1964 PA
183, MCL 830.411 to 830.425, for which the issuance of bonds or
notes is authorized by an appropriations PA that is effective for
the immediately preceding fiscal year. Any general fund advances
for which state building authority bonds have not been issued must
bear an interest cost to the state building authority at a rate
that is not greater than the rate earned by the state treasurer's
common cash fund during the period in which the advances are
outstanding and are repaid to the general fund of this state.
(2) On sale of bonds or notes for the projects identified in
part 1 or for equipment as authorized by an appropriations PA and
in this section, the state building authority shall credit the
general fund of this state an amount equal to the amount expended
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from the general fund plus interest, if any, as described in this
section.
(3) For state building authority projects for which bonds or
notes have been issued and on the request of the state building
authority, the state treasurer shall make advances without interest
from the general fund as necessary to meet cash flow requirements
for the projects. The state building authority shall reimburse the
state treasurer for the advances when the investments earmarked for
the financing of the projects mature.
(4) If a project identified in part 1 is terminated after
final design is complete, advances made on behalf of the state
building authority for the costs of final design must be repaid to
the general fund in a manner recommended by the director of the
state building authority.
Sec. 1102. (1) The state building authority shall not release
state building authority funding to a university or community
college to finance the construction or renovation of a facility
that collects revenue in excess of money required for the operation
of that facility unless the university or community college agrees
to use that excess revenue to reimburse the state building
authority. The excess revenue received by the state building
authority as reimbursement must be credited to the general fund to
offset rent obligations associated with the retirement of bonds
issued for the applicable facility. The auditor general shall
annually identify and audit the facilities that are subject to this
section. Costs associated with the administration of the audit must
be charged against money received by the state building authority
as reimbursement under this section.
(2) As used in this section, "revenue" includes state
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appropriations, facility opening money, other state aid, indirect
cost reimbursement, and other revenue generated by the activities
of the facility.
Sec. 1103. Not later than October 15, the state building
authority shall submit a report to the standard report recipients
and the JCOS regarding the status of construction projects
associated with state building authority bonds as of the end of the
immediately preceding fiscal year. Not later than 30 days after a
refinancing or restructuring bond issue is sold, the state building
authority shall submit a report to the standard report recipients
and the JCOS regarding the status of construction projects
associated with that bond issue. Each report must include all of
the following:
(a) A list of all completed construction projects for which
state building authority bonds have been sold, and which bonds are
currently active.
(b) A list of all projects under construction for which sale
of state building authority bonds is pending.
(c) A list of all projects authorized for construction or
identified in an appropriations act for which approval of
schematic/preliminary plans or total authorized cost is pending
that have state building authority bonds identified as a source of
financing.

REVENUE STATEMENT
Sec. 1201. In accordance with section 18 of article V of the
state constitution of 1963, fund balances and estimates are
presented in the following statement:
BUDGET RECOMMENDATIONS BY OPERATING FUNDS
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(Amounts in millions)
Fiscal Year 2026-2027
Beginning
Balance
Estimated
Revenue
Ending
Balance
OPERATING FUNDS
General fund/general purpose 319.7 13,310.0 19.9
School aid fund 753.3 21,974.0 2.0
Federal aid 0.0 31,047.2 0.0
Transportation funds 0.0 10,904.4 0.0
Special revenue funds 3,738.5 9,442.3 3,287.0
Other funds 1,817.2 54.2 1,871.4
TOTALS $6,628.7 $86,732.1 $5,180.3

ARTICLE 6A
DEPARTMENT OF HEALTH AND HUMAN SERVICES - HUMAN SERVICES
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of health
and human services for the fiscal year ending September 30, 2027,
from the following funds:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
APPROPRIATION SUMMARY
Full-time equated classified positions 9,855.8
Full-time employees 9,716.0
Limited-term employees 406.0
Noncareer/per diem employees 8.0
Part-time employees 0.0
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Permanent-intermittent employees 39.0
Seasonal employees 5.0
GROSS APPROPRIATION $ 6,644,754,000
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 9,218,100
ADJUSTED GROSS APPROPRIATION $ 6,635,535,900
Federal revenues:
Capped federal revenues 397,990,300
Social security act, temporary assistance for
needy families 466,050,000
Total other federal revenues 4,157,940,100
Special revenue funds:
Total local revenues 62,962,100
Total private revenues 8,997,900
Total other state restricted revenues 121,962,200
State general fund/general purpose $ 1,419,633,300
Sec. 102. CHILD SUPPORT ENFORCEMENT
Full-time equated classified positions 174.7
Child support enforcement operations--FTEs 169.7 $ 28,534,900
Child support incentive payments 24,409,600
Legal support contracts 132,600,300
State disbursement unit--FTEs 5.0 4,638,400
GROSS APPROPRIATION $ 190,183,200
Appropriated from:
Federal revenues:
Capped federal revenues 16,239,100
Total other federal revenues 149,872,300
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State general fund/general purpose $ 24,071,800
Sec. 103. COMMUNITY SERVICES AND OUTREACH
Full-time equated classified positions 45.0
Bureau of community services and outreach--FTEs 20.0 $ 2,900,000
Community services and outreach administration-
-FTEs 13.0 9,265,900
Community services block grant 31,221,600
Diaper assistance grant 718,800
Homeless programs--FTEs 4.0 28,972,400
Housing and support services 13,643,100
Runaway and homeless youth grants 11,837,900
Weatherization assistance 22,633,700
Weatherization assistance IIJA--FTEs 8.0 10,156,400
GROSS APPROPRIATION $ 131,349,800
Appropriated from:
Federal revenues:
Capped federal revenues 72,468,500
Social security act, temporary assistance for
needy families 19,638,500
Total other federal revenues 11,474,400
State general fund/general purpose $ 27,768,400
Sec. 104. CHILDREN'S SERVICES AGENCY - CHILD
WELFARE
Full-time equated classified positions 3,467.2
Adoption subsidies $ 228,000,000
Adoption support services--FTEs 10.0 29,309,200
Attorney general contract 5,191,100
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Child abuse and neglect - children's justice
act--FTE 1.0 549,900
Child care fund 339,928,700
Child care fund - indirect cost allotment 3,500,000
Child protection 1,264,700
Child welfare administration travel 132,600
Child welfare licensing--FTEs 48.0 6,930,900
Child welfare local office staff - noncaseload
compliance--FTEs 353.0 43,144,700
Child welfare medical/psychiatric evaluations 6,207,800
Children trust Michigan--FTEs 5.0 4,125,400
Children's protective services - caseload
staff--FTEs 1,325.1 155,838,900
Children's protective services supervisors--
FTEs 335.1 42,416,200
Children's services administration--FTEs 195.0 28,490,900
Contractual services, supplies, and materials 9,852,000
Court-appointed special advocates 2,250,000
Education planners--FTEs 2.0 45,400
Family preservation and prevention services
administration--FTEs 7.8 1,263,400
Family preservation programs--FTEs 25.3 58,479,600
Foster care payments 375,900,000
Foster care services - caseload staff--FTEs 768.7 90,795,300
Foster care services supervisors--FTEs 183.7 25,240,100
Guardianship assistance program 12,800,000
Interstate compact 68,700
Peer coaches--FTEs 45.5 6,579,600
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Permanency resource managers--FTEs 28.0 3,666,600
Prosecuting attorney contracts 7,285,200
Second line supervisors and technical staff--
FTEs 126.0 20,609,200
Settlement monitor 1,660,200
Strong families/safe children 10,082,000
Title IV-E compliance and accountability
office--FTEs 4.0 477,200
Youth in transition--FTEs 4.0 7,650,600
GROSS APPROPRIATION $ 1,529,736,100
Appropriated from:
Interdepartmental grant revenues:
IDG from department of lifelong education,
advancement, and potential 244,400
Federal revenues:
Capped federal revenues 97,313,500
Social security act, temporary assistance for
needy families 265,938,900
Total other federal revenues 251,600,300
Special revenue funds:
Local funds - county chargeback 48,503,000
Private - collections 1,500,000
Children's trust fund 1,845,300
Total other state restricted revenues 3,600,000
State general fund/general purpose $ 859,190,700
Sec. 105. CHILDREN'S SERVICES AGENCY - JUVENILE
JUSTICE
Full-time equated classified positions 125.8
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Bay Pines Center--FTEs 49.2 $ 7,136,100
Committee on juvenile justice administration--
FTEs 2.5 219,100
Committee on juvenile justice grants 921,600
Community support services--FTEs 2.0 983,100
County juvenile officers 3,904,300
Juvenile justice, administration and
maintenance--FTEs 18.2 7,551,900
Juvenile justice treatment centers--FTEs 53.9 16,260,600
GROSS APPROPRIATION $ 36,976,700
Appropriated from:
Federal revenues:
Capped federal revenues 5,563,300
Total other federal revenues 10,000
Special revenue funds:
Local funds - county chargeback 10,484,300
Local funds - state share education funds 1,527,500
State general fund/general purpose $ 19,391,600
Sec. 106. PUBLIC ASSISTANCE
Full-time equated classified positions 1.0
Emergency services local office allocations $ 7,553,900
Family independence program 82,485,000
Family independence program - clothing
allowance 10,000,000
Family independence program - child
supplemental payment 23,240,100
Food stamps program benefits 3,446,187,200
Indigent burial 2,157,100
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Low-income home energy assistance program 149,077,400
Michigan agricultural surplus system 12,045,000
Michigan energy assistance program--FTE 1.0 100,000,000
Refugee assistance program 3,950,300
State disability assistance payments 4,543,800
State supplementation 58,085,000
GROSS APPROPRIATION $ 3,899,324,800
Appropriated from:
Federal revenues:
Capped federal revenues 153,027,700
Social security act, temporary assistance for
needy families 91,668,200
Total other federal revenues 3,441,477,200
Special revenue funds:
Child support collections 9,908,100
Low-income energy assistance fund 100,000,000
Public assistance recoupment revenue 4,811,300
Supplemental security income recoveries 1,797,500
State general fund/general purpose $ 96,634,800
Sec. 107. LOCAL OFFICE OPERATIONS AND SUPPORT
SERVICES
Full-time equated classified positions 5,559.0
Administrative support workers--FTEs 64.1 $ 5,722,800
Adult services local office staff--FTEs 519.4 65,274,200
Contractual services, supplies, and materials 33,567,000
Departmentwide employee economic adjustments 27,246,300
Donated funds positions--FTEs 159.0 19,939,700
Elder Law of Michigan MiCAFE contract 247,500
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Electronic benefit transfer (EBT) 6,143,700
Employment and training support services 3,869,100
Food stamps reinvestment--FTEs 13.0 2,172,400
Local office policy and administration--FTEs 122.0 21,146,100
Local office staff travel 8,327,400
Medical/psychiatric evaluations 180,500
Public assistance local office staff--FTEs 4,681.5 559,105,200
SSI advocacy legal services grant 975,000
GROSS APPROPRIATION $ 753,916,900
Appropriated from:
Interdepartmental grant revenues:
IDG from department of corrections 120,200
IDG from department of lifelong education,
advancement, and potential 8,223,000
IDG from department of technology, management,
and budget - office of retirement services 11,200
Federal revenues:
Capped federal revenues 53,378,200
Social security act, temporary assistance for
needy families 88,804,400
Total other federal revenues 202,918,800
Special revenue funds:
Local funds - county chargeback 9,000
Local funds - donated funds 2,438,300
Private funds - donated funds 7,247,900
Private revenues 250,000
State general fund/general purpose $ 390,515,900
Sec. 108. DISABILITY DETERMINATION SERVICES
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Full-time equated classified positions 483.1
Disability determination operations--FTEs 480.0 $ 102,790,800
Retirement disability determination--FTEs 3.1 475,700
GROSS APPROPRIATION $ 103,266,500
Appropriated from:
Interdepartmental grant revenues:
IDG from department of technology, management,
and budget - office of retirement services 619,300
Federal revenues:
Total other federal revenues 100,587,100
State general fund/general purpose $ 2,060,100

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the current fiscal year, total
state spending under part 1 from state sources is $1,541,595,500.00
and state spending under part 1 from state sources to be paid to
local units of government is $228,677,600.00. The following
itemized statement identifies appropriations from which spending to
local units of government will occur:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
CHILD SUPPORT ENFORCEMENT
Child support incentive payments $ 9,754,900
Legal support contracts 1,400
COMMUNITY SERVICES AND OUTREACH
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Community services and outreach administration 1,000
Homeless programs 11,800
Housing and support services 138,500
CHILDREN'S SERVICES AGENCY – CHILD WELFARE
Child care fund 208,675,600
Child care fund - indirect cost allotment 3,500,000
Child welfare licensing 26,500
Child welfare medical/psychiatric evaluations 18,100
Children trust Michigan 35,100
Contractual services, supplies, and materials 50,700
Family preservation programs 100
Foster care payments 2,122,400
Prosecuting attorney contracts 1,235,600
Strong families/safe children 36,300
Youth in transition 800
CHILDREN'S SERVICES AGENCY – JUVENILE JUSTICE
Bay Pines Center 40,700
Community support services 124,100
County juvenile officers 67,900
PUBLIC ASSISTANCE
Emergency services local office allocations 2,045,000
Indigent burial 2,800
Michigan energy assistance program 439,300
State disability assistance payments 256,300
LOCAL OFFICE OPERATIONS AND SUPPORT SERVICES
Contractual services, supplies, and materials 84,000
Employment and training support services 5,400
DISABILITY DETERMINATION SERVICES
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Disability determination operations 3,300
TOTAL OF PAYMENTS TO LOCAL UNITS OF GOVERNMENT $ 228,677,600
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "AIDS" means acquired immunodeficiency syndrome.
(b) "CCBHC" means certified community behavioral health
clinic.
(c) "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.
(d) "CMS" means the Centers for Medicare and Medicaid
Services.
(e) "CPT" means current procedural terminology.
(f) "Current fiscal year" means the fiscal year ending
September 30, 2027.
(g) "Department" means the department of health and human
services.
(h) "Director" means the director of the department.
(i) "EPSDT" means early and periodic screening, diagnosis, and
treatment.
(j) "Federal poverty level" means the poverty guidelines
revised periodically and published in the Federal Register by the
Secretary of the United States Department of Health and Human
Services under the Secretary's authority to revise the poverty line
under 42 USC 9902.
(k) "FQHC" means federally qualified health center.
(l) "FTE" means full-time equated.
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(m) "GME" means graduate medical education.
(n) "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.
(o) "HEDIS" means health care effectiveness data and
information set.
(p) "HMO" means health maintenance organization.
(q) "IDEA" means the individuals with disabilities education
act, 20 USC 1400 to 1482.
(r) "IDG" means interdepartmental grant.
(s) "MCH" means maternal and child health.
(t) "Medicaid" means benefits under the medical assistance
program established under title XIX of the social security act, 42
USC 1396 to 1396w-8, and administered by the department under the
social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.
(u) "Medicare" means benefits under the federal Medicare
program established under title XVIII of the social security act,
42 USC 1395 to 1395mmm.
(v) "MiCAFE" means Michigan's coordinated access to food for
the elderly.
(w) "MIChild" means the program described in section 1670 of
this part.
(x) "MiSACWIS" means Michigan statewide automated child
welfare information system.
(y) "PACE" means program of all-inclusive care for the
elderly.
(z) "PAS/ARR-OBRA" means the preadmission screening and annual
resident review required under the omnibus budget reconciliation
act of 1987, section 1919(e)(7) of the social security act, 42 USC
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1396r.
(aa) "PATH" means Partnership. Accountability. Training. Hope.
(bb) "PFAS" means perfluoroalkyl and polyfluoroalkyl
substances.
(cc) "PIHP" means an entity designated by the department as a
regional entity or a specialty prepaid inpatient health plan for
Medicaid mental health services, services to individuals with
developmental disabilities, and substance use disorder services.
Regional entities are described in section 204b of the mental
health code, 1974 PA 258, MCL 330.1204b. Specialty prepaid
inpatient health plans are described in section 109f of the social
welfare act, 1939 PA 280, MCL 400.109f.
(dd) "Previous fiscal year" means the fiscal year ending
September 30, 2026.
(ee) "Quarterly basis" means February 1, April 1, July 1, and
September 30 of the current fiscal year.
(ff) "Semiannual basis" means March 1 and September 30 of the
current fiscal year.
(gg) "Settlement" means the settlement agreement entered in
the case of Dwayne B. v Snyder, Docket No. 2:06-cv-13548 in the
United States District Court for the Eastern District of Michigan.
(hh) "SSI" means supplemental security income.
(ii) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on the department budget, the senate and house fiscal
agencies, the senate and house policy offices, and the state budget
office.
(jj) "Temporary assistance for needy families" or "TANF" or
"title IV-A" means part A of title IV of the social security act,
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42 USC 601 to 619.
(kk) "Title IV-B" means part B of title IV of the social
security act, 42 USC 621 to 629m.
(ll) "Title IV-D" means part D of title IV of the social
security act, 42 USC 651 to 669b.
(mm) "Title IV-E" means part E of title IV of the social
security act, 42 USC 670 to 679c.
(nn) "Title X" means subchapter VIII of the public health
service act, 42 USC 300 to 300a-8, which establishes grants to
states for family planning services.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
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report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
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estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
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civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) Not later than April 1, the department shall
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maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $20,000,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393. Federal contingency
authorization must not be made available to increase TANF
authorization.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $20,000,000.00 for state
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restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $5,000,000.00 for local
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $2,000,000.00 for private
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $174,401,600.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $174,401,600.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
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(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
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leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
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(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
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shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
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indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
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(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
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the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.
Sec. 250. If either of the following events occurs, not later
than 30 days after the event occurs, the department shall notify
the standard report recipients of that fact:
(a) A legislative objective of this part or of a bill or
amendment to a bill to amend the social welfare act, 1939 PA 280,
MCL 400.1 to 400.119b, cannot be implemented because implementation
would conflict with or violate federal law.
(b) A federal grant for which a notice of an award has been
received cannot be used or will not be used.
Sec. 251. (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 fund
sources in part 1 is not limited to collections and accruals
pertaining to services provided in the current fiscal year and
includes reimbursements, refunds, adjustments, and settlements from
prior years.
Sec. 252. Not later than February 1 of the current fiscal
year, the department shall submit, to the standard report
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recipients, a report on the detailed names and amounts of estimated
federal, restricted, private, and local sources of revenue that
support the appropriations in each of the line items in part 1 for
the previous fiscal year. The report must itemize, rather than
aggregate, specific revenue sources deposited into the generic
statewide integrated governmental management application (SIGMA)
fund numbers 1200, 1274, 4000, and 5000.
Sec. 253. As required under part 23 of the public health code,
1978 PA 368, MCL 333.2301 to 333.2321, the appropriations in part 1
must include the following:
(a) Immunizations.
(b) Communicable disease control.
(c) Sexually transmitted infection control.
(d) Tuberculosis control.
(e) Prevention of gonorrhea eye infection in newborns.
(f) Screening newborn infants for the conditions listed in
section 5431 of the public health code, 1978 PA 368, MCL 333.5431,
or recommended by the newborn screening quality assurance advisory
committee created under section 5430 of the public health code,
1978 PA 368, MCL 333.5430.
(g) Health and human services annex of the Michigan Emergency
Management Plan.
(h) Prenatal care.
(i) Mental health.
Sec. 254. (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
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Michigan Public Health Institute to carry out the activities
described in this subsection for up to a 1-year period.
(2) On a semiannual basis, the department shall submit, to the
standard report recipients, a report that includes 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.
(3) On a semiannual basis, the department shall provide, to
the standard report recipients, 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
the department's budget in the previous fiscal year and allocated
to the Michigan Public Health Institute.
Sec. 255. The department shall ensure that faith-based
organizations are able to apply and compete for services, programs,
or contracts that the organizations are qualified and suitable to
fulfill. The department shall not disqualify faith-based
organizations solely on the basis of the religious nature of the
organizations or the guiding principles or statements of faith for
the organizations.
Sec. 256. In accordance with section 1b of the social welfare
act, 1939 PA 280, MCL 400.1b, the department shall treat part 1 and
this part as a time-limited addendum to the social welfare act,
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1939 PA 280, MCL 400.1 to 400.119b.
Sec. 257. (1) Not later than 30 days before the implementation
date of a major policy change, the department shall report the
change to the standard report recipients.
(2) The department shall make the department's entire policy
and procedures manual available and accessible to the public on the
department's website.
(3) The department shall attach each policy bulletin issued
during the previous calendar year to the report under section 213.
Sec. 258. The department may establish and collect fees for
publications, videos and related materials, conferences, and
workshops. Collected fees are appropriated when received and must
be used to offset expenditures for publication printing and
mailing, costs of the publications, videos and related materials,
conferences, and workshops. The department shall not collect fees
under this section that exceed the cost of the expenditures. If
collected fees are appropriated under this section in an amount
that exceeds the current fiscal year appropriation, not later than
30 days after the collected fee appropriation, the department shall
notify the standard report recipients of that fact.
Sec. 259. The department may retain all of this state's share
of food assistance overissuance collections as an offset to general
fund/general purpose costs. Retained collections must be applied
against federal funds deductions in all appropriation units where
department costs related to the investigation and recoupment of
food assistance overissuances are incurred. Retained collections in
excess of the investigation and recoupment costs must be applied
against the federal funds deducted in the departmental
administration and support appropriation unit.
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Sec. 260. 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 must be used as the first source
of funds in the subsequent fiscal year.
Sec. 261. If the department receives tobacco tax funds and
Healthy Michigan fund revenue from part 1, not later than April 1
of the current fiscal year, the department shall submit, to the
standard report recipients, a report on both of the following
activities during the previous fiscal year:
(a) Tobacco tax revenue appropriations in the Medicaid
program.
(b) Information for each project implemented with revenue
under this section, including all of the following:
(i) The project's name.
(ii) The appropriation line item and amount.
(iii) The project's target population.
(iv) A description of the project.
(v) The outcomes or accomplishments of the project.
Sec. 262. If the department is authorized under federal law or
the law of this state to collect an overpayment owed to the
department, beginning 60 days after the initial notification date
of the overpayment amount, the department may assess a penalty of
1% per month. If an overpayment is caused by department error, a
penalty may be assessed 6 months after the initial notification
date of the overpayment amount. The department shall not collect
penalty interest in an amount that exceeds the amount of the
original overpayment. This state's share of any funds collected
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under this section must be deposited in the general fund of this
state.
Sec. 263. (1) On a quarterly basis, the department shall
submit, to the standard report recipients, a report on the status
of the implementation of any noninflationary, noncaseload,
programmatic funding increases in the current fiscal year from the
previous fiscal year. The report must confirm the implementation of
already-implemented funding increases and provide an explanation
for any planned implementation of funding increases that have not
yet occurred. For any planned implementation of funding increases
that have not yet occurred, the report must include an expected
implementation date and the reason for delayed implementation.
(2) For any programmatic funding increases not reported as
implemented or in the process of being implemented in the first 2
reports under subsection (1), the department shall submit, to the
standard report recipients, a status update in the last 2 reports
required under subsection (1).
Sec. 265. The department shall provide the approved spending
plan for each line item receiving an appropriation in the current
fiscal year to the senate and house of representatives
appropriations subcommittees on the department budget and the
senate and house fiscal agencies not later than 60 days after
approval by the department or not later than January 15 of the
current fiscal year, whichever is earlier. In all places that a
line-item appropriation number is listed, a line-item appropriation
name must be included. The spending plan must include the following
information regarding planned expenditures for each category:
allocation in the previous period, change in the allocation, and
new allocation. The spending plan must include the following
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information regarding each revenue source for the line item:
category of the fund source indicated by general fund/general
purpose, state restricted, local, private, or federal. Figures
included in the approved spending plan must not be assumed to
constitute the actual final expenditures, as line items may be
updated on an as-needed basis to reflect changes in projected
expenditures and projected revenue. The department shall supplement
the spending plan information by providing a list of all active
contracts and grants in the department's contract system. For
amounts listed in the other contracts category of each spending
plan, the department shall include the name of the line item and
the name of the fund source for each contract, grant, and amount
for the current fiscal year. For amounts listed in the all other
costs category of each spending plan, the department shall provide
a list detailing planned expenditures and amounts for the current
fiscal year and include the name of the line item and the name of
the fund source related to each expenditure and amount.
Sec. 267. Not later than March 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report on total actual expenditures in the previous fiscal year for
advertising and media outreach, including the purpose, amount, and
fund source by program or appropriation line item.
Sec. 268. Not later than March 1 of the current fiscal year,
the department shall submit a description of programs report to the
standard report recipients. For each program, the report must
include the appropriation unit; the line item name and number; the
appropriation history; the program name; the program overview; a
financing summary; and, where applicable, the program's legal
basis, effectiveness, and outcomes.
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Sec. 269. On a quarterly basis, the department shall submit,
to the standard report recipients, a report on any line-item
appropriation for which the department estimates total annual
expenditures would exceed the funds appropriated for the line-item
appropriation by 5% or more. The department shall provide a
detailed explanation for any relevant line-item appropriation
exceedance, identify the corrective actions undertaken to mitigate
line-item appropriation expenditures from exceeding the funds
appropriated for the line-item appropriation by a greater amount,
and identify other corrective actions if no legislative transfer or
supplemental is approved. This section does not apply for line-item
appropriations that are part of the May revenue estimating
conference caseload and expenditure estimates.
Sec. 270. (1) The department shall ensure that each federally
recognized tribe is able to apply and compete for services,
programs, grants, and contracts.
(2) For competitive grant programs described in this part,
each federally recognized tribe is eligible to apply for grant
funds made available to organizations exempt from federal income
tax under section 501(c)(3) of the internal revenue code of 1986,
26 USC 501, and to local units of government.
Sec. 271. (1) Except as provided in this subsection, before
submission of a waiver, state plan amendment, or similar proposal
to CMS or another federal agency, the department shall notify the
standard report recipients of the planned submission. This
subsection does not apply to the submission of a waiver, state plan
amendment, or similar proposal that does not propose a material
change or is outside of the ordinary course of a waiver, state plan
amendment, or similar proposal.
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(2) On a semiannual basis, the department shall submit, to the
standard report recipients, a report that summarizes the status of
any new or ongoing discussions with CMS, the United States
Department of Health and Human Services, or another federal agency
regarding any potential or future waiver applications and the
status of any submitted waivers that have not yet received federal
approval. If there is not a reportable item at the time that a
semiannual report is due, a report is not required.
Sec. 272. The department shall advise the legislature of the
receipt of a notification from the attorney general's office of a
legal action in which expenses had been recovered under section 10b
of the medicaid false claim act, 1977 PA 72, MCL 400.610b. If
applicable, not later than February 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report that includes, but is not limited to, all of the following:
(a) The total amount recovered from the legal action.
(b) The program or service for which the money was originally
expended.
(c) Details on the disposition of the funds recovered, such as
the appropriation or revenue account in which the money was
deposited.
(d) A description of the facts involved in the legal action.
Sec. 273. On the day that is 1 week after the day that the
governor submits the executive budget proposal for the ensuing
fiscal year to the legislature, the department, in collaboration
with the state budget office, shall submit, to the standard report
recipients, a report on spending and revenue projections for each
of the capped federal funds listed in this subsection. The report
must contain actual spending and revenue in the previous fiscal
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year, spending and revenue projections for the current fiscal year
as enacted, and spending and revenue projections in the executive
budget proposal for the immediately ensuing fiscal year for each
individual line item for the department budget. The report must
also include federal funds transferred to other departments. The
capped federal funds include, but are not limited to, all of the
following:
(a) TANF.
(b) Title XX social services block grant.
(c) Title IV-B subpart I child welfare services block grant.
(d) Title IV-B subpart II promoting safe and stable families
funds.
(e) Low-income home energy assistance program.
Sec. 274. (1) On a quarterly basis, the department, with the
approval of the state budget director, is authorized to realign
sources between other federal, TANF, and capped federal financing
authorizations to maximize federal revenues. The realignment of
financing must not produce any of the following:
(a) A gross increase or decrease in the department's total
individual line item authorizations.
(b) A net increase or decrease in total federal revenues.
(c) A net increase in TANF authorization.
(2) On a quarterly basis, the department shall submit, to the
standard report recipients, a report on the realignment of federal
fund sources transacted to date in the current fiscal year under
subsection (1), including the dates, line items, and amounts of the
transactions. If, at the time a quarterly report is due, a
transaction was not made under subsection (1), a report is not
required.
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(3) Not later than 30 days after the date on which year-end
book closing is completed, the department shall submit, to the
standard report recipients, a report on the realignment of federal
fund sources that took place as part of the year-end closing
process for the previous fiscal year.
Sec. 275. Any public advertisement for public assistance must
inform the public of the welfare fraud hotline operated by the
department.
Sec. 276. Not later than April 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report on funds appropriated for the healthy moms, healthy babies
initiative. The report must include the budgeted amount, year-to-
date expenditures, remaining balance of appropriations, and the
percent of budget spent for each appropriation related to the
initiative. The report must also include information on how the
funds have assisted with meeting the goals and outcomes of the
initiative.
Sec. 277. (1) The department may accept monetary and
nonmonetary gifts, bequests, donations, contributions, or grants
from any private source to support, in whole or in part, a
departmental function or program. The department shall expend or
use such gifts, bequests, donations, contributions, or grants for
the purposes designated by the private source, if the purpose is
specified and part 1 has sufficient authorization.
(2) In the demonstration projects line item, money remaining
in the fund under this section that is unexpended and unencumbered
must not lapse to the general fund but must be carried forward to
the subsequent fiscal year.

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CHILD SUPPORT ENFORCEMENT
Sec. 401. (1) The appropriations in part 1 assume a total
federal child support incentive payment of $26,500,000.00.
(2) From the federal money received for child support
incentive payments, $12,000,000.00 must be retained by this state
and expended for child support program expenses.
(3) From the federal money received for child support
incentive payments, $14,500,000.00 must be paid to counties based
on each county's performance level for each of the performance
measures under 45 CFR 305.2.
(4) If the child support incentive payment to this state from
the federal government is greater than $26,500,000.00, then 100% of
the amount in excess must be retained by this state and is
appropriated until the total retained by this state reaches
$15,397,400.00.
(5) If the child support incentive payment to this state from
the federal government is greater than the amount needed to satisfy
subsections (1), (2), (3), and (4), the additional funds are
subject to appropriation by the legislature.
(6) If the child support incentive payment to this state from
the federal government is less than $26,500,000.00, then the state
share and the county share must each be reduced by 50% of the
shortfall.
Sec. 409. (1) If statewide retained child support collections
exceed $38,300,000.00, 75% of the amount in excess of
$38,300,000.00 is appropriated to legal support contracts. The
excess appropriation may be distributed to eligible counties to
supplement, but not supplant, county title IV-D funding.
(2) Each county whose retained child support collections in
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the current fiscal year exceed its fiscal year 2004-2005 retained
child support collections, excluding tax offset and financial
institution data match collections in both the current fiscal year
and fiscal year 2004-2005, shall receive its proportional share of
the 75% excess appropriation.
Sec. 410. (1) If title IV-D-related child support collections
are escheated, the state budget director is authorized to adjust
the sources of financing for the funds appropriated in part 1 for
legal support contracts to reduce federal authorization by 66% of
the escheated amount and increase general fund/general purpose
authorization by the same amount. The adjustment is required to
offset the loss of federal revenue due to the escheated amount
being counted as title IV-D program income in accordance with 45
CFR 304.50.
(2) Not later than 30 days after an adjustment under
subsection (1), the department shall notify the standard report
recipients of the adjustment.

COMMUNITY SERVICES AND OUTREACH
Sec. 453. (1) From the funds appropriated in part 1 for
homeless programs, the department shall allocate funds to the
emergency shelter program to support efforts of shelter providers
to move homeless individuals and households into permanent housing
as quickly as possible. The funds must be equal to or exceed the
amount that a provider would receive if the provider is paid a
$19.00 per diem rate. Expected outcomes are increased shelter
discharges to stable housing destinations, decreased recidivism
rates for shelter clients, and a reduction in the average length of
stay in emergency shelters.
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(2) Not later than March 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
report on the total amount expended for the emergency shelter
program in the prior 2 fiscal years, the total number of shelter
nights provided, and the average length of stay in an emergency
shelter.
Sec. 454. The department shall allocate the full amount of
funds appropriated in part 1 for homeless programs to provide
services for homeless individuals and families, including, but not
limited to, third-party contracts for emergency shelter services.
Sec. 455. As a condition of receipt of federal TANF revenue,
after admitting a family to a homeless shelter, the homeless
shelter and human services agencies shall collaborate with the
department to obtain necessary TANF eligibility information on the
family as soon as possible. From the funds appropriated in part 1
for homeless programs, the department is authorized to make
allocations of TANF revenue only to the homeless shelters and human
services agencies that report necessary data to the department to
meet TANF eligibility reporting requirements. Homeless shelters or
human services agencies that do not report necessary data to the
department to meet TANF eligibility reporting requirements shall
not receive reimbursements that exceed the per diem amount the
homeless shelters or human service agencies received in fiscal year
2000. The use of TANF revenue under this section is not an ongoing
commitment of funding.
Sec. 456. From the funds appropriated in part 1 for homeless
programs, the department shall allocate $10,000.00 to reimburse
public service agencies that provide documentation of paying birth
certificate fees on behalf of category 1 homeless clients at county
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clerk's offices. Each public service agency must be reimbursed for
the cost of the birth certificate fees quarterly until the
allocation is fully spent.
Sec. 457. From the funds appropriated in part 1 for homeless
programs, the department shall allocate $8,500,000.00 of TANF
revenue to support family shelters or families who are homeless and
at risk of being homeless. Funds appropriated under this section
must be used as follows:
(a) $3,000,000.00 for emergency hotels for families
experiencing homelessness.
(b) $3,500,000.00 for assistance and supports to families
engaged with child welfare. This may include, but is not limited
to, eviction diversion, first month's rent and deposit, and utility
arrears.
(c) $2,000,000.00 for creating additional spaces at family
homeless shelters that have been in operation for at least 24
months.
Sec. 458. From the funds appropriated in part 1 for homeless
programs, the department shall require any entities receiving
direct or indirect state funds to report data to a Homeless
Management Information System that satisfies the baseline data
collection requirements.
Sec. 459. From the funds appropriated in part 1 for homeless
programs, the department shall allocate $2,000,000.00 of TANF
revenue to acquire and develop for individuals and families
noncongregate shelter that utilizes options under a Housing First
model and prioritizes providing stable and permanent housing
without preconditions or requirements, such as sobriety or
participation in treatment programs. Eligible uses for this funding
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may include, but are not limited to, hotels, motels, dormitories,
recuperative care facilities, and other facilities that offer
noncongregate shelter.
Sec. 461. (1) From the funds appropriated in part 1 for
community services outreach administration, the department shall
allocate $1,000,000.00 as a grant to a nonprofit organization that
grows and distributes food and provides farming education
programming to children from low-income families in not less than 3
counties in this state. The nonprofit organization shall use the
funds to expand its services to additional schools and communities.
The funding may be used to cover employee costs, food and supplies,
equipment, and other operational costs identified by the nonprofit
organization to support its mission and goals.
(2) From the funds appropriated in part 1 for community
services outreach administration, the department shall allocate
$1,000,000.00 as competitive grants to nonprofit organizations to
provide food delivery and farming and nutrition education
programming to children from low-income families in this state.
Sec. 463. From the funds appropriated in part 1 for runaway
and homeless youth grants and domestic violence prevention and
treatment, the department is authorized to make allocations of TANF
revenue only to agencies that report necessary data to the
department to meet TANF eligibility reporting requirements.
Sec. 464. (1) From the funds appropriated in part 1 for diaper
assistance grant, the department shall allocate grants to diaper
assistance programs, maternity homes, local county offices, and
other nonprofit agencies that distribute diapers free of charge and
were established as of January 1, 2020. The funds must be used only
to purchase diapering supplies and to cover related administrative
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costs. Funds must be distributed to all counties in the state. Not
more than 10% of the funds appropriated in part 1 are expendable
for administrative purposes.
(2) Not later than March 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
report on the distribution of diapering supplies that includes, but
is not limited to, the names and locations of the entities
described in subsection (1) that distribute diaper supplies and the
total amount of diapering supplies distributed by each entity by
county.
Sec. 465. (1) From the funds appropriated in part 1 for
community services and outreach administration, $3,950,000.00 must
be distributed as provided in subsection (2). Michigan 2-1-1 must
continue to seek funding from local United Way organizations and
other nonprofit organizations and foundations.
(2) Funds distributed under subsection (1) must be distributed
to Michigan 2-1-1, the entity designated by the Michigan public
service commission to serve as this state' s 2-1-1 coordinating
agency under section 214(5) of the Michigan telecommunications act,
1991 PA 179, MCL 484.2214. Michigan 2-1-1 shall use the funds only
to fulfill the Michigan 2-1-1 business plan adopted by Michigan 2-
1-1 in January 2005.
(3) Michigan 2-1-1 shall refer any received calls that report
fraud, waste, or abuse of state-administered public assistance to
the department.
(4) Michigan 2-1-1 shall submit, to the department, the senate
and house of representatives standing committees with primary
jurisdiction over matters relating to human services and
telecommunications on 2-1-1 system performance, and the standard
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report recipients, a report that includes, but is not limited to,
call volume by health and human service needs and unmet needs
identified through caller data and number and the percentage of
callers referred to public or private provider types.
Sec. 466. Not later than March 1 of the current fiscal year,
the department shall submit to the standard report recipients a
report on the runaway homeless youth program that includes, but is
not limited to, all of the following:
(a) A list of counties served and the amount of funding
allocated to each county.
(b) The amount of funding being allocated to previously
underserved communities and how capacity has been expanded or is
planned to be expanded in those communities.
(c) Identified barriers that have hindered providers from
expanding capacity.

CHILDREN'S SERVICES AGENCY - CHILD WELFARE
Sec. 501. (1) A goal is established that not more than 25% of
all children in foster care at any given time during the current
fiscal year, unless contrary to the best interest of the child,
will have been in foster care for 24 months or more.
(2) Not later than March 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
report describing the steps that will be taken to achieve the goal
under subsection (1). The report must also include the following:
(a) An explanation of the most significant barriers that
prevent long-term foster children from permanent placements.
(b) The number of children currently in foster care for longer
than 24 months and the percentage of those children that had paid
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Medicaid behavioral health claims or encounters within the last
year.
Sec. 502. From the funds appropriated in part 1 for foster
care, the department shall reimburse Indian tribal governments for
50% of the foster care expenditures for children who are under the
jurisdiction of Indian tribal courts and are not otherwise eligible
for federal foster care cost sharing. However, the department may
reimburse up to 100% of the foster care expenditures for an Indian
tribal government that enters into a state-tribal Title IV-E
agreement allowed under this state's Title IV-E state plan.
Sec. 505. Not later than March 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report on youth referred or committed to the department for care or
supervision in the previous fiscal year that outlines the number of
youth served by the department in the juvenile justice system by
the type of setting for each youth.
Sec. 506. From the funds appropriated in part 1 for attorney
general contract, not later than March 1 of the current fiscal
year, the department shall submit, to the standard report
recipients, a report on the juvenile justice system in any county
in which funds appropriated in part 1 are expended. The report must
include, but not be limited to, all of the following:
(a) The number of youth referred or committed to the
department for care or supervision in the previous fiscal year and
in the first quarter of the current fiscal year.
(b) The number of youth referred or committed to the care or
supervision of the county in which funds appropriated in part 1
were expended for the previous fiscal year and the first quarter of
the current fiscal year.
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(c) The type of setting for each youth referred or committed
for care or supervision, any applicable performance outcomes, and
identified financial costs or savings.
(d) The required and actual staff-to-youth ratios.
Sec. 507. The department's ability to satisfy appropriation
deductions in part 1 for foster care private collections is not
limited to collections and accruals pertaining to services provided
only in the current fiscal year and may include revenues collected
during the current fiscal year for services provided in prior
fiscal years.
Sec. 508. (1) In addition to the amount appropriated in part 1
for children trust Michigan, money granted or money received as
gifts or donations to the children's trust fund created in 1982 PA
249, MCL 21.171 to 21.172, is appropriated for expenditure.
(2) For the funds described in subsection (1), the department
shall ensure that administrative delays are avoided and local grant
recipients and direct service providers receive money in an
expeditious manner. The department and the state board as that term
is defined in section 2 of the child abuse and neglect prevention
act, 1982 PA 250, MCL 722.602, shall make the children's trust fund
contract funds available to grantees not later than 31 days after
the start date of the funded project.
Sec. 509. (1) From the funds appropriated in part 1 for
adoption support services, the department shall maintain a rate
structure that pays for cases based on the average length of time
it takes to reach adoption finalization by case characteristics for
licensed child placing agencies contracted with the department that
provide adoption services for youth in foster care.
(2) For cases accepted before the implementation of the new
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rate structure described in subsection (1), the department shall
maintain the increase of contracted rates paid to private child
placing agencies, including the $23.00 per diem for all foster
youth from the date of the case acceptance to the date of adoption
petition acceptance or 150 days, whichever occurs sooner, for
licensed child placing agencies contracted with the department to
provide adoption services for foster youth. The per diem rate must
be separate from the outcome-based reimbursement system and must
not be deducted from the total reimbursement an agency receives for
the applicable placement or finalization rate of an adoption.
Sec. 510. The department shall submit reports on a monthly
basis to the standard report recipients on all of the following:
(a) The number of children without an identified placement
awaiting placement in a residential setting by county in which the
child resided before placement.
(b) The reason for the delay in placement, including, but not
limited to, facility bed shortages, placement process delays, or
other reasons.
(c) The number of incentive payments that were awarded by the
department by child caring institution.
(d) The number of incentive payments that were denied by the
department by child caring institution.
(e) Of the denials identified in subdivision (d), the
department shall provide the rationale for denial of incentive
payments including, but not limited to, refusal of placement, lack
of staffing, or other reasons.
Sec. 511. The department shall submit, to the standard report
recipients and the senate and house of representatives standing
committees that cover subject matters dealing with families and
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human services, reports on a semiannual basis that include the
number and percentage of children who received timely physical and
mental health examinations after entry into foster care. The goal
of the program is for not less than 85% of children to have an
initial medical and mental health examination that is not later
than 30 days after entry into foster care.
Sec. 512. (1) From the funds appropriated in part 1 for foster
care payments, the department shall allocate $500,000.00 of TANF
revenue to provide luggage to a child who is being removed from the
child's home or changing placement and is a TANF eligible
individual. The luggage provided under this section is considered
to belong to the child and may not be confiscated by the department
or the child's foster parent. The department is not required to
provide new luggage under this section to a child who is changing
placement and has had luggage previously provided by the
department.
(2) The department may partner with local charities to
establish and maintain the supply of luggage to be used to
transport a child's personal belongings. Additionally, the
department may accept donations of luggage to fulfill the
requirements of this section.
(3) As used in this section, "luggage" means any of the
following:
(a) A suitcase of any size.
(b) A duffel bag that holds at least 30 liters.
Sec. 513. (1) The department shall not expend funds
appropriated in part 1 to pay for the department's direct placement
of a child in an out-of-state facility unless all of the following
conditions are met:
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(a) An appropriate placement is not available in this state,
as determined by the department's interstate compact office.
(b) An out-of-state placement exists that is nearer to the
child's home than the closest appropriate in-state placement, as
determined by the department's interstate compact office.
(c) The out-of-state facility meets all of the licensing
standards for a comparable facility in this state.
(d) The out-of-state facility meets all of the applicable
licensing standards of the state in which it is located.
(e) The department has visited the site of the out-of-state
facility; has reviewed the facility records, licensing records, and
reports; and believes that the facility is an appropriate placement
for the child.
(2) The department shall not expend money for a child placed
in an out-of-state facility without approval of the executive
director of the children's services agency.
(3) Not later than March 1 of the current fiscal year, the
department shall submit, to the state court administrative office
and the standard report recipients, a report on the number of
Michigan children residing in out-of-state facilities in the
previous fiscal year, the total cost and average per diem cost of
the out-of-state placements to this state, a list of each out-of-
state placement arranged by the Michigan county of residence for
each child, and a list of out-of-state facilities that were visited
by the department before the child's placement.
Sec. 514. (1) From the funds appropriated in part 1 for foster
care payments, the department shall maintain a statewide respite
care services network available to licensed foster parents and
unlicensed relative caregivers that care for children in foster
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care.
(2) Not later than March 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
report on the total number of licensed foster parents and
unlicensed relative caregivers that were provided respite services,
the average amount of respite time per month, and the total amount
of funding spent on respite services during the previous fiscal
year.
Sec. 515. If a children's protective services caseworker
requests approval for another children's protective services
caseworker or other department employee to accompany the caseworker
on a home visit because the caseworker believes that it would be
unsafe to conduct the home visit alone, the department shall not
deny the request.
Sec. 516. (1) From funds appropriated in part 1 for child care
fund, the administrative or indirect cost payment equal to 10% of a
county's total monthly gross expenditures must be distributed to
the county on a monthly basis, and a county is not required to
submit documentation to the department for any of the expenditures
that are covered under the 10% payment as described in section
117a(4)(b)(ii) and (iv) of the social welfare act, 1939 PA 280, MCL
400.117a.
(2) From the funds appropriated in part 1 for child care fund
– indirect cost allotment, the department shall allocate
$3,500,000.00 to counties and tribal governments that receive
reimbursements in part 1 from child care fund.
(3) The amount described in subsection (2) must be distributed
to each county or tribal government in the same proportion as
indirect cost allotments are provided to counties in the same
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manner described in section 117a of the social welfare act, 1939 PA
280, MCL 400.117a.
Sec. 517. For a child placed in a family foster care home
located out of this state, the department may ask a state or
private child placing agency contracted by the receiving state to
carry out required visits and any additional visits that the
department finds necessary.
Sec. 518. Not later than March 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report on the cumulative child care fund expenditures of in-home
juvenile justice care that are eligible for the 75% state and 25%
local split required under section 117a(4)(i) of the social welfare
act, 1939 PA 280, MCL 400.117a. Eligible expenditures include
community-based juvenile supervision, services, and related
practices, and per diem rates for the use of respite and shelter
for less than 30 days. The report must also include the
expenditures by county and type of service provided, the number of
youth receiving care, and the number of days of care.
Sec. 519. From the funds appropriated in part 1 for attorney
general contract, the department must allow for contracts,
interagency agreements, or any other type of agreement currently
held by the department of attorney general to be competitively bid.
Sec. 520. Not later than February 15 of the current fiscal
year, the department shall submit, to the standard report
recipients, a report on the number of days of care and expenditures
by funding source for the previous fiscal year for out-of-home
placements by specific placement programs for child abuse or child
neglect and juvenile justice, including, but not limited to, paid
relative placement, department direct family foster care, private-
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agency-supervised foster care, private child caring institutions,
county-supervised facilities, and independent living. The report
must also include the number of days of care for department-
operated residential juvenile justice facilities by security
classification.
Sec. 522. (1) From the funds appropriated in part 1 for youth
in transition, the department shall allocate $750,000.00 for
scholarships through the fostering futures scholarship program in
the Michigan education trust to youth who were in foster care
because of child abuse or child neglect and are attending a college
or a career technical educational institution located in this
state. One hundred percent of the funds appropriated must be used
to fund scholarships for the youth described in this section.
(2) Not later than June 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
report that includes the number of youth who applied for
scholarships under this section, the number of youth who received
scholarships under this section and the amount of each scholarship,
and the total amount of funds spent or encumbered in the current
fiscal year.
Sec. 523. Not later than February 15 of the current fiscal
year, the department shall submit, to the standard report
recipients, a report on the MI Family Together program. The report
must include both of the following:
(a) Utilization and outcome data based on families served.
(b) For each program, information on any innovations or
expansions that may increase child safety and reduce risk.
Sec. 524. As a condition of receiving funds appropriated in
part 1 for strong families/safe children, not later than October 1
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of the current fiscal year, counties shall submit the service
spending plan to the department for approval. Not later than 30
calendar days after receipt of a properly completed service
spending plan, the department shall approve the service spending
plan.
Sec. 525. (1) The department shall maintain the same on-site
evaluation processes for privately operated child welfare and
juvenile justice residential facilities as is used to evaluate
state-operated facilities. Penalties for noncompliance must be the
same for privately operated child welfare and juvenile justice
residential facilities and state-operated facilities.
(2) On a quarterly basis, the department shall submit to the
standard report recipients a report that includes data on the
number of penalties for noncompliance under subsection (1) listed
by facility along with the reason for noncompliance for the most
recent quarter.
Sec. 526. From the funds appropriated in part 1 for court-
appointed special advocates, the department shall allocate
$2,250,000.00 to fund a project with the entity that received funds
under section 526 of article 6 of 2025 PA 22 for the purpose
described in that section. The funds must be used to recruit,
screen, train, and supervise volunteers who provide advocacy
services on behalf of abused and neglected children.
Sec. 527. Not later than March 1 of the current fiscal year,
the department shall submit to the standard report recipients,
information used to train providers on the use of restraint and
seclusion in foster care and juvenile justice residential
facilities.
Sec. 528. From the funds appropriated in part 1 for child care
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fund, the department shall allocate $3,730,300.00 to support the
annual basic grant to counties with a population of less than
75,000, according to the most recent federal decennial census, and
as described in section 117e of the social welfare act, 1939 PA
280, MCL 400.117e, and to eligible tribal entities. The basic grant
must be $56,520.00 to eligible counties and tribal entities.
Sec. 529. From the funds appropriated in part 1 for family
preservation programs, the department shall maintain the total
funding level of the MI Family Together program at an amount not
less than the amount provided as of September 30, 2021.
Sec. 530. (1) All master contracts relating to foster care and
adoption services as funded by the appropriations in section 105 of
part 1 must be performance-based contracts that employ a client-
centered and results-oriented process that is based on measurable
performance indicators and desired outcomes and includes an annual
assessment of the quality of services provided.
(2) Not later than February 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
report detailing measurable performance indicators, desired
outcomes, and an assessment of the quality of services provided by
the department during the previous fiscal year.
Sec. 532. Beginning on October 1 of the current fiscal year,
the department shall hold semiannual meetings with state and
private residential providers to receive feedback and discuss
potential improvements to the residential system.
Sec. 534. Not later than March 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report on the adoption subsidies expenditures from the previous
fiscal year. The report must include, but is not limited to, the
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range of non-$0.00 annual adoption support subsidy amounts, for
both Title IV-E eligible cases and state-funded cases, paid to
adoptive families; the number of Title IV-E and state-funded cases;
the number of cases in which an adoption support subsidy request by
an adoptive parent was denied by the department; and the number of
adoptive parents who requested a renegotiation of their adoption
support subsidy contract.
Sec. 537. Not later than March 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report on the following information for cases of child abuse or
child neglect from the previous fiscal year:
(a) The total number of relative care placements.
(b) The total number of relative care placements into
unlicensed relative homes.
(c) The total number of relative care placements into licensed
relative homes.
(d) The total number of unlicensed relative providers with a
relative placement that were denied a foster home license due to
not meeting the standards established for foster care licensing in
this state.
(e) From a sample of cases, a list of the reasons documented
by the department for denial of relative foster home licensure.
(f) For licensed or approved relative caregivers with
placements, the status of Title IV-E claims for foster care
maintenance payments and foster care administrative payments.
Sec. 540. If a physician or psychiatrist who is providing
services to a state or court ward placed in a residential facility
submits a formal request to the department to change the
psychotropic medication for a ward, the department shall, if the
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ward is a state ward, make a determination on the proposed change
not later than 7 business days after the request or, if the ward is
a temporary court ward, seek parental consent not later than 7
business days after the request. If the determination or parental
consent is not provided by the seventh business day, the department
shall petition the court for the determination or consent on the
eighth business day.
Sec. 546. (1) From the funds appropriated in part 1 for foster
care payments and from child care fund, the department shall pay an
administrative rate before incentive payments of not less than
$60.20 to providers of general foster care, independent living, and
trial reunification services.
(2) From the funds appropriated in part 1, the department
shall pay providers of independent living plus services per diem
statewide rates for staff-supported housing and host-home housing
that are based on proposals submitted in response to a solicitation
for pricing. The independent living plus program provides staff-
supported housing and services for foster youth 16 years of age to
19 years of age who, because of their individual needs and
assessments, are not initially appropriate for general independent
living foster care.
(3) If required by the federal government to meet Title IV-E
requirements, on a quarterly basis, providers of foster care
services shall submit a report on expenditures to the department to
identify actual costs of providing foster care services.
Sec. 547. (1) From the funds appropriated in part 1 for the
guardianship assistance program, the department shall pay a minimum
rate that is not less than the approved age-appropriate payment
rates for youth placed in family foster care.
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(2) The department shall submit, to the standard report
recipients, a report that includes quarterly data on the number of
children enrolled in the guardianship assistance and foster care –
children with serious emotional disturbance waiver programs.
Sec. 550. (1) The department shall not offset against
reimbursements to counties or seek reimbursement from counties for
charges that were received by the department more than 12 months
before the department seeks to offset against reimbursement. A
county shall not request reimbursement, and reimbursements must not
be paid, for a charge that is more than 12 months after the date of
service or original status determination when initially submitted
by the county.
(2) Not later than 12 months after a date of service, a
service provider shall submit a request for payment. A request for
payment submitted later than 12 months after the date of service
requires the provider to submit an exception request to the county
or the department for approval or denial.
(3) A county is not subject to any offset, chargeback, or
reimbursement liability for a prior expenditure resulting from an
error in a foster care fund source determination.
Sec. 551. Not later than 30 days after a county requests a
clarification through the department's child care fund management
unit email address, the department shall respond to the request.
Sec. 552. Sixty days after a county's child care fund review
is completed, including the receipt of all requested documentation
from the county, the department shall provide the results of the
review to the county. In the review, the department shall not
evaluate the relevancy, quality, effectiveness, efficiency, or
impact of the services provided to youth by the county's child care
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fund programs. The department shall not release the results of a
county's child care fund review to a third party without the
permission of the county.
Sec. 554. From the funds appropriated in part 1 for foster
care payments, the department shall allocate $50,000.00 to the
entity that received funds under section 554 of article 6 of 2025
PA 22 to provide a shopping environment to local children in need,
as well as clothing, shoes, toys, linens, nursery furniture,
strollers, car seats, school supplies, hygiene products, and safety
equipment to local foster children and their families free of
charge.
Sec. 555. (1) From the funds appropriated in part 1 for foster
care payments, the department shall allocate $4,000,000.00 as
grants to community action agencies to support youths in informal
kinship care and the families that care for the youths.
(2) As used in this section, "informal kinship care" means an
arrangement between a youth's parents and a family member of the
youth or someone with a close relationship with the family of the
youth to care for the youth without the involvement of the
department or court.
Sec. 557. If a vehicle that is owned by the state is available
and not scheduled for use by other state workers, the department
may consider a children's protective services caseworker or a
foster care caseworker driving the vehicle to a foster home visit
or driving the vehicle to the caseworker's own home as an allowable
use of the vehicle if the driving would be helpful to the
caseworker in conducting the caseworker's work.
Sec. 559. (1) From the funds appropriated in part 1 for
adoption support services, not later than December 1 of the current
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fiscal year, the department shall allocate $500,000.00 to a grant
recipient to operate and expand its adoptive parent mentor program
to provide a listening ear, knowledgeable guidance, and community
connections to adoptive parents and children who were adopted in
this state or another state.
(2) Not later than March 1 of the current fiscal year, the
grant recipient shall submit, to the standard report recipients, a
report on the program described in subsection (1), including, but
not limited to, the number of cases served and the number of cases
in which the program prevented an out-of-home placement.
Sec. 562. If a foster parent transports a foster child to
parent-child visitation, the department shall reimburse the foster
parent for the foster parent's time and travel. As part of the
foster care parent contract, the department shall provide written
confirmation to foster parents that states that the foster parents
have the right to request reimbursement for all parent-child
visitations. Not later than 60 days after receiving a request from
a foster parent for eligible reimbursement, the department shall
provide the reimbursement.
Sec. 564. (1) The department shall maintain a clear policy for
parent-child visitations. All of the following individuals shall
meet an 85% success rate, after accounting for factors outside of
caseworker control:
(a) Caseworkers and supervisors of local county offices.
(b) Caseworkers and supervisors of child placing agencies.
(2) In accordance with the court-ordered number of required
meetings between caseworkers and a parent, the caseworkers shall
achieve a success rate of 85%, after accounting for factors outside
of caseworker control.
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(3) Not later than March 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
report on the following:
(a) The percentage of success rates for parent-child
visitations and court-ordered required meetings under subsections
(1) and (2) for the previous fiscal year.
(b) The barriers to achieve the success rates described in
subsections (1) and (2) and how this information is tracked.
Sec. 568. (1) The department shall ensure each youth
transitioning out of foster care is given assistance with obtaining
a driver license or state identification card and is issued a copy
of the youth's Social Security number, as required by department
policy. Assistance must be provided to each youth who is eligible
to obtain a driver license or state identification card and, based
on the youth's citizenship and legal residency status, a Social
Security card.
(2) Not later than April 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
report on the number of youth who obtained a driver license or
state identification card, the number of youth who obtained a
Social Security card, and the number of youth who were eligible but
did not receive a driver license, state identification card, or
Social Security card and an explanation as to why the youth did not
receive the documents.
Sec. 569. The department shall reimburse each private child
placing agency that completes an adoption at the rate on the date
when the petition for adoption and the required support
documentation were accepted by the court and not the rate on the
date when the court's order placing for adoption was entered.
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Sec. 574. (1) From the funds appropriated in part 1 for foster
care payments, $1,375,000.00 is allocated to support family
incentive grants to private and community-based foster care service
providers and relative caregivers for assistance with home
improvements to alleviate safety concerns or obtain items needed to
ensure compliance with licensing rule requirements and to
accommodate children in foster care.
(2) Not later than March 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
report on the total amount expended in the previous year for grants
to private and community-based foster care service providers for
home improvements or physical exams described in subsection (1) and
the number of grants issued.
Sec. 575. From the funds appropriated in part 1 for children's
services administration, the department shall allocate $200,000.00
to provide support and coordinated services to the kinship
caregiver advisory council. The responsibilities of the council may
include all of the following:
(a) Establishing a public awareness campaign to educate the
public about kinship caregivers and this state's efforts to better
serve kinship caregivers.
(b) Consulting and coordinating with the kinship caregiver
navigator program to collect aggregate data on individuals being
served by the kinship caregiver navigator program, including
information on what services the individuals need.
(c) Consulting and collaborating with the provider of the
kinship caregiver navigator program on the design and
administration of the program.
(d) Establishing, maintaining, and updating a list of local
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support groups and programs that provide services to kinship
families and, in order to obtain a better understanding of the
issues facing kinship families, devising a plan of action for
engaging with the groups and programs on the list.
(e) Developing methods to promote and improve collaboration
between state, county, and local governments and agencies and
private stakeholders for all of the following reasons:
(i) To obtain a broad understanding of the characteristics and
prevalence of kinship caregiving.
(ii) To improve service delivery.
(iii) To include the methods in the council's recommendations.
Sec. 578. (1) From the funds appropriated in part 1 for foster
care payments, the department shall allocate Title IV-E passthrough
funds for educational pilot programs to strengthen this state's
child welfare workforce. The department shall enter into
contractual arrangements with 1 or more state universities to
provide bachelor of social work and master of social work
educational training, including field placements and stipends for
tuition and educational expenses. In exchange, students completing
eligible educational programs are contractually obligated to work
for Michigan child welfare agencies for a minimum of 4 months for
every semester they receive the stipend. The matching funds for the
Title IV-E funds must be provided by the participating state
universities from the expenses incurred for training child welfare
students who participate in the program.
(2) Not later than March 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
report on the status of pilot programs under subsection (1) that
includes, but is not limited to, the total number of applicants,
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the total number of program participants, a list of state
universities that participated in the pilot programs, and the total
amount of matching funds that each state university contributed to
the programs.
Sec. 581. From the funds appropriated in part 1 for foster
care payments, the department shall allocate at least $50,000.00
for caseworkers to provide immediate assistance with urgent needs,
including, but not limited to, food, clothing, and other basic
necessities, for children, including children who are victims of
human trafficking, on the children's removal from the children's
homes or other dangerous environments.
Sec. 583. Not later than March 1 of the current fiscal year,
the department shall submit, to the standard report recipients and
the senate and house of representatives standing committees that
cover subject matters dealing with families and human services, a
report that includes all of the following:
(a) The number and percentage of foster parents that closed
their license in the previous fiscal year, the reasons the foster
parents left, and how the figures compare to the figures for prior
fiscal years.
(b) The number and percentage of foster parents successfully
retained in the previous fiscal year and how the figures compare to
the figures for prior fiscal years.
(c) The number and percentage of licensed foster homes that
closed their license because they adopted their foster child based
on survey data from foster parents closing their licenses.
Sec. 585. Each month, the department shall make available at
least 1 pre-service training class in which new caseworkers for
private foster care and adoption agencies can enroll.
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Sec. 588. (1) Concurrently with public release, the department
shall transmit, without revision, all reports from the court-
appointed settlement monitor, including, but not limited to, the
needs assessment and period outcome reporting, to the standard
report recipients.
(2) Not later than October 1 of the current fiscal year, the
department shall submit, to the standard report recipients, a
detailed plan that addresses the status and progress toward exiting
the settlement by September 30 of the current fiscal year. The
report must include an update on the department's child welfare
initiative.
Sec. 589. (1) From the funds appropriated in part 1 for child
care fund, the department shall pay 100% of the administrative rate
for all new cases referred to providers of foster care services.
(2) On a quarterly basis, the department shall submit a
report, to the standard report recipients, on the monthly number of
all foster care cases administered by the department and all foster
care cases administered by private providers.
Sec. 592. On a quarterly basis, the department shall submit,
to the chairs of the senate and house of representatives standing
oversight committees and the standard report recipients, a report
that includes data from children's protective services staff for
each of the following for the most recent quarter before the
applicable report is submitted:
(a) The percent of investigations commenced in 24 hours
immediately after receiving a report.
(b) The percent of central registry reviews performed for
required individuals.
(c) The percent of face-to-face contacts made within the
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established timeframe required by the department.
(d) In appropriate cases, the percent of sibling placement
evaluations completed when 1 or more children remain in the home
after a child has been removed.
(e) The percent of supervisory reviews performed in a timely
manner.
(f) The results of a department survey of children's
protective services investigators on the number of investigators
who are concerned for their own personal safety.
(g) The percent of investigators using the mobile application
or another tool to document compliance.
Sec. 593. The department shall conduct an annual review in
each county to determine if the county has adopted and implemented
standard child abuse and child neglect investigation and interview
protocols under section 8(6) of the child protection law, 1975 PA
238, MCL 722.628.
Sec. 594. From the funds appropriated in part 1 for foster
care payments, the department shall support regional resource teams
to provide for the recruitment, retention, and training of foster
and adoptive parents and shall expand the Michigan youth
opportunities initiative to all counties of this state. The purpose
of the funding is to increase the number of annual inquiries from
prospective foster parents, increase the number of nonrelative
foster homes that achieve licensure each year, increase the annual
retention rate of nonrelative foster homes, reduce the number of
older foster youth placed outside of family settings, and provide
older youth with enhanced support in transitioning to adulthood.
Sec. 598. Partial child care fund reimbursements to counties
for undisputed charges must not be made later than 45 business days
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after receipt of the required forms and documentation. Not later
than 15 business days after receiving a request from a county for
reimbursement of a disputed charge, the department shall commence
activity to investigate and resolve the disputed reimbursement
charge. The activity to investigate and resolve a disputed
reimbursement charge may include, but is not limited to, the use of
a formal appeals process under applicable law and the department
chargeback policy. Not later than 45 business days after a properly
corrected submission by the county, the department shall reimburse
the county for the corrected charge or charges.

PUBLIC ASSISTANCE
Sec. 601. After a client agrees to the release of the client's
name and address to the local housing authority, the department
shall request from the local housing authority information
regarding whether the housing unit for which vendoring has been
requested meets applicable local housing codes. Vendoring must be
terminated if the local housing authority indicates in writing that
the unit does not meet local housing codes and until the local
housing authority indicates in writing that the local housing codes
have been met.
Sec. 602. The department shall conduct a full evaluation of an
individual's assistance needs if the individual has applied for
disability more than 1 time in a 1-year period.
Sec. 603. For any change in the income of a recipient of the
food stamps program, the family independence program, or state
disability assistance that results in a benefit decrease, the
department shall notify the recipient of the amount of the decrease
not later than 15 work days before the first day of the month in
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which the decrease takes effect.
Sec. 604. (1) From the funds appropriated in part 1 for state
disability assistance payments, the department shall operate a
state disability assistance program. Except as provided in
subsection (3), to be eligible for the program, an individual must
be a needy citizen of the United States or alien exempted from the
SSI citizenship requirement who is not less than 18 years of age,
or an emancipated minor, and meets 1 or more of the following
requirements:
(a) Is a recipient of SSI, Social Security, or medical
assistance due to disability or being 65 years of age or older.
(b) Is an individual with a physical or mental impairment that
meets federal SSI disability standards, except that the minimum
duration of the disability must be 90 days. Substance use disorder
alone is not a basis for eligibility.
(c) Is a resident of an adult foster care facility, a home for
the aged, a county infirmary, or a substance use disorder treatment
center.
(d) Is an individual receiving 30-day postresidential
substance use disorder treatment.
(e) Is an individual diagnosed as having AIDS.
(f) Is an individual receiving special education services
through a local intermediate school district.
(g) Is a caretaker of a disabled individual who meets the
requirements specified in subdivision (a), (b), (e), or (f).
(2) An applicant for or recipient of state disability
assistance is considered needy if the applicant or recipient does
both of the following:
(a) Meets the same asset test as is applied for the family
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independence program.
(b) Has a monthly budgetable income that is less than the
payment standards.
(3) Except for an individual described in subsection (1)(c) or
(d), an individual is not disabled under this section if the
individual's drug addiction or alcoholism is a contributing factor
material to the determination of disability.
(4) As used in this section:
(a) "Material to the determination of disability" means that,
if the individual stopped using drugs or alcohol, the individual's
remaining physical or mental limitations would not be disabling. If
the individual's remaining physical or mental limitations would be
disabling, then the drug addiction or alcoholism is not material to
the determination of disability and the individual may receive
state disability assistance, but the individual must actively
participate in a substance abuse treatment program, and the
assistance must be paid to a third party or through vendor
payments.
(b) "Substance abuse treatment" includes receipt of inpatient
or outpatient services or participation in Alcoholics Anonymous or
a similar program.
Sec. 605. The level of reimbursement provided to state
disability assistance recipients in licensed adult foster care
facilities must be the same as the prevailing SSI rate under the
personal care category.
Sec. 606. County department offices shall require each
recipient of family independence program and state disability
assistance who has applied with the Social Security Administration
for SSI to sign a contract to repay any assistance rendered through
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the family independence program or state disability assistance
program on receipt of retroactive SSI benefits.
Sec. 607. (1) The department's ability to satisfy
appropriation deductions in part 1 for state disability
assistance/supplemental security income recoveries and public
assistance recoupment revenues is not limited to recoveries and
accruals pertaining to state disability assistance, or family
independence program grant payments provided only in the current
fiscal year and may include revenues collected during the current
year that are prior-year-related and not a part of the department's
accrued entries.
(2) The department may use SSI recoveries to satisfy the
deduct in any line in which the revenues are appropriated,
regardless of the source from which the revenue is recovered.
Sec. 608. An adult foster care facility that provides
domiciliary care or personal care to a resident receiving SSI or a
home for the aged serving a resident receiving SSI shall not
require a resident described in this section to reimburse the home
for the aged or adult foster care facility for care at a rate in
excess of a rate that is authorized by the legislature. To the
extent permitted by federal law, an adult foster care facility and
home for the aged that serves a resident receiving SSI is not
prohibited from accepting a third-party payment in addition to SSI
if the payment is not for food, clothing, or shelter, or would
result in a reduction in the resident's SSI payment.
Sec. 609. The department shall not reduce the state
supplementation level under the SSI program for the personal
care/adult foster care and home for the aged categories during the
current fiscal year. Not later than 30 days before a proposed
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reduction in the state supplementation level, the department shall
notify the legislature of the proposed reduction.
Sec. 610. (1) The department shall grant an exemption from the
good-cause criteria for the state emergency relief program if an
emergency results from an unexpected expense related to maintaining
or securing employment.
(2) In determining housing affordability eligibility for state
emergency relief, a group is considered to have sufficient income
to meet ongoing housing expenses if the group's total housing
obligation does not exceed 75% of the group's total net income.
(3) The department shall not make a state emergency relief
payment to an individual who has been found guilty of fraud in
obtaining public assistance.
(4) The department shall not make a state emergency relief
payment to an individual who is an out-of-state or nonlegal
resident.
(5) The department shall distribute a state emergency relief
payment for rent assistance directly to a landlord and shall not
add the payment to a Michigan bridge card.
Sec. 611. The state supplementation level under the SSI
program for the living independently category or living in the
household of another category must not exceed the minimum state
supplementation level as required under federal law.
Sec. 613. (1) From the funds appropriated in part 1 for
indigent burial, the department shall provide a reimbursement for
the final disposition of an indigent individual. A reimbursement
under this section must comply with all of the following:
(a) The maximum allowable reimbursement for the final
disposition is $960.00.
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(b) The adult burial with services allowance is $875.00.
(c) The adult burial without services allowance is $610.00.
(d) The infant burial allowance is $240.00.
(e) The adult cremation with services allowance is $640.00.
(f) The adult cremation without services allowance is $390.00.
(g) The maximum allowable reimbursement if an irrevocable
funeral agreement exists is $260.00.
(2) The department shall reimburse up to $80.00 for a
cremation permit fee and for mileage at the standard rate for an
eligible cremation. A reimbursement under this subsection must take
into consideration whether an indigent individual's religious
preference prohibits cremation.
(3) An application for burial services must be made no later
than 20 business days after the burial, cremation, or donation
takes place. A friend or relative of the indigent individual may
supplement the burial payment in any amount up to $6,000.00 for
additional services. A funeral director, with written authorization
provided by a relative of the indigent individual, is deemed an
authorized representative for burial benefits.
(4) By January 31 of the current fiscal year, the department
shall submit a report to the standard report recipients on burial
service payments issued from the state emergency relief program
during the previous fiscal year. The report must include the number
of applicants denied, categorized by reason for denial, and the
number of payments by the following burial service categories:
(a) Fetus or infant less than 1 month of age.
(b) Burial with memorial service.
(c) Burial without memorial service.
(d) Cremation with memorial service.
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(e) Cremation without memorial service.
(f) Transportation of a donated or unclaimed body being
cremated.
(g) Cremation permit fee for an unclaimed body.
(h) Disposition of an unclaimed body.
(i) Payment if an irrevocable funeral agreement exists.
(j) An unclaimed body received by a university.
(5) For any indigent burial reimbursement that is denied, the
department shall notify the applicant of the reason for the denial
and provide information on how to request a hearing to contest the
decision.
Sec. 614. By January 15 of the current fiscal year, the
department shall submit a report to the standard report recipients
on the number and percentage of state disability assistance
recipients who were determined to be eligible for federal SSI
benefits in the previous fiscal year.
Sec. 615. Except as required by federal law, the department
shall not use funds appropriated in part 1 to provide public
assistance to an individual who is not a United States citizen,
permanent resident alien, or refugee. This section does not
prohibit the department from entering into a contract with a food
bank, emergency shelter provider, or another human service agency
that may, as a normal part of doing business, provide food or
emergency shelter.
Sec. 616. The department shall require a retailer that
participates in the electronic benefits transfer program to charge
no more than a $2.50 fee for cash back as a condition of
participation.
Sec. 619. The department shall not deny a title IV-A
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assistance and food stamps benefit under 21 USC 862a to an
individual who has been convicted of a felony for the possession,
use, or distribution of a controlled substance, if both of the
following are met:
(a) The act that resulted in the conviction occurred after
August 22, 1996.
(b) The individual is not in violation of the individual's
probation or parole requirements.
Sec. 620. (1) The department shall determine a Medicaid
applicant's Medicaid eligibility not later than 90 days after the
Medicaid applicant completes a Medicaid application if the Medicaid
applicant's disability is an eligibility factor. For other Medicaid
applicants, including an applicant who is a patient of a nursing
home, the department shall determine the applicant's Medicaid
eligibility within 45 days after receiving the Medicaid applicant's
application.
(2) On a quarterly basis, the department shall submit a report
to the standard report recipients on the number of recipients who
were ineligible for Medicaid after Medicaid eligibility
redeterminations resumed after federal continuous enrollment
requirements ended. The report must include, in a monthly data
format, the number of recipients who had their eligibility examined
directly, through an ex parte eligibility process or through a
passive eligibility process. The report must also include a copy of
each baseline and monthly report that the department provides to
CMS for unwinding data reporting and the number of recipients who
did not respond to the department through eligibility outreach or
data requests.
Sec. 625. From the funds appropriated in part 1 for SSI
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advocacy legal services grant, the department shall allocate
$975,000.00 as a grant to a membership association for attorneys
licensed to practice law in this state to assist current or
potential recipients of state disability assistance who have
applied for or wish to apply for SSI or other federal disability
benefits. The grant recipient shall provide a list of newly
eligible SSI recipients to the department to verify that services
are provided to department referrals.
Sec. 626. (1) The department shall not seek, apply for,
accept, or renew any waiver of work requirements under 7 USC
2015(o)(4) without first obtaining specific authorization from the
legislature.
(2) The department shall not exercise the state's option to
provide any exemptions from the work requirement under 7 USC
2015(o)(6)(F). This subsection must not be construed to limit the
application of good cause exemptions for temporary absence from
employment as provided in 7 CFR 273.24(b)(2).
Sec. 627. (1) The department shall enter into a data matching
agreement with the bureau of state lottery to identify households
enrolled in the food stamps program with lottery or gambling
winnings of $3,000.00 or more and, to the extent permissible under
federal law, treat this data as verified upon receipt. To the
extent the data may not be verified upon receipt as described under
this subsection, the department shall conduct further
investigations to determine whether the households have lottery or
gambling winnings that are equal to or greater than the resource
limit for elderly or disabled households as defined in 7 USC
2014(g)(1). If the department verifies data on receipt as described
under this subsection or determines that a household has lottery or
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gambling winnings that are equal to or greater than the resource
limit for elderly or disabled households as defined in 7 USC
2014(g)(1), the department shall determine that the household is
not eligible to participate in the food stamps program.
(2) On at least a monthly basis, the department shall receive
and review vital records information concerning individuals in
households enrolled in the food stamps program that indicates a
change in circumstances that may affect eligibility for food
stamps.
(3) On at least a quarterly basis, the department shall
receive and review information from the department of labor and
economic opportunity concerning individuals in households enrolled
in the food stamps program that indicates a change in circumstances
that may affect eligibility for food stamps, including, but not
limited to, changes in employment or wages.
(4) On at least a monthly basis, the department shall receive
and review address change information from returned mail by the
United States Postal Service and the National Change of Address
database concerning individuals in households enrolled in the food
stamps program that indicates a change in circumstances that may
affect eligibility for food stamps, including a change in
residency.
(5) On at least an annual basis, the department shall receive
and review information from the department of treasury concerning
individuals in households enrolled in the food stamps program that
indicates a change in circumstances that may affect eligibility for
food stamps, including, but not limited to, potential changes in
income, wages, household composition, or residency as identified by
tax records.
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(6) On at least a monthly basis, the department shall receive
and review information from the department of corrections
concerning individuals in households enrolled in the food stamps
program that indicates a change in circumstances that may affect
eligibility.
Sec. 628. On at least a monthly basis, the department shall
utilize Michigan bridge card data to flag any individual making
purchases exclusively out-of-state over a 60-day period. The
department shall contact each individual flagged within 30 days to
determine whether they reside in the state and remove those who are
determined not to be residing in the state or do not respond.
Within 15 days of their removal, the department shall refer such
cases to the United States Attorney's Office for the district where
the individual claimed to reside.
Sec. 629. On at least a monthly basis, the department shall,
to assess continued eligibility and act on findings, review all of
the following for households enrolled in the food stamps program:
(a) Earned income information, incarceration records,
supplemental security income information, beneficiary records,
earnings information, and pension information maintained by the
United States Social Security Administration.
(b) Income and employment information maintained in the
national directory of new hires database and child support
enforcement data maintained by the United States Department of
Health and Human Services.
(c) Payment and earnings information maintained by the United
States Department of Housing and Urban Development.
(d) National fleeing felon information maintained by the
United States Federal Bureau of Investigation.
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Sec. 630. (1) The department has the authority to execute a
memorandum of understanding with any department, agency, or
division for information required to be shared between agencies
outlined in this act.
(2) This act does not prohibit the department from contracting
with 1 or more independent vendors to provide additional data or
information that may indicate a change in circumstances that may
affect eligibility.
Sec. 631. Categorical eligibility under 7 USC 2014(a) or 7 CFR
273.2(j)(2)(iii) must not be granted for any noncash, in-kind, or
other benefit unless expressly required by federal law for the
supplemental nutrition assistance program. The department shall not
apply gross income standards higher than the standards specified in
7 USC 2014(c) or allowable financial resources higher than the
standards specified in 7 USC 2014(g)(1), other than financial
resources described in 7 USC 2014(g)(2)(D), unless expressly
required by federal law. Exempting households from the gross income
standards or allowable financial resource standards must not be
granted for any noncash, in-kind, or other benefit, unless
expressly required by federal law.
Sec. 632. The department shall assign certification periods of
no greater than 4 months, but not less than 3 months, to households
with zero net income, households that include an able-bodied adult
without dependents, or other households whose circumstances are
determined by the department to be unstable.
Sec. 633. If the department receives information concerning an
individual enrolled in the food stamps program that indicates a
change in circumstances that may affect eligibility, the department
shall review and take action on the individual's or household's
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case.
Sec. 634. The funds appropriated in part 1 for food stamps
program benefits must not be used to expand eligibility for the
restaurant meal program beyond the federal eligibility standards.
The department shall limit eligibility for the restaurant meal
program to households receiving food stamps program benefits in
which all members are either:
(a) Individuals who are 60 years of age or older.
(b) Individuals who are disabled.
(c) Individuals who are homeless.
(d) A spouse of a food stamps program recipient who is
eligible for the restaurant meal program.
Sec. 635. (1) Not later than November 1 of the current fiscal
year, the department shall request a waiver from the United States
Department of Agriculture to exclude soda and candy from the
definition of eligible foods under 7 CFR 271.2. If the United
States Department of Agriculture grants the waiver requested under
this subsection, the funds appropriated in part 1 for food stamps
program benefits must not be used to purchase soda or candy with
benefits provided through the food stamps program.
(2) As used in this section:
(a) "Candy" means preparations of sugar, honey, or other
sweeteners in combination with chocolate, fruits, nuts, or other
ingredients in the form of bars, drops, or pieces. Candy does not
include bars, drops, or pieces that contain flour or that require
refrigeration.
(b) "Soda" means any nonalcoholic beverage that contains
natural or artificial sweeteners. Soda does not include a beverage
that contains milk or milk substitutes or is greater than 50%
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vegetable juice or fruit juice by volume.
Sec. 645. The department shall consider an individual or
family to be homeless for purposes of eligibility for state
emergency relief, if the individual or family is living temporarily
with another in order to escape domestic violence. The department
shall define and verify domestic violence in the same manner as the
department defines and verifies that term in the department's
policies on good cause for not cooperating with child support and
paternity requirements.
Sec. 653. From the funds appropriated in part 1 for food
stamps program benefits, an individual who is the victim of
domestic violence or human trafficking and who does not qualify for
any other exemption may be exempt from the 3-month in 36-month
limit on receiving food stamps under 7 USC 2015. The department may
extend the exemption for an additional 3 months if an individual
described in this section demonstrates to the department a
continuing need.
Sec. 654. The department shall notify a recipient of food
stamps program benefits that the recipient's benefits can be spent
with the recipient's Michigan bridge card at many farmers markets
in this state. The department shall also provide a recipient with
information about the double up food bucks program that is
administered by the Fair Food Network. The information about the
double up food bucks program must include, but is not limited to,
information that if the recipient spends $20.00 at a participating
farmers market through the program, the recipient may receive an
additional $20.00 to buy Michigan produce.
Sec. 655. Not later than 14 days after the spending plan for
low-income home energy assistance program is approved by the state
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budget office, the department shall provide the spending plan,
including itemized projected expenditures and itemized expenditures
for the previous fiscal year, to the standard report recipients.
Sec. 660. From the funds appropriated in part 1 for Michigan
agricultural surplus system, the department shall allocate
$12,045,000.00 for procuring and distributing the Michigan
agricultural surplus system to distribute surplus produce to low-
income residents of this state.
Sec. 669. From the funds appropriated in part 1 for family
independence program – clothing allowance, the department shall
allocate $10,000,000.00 for the annual clothing allowance. The
department shall grant the allowance to eligible children in a
family independence program group.
Sec. 672. (1) By February 15 of the current fiscal year, the
department's office of inspector general shall submit a report to
the standard report recipients on the department's efforts to
reduce the inappropriate use of Michigan bridge cards and food
stamps program trafficking. The department shall provide
information on the number of recipients of services who used their
Michigan bridge card inappropriately and the current status of each
case, the number of recipients whose benefits were permanently and
temporarily revoked as a result of inappropriately using their
Michigan bridge cards, and the number of retailers that were fined
or removed from the electronic benefit transfer program for
permitting the inappropriate use of Michigan bridge cards. The
report must also include the number of Michigan bridge card
trafficking instances and overall welfare fraud referrals, that
includes, but is not limited to, information on the number of
investigations completed, fraud and intentional program violation
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dollar amounts identified, the number of referrals to prosecutors,
the number of administrative hearing referrals and waivers, and the
number of program disqualifications imposed. The report must
distinguish between savings and cost avoidance. As used in this
subsection:
(a) "Cost avoidance" includes expenditures avoided due to
front-end eligibility investigations and other preemptive actions
undertaken in the prevention of fraud.
(b) "Savings" includes receivables established from instances
of fraud committed.
(2) If a fourth Michigan bridge card has been issued to a
household in a 12-month period, the department shall notify the
household that the household has reached the number of issued cards
threshold. At a household's fifth and each subsequent card
replacement request, a card will not be issued until a recipient
from the household has spoken directly to the local office district
manager or county director. The district manager or county director
may issue a new Michigan bridge card based on the district
manager's or county director's assessment of the recipient's
situation and the recipient's explanation.
(3) As used in this section:
(a) "Food stamps trafficking" means the buying and selling of
food stamps benefits for cash or items not authorized under 7 USC
2036b.
(b) "Inappropriate use" means not used to meet a family's
ongoing basic needs, including, but not limited to, food, clothing,
shelter, utilities, household goods, personal care items, and
general incidentals.
Sec. 677. (1) The department shall establish a state goal for
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the percentage of family independence program cases involved in
employment activities. The percentage established must not be less
than 50%. The goal for long-term employment must be 15% of cases
for 6 months or more.
(2) The department shall submit an annual report, providing
quarterly data, to the standard report recipients on the number of
cases referred to PATH, the current percentage of family
independence program cases involved in PATH employment activities,
an estimate of the current percentage of family independence
program cases that meet federal work participation requirements on
the whole, and an estimate of the current percentage of the family
independence program cases that meet federal work participation
requirements for those cases referred to PATH.
(3) The department shall submit a report to the standard
report recipients. The report must include quarterly data on all of
the following:
(a) The number and percentage of nonexempt family independence
program recipients who are employed.
(b) The average and range of wages of employed family
independence program recipients.
(c) The number and percentage of employed family independence
program recipients who remain employed for 6 months or more.
Sec. 678. (1) From the funds appropriated in part 1 for family
independence program – child supplemental payment, the department
shall allocate $16,240,100.00 of TANF revenue to provide a
supplemental payment for the current fiscal year for each child
under 6 years of age within a family receiving cash assistance. Not
later than November 30 of the current fiscal year, the department
shall distribute an equal payment based on the funds available in
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part 1 and the total number of children under 6 years of age who
are within a family receiving cash assistance.
(2) From the funds appropriated in part 1 for family
independence program – child supplemental payment, the department
shall allocate $7,000,000.00 of TANF revenue to provide a
supplemental payment for the current fiscal year for each child 6
years of age or older but under 14 years of age within a family
receiving cash assistance. Not later than November 30 of the
current fiscal year, the department shall distribute an equal
payment based on the funds available in part 1 and the total number
of children who are 6 years of age or older but under 14 years of
age within a family receiving cash assistance.
(3) By February 1 of the current fiscal year, the department
shall submit a report to the standard report recipients on the
amount of funding distributed under this section and shall include
the number of family independence program cases, the number of
family independence program eligible children by age group, and the
amount of funding distributed by age category.
Sec. 686. (1) The department shall confirm that an individual
who presents a personal identification issued by another state and
is seeking assistance through the family independence program, food
stamps program, state disability assistance program or medical
assistance program is not receiving benefits from another state.
(2) The department shall confirm the address provided by an
individual who is seeking family independence program benefits or
state disability assistance benefits.
(3) The department shall prohibit an individual who has
property assets assessed at a value higher than $200,000.00 from
receiving assistance through a department-administered program,
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unless prohibiting assistance would violate a federal law or
guideline.
(4) The department shall make a reasonable attempt to obtain
an up-to-date telephone number for an individual seeking medical
assistance benefits during the eligibility determination or
redetermination process for the individual.
Sec. 687. (1) On a quarterly basis, the department shall
compile and make available a report on its website that contains
all of the following information about the family independence
program, state disability assistance, the food stamps program,
indigent burial, Medicaid, and state emergency relief:
(a) The number of applications received.
(b) The number of applications approved.
(c) The number of applications denied.
(d) The number of applications pending and neither approved
nor denied.
(e) The number of cases opened.
(f) The number of cases closed.
(g) The number of cases at the beginning of the quarter and
the number of cases at the end of the quarter.
(2) The department shall compile and make the information
provided under subsection (1) available for this state as a whole
and for each county and shall report the information separately for
each program listed in subsection (1).
(3) On a quarterly basis, the department shall compile and
make available a report on its website of the following family
independence program information:
(a) The number of new applicants who successfully met the
requirements of the 10-day assessment period for PATH.
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(b) The number of new applicants who did not meet the
requirements of the 10-day assessment period for PATH.
(c) The number of cases sanctioned because of a school truancy
policy.
(d) The number of cases closed because of the lifetime limits.
(e) The number of first-, second-, and third-time sanctions.
(f) The number of children 0 to 5 years of age who are living
in a family independence program-sanctioned household.

CHILDREN'S SERVICES AGENCY – JUVENILE JUSTICE
Sec. 701. Unless required by a change to federal law or the
law of this state or at the request of a provider, the department
shall not alter the terms of a signed contract with a private
residential facility that serves children who are under state or
court supervision without receiving written consent from a
representative of the private residential facility.
Sec. 702. (1) Not later than December 1 of the current fiscal
year, the department shall submit a report to the standard report
recipients on all of the following for the prior fiscal year:
(a) The average daily population by month of youths residing
at state-run juvenile justice facilities.
(b) The total number of beds at each facility, separated by
staffed and unstaffed, for each month.
(c) The average daily number of available beds by month.
(d) The average number of staff vacancies by month.
(2) The report must separate the data described in subsection
(1) by each state-run juvenile justice facility.
Sec. 703. From the funds appropriated in part 1 for juvenile
justice, administration and maintenance, the department shall
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allocate $2,000,000.00 to be distributed as grants to support
capital improvements for private and state-run juvenile justice
facilities that are licensed and have a contract with this state.
Funds must be used to reimburse costs associated with damages
resulting from property damage or injury caused by youth placed by
the department. Payments must not exceed $100,000.00 per incident
or $300,000.00 in total per facility.
Sec. 704. From the funds appropriated in part 1 for juvenile
justice treatment centers, the department shall allocate
$16,260,600.00 to support juvenile justice programming. The funds
appropriated in this section must be allocated for both of the
following:
(a) $8,130,300.00 to the Michigan youth treatment center to
support facility operations and services.
(b) $8,130,300.00 to support juvenile justice bed expansion
projects through private or state-run juvenile justice facilities.
Sec. 706. A county is subject to a 50% chargeback for the use
of an alternative regional detention service, if the detention
service does not fall under the basic grant provision of section
117e of the social welfare act, 1939 PA 280, MCL 400.117e, or if a
county operates the detention service program primarily with
professional rather than volunteer staff.
Sec. 707. To be reimbursed for child care fund expenditures, a
county shall submit to the department the report required under
section 117a(11) of the social welfare act, 1939 PA 280, MCL
400.117a, to enable the department to document a potential
federally claimable expenditure.
Sec. 708. (1) As a condition of receiving funds appropriated
in part 1 for the child care fund line item, by October 15 of the
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current fiscal year, a county shall have an approved service
spending plan for the current fiscal year. Not later than August 15
of the current fiscal year, a county shall submit the county's
service spending plan for the following fiscal year to the
department for approval. The department shall approve a county's
service spending plan not later than 30 calendar days after the
department receives a properly completed service spending plan from
the county that complies with the requirements of the social
welfare act, 1939 PA 280, MCL 400.1 to 400.119b. The department
shall notify and submit revisions to a service spending plan to a
county whose service spending plan is not approved after initial
submission. The department shall not request any additional
revisions to a county's service spending plan outside of the
requested revision notification submitted to the county by the
department. The department shall notify a county that its service
spending plan is approved not later than 30 days after the
department considers the county's revisions to the county's service
spending plan.
(2) A county shall submit an amendment to its county service
spending plan for the current fiscal year to the department not
later than August 30 of the current fiscal year. A county shall
submit payable estimates for the current fiscal year to the
department not later than September 15 of the current fiscal year.
(3) Not later than February 15 of the current fiscal year, the
department shall submit a report to the standard report recipients
on the number of counties that fail to submit a service spending
plan by August 15 of the previous fiscal year and the number of
service spending plans not approved by October 15. The report must
include the number of county service spending plans that were not
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initially approved by the department and the number of service
spending plans that were not approved by the department after being
resubmitted by the county after revisions were requested by the
department under subsection (1).
Sec. 709. The department's master contract for juvenile
justice residential foster care services must prohibit a contractor
from denying a referral for placing a youth, or terminating a
youth's placement, if the youth's assessed treatment needs are in
alignment with the facility's residential program type, as
identified by a court or the department. The master contract must
also require that a youth placed in a juvenile justice residential
foster care facility receives regularly scheduled treatment
sessions with a licensed clinician or therapist and has access to a
licensed psychologist or a psychiatrist or both, as clinically
indicated.

LOCAL OFFICE OPERATIONS AND SUPPORT SERVICES
Sec. 801. The department shall submit a monthly report to the
standard report recipients on the most recent food stamps program
error rate derived from the active cases, reported to the United
States Department of Agriculture Food and Nutrition Service for the
supplemental nutrition assistance program.
Sec. 802. From the funds appropriated in part 1 for local
office staff travel, the department shall allocate up to
$100,000.00 annually toward reimbursing the out-of-pocket costs of
county board members and county department directors to attend
statewide meetings of the Michigan County Social Services
Association.
Sec. 807. From the funds appropriated in part 1 for Elder Law
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of Michigan MiCAFE contract, the department shall allocate not less
than $247,500.00 to an elder services organization that received
funds under section 807 of article 6 of 2025 PA 22 for the purpose
described in that section. Of the $247,500.00 allocated under this
section, the department shall use $225,000.00 of general
fund/general purpose revenue as state matching funds to receive not
less than $22,500.00 in funding from the United States Department
of Agriculture to provide outreach program activities as part of a
statewide food stamps hotline. The outreach program activities may
include eligibility screening and information services.
Sec. 825. (1) From the funds appropriated in part 1, the
department shall provide an individual with not more than $2,000.00
for vehicle repairs, including a repair done in the previous 12
months. The $2,000.00 limit described in this section includes the
combined total of payments made by the department and the work
participation program.
(2) By February 1 of the current fiscal year, the department
shall submit a report to the standard report recipients that
details the total amount of funding distributed and the total
number of payments made for vehicle repairs.
Sec. 826. (1) From the funds appropriated in part 1 for local
office policy and administration, not less than $300,000.00 is
allocated for the department to contract with a legal association
that received funds under section 826(1) of article 6 of 2025 PA 22
for the purpose described in that section.
(2) Not later than March 1 of the current fiscal year, the
contracted entity shall submit a report to the department on the
efficacy of the contract. The department shall submit the report to
the standard report recipients not later than 30 days after the
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department receives the report.
Sec. 850. (1) The department shall maintain each out-stationed
eligibility specialist in a community-based organization, community
mental health agency, nursing home, adult placement and independent
living setting, FQHC, and hospital, unless the community-based
organization, community mental health agency, nursing home, adult
placement and independent living setting, FQHC, or hospital
requests to discontinue the positions at its facility.
(2) From the funds appropriated in part 1 for donated funds
positions, the department shall enter into a contract with any
agency that is able and eligible under federal law to provide the
required matching funds for federal funding, as determined by
federal law.
(3) A contract for a donated funds position for assistance
payments must include, but not be limited to, performance metrics
on both of the following topics:
(a) Meeting a standard of promptness for processing an
application for Medicaid and other public assistance programs under
the law of this state.
(b) Meeting required standards for error rates in determining
programmatic eligibility, as determined by the department.
(4) The department shall fill an additional donated funds
position only after a new contract has been signed with an agency.
The position must be abolished when the contract expires or is
terminated.
(5) The department shall classify as a limited-term FTE a new
employee who is hired to fill a donated funds position contract or
is hired to fill a vacancy from an employee who transferred to a
donated funds position.
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(6) By March 1 of the current fiscal year, the department
shall submit a report to the standard report recipients detailing
information on the donated funds positions. The report must
include, but is not limited to, the total number of occupied
positions, the total private contribution of the positions, and the
total cost to this state for a nonsalary expenditure for the
donated funds position employees.
Sec. 851. From the funds appropriated in part 1 for adult
services local office staff, the department shall seek to reduce
the number of older adults who are victims of crime and fraud by
increasing the standard of promptness in every county, as measured
by commencing an investigation not later than 24 hours after a
report is made to the department, establishing face-to-face contact
with the client not later than 72 hours after a report is made to
the department, and completing the investigation not later than 30
days after a report is made to the department.

DISABILITY DETERMINATION SERVICES
Sec. 890. From the funds appropriated in part 1 for disability
determination services, the department shall maintain the unit
rates in effect on September 30, 2019 for medical consultants
performing disability determination services, including physicians,
psychologists, and speech-language pathologists.

ARTICLE 6B
DEPARTMENT OF HEALTH AND HUMAN SERVICES - MEDICAID AND BEHAVIORAL
HEALTH
PART 1
LINE-ITEM APPROPRIATIONS
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FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of health
and human services for the fiscal year ending September 30, 2027,
from the following funds:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 3,826.3
Full-time employees 3,390.3
Limited-term employees 51.5
Noncareer/per diem employees 12.7
Part-time employees 2.5
Permanent-intermittent employees 18.6
Seasonal employees 0.0
Average population 774.0
GROSS APPROPRIATION $ 22,936,432,900
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 2,524,000
ADJUSTED GROSS APPROPRIATION $ 22,933,908,900
Federal revenues:
Capped federal revenues 39,112,700
Social security act, temporary assistance for
needy families 56,745,300
Total other federal revenues 15,646,014,700
Special revenue funds:
Total local revenues 68,691,300
Total private revenues 23,501,200
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Michigan merit award trust fund 95,700,000
Total other state restricted revenues 1,414,648,900
State general fund/general purpose $ 5,589,494,800
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 957.8
Unclassified salaries--FTEs 6.0 $ 1,086,800
Administrative hearings officers 7,139,000
Child welfare institute--FTEs 56.8 9,909,800
Coordinated children's healthcare policy and
supports--FTEs 62.0 23,663,300
Demonstration projects--FTE 1.0 4,235,900
Departmental administration and management--
FTEs 613.4 114,684,700
Departmentwide employee economic adjustments 15,701,400
Legal services 2,900
Office of inspector general--FTEs 205.9 30,202,000
Property management 52,602,500
Terminal leave payments 5,694,400
Training and program support--FTEs 18.7 3,660,200
Worker's compensation 7,884,900
GROSS APPROPRIATION $ 276,467,800
Appropriated from:
Interdepartmental grant revenues:
IDG from department of lifelong education,
advancement, and potential 1,913,700
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IDG from department of technology, management,
and budget - office of retirement services 600
Federal revenues:
Capped federal revenues 18,613,100
Social security act, temporary assistance for
needy families 16,936,700
Total other federal revenues 82,525,700
Special revenue funds:
Total local revenues 91,200
Total private revenues 3,067,900
Total other state restricted revenues 1,374,500
State general fund/general purpose $ 151,944,400
Sec. 103. BEHAVIORAL HEALTH PROGRAM
ADMINISTRATION AND SPECIAL PROJECTS
Full-time equated classified positions 95.0
Behavioral health program administration--FTEs 59.0 $ 50,354,600
Community substance use disorder prevention,
education, and treatment--FTEs 6.6 79,207,900
Family support subsidy 17,173,100
Federal and other special projects 25,500
Gambling addiction--FTE 1.0 4,274,700
Mental health diversion council 3,850,000
Michigan clinical consultation and care 5,789,000
Office of recipient rights--FTEs 24.4 3,563,200
Opioid response activities--FTEs 4.0 122,157,200
Protection and advocacy services support 194,400
GROSS APPROPRIATION $ 286,589,600
Appropriated from:
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Federal revenues:
Social security act, temporary assistance for
needy families 17,173,100
Total other federal revenues 159,620,100
Special revenue funds:
Total private revenues 2,704,700
Total other state restricted revenues 62,124,700
State general fund/general purpose $ 44,967,000
Sec. 104. BEHAVIORAL HEALTH SERVICES
Full-time equated classified positions 11.7
Autism services $ 560,716,600
Behavioral health community supports and
services--FTEs 8.0 29,531,000
Certified community behavioral health clinic
demonstration 916,062,700
Civil service charges 265,200
Community mental health non-Medicaid services 125,578,200
Federal mental health block grant--FTEs 3.7 27,483,900
Health homes 50,239,800
Healthy Michigan plan - behavioral health 375,780,500
Medicaid mental health services 3,329,969,700
Medicaid substance use disorder services 84,902,600
Nursing home PAS/ARR-OBRA 18,813,600
State disability assistance program substance
use disorder services 1,922,000
GROSS APPROPRIATION $ 5,521,265,800
Appropriated from:
Federal revenues:
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Total other federal revenues 3,787,480,600
Special revenue funds:
Total local revenues 9,943,600
Total other state restricted revenues 560,000
State general fund/general purpose $ 1,723,281,600
Sec. 105. STATE PSYCHIATRIC HOSPITALS AND
FORENSIC MENTAL HEALTH SERVICES
Full-time equated classified positions 2,210.2
Average population 774.0
Caro Regional Mental Health Center -
psychiatric hospital - adult--FTEs 428.7 $ 70,848,100
Average population 100.0
Center for forensic psychiatry--FTEs 624.5 127,449,700
Average population 240.0
Developmental disabilities council and
projects--FTEs 9.0 2,783,500
Gifts and bequests for patient living and
treatment environment 69,800
IDEA, federal special education 17,200
Kalamazoo Psychiatric Hospital - adult--FTEs 473.2 73,686,600
Average population 170.0
Purchase of medical services for residents of
hospitals and centers 445,600
Revenue recapture 9,200
Southeast Michigan state psychiatric hospital -
adult--FTEs 467.6 84,481,300
Average population 192.0
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Southeast Michigan state psychiatric hospital -
children and adolescents--FTEs 175.3 31,680,500
Average population 72.0
Special maintenance 562,800
State hospital administration--FTEs 31.9 5,801,900
GROSS APPROPRIATION $ 397,836,200
Appropriated from:
Federal revenues:
Total other federal revenues 28,114,300
Special revenue funds:
Total local revenues 23,938,400
Total private revenues 69,800
Total other state restricted revenues 17,637,800
State general fund/general purpose $ 328,075,900
Sec. 106. CHILDREN'S SPECIAL HEALTH CARE
SERVICES
Full-time equated classified positions 48.1
Bequests for care and services--FTEs 9.8 $ 2,227,300
Children's special health care services
administration--FTEs 38.3 9,297,200
Medical care and treatment 443,164,400
Outreach and advocacy 6,722,200
GROSS APPROPRIATION $ 461,411,100
Appropriated from:
Federal revenues:
Total other federal revenues 253,175,200
Special revenue funds:
Total private revenues 1,037,200
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Total other state restricted revenues 4,579,400
State general fund/general purpose $ 202,619,300
Sec. 107. HEALTH AND AGING SERVICES
ADMINISTRATION
Full-time equated classified positions 501.5
Aging services administration--FTEs 35.2 $ 7,969,400
Health services administration--FTEs 466.3 122,330,800
GROSS APPROPRIATION $ 130,300,200
Appropriated from:
Federal revenues:
Total other federal revenues 79,283,600
Special revenue funds:
Total local revenues 187,700
Total private revenues 1,721,300
Total other state restricted revenues 336,300
State general fund/general purpose $ 48,771,300
Sec. 108. HEALTH SERVICES
Full-time equated classified positions 2.0
Adult home help services $ 742,737,100
Ambulance services 25,335,200
Auxiliary medical services 5,126,300
Dental clinic program 1,000,000
Dental services 102,603,300
Federal Medicare pharmaceutical program 450,194,500
Federally qualified health centers 157,182,600
Health plan services 3,992,654,300
Healthy kids dental 233,684,200
Healthy Michigan plan 1,971,816,200
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Healthy Michigan plan - fee-for-service 657,272,000
Home health services 18,690,200
Hospice services 258,260,400
Hospital services and therapy 378,449,500
Integrated care organizations 711,203,700
Long-term care services 2,586,950,000
Maternal and child health 37,267,500
Medicaid home- and community-based services
waiver 586,826,500
Medicaid resource optimization (300,000,000)
Medicare premium payments 1,049,501,000
Personal care services 5,035,500
Pharmaceutical services 448,310,400
Physician services 135,333,300
Plan first 2,378,700
Program of all-inclusive care for the elderly 326,992,100
Rural health transformation program--FTEs 2.0 173,200,000
School-based services 196,691,300
Special Medicaid reimbursement 370,654,700
Transportation 26,057,200
GROSS APPROPRIATION $ 15,351,407,700
Appropriated from:
Federal revenues:
Rural health transformation program revenues 173,200,000
Total other federal revenues 10,856,917,000
Special revenue funds:
Total local revenues 34,530,400
Total private revenues 9,650,300
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Michigan merit award trust fund 95,700,000
Total other state restricted revenues 1,263,275,800
State general fund/general purpose $ 2,918,134,200
Sec. 109. INFORMATION TECHNOLOGY
Bridges information system $ 112,389,200
Child support automation 37,044,400
Comprehensive child welfare information system 8,750,300
Information technology services and projects 114,913,000
Michigan Medicaid information system 98,392,400
Michigan statewide automated child welfare
information system 20,992,300
GROSS APPROPRIATION $ 392,481,600
Appropriated from:
Interdepartmental grant revenues:
IDG from department of lifelong education,
advancement, and potential 609,700
Federal revenues:
Capped federal revenues 20,499,600
Social security act, temporary assistance for
needy families 22,635,500
Total other federal revenues 225,698,200
Special revenue funds:
Total private revenues 5,250,000
Total other state restricted revenues 2,010,400
State general fund/general purpose $ 115,778,200
Sec. 110. ONE-TIME APPROPRIATIONS
Opioid response activities $ 62,750,000
State hospital administration 1,200,000
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State psychiatric DSH disallowance 54,722,900
GROSS APPROPRIATION $ 118,672,900
Appropriated from:
Special revenue funds:
Michigan opioid healing and recovery fund 62,750,000
State general fund/general purpose $ 55,922,900

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the current fiscal year, total
state spending under part 1 from state sources is $7,099,843,700.00
and state spending under part 1 from state sources to be paid to
local units of government is $1,874,696,100.00. The following
itemized statement identifies appropriations from which spending to
local units of government will occur:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
BEHAVIORAL HEALTH PROGRAM ADMINISTRATION AND
SPECIAL PROJECTS
Behavioral health program administration $ 42,800
Community substance use disorder prevention,
education, and treatment 8,913,500
Gambling addiction 1,065,000
Mental health diversion council 113,900
Opioid response activities 927,800
BEHAVIORAL HEALTH SERVICES
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Autism services 189,487,300
Behavioral health community supports and
services 482,300
Certified community behavioral health clinic
demonstration 171,371,900
Community mental health non-Medicaid services 125,578,200
Health homes 15,613,400
Healthy Michigan plan - behavioral health 34,234,900
Medicaid mental health services 1,139,834,100
Medicaid substance use disorder services 29,231,400
Nursing home PAS/ARR-OBRA 4,689,400
State disability assistance program substance
use disorder services 1,539,000
STATE PSYCHIATRIC HOSPITALS AND FORENSIC MENTAL
HEALTH SERVICES
Caro Regional Mental Health Center -
psychiatric hospital – adult 68,500
Center for forensic psychiatry 696,600
Kalamazoo Psychiatric Hospital - adult 84,200
Southeast Michigan state psychiatric hospital –
adult 43,200
CHILDREN'S SPECIAL HEALTH CARE SERVICES
Medical care and treatment 943,000
Outreach and advocacy 3,176,000
HEALTH AND AGING SERVICES ADMINISTRATION
Aging services administration 125,000
Health services administration 361,000
HEALTH SERVICES
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Adult home help services 86,000
Ambulance services 1,216,000
Dental services 717,400
Healthy Michigan plan – fee-for-service 907,500
Hospital services and therapy 613,000
Long-term care services 124,067,800
Medicaid home- and community-based services
waiver 15,862,900
Personal care services 24,000
Physician services 1,378,000
Transportation 401,000
TOTAL OF PAYMENTS TO LOCAL UNITS OF GOVERNMENT $ 1,874,696,100
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "AIDS" means acquired immunodeficiency syndrome.
(b) "CCBHC" means certified community behavioral health
clinic.
(c) "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.
(d) "CMS" means the Centers for Medicare and Medicaid
Services.
(e) "CPT" means current procedural terminology.
(f) "Current fiscal year" means the fiscal year ending
September 30, 2027.
(g) "Department" means the department of health and human
services.
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(h) "Director" means the director of the department.
(i) "EPSDT" means early and periodic screening, diagnosis, and
treatment.
(j) "Federal poverty level" means the poverty guidelines
revised periodically and published in the Federal Register by the
Secretary of the United States Department of Health and Human
Services under the Secretary's authority to revise the poverty line
under 42 USC 9902.
(k) "FQHC" means federally qualified health center.
(l) "FTE" means full-time equated.
(m) "GME" means graduate medical education.
(n) "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.
(o) "HEDIS" means health care effectiveness data and
information set.
(p) "HMO" means health maintenance organization.
(q) "IDEA" means the individuals with disabilities education
act, 20 USC 1400 to 1482.
(r) "IDG" means interdepartmental grant.
(s) "MCH" means maternal and child health.
(t) "Medicaid" means benefits under the medical assistance
program established under title XIX of the social security act, 42
USC 1396 to 1396w-8, and administered by the department under the
social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.
(u) "Medicare" means benefits under the federal Medicare
program established under title XVIII of the social security act,
42 USC 1395 to 1395mmm.
(v) "MiCAFE" means Michigan's coordinated access to food for
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the elderly.
(w) "MIChild" means the program described in section 1670 of
this part.
(x) "MiSACWIS" means Michigan statewide automated child
welfare information system.
(y) "PACE" means program of all-inclusive care for the
elderly.
(z) "PAS/ARR-OBRA" means the preadmission screening and annual
resident review required under the omnibus budget reconciliation
act of 1987, section 1919(e)(7) of the social security act, 42 USC
1396r.
(aa) "PATH" means Partnership. Accountability. Training. Hope.
(bb) "PFAS" means perfluoroalkyl and polyfluoroalkyl
substances.
(cc) "PIHP" means an entity designated by the department as a
regional entity or a specialty prepaid inpatient health plan for
Medicaid mental health services, services to individuals with
developmental disabilities, and substance use disorder services.
Regional entities are described in section 204b of the mental
health code, 1974 PA 258, MCL 330.1204b. Specialty prepaid
inpatient health plans are described in section 109f of the social
welfare act, 1939 PA 280, MCL 400.109f.
(dd) "Previous fiscal year" means the fiscal year ending
September 30, 2026.
(ee) "Quarterly basis" means February 1, April 1, July 1, and
September 30 of the current fiscal year.
(ff) "Semiannual basis" means March 1 and September 30 of the
current fiscal year.
(gg) "Settlement" means the settlement agreement entered in
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the case of Dwayne B. v Snyder, Docket No. 2:06-cv-13548 in the
United States District Court for the Eastern District of Michigan.
(hh) "SSI" means supplemental security income.
(ii) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on the department budget, the senate and house fiscal
agencies, the senate and house policy offices, and the state budget
office.
(jj) "Temporary assistance for needy families" or "TANF" or
"title IV-A" means part A of title IV of the social security act,
42 USC 601 to 619.
(kk) "Title IV-B" means part B of title IV of the social
security act, 42 USC 621 to 629m.
(ll) "Title IV-D" means part D of title IV of the social
security act, 42 USC 651 to 669b.
(mm) "Title IV-E" means part E of title IV of the social
security act, 42 USC 670 to 679c.
(nn) "Title X" means subchapter VIII of the public health
service act, 42 USC 300 to 300a-8, which establishes grants to
states for family planning services.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
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required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
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on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
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occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
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Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) Not later than April 1, the department shall
maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
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Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $20,000,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393. Federal contingency
authorization must not be made available to increase TANF
authorization.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $20,000,000.00 for state
restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $5,000,000.00 for local
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $2,000,000.00 for private
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $174,401,600.00. From this amount, total
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appropriations for pension-related legacy costs for the department
are estimated at $174,401,600.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
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that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
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each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
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spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
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office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
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reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
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individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.
Sec. 250. If either of the following events occurs, not later
than 30 days after the event occurs, the department shall notify
the standard report recipients of that fact:
(a) A legislative objective of this part or of a bill or
amendment to a bill to amend the social welfare act, 1939 PA 280,
MCL 400.1 to 400.119b, cannot be implemented because implementation
would conflict with or violate federal law.
(b) A federal grant for which a notice of an award has been
received cannot be used or will not be used.
Sec. 251. (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
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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 fund
sources in part 1 is not limited to collections and accruals
pertaining to services provided in the current fiscal year and
includes reimbursements, refunds, adjustments, and settlements from
prior years.
Sec. 252. Not later than February 1 of the current fiscal
year, the department shall submit, to the standard report
recipients, a report on the detailed names and amounts of estimated
federal, restricted, private, and local sources of revenue that
support the appropriations in each of the line items in part 1 for
the previous fiscal year. The report must itemize, rather than
aggregate, specific revenue sources deposited into the generic
statewide integrated governmental management application (SIGMA)
fund numbers 1200, 1274, 4000, and 5000.
Sec. 253. As required under part 23 of the public health code,
1978 PA 368, MCL 333.2301 to 333.2321, the appropriations in part 1
must include the following:
(a) Immunizations.
(b) Communicable disease control.
(c) Sexually transmitted infection control.
(d) Tuberculosis control.
(e) Prevention of gonorrhea eye infection in newborns.
(f) Screening newborn infants for the conditions listed in
section 5431 of the public health code, 1978 PA 368, MCL 333.5431,
or recommended by the newborn screening quality assurance advisory
committee created under section 5430 of the public health code,
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1978 PA 368, MCL 333.5430.
(g) Health and human services annex of the Michigan Emergency
Management Plan.
(h) Prenatal care.
(i) Mental health.
Sec. 254. (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
Michigan Public Health Institute to carry out the activities
described in this subsection for up to a 1-year period.
(2) On a semiannual basis, the department shall submit, to the
standard report recipients, a report that includes 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.
(3) On a semiannual basis, the department shall provide, to
the standard report recipients, 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
the department's budget in the previous fiscal year and allocated
to the Michigan Public Health Institute.
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Sec. 255. The department shall ensure that faith-based
organizations are able to apply and compete for services, programs,
or contracts that the organizations are qualified and suitable to
fulfill. The department shall not disqualify faith-based
organizations solely on the basis of the religious nature of the
organizations or the guiding principles or statements of faith for
the organizations.
Sec. 256. In accordance with section 1b of the social welfare
act, 1939 PA 280, MCL 400.1b, the department shall treat part 1 and
this part as a time-limited addendum to the social welfare act,
1939 PA 280, MCL 400.1 to 400.119b.
Sec. 257. (1) Not later than 30 days before the implementation
date of a major policy change, the department shall report the
change to the standard report recipients.
(2) The department shall make the department's entire policy
and procedures manual available and accessible to the public on the
department's website.
(3) The department shall attach each policy bulletin issued
during the previous calendar year to the report under section 213.
Sec. 258. The department may establish and collect fees for
publications, videos and related materials, conferences, and
workshops. Collected fees are appropriated when received and must
be used to offset expenditures for publication printing and
mailing, costs of the publications, videos and related materials,
conferences, and workshops. The department shall not collect fees
under this section that exceed the cost of the expenditures. If
collected fees are appropriated under this section in an amount
that exceeds the current fiscal year appropriation, not later than
30 days after the collected fee appropriation, the department shall
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notify the standard report recipients of that fact.
Sec. 259. The department may retain all of this state's share
of food assistance overissuance collections as an offset to general
fund/general purpose costs. Retained collections must be applied
against federal funds deductions in all appropriation units where
department costs related to the investigation and recoupment of
food assistance overissuances are incurred. Retained collections in
excess of the investigation and recoupment costs must be applied
against the federal funds deducted in the departmental
administration and support appropriation unit.
Sec. 260. 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 must be used as the first source
of funds in the subsequent fiscal year.
Sec. 261. If the department receives tobacco tax funds and
Healthy Michigan fund revenue from part 1, not later than April 1
of the current fiscal year, the department shall submit, to the
standard report recipients, a report on both of the following
activities during the previous fiscal year:
(a) Tobacco tax revenue appropriations in the Medicaid
program.
(b) Information for each project implemented with revenue
under this section, including all of the following:
(i) The project's name.
(ii) The appropriation line item and amount.
(iii) The project's target population.
(iv) A description of the project.
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(v) The outcomes or accomplishments of the project.
Sec. 262. If the department is authorized under federal law or
the law of this state to collect an overpayment owed to the
department, beginning 60 days after the initial notification date
of the overpayment amount, the department may assess a penalty of
1% per month. If an overpayment is caused by department error, a
penalty may be assessed 6 months after the initial notification
date of the overpayment amount. The department shall not collect
penalty interest in an amount that exceeds the amount of the
original overpayment. This state's share of any funds collected
under this section must be deposited in the general fund of this
state.
Sec. 263. (1) On a quarterly basis, the department shall
submit, to the standard report recipients, a report on the status
of the implementation of any noninflationary, noncaseload,
programmatic funding increases in the current fiscal year from the
previous fiscal year. The report must confirm the implementation of
already-implemented funding increases and provide an explanation
for any planned implementation of funding increases that have not
yet occurred. For any planned implementation of funding increases
that have not yet occurred, the report must include an expected
implementation date and the reason for delayed implementation.
(2) For any programmatic funding increases not reported as
implemented or in the process of being implemented in the first 2
reports under subsection (1), the department shall submit, to the
standard report recipients, a status update in the last 2 reports
required under subsection (1).
Sec. 264. (1) The department shall not expend the funds
appropriated in part 1 to enter into any contract with a Medicaid
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managed care organization of MI Choice Waiver, MI Coordinated
Health, or behavioral health unless the Medicaid managed care
organization agrees to do all of the following:
(a) Comply with expressly defined direct care worker network
adequacy standards and any contractual consequences of not
complying with the network adequacy standards described in this
subdivision.
(b) At a minimum, maintain the rates provided to in network
direct care worker agencies and direct care workers at the rate
provided during the previous fiscal year.
(c) Ensure, to the greatest extent possible, that the full
amount of funds appropriated for direct care worker wages, except
for costs incurred by the employer, including payroll taxes, is
provided to direct care workers through maintained increased wages.
(d) Report to the department each direct care agency and
direct care worker reimbursement rate provided to a direct care
agency or direct care worker.
(2) Not later than March 1 of the current fiscal year, the
department shall submit a report to the standard report recipients
on the outcomes and compliance with the network adequacy standards
described in subsection (1) and an aggregated table of rates paid
to direct care agencies and direct care workers.
(3) As used in this section "direct care worker" means an
individual performing an activity for a program and associated
service described in the department's Medicaid provider letter L
25-78.
Sec. 265. The department shall provide the approved spending
plan for each line item receiving an appropriation in the current
fiscal year to the senate and house of representatives
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appropriations subcommittees on the department budget and the
senate and house fiscal agencies not later than 60 days after
approval by the department or not later than January 15 of the
current fiscal year, whichever is earlier. In all places that a
line-item appropriation number is listed, a line-item appropriation
name must be included. The spending plan must include the following
information regarding planned expenditures for each category:
allocation in the previous period, change in the allocation, and
new allocation. The spending plan must include the following
information regarding each revenue source for the line item:
category of the fund source indicated by general fund/general
purpose, state restricted, local, private, or federal. Figures
included in the approved spending plan must not be assumed to
constitute the actual final expenditures, as line items may be
updated on an as-needed basis to reflect changes in projected
expenditures and projected revenue. The department shall supplement
the spending plan information by providing a list of all active
contracts and grants in the department's contract system. For
amounts listed in the other contracts category of each spending
plan, the department shall include the name of the line item and
the name of the fund source for each contract, grant, and amount
for the current fiscal year. For amounts listed in the all other
costs category of each spending plan, the department shall provide
a list detailing planned expenditures and amounts for the current
fiscal year and include the name of the line item and the name of
the fund source related to each expenditure and amount.
Sec. 266. For behavioral and physical health services provided
through managed care or the fee-for-service program, the department
shall require, for the nonfacility component of the reimbursement
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rate, at least the same reimbursement for that service, if that
service is provided through telemedicine, as if the service
involved face-to-face contact between the health care professional
and the patient.
Sec. 267. Not later than March 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report on total actual expenditures in the previous fiscal year for
advertising and media outreach, including the purpose, amount, and
fund source by program or appropriation line item.
Sec. 268. Not later than March 1 of the current fiscal year,
the department shall submit a description of programs report to the
standard report recipients. For each program, the report must
include the appropriation unit; the line item name and number; the
appropriation history; the program name; the program overview; a
financing summary; and, where applicable, the program's legal
basis, effectiveness, and outcomes.
Sec. 269. On a quarterly basis, the department shall submit,
to the standard report recipients, a report on any line-item
appropriation for which the department estimates total annual
expenditures would exceed the funds appropriated for the line-item
appropriation by 5% or more. The department shall provide a
detailed explanation for any relevant line-item appropriation
exceedance, identify the corrective actions undertaken to mitigate
line-item appropriation expenditures from exceeding the funds
appropriated for the line-item appropriation by a greater amount,
and identify other corrective actions if no legislative transfer or
supplemental is approved. This section does not apply for line-item
appropriations that are part of the May revenue estimating
conference caseload and expenditure estimates.
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Sec. 270. (1) The department shall ensure that each federally
recognized tribe is able to apply and compete for services,
programs, grants, and contracts.
(2) For competitive grant programs described in this part,
each federally recognized tribe is eligible to apply for grant
funds made available to organizations exempt from federal income
tax under section 501(c)(3) of the internal revenue code of 1986,
26 USC 501, and to local units of government.
Sec. 271. (1) Except as provided in this subsection, before
submission of a waiver, state plan amendment, or similar proposal
to CMS or another federal agency, the department shall notify the
standard report recipients of the planned submission. This
subsection does not apply to the submission of a waiver, state plan
amendment, or similar proposal that does not propose a material
change or is outside of the ordinary course of a waiver, state plan
amendment, or similar proposal.
(2) On a semiannual basis, the department shall submit, to the
standard report recipients, a report that summarizes the status of
any new or ongoing discussions with CMS, the United States
Department of Health and Human Services, or another federal agency
regarding any potential or future waiver applications and the
status of any submitted waivers that have not yet received federal
approval. If there is not a reportable item at the time that a
semiannual report is due, a report is not required.
Sec. 272. The department shall advise the legislature of the
receipt of a notification from the attorney general's office of a
legal action in which expenses had been recovered under section 10b
of the medicaid false claims act, 1977 PA 72, MCL 400.610b. If
applicable, not later than February 1 of the current fiscal year,
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the department shall submit, to the standard report recipients, a
report that includes, but is not limited to, all of the following:
(a) The total amount recovered from the legal action.
(b) The program or service for which the money was originally
expended.
(c) Details on the disposition of the funds recovered, such as
the appropriation or revenue account in which the money was
deposited.
(d) A description of the facts involved in the legal action.
Sec. 273. On the day that is 1 week after the day that the
governor submits the executive budget proposal for the ensuing
fiscal year to the legislature, the department, in collaboration
with the state budget office, shall submit, to the standard report
recipients, a report on spending and revenue projections for each
of the capped federal funds listed in this subsection. The report
must contain actual spending and revenue in the previous fiscal
year, spending and revenue projections for the current fiscal year
as enacted, and spending and revenue projections in the executive
budget proposal for the immediately ensuing fiscal year for each
individual line item for the department budget. The report must
also include federal funds transferred to other departments. The
capped federal funds include, but are not limited to, all of the
following:
(a) TANF.
(b) Title XX social services block grant.
(c) Title IV-B subpart I child welfare services block grant.
(d) Title IV-B subpart II promoting safe and stable families
funds.
(e) Low-income home energy assistance program.
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Sec. 274. (1) On a quarterly basis, the department, with the
approval of the state budget director, is authorized to realign
sources between other federal, TANF, and capped federal financing
authorizations to maximize federal revenues. The realignment of
financing must not produce any of the following:
(a) A gross increase or decrease in the department's total
individual line item authorizations.
(b) A net increase or decrease in total federal revenues.
(c) A net increase in TANF authorization.
(2) On a quarterly basis, the department shall submit, to the
standard report recipients, a report on the realignment of federal
fund sources transacted to date in the current fiscal year under
subsection (1), including the dates, line items, and amounts of the
transactions. If, at the time a quarterly report is due, a
transaction was not made under subsection (1), a report is not
required.
(3) Not later than 30 days after the date on which year-end
book closing is completed, the department shall submit, to the
standard report recipients, a report on the realignment of federal
fund sources that took place as part of the year-end closing
process for the previous fiscal year.
Sec. 275. Any public advertisement for public assistance must
inform the public of the welfare fraud hotline operated by the
department.
Sec. 276. Not later than April 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report on funds appropriated for the healthy moms, healthy babies
initiative. The report must include the budgeted amount, year-to-
date expenditures, remaining balance of appropriations, and the
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percent of budget spent for each appropriation related to the
initiative. The report must also include information on how the
funds have assisted with meeting the goals and outcomes of the
initiative.
Sec. 277. (1) The department may accept monetary and
nonmonetary gifts, bequests, donations, contributions, or grants
from any private source to support, in whole or in part, a
departmental function or program. The department shall expend or
use the gifts, bequests, donations, contributions, or grants for
the purposes designated by the private source, if the purpose is
specified and part 1 has sufficient authorization.
(2) In the demonstration projects line item, private revenue
collected by the department and amounts remaining in the fund under
this section at the end of the fiscal year does not lapse to the
general fund but must be carried forward to the subsequent fiscal
year.

DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. From the funds appropriated in part 1 for child
welfare institute, the department shall train private child placing
agency staff in the pre-service training requirements for child
welfare caseworkers and supervisors. Private child placing agency
staff must be provided an opportunity to complete the training in a
virtual format at the staff's private child placing agency
facility. If a private child placing agency prefers a hybrid
training format that includes virtual and in-person instruction,
the training must be available to the private child placing agency
staff.
Sec. 302. (1) From the funds appropriated in part 1 for
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coordinated children's healthcare policy and supports, the
department shall allocate $1,000,000.00 for autism services
coordination. The department shall require a contractor receiving
funds under this section to comply with performance-related metrics
established by the department to maintain eligibility for funding.
The performance-related metrics must include, but not be limited
to, all of the following:
(a) Each contractor shall have an accreditation that attests
to the contractor's competency and effectiveness in providing
services.
(b) Each contractor shall demonstrate cost-effectiveness.
(c) Each contractor shall ensure the contractor's ability to
leverage private dollars to strengthen and maximize the provision
of services.
(d) On a quarterly basis, each contractor shall provide
reports to the department on the number of clients served by PIHP
region, units of service provision by PIHP region, and ability to
meet the contractor's stated goals.
(2) Each contractor receiving funds under this section shall
submit a comprehensive report to the department not later than 60
days after the end of the contract period. The report must include
specific information on services and programs provided by the
contractor, the client base to which the services and programs were
provided by the contractor, and the contractor's expenditures for
the services. The department shall submit the reports to the
standard report recipients.
Sec. 303. From the funds appropriated in part 1 for training
and program support, the department shall develop and implement a
training program with the requisite materials to assist eligibility
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specialists in following the verification procedures of Healthy
Michigan plan community engagement requirements for the eligibility
determination and redetermination processes.

BEHAVIORAL HEALTH PROGRAM ADMINISTRATION AND SPECIAL PROJECTS
Sec. 901. The department shall use the funds appropriated in
part 1 to support a system of comprehensive community mental health
services under the full authority and responsibility of local
CMHSPs or PIHPs in accordance with the mental health code, 1974 PA
258, MCL 330.1001 to 330.2106, the Medicaid provider manual,
federal Medicaid waivers, and all other applicable federal law and
the law of this state.
Sec. 902. (1) From the funds appropriated in part 1, the
department shall make a final authorization to a CMHSP or PIHP on
the execution of a contract between the department and the CMHSP or
PIHP. The contract must contain an approved plan and budget and any
policy and procedure governing the obligations and responsibilities
of each party to the contract. Each contract with a CMHSP or PIHP
that the department is authorized to enter into under this
subsection must 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 PIHPs entered into under this
subsection for the current fiscal year does not exceed the amount
of money appropriated in part 1 for the contracts authorized under
this subsection.
(2) The department shall immediately submit a report to the
standard report recipients if either of the following occurs:
(a) The department enters into a new contract with a CMHSP or
PIHP that would affect a rate or expenditure.
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(b) The department amends a contract that the department has
entered into with a CMHSP or PIHP that would affect a rate or
expenditure.
(3) The report required by subsection (2) must include
information about any changes to the contract and the change's
effects on rates and expenditures.
Sec. 904. (1) Not later than September 30 of the current
fiscal year, the department shall provide a report on the CMHSPs,
PIHPs, and designated regional entities for substance use disorder
prevention and treatment to the standard report recipients that
includes the information required by this section.
(2) The report required under subsection (1) must contain,
unless otherwise noted, information for each CMHSP and PIHP and a
statewide summary, as follows:
(a) A statewide summary of the demographic description of
service recipients that, minimally, includes reimbursement
eligibility, client population group, age, ethnicity, housing
arrangements, and diagnosis.
(b) Per capita expenditures in total and by client population
group.
(c) A statewide summary of Medicaid-funded cost information
for the 3 diagnosis groups of adults with a mental illness,
children with a serious emotional disturbance, and individuals with
an intellectual or developmental disability. The statewide summary
must, minimally, include expenditures by service category for each
of the 3 diagnosis groups described in this subdivision and cases,
units, and cost of each specific service code index or health care
common procedure coding system code for each of the 3 diagnosis
groups.
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(d) Financial information on non-Medicaid mental health
services by general fund cost reporting category.
(e) Information about access to each CMHSP, PIHP, and
designated regional entity for substance use disorder prevention
and treatment, that includes, but is not limited to, all of the
following:
(i) The number of individuals receiving requested services.
(ii) The number of individuals who requested services but did
not receive services.
(f) The number of second opinions requested under the mental
health code, 1974 PA 258, MCL 330.1001 to 330.2106, and the
determination of any appeals.
(g) Lapses and carryforwards during the previous fiscal year
for each CMHSP, PIHP, and designated regional entity for substance
use disorder prevention and treatment.
(h) Performance indicator information required to be submitted
to the department in the contracts with each PIHP.
(i) Administrative expenditures of each CMHSP and PIHP that
include a breakout of the salary, benefits, and pension of each
executive-level staff, which includes, but is not limited to, the
director, chief executive, and chief operating officer.
(3) The report required under subsection (1) must contain the
following information from the previous fiscal year on substance
use disorder prevention, education, and treatment programs:
(a) A statewide summary of the demographic description of
service recipients that, minimally, must include reimbursement
eligibility, primary substance of abuse, age, ethnicity, housing
arrangements, and sex at birth.
(b) The expenditures stratified by department-designated
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regional entities for substance use disorder prevention and
treatment, by fund source, by subcontractor, by population served,
and by service type.
(c) The expenditures per state client, with data on the
distribution of expenditures reported using a histogram approach.
(d) The number of services provided by subcontractor and by
service type. Additionally, data on length of stay, referral
source, and participation in other state programs.
(e) The collections from other first- or third-party payers,
private donations, or other state or local programs, by department-
designated regional entities for substance use disorder prevention
and treatment, by subcontractor, by population served, and by
service type.
(f) Information about access to CMHSPs, PIHPs, and designated
regional entities for substance use disorder prevention and
treatment that includes, but is not limited to, the following:
(i) The number of individuals receiving requested services.
(ii) The number of individuals who requested services but did
not receive services.
(4) The department shall include the data reporting
requirements described in subsections (2) and (3) in the
department's annual contract with each CMHSP, PIHP, and designated
regional entity for substance use disorder prevention and
treatment.
(5) The department shall take all reasonable actions to ensure
that the data required are complete and consistent among all
CMHSPs, PIHPs, and designated regional entities for substance use
disorder prevention and treatment.
Sec. 907. (1) The department shall expend the amount
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appropriated in part 1 for community substance use disorder
prevention, education, and treatment to coordinate care and
services provided to individuals with severe and persistent mental
illness and substance use disorder diagnoses.
(2) Each managing entity shall continue current efforts to
collaborate on the delivery of services to clients with mental
illness and substance use disorder diagnoses, with the goal of
providing services in an administratively efficient manner.
Sec. 909. From the funds appropriated in part 1 for health
homes, the department shall use available revenue from the
marihuana regulatory fund established in section 604 of the medical
marihuana facilities licensing act, 2016 PA 281, MCL 333.27604, to
improve physical health, expand access to substance use disorder
prevention and treatment services, and strengthen the existing
prevention, treatment, and recovery systems.
Sec. 910. The department shall ensure that substance use
disorder treatment is provided to applicants and recipients of
public assistance through the department who are required to obtain
substance use disorder treatment as a condition of eligibility for
public assistance.
Sec. 911. (1) The department shall ensure that a contract with
a CMHSP or PIHP requires the CMHSP or PIHP to implement programs to
encourage the diversion of individuals with a serious mental
illness, serious emotional disturbance, or developmental disability
from possible jail incarceration, when appropriate.
(2) Each CMHSP or PIHP 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
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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. 912. The department shall contract directly with the
program that received funding under section 912 of article 6 of
2025 PA 22, at an amount not less than the amount provided during
the fiscal year ending September 30, 2020, to provide non-Medicaid
substance use disorder services, if the local coordinating agency
or the department confirms the program meets the standard of care
established by the department. The standard of care must include,
but is not limited to, using a medication assisted treatment
option.
Sec. 914. Not later than June 1 of the current fiscal year,
the department shall submit a report to the standard report
recipients on outcomes of the funds provided in part 1 to the
Michigan Clinical Consultation and Care program (MC3). The outcomes
reported must include, but are not limited to, the number of same-
day telephone consultations with primary care providers and the
number of local resource recommendations made to primary care
providers who are providing medical care to patients who need
behavioral health services.
Sec. 915. From the funds appropriated in part 1 for community
substance use disorder prevention, education, and treatment and
opioid response activities, the department shall, to the extent
possible, provide grants, pursuant to federal law, to local public
entities that provide substance use disorder services and to 1
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private entity that has a statewide contract to provide community-
based substance use disorder services.
Sec. 916. From the funds appropriated in part 1 for behavioral
health program administration, the department shall allocate
$1,100,000.00 as a grant to a nonprofit mental health clinic that
received a grant under section 916 of article 6 of 2025 PA 22 for
the purpose described in that section, if the clinic provides
counseling services, accepts clients regardless of a client's
ability to pay for services through sliding scale copayments and
volunteer services, and uses fundraising to support the clinic.
Sec. 917. (1) From the funds appropriated in part 1 for opioid
response activities, the department shall allocate $55,000,000.00
from the Michigan opioid healing and recovery fund created under
section 3 of the Michigan trust fund act, 2000 PA 489, MCL 12.253,
to programs and services to address the opioid crisis in a manner
consistent with the opioid judgement, settlement, or compromise of
claims pertaining to violations, or alleged violations, of law
related to the manufacture, marketing, distribution, dispensing, or
sale of opioids. The funds cannot be used to purchase drug
paraphernalia. The funds must be allocated as follows:
(a) $9,000,000.00 for primary prevention activities, as
follows:
(i) $6,000,000.00 for supporting out-of-school programming that
prevents substance use among teenagers and young adults.
(ii) $1,000,000.00 for public health awareness and education
campaigns.
(iii) $2,000,000.00 for reducing the risks of multigenerational
addiction and family separations through family substance use
supports and youth programming.
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(b) $12,000,000.00 to support harm reduction agencies.
(c) $9,000,000.00 to substance use disorder treatment, as
follows:
(i) $8,000,000.00 for improving access to quality substance use
disorder care providers through workforce development programming.
(ii) $1,000,000.00 to support expanding jail treatment services
throughout the state.
(d) $19,500,000.00 for recovery investments, as follows:
(i) $11,000,000.00 to supplement grants to recovery community
organizations under section 978.
(ii) $2,000,000.00 to support housing assistance for
individuals who are in recovery.
(iii) $2,000,000.00 to support transportation assistance for
individuals who are in recovery.
(iv) $4,500,000.00 for peer support services.
(e) $4,000,000.00 for informed decision-making, evaluation of
investments, and training as follows:
(i) $2,000,000.00 in oversight and grants management to promote
good government, transparency, and accountability.
(ii) $2,000,000.00 for law enforcement training.
(f) $2,500,000.00 for the following stand-alone investments:
(i) $2,000,000.00 to invest in tribal communities.
(ii) $500,000.00 for start-up or new programming.
(2) On a semiannual basis, the department shall submit to the
standard report recipients a report on all of the following:
(a) Total revenues deposited into and expenditures and
encumbrances from the Michigan opioid healing and recovery fund
since the creation of the fund.
(b) Revenues deposited into and expenditures and encumbrances
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from the Michigan opioid healing and recovery fund during the
previous 6 months.
(c) Estimated revenues to be deposited into and the spending
plan for the Michigan opioid healing and recovery fund for the next
12 months.
Sec. 918. On a quarterly basis, providing monthly data, the
department shall submit a report to the standard report recipients
on the amount of funding paid to PIHPs to support the Medicaid
managed mental health care program. The report must include
information on the total paid to each PIHP, per capita rate paid
for each eligibility group for each PIHP, the number of cases in
each eligibility group for each PIHP, and a year-to-date summary of
eligibles and expenditures for the Medicaid managed mental health
care program.
Sec. 920. As part of the Medicaid rate-setting process for
behavioral health services, the department shall work with PIHP
network providers and actuaries to include, as part of the Medicaid
rate, state and federal wage and compensation increases that
directly impact staff who provide Medicaid-funded community living
supports, personal care services, respite services, skill-building
services, and other supports and services that the department
determines are similar.
Sec. 922. From the funds appropriated in part 1 for behavioral
health program administration, the department shall allocate
$750,000.00 to a nonprofit organization that received funding under
section 922 of article 6 of 2025 PA 22, to administer an online and
interactive version of the protected health information consent
tool and make any revisions to the tool to reflect any recent
legislative changes. The contracting entity that receives funds
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appropriated under this section shall also develop accompanying
trainings and resources for users. Additionally, the contracting
entity that receives funds appropriated under this section shall
work closely with the Michigan Health Information Network Shared
Services and the department to develop the technical specifications
for integrating the protected health information consent tool with
other relevant systems and applications, including, but not limited
to, CareConnect360.
Sec. 924. From the funds appropriated in part 1, for the
purposes of actuarially sound rate certification and approval for
Medicaid behavioral health managed care programs, the department
shall maintain a fee schedule for autism services reimbursement
rates for direct services. Expenditures used for rate setting shall
not exceed the rates identified in the fee schedule. The fee
schedule must include a rate for behavioral technicians that is not
more than $66.00 per hour.
Sec. 925. The department shall dedicate up to 1%, and no less
than 0.5%, of the autism services line item to contract with an
external, independent agency with content expertise in autism
service delivery that is not itself an autism service provider to
undertake efforts to identify fraud, institute quality control
measures, and integrate those efforts into providing technical
assistance to autism service providers receiving Medicaid funds and
to improve outcomes and accountability.
Sec. 926. (1) From the funds appropriated in part 1 for
community substance use disorder prevention, education, and
treatment, $1,000,000.00 is allocated for a specialized substance
use disorder detoxification project in conjunction with a substance
use and case management provider.
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(2) The substance use and case management provider receiving
funds under this section shall collect and submit to the department
data on the outcomes of the project throughout the duration of the
project and the department shall submit a report on the project's
outcomes to the standard report recipients.
Sec. 928. (1) Each PIHP shall provide, from the PIHP's
internal resources, local funds to be used as a part of the state
match required under the Medicaid program in order to increase
capitation rates for PIHPs. The local funds must not include either
of the following:
(a) State funds received by a CMHSP for services provided to
non-Medicaid recipients.
(b) The state matching portion of the Medicaid capitation
payments made to a PIHP.
(2) Not later than April 1 of the current fiscal year, the
department shall report to the standard report recipients on the
lapse by PIHP from the previous fiscal year and the projected lapse
by PIHP in the current fiscal year.
Sec. 935. A county required under 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 the
county's 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 of the
current fiscal year.
Sec. 940. (1) In accordance with section 236 of the mental
health code, 1974 PA 258, MCL 330.1236, the department shall review
expenditures for each CMHSP to identify any CMHSP with a projected
allocation surplus and to identify any CMHSP with a projected
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allocation shortfall. The department shall encourage the board of a
CMHSP with a projected allocation surplus to concur with the
department's recommendation to reallocate the projected surplus to
a CMHSP with a projected allocation shortfall.
(2) A CMHSP that has its projected surplus reallocated during
the current fiscal year as described in subsection (1) is not
eligible for an additional funding reallocation during the
remainder of the current fiscal year, unless the CMHSP is
responding to a public health emergency as determined by the
department.
(3) A CMHSP shall report to the department on a proposed
reallocation described in this section at least 30 days before the
reallocation takes effect.
(4) The department shall notify the chairs of the
appropriation subcommittees on the department budget when a request
is made and when the department grants approval for a reallocation
described in subsection (1). Not later than February 1 of the
current fiscal year, the department shall submit a report on the
amount of funding reallocated in the previous fiscal year to the
standard report recipients.
Sec. 942. A CMHSP shall provide at least 30 days' notice
before reducing, terminating, or suspending a service provided by
the CMHSP to a CMHSP client, unless the service is authorized by a
physician and the service no longer meets established criteria for
medical necessity.
Sec. 960. (1) From the funds appropriated in part 1 for autism
services, the department shall continue to cover all Medicaid
autism services to Medicaid enrollees eligible for the services
that were covered on January 1, 2019.
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(2) To restrain cost increases in the autism services line
item, the department shall do all of the following:
(a) Maintain specific written guidance for standardization of
Medicaid PIHPs and CMHSPs autism spectrum disorder administrative
services, including, but not limited to, reporting requirements,
coding, and reciprocity of credentialing and training between PIHPs
and CMHSPs to reduce administrative duplication at the PIHP, CMHSP,
and service provider levels.
(b) Require consultation with the client's evaluation
diagnostician and PIHP to approve the client's ongoing therapy for
3 years, unless the client's evaluation diagnostician recommended
an evaluation before the 3 years or if a clinician on the treatment
team recommended an evaluation for the client before the third
year.
(c) Limit the authority to perform a diagnostic evaluation for
Medicaid autism services to qualified licensed practitioners as
determined by the department.
(d) Allow and expand the utilization of telemedicine and
telepsychiatry to increase access to diagnostic evaluation
services.
(e) Coordinate with the department of insurance and financial
services on oversight for compliance with the Paul Wellstone and
Pete Domenici mental health parity and addiction equity act of
2008, Public Law 110-343, as it relates to autism spectrum disorder
services, to ensure appropriate cost sharing between public and
private payers.
(f) Require that Medicaid eligibility be confirmed through
prior evaluations conducted by qualified licensed practitioners as
determined by the department.
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(g) Maintain regular statewide provider trainings on autism
spectrum disorder standard clinical best practice guidelines for
treatment and diagnostic services.
(3) By March 1 of the current fiscal year, the department
shall submit a report to the standard report recipients on total
autism services spending broken down by PIHP and CMHSP for the
previous fiscal year and current fiscal year and total
administrative costs broken down by PIHP, CMHSP, and the type of
administrative cost for the previous fiscal year and current fiscal
year.
Sec. 962. For special projects involving high-need children or
adults, including the not guilty by reason of insanity population,
the department may contract directly with providers of services to
the children and adults described in this section.
Sec. 965. From the funds appropriated in part 1, the
department and each PIHP shall maintain the comparison rate and any
associated reimbursement rate of the bundled rate H0020 for the
administration and services of methadone at not less than $19.00.
Sec. 972. From the funds appropriated in part 1 for behavioral
health program administration, the department shall allocate not
less than $9,386,400.00 of general fund/general purpose revenue and
any associated federal match or federal grant funding, including,
but not limited to, associated federal 988 grant funding for the
mental health telephone access line known as the Michigan crisis
and access line (MiCAL), to provide for both of the following in
accordance with section 165 of the mental health code, 1974 PA 258,
MCL 330.1165:
(a) Primary coverage in a region where a regional national
suicide prevention lifeline center does not provide coverage.
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(b) Statewide secondary coverage.
Sec. 974. The department and a PIHP shall allow an individual
with an intellectual or developmental disability who receives
supports and services from a CMHSP to instead receive supports and
services from another provider if the individual is eligible and
qualified to receive supports and services from another provider.
Other providers may include, but are not limited to, MIChoice and
PACE.
Sec. 978. From the funds appropriated in part 1 for community
substance use disorder prevention, education, and treatment and
recovery community organizations, the department shall allocate
$1,200,000.00 as grants for recovery community organizations in
accordance with section 273b of the mental health code, 1974 PA
258, MCL 330.1273b. A grant must be used to offer or expand
recovery support center services or recovery community center
services to individuals seeking long-term recovery from substance
use disorders.
Sec. 994. (1) Not later than June 1 of the current fiscal
year, the department shall seek, if necessary, federal approval
through either a waiver request or state plan amendment to allow a
CMHSP, PIHP, or subcontracting provider agency that is reviewed and
accredited by a national accrediting entity for behavioral health
care services to be considered in compliance with state program
review and audit requirements that are addressed and reviewed by
that national accrediting entity.
(2) Not later than September 30 of the current fiscal year,
the department shall report to the standard report recipients all
of the following:
(a) The status of the federal approval process required in
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subsection (1).
(b) A list of each CMHSP, PIHP, and subcontracting provider
agency that is considered to be in compliance with state program
review and audit requirements under subsection (1).
(c) For each CMHSP, PIHP, or subcontracting provider agency
described in subdivision (b), both of the following:
(i) The state program review and audit requirements that the
CMHSP, PIHP, or subcontracting provider agency is considered to be
in compliance with.
(ii) The national accrediting entity that reviewed and
accredited the CMHSP, PIHP, or subcontracting provider agency.
(3) The department shall continue to comply with the laws of
this state and federal law and shall not initiate an action that
negatively impacts beneficiary safety. Any cost savings attributed
to this action must be reinvested back into services.
(4) As used in this section, "national accrediting entity"
means the Joint Commission, formerly known as the Joint Commission
on Accreditation of Healthcare Organizations; the Commission on
Accreditation of Rehabilitation Facilities; the Council on
Accreditation; the URAC, formerly known as the Utilization Review
Accreditation Commission; the National Committee for Quality
Assurance; or another appropriate entity, as approved by the
department.
Sec. 995. (1) From the funds appropriated in part 1 for mental
health diversion council, the department shall allocate
$3,850,000.00 to continue to implement the jail diversion programs
that are intended to address the recommendations of the mental
health diversion council.
(2) Not later than March 1 of the current fiscal year, the
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department shall submit a report to the standard report recipients
on the planned allocation of the funds appropriated for the mental
health diversion council.
(3) As used in this section, "mental health diversion council"
means the council as that term is defined in section 207e of the
mental health code, 1974 PA 258, MCL 330.1207e.
Sec. 996. From the funds appropriated in part 1 for family
support subsidy, the department shall make monthly payments of
$300.36 to a parent or legal guardian of a child approved for the
family support subsidy by a CMHSP.
Sec. 997. The department shall use population data from the
most recent federal data from the United States Census Bureau in
determining the distribution of substance use disorder block grant
funds.
Sec. 998. If the department decides to use census data to
distribute state general funds to CMHSPs, the department shall use
the most recent federal data from the United States Census Bureau.

BEHAVIORAL HEALTH SERVICES
Sec. 1001. Not later than May 15 of the current fiscal year,
each CMHSP shall submit a report to the department that identifies
populations being served by the CMHSP broken down by program
eligibility category. The report must also include the percentage
of the operational budget that is related to program eligibility
enrollment. Not later than June 30 of the current fiscal year, the
department shall submit the reports described in this section to
the standard report recipients.
Sec. 1002. The funds appropriated in part 1 must not be used
by the department to expand the certified community behavioral
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health clinic demonstration.
Sec. 1003. The department shall notify the Community Mental
Health Association of Michigan when developing a policy or
procedure that will impact a PIHP or CMHSP.
Sec. 1004. The department shall submit a report to the
standard report recipients on any rebased formula changes to either
Medicaid behavioral health services or non-Medicaid mental health
services 90 days before the department implements the formula
change. The notification must include a table showing the changes
in funding allocation by PIHP for Medicaid behavioral health
services or by CMHSP for non-Medicaid mental health services.
Sec. 1005. (1) From the funds appropriated in part 1 for
health homes, the department shall maintain the number of
behavioral health homes and maintain the number of substance use
disorder health homes, in place by PIHP region as of September 30
of the previous fiscal year. The department may submit a request to
the senate and house appropriation committees to expand the number
of behavioral health homes and the number of substance use disorder
health homes in a PIHP region added after October 1 of the current
fiscal year.
(2) On a semiannual basis, the department shall submit a
report to the standard report recipients on both of the following:
(a) The number of individuals being served and the
expenditures incurred by each PIHP region by site.
(b) The number of sites by PIHP region that qualify for
enhanced federal reimbursement and the date when the enhanced
federal reimbursement would expire.
Sec. 1006. (1) From the funds appropriated in part 1 for
certified community behavioral health clinics, not later than May 1
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of the current fiscal year the department shall submit to the
standard report recipients an outcomes report for CCBHCs during the
previous fiscal year that includes both statewide and CCBHC site-
specific information on all of the following:
(a) The total number of distinct individuals served by the
CCBHCs.
(b) The percentage of individuals served by the CCBHCs that
were Medicaid recipients.
(c) The percentage of individuals served by the CCBHCs that
were not Medicaid recipients.
(d) The total number of CCBHC daily visits.
(e) Total number of CCBHC services provided, broken down by
the 9 core CCBHC services.
(f) Total expenditures from base and supplemental payments.
(g) Staffing and staff vacancy levels of the CCBHCs.
(h) The amount of prospective payment system rates for each
CCBHC over the entire demonstration period allocated across the 9
service types.
(i) The total expenditures by CCBHC in the previous fiscal
year.
(j) The total cost factors and implications in interpreting
how CCBHCs deliver care over the course of the demonstration
period.
(k) The comparison of costs for a random sample of enrollees
between care provided by a CCBHC provider and a Medicaid provider
that is not a CCBHC. The sample must include participants known to
have received services at CCBHC providers and Medicaid providers
that are not CCBHCs.
(l) The change, in number and percentage, from the fiscal year
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immediately prior to the previous fiscal year of the number of
individuals that needed crisis services more than once.
(m) The change, in number and percentage, from the fiscal year
immediately prior to the previous fiscal year of the number of
individuals that went to the emergency department more than once.
(n) The change, in number and percentage, from the fiscal year
immediately prior to the previous fiscal year of the number of
individuals that received inpatient hospital services more than
once.
(2) From the funds appropriated in part 1 for certified
community behavioral health clinics, the department shall submit
the CCBHC cost efficiency evaluation to the standard report
recipients not later than 7 business days after the department's
receipt of the final information required from the relevant
contractors.
Sec. 1008. (1) A PIHP and CMHSP shall do all of the following:
(a) Work to reduce administration costs by ensuring that PIHP
and CMHSP responsible functions are efficient in allowing optimal
transition of dollars to the direct services considered most
effective in assisting individuals served. Any consolidation of
administrative functions must demonstrate, by independent analysis,
a reduction in dollars spent on administration resulting in greater
dollars spent on direct services. Savings resulting from increased
efficiencies must not be applied to PIHP and CMHSP net assets,
internal service fund increases, building costs, increases in the
number of PIHP and CMHSP personnel, or other areas not directly
related to the delivery of improved services.
(b) Take an active role in managing mental health care by
ensuring consistent and high-quality service delivery throughout
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its network and promote a conflict-free care management
environment.
(c) Ensure that direct service rate variances are related to
the level of need or other quantifiable measures to ensure that the
most money possible reaches direct services.
(d) Whenever possible, promote fair and adequate direct care
reimbursement, including, but not limited to, fair wages for direct
service workers.
(2) Not later than May 1 of the current fiscal year, the
department shall submit a report to the standard report recipients
on any actual reduction of administrative costs over the prior 2
fiscal years.
Sec. 1010. (1) The department shall use the funds appropriated
in part 1 for behavioral health community supports and services to
reduce waiting lists at state-operated hospitals and centers
through cost-effective community-based and residential services,
including, but not limited to, assertive community treatment,
forensic assertive community treatment, crisis stabilization units
in accordance with chapter 9A of the mental health code, 1974 PA
258, MCL 330.1971 to 330.1979, and psychiatric residential
treatment facilities in accordance with section 137a of the mental
health code, 1974 PA 258, MCL 330.1137a.
(2) From the funds appropriated in part 1 for behavioral
health community supports and services, the department shall
allocate $7,441,900.00 to reimburse private providers for intensive
psychiatric treatments and services that are provided outside of
state-operated hospitals and centers and for support efforts
related to overseeing community-based programs placement.
(3) If a private provider has an existing wait list for
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intensive psychiatric treatments and services, a reimbursement to
the private provider under this section must not be conditioned on
the private provider giving wait-list priority to individuals
placed with funds appropriated in this section.
(4) From the funds appropriated in part 1 for behavioral
health community supports and services, the department shall
allocate $4,055,000.00 as grants to build out additional crisis
stabilization units under chapter 9A of the mental health code,
1974 PA 258, MCL 330.1971 to 330.1979.
(5) Not later than March 1 of the current fiscal year, the
department shall submit a report to the standard report recipients
on all of the following:
(a) The types of community supports and services purchased.
(b) The quantity, measured by days or other relevant unit of
service, of each community support and service purchased.
(c) The quantifiable impact of the purchase of community
supports and services, including the number of individuals served,
the number of successful discharges, and the number of re-
escalations to either the discharging entity or a state psychiatric
hospital.
Sec. 1014. (1) From the funds appropriated in part 1 to agencies
providing physical and behavioral health services to multicultural
populations, the department shall award grants in accordance with the
requirements of subsections (2) and (3). This state is not liable for any
spending above the contract amount. The department shall not release funds
until reporting requirements under section 1014 of article 6 of 2025 PA 22
are satisfied.
(2) The department shall require each contractor described in
subsection (1) that receives greater than $1,000,000.00 in state grant
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funding to comply with performance-related metrics to maintain their
eligibility for funding. The performance-related metrics shall include,
but not be limited to, all of the following:
(a) Each contractor or subcontractor shall have accreditations that
attest to their competency and effectiveness as behavioral health and
social service agencies.
(b) Each contractor or subcontractor shall have a mission that is
consistent with the purpose of the multicultural agency.
(c) Each contractor shall validate that any subcontractors utilized
within these appropriations share the same mission as the lead agency
receiving funding.
(d) Each contractor or subcontractor shall demonstrate cost-
effectiveness.
(e) Each contractor or subcontractor shall ensure their ability to
leverage private dollars to strengthen and maximize service provision.
(f) Each contractor or subcontractor shall provide timely and
accurate reports regarding the number of clients served, units of service
provision, and ability to meet their stated goals.
(3) The department shall require each contractor described in
subsection (1) to ensure that the funds appropriated in this section are
only used on proven or established programs.
(4) The department shall require an annual report from the
contractors described in subsection (2). The annual report, due 60
days following the end of the contract period, must include
specific information on services and programs provided, the client
base to which the services and programs were provided, information
on any wraparound services provided, and the expenditures for those
services. Not later than February 1 of the current fiscal year, the
department must submit the annual reports to the standard report
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recipients.
Sec. 1020. The department shall not issue, implement, or otherwise
proceed with any request for proposal, rebid, or procurement process
related to the delivery, financing, or administration of public behavioral
health or mental health services, nor expend state or federal funds for
such purposes, unless the request for proposals fully complies with the
mental health code, 1974 PA 258, MCL 330.1001 to 330.2106, and the
statutory framework governing Michigan’s public behavioral health system,
has received approval through enactment of legislation or approval by the
legislature as provided in law, and the department has returned to the
legislature for approval of a plan for implementation prior to taking any
further action.
Sec. 1021. (1) From the funds appropriated in part 1, the department
shall not expend state general fund/general purpose revenue, federal
funds, or any other funds to develop, implement, administer, or advance
the proposal commonly referred to as the “Mental Health Framework” or any
similar policy initiative that alters the current responsibilities for
behavioral health services between prepaid inpatient health plans,
community mental health services programs, or Medicaid health plans.
(2) The department shall not take administrative, contractual,
regulatory, or policy actions to transfer, delegate, or otherwise modify
responsibility for psychiatric inpatient admissions or behavioral health
service management in a manner inconsistent with the responsibilities
established under the mental health code, 1974 PA 258, MCL 330.1001 to
330.2106.
(3) The department shall not implement policies that shift
management of psychiatric inpatient benefits or related behavioral health
services to Medicaid health plans unless specifically authorized by a
subsequent act of the legislature.
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(4) The department shall maintain the current structure of
responsibility for behavioral health services unless otherwise
directed by law.
Sec. 1022. The department must reimburse a CMHSP that is a
member of a PIHP that was a defendant in the case of Waskul, et al.
v. Washtenaw County Community Mental Health, et al. for any costs
associated with settlement agreement of this case. Not later than
March 1 of the current fiscal year, the department shall provide a
report to the standard report recipients on the total
reimbursements provided under this section to the CMHSPs, itemized
by CMHSP.
Sec. 1034. (1) PIHPs must verify, on a quarterly basis, to the
department and to the standard report recipients that every
provider within the PIHP's provider network receives the applicable
reimbursement rates or fees required in sections 924 and 264 of
this part for the purpose of complying with network adequacy
standards. The verification under this subsection must provide
actual claims and utilization data.
(2) The department shall seek CMS approval to exclude PIHPs
that are not compliant with subsection (1) from all performance
incentives available to PIHPs.
(3) The department shall audit the claims and utilization data
provided in this section. If the department audit determines that a
PIHP reimburses any provider within that PIHP's provider network at
a rate that is insufficient to maintain network adequacy standards
for the services provided in sections 924 and 264 of this part, the
department shall notify that PIHP that it is not eligible for
performance incentives funded in part 1. Not later than 10 days
after a notification to a PIHP under this subsection, the
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department shall notify the standard report recipients that the
PIHP is not eligible for performance incentives funded in part 1.

STATE PSYCHIATRIC HOSPITALS AND FORENSIC MENTAL HEALTH SERVICES
Sec. 1051. 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. A portion of
revenues collected through the project's efforts may be used for
departmental costs and contractual fees associated with retroactive
collections under the project and to improve ongoing departmental
reimbursement management functions.
Sec. 1052. The department shall use gifts and bequests
received for patient living and treatment environments for
additional private funds to provide specific enhancements for
individuals residing at state-operated facilities. The department
shall use the gifts and bequests consistent with the stipulation of
the donor. The department shall use gift and bequest donations
within 3 years unless otherwise stipulated by the donor.
Sec. 1055. (1) The department shall not implement a closure or
consolidation of a state hospital, center, or agency, until each
CMHSP or PIHP affected by the closure or consolidation has programs
and services in place for the individuals currently in the
hospital, center, or agency that is to be closed or consolidated,
and has a plan for providing services to the individuals who would
have been admitted to the hospital, center, or agency.
(2) A closure or consolidation is dependent on adequate
department-approved CMHSP and PIHP plans that include a discharge
and aftercare plan for each individual currently in a facility
described in subsection (1). A discharge and aftercare plan must
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address an individual's housing needs. A homeless shelter or
similar temporary shelter arrangement is inadequate to meet an
individual's housing needs.
(3) Four months after a closure is certified under section
19(6) of the state employees' retirement act, 1943 PA 240, MCL
38.19, the department shall provide a closure plan to the standard
report recipients.
(4) On the closure of a hospital, center, or agency and after
transitional costs have been paid, the remaining balances of funds
appropriated for the hospital, center, or agency must be
transferred to CMHSPs or PIHPs responsible for providing services
for individuals previously served by the hospital, center, or
agency.
Sec. 1056. The department may collect revenue for patient
reimbursement from first- and third-party payers, including
Medicaid and local county CMHSP payers, to cover the cost of
patient placement in state hospitals and centers. The department
may 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 department shall use the revenue
carried forward as a first source of funds in the subsequent year.
Sec. 1058. Effective October 1 of the current fiscal year, the
department, in consultation with the department of technology,
management, and budget, may maintain a bid process to identify 1 or
more private contractors to provide food and custodial services for
the administrative areas at a state hospital identified by the
department as capable of generating savings through the outsourcing
of food and custodial services.
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Sec. 1059. (1) The department shall identify specific outcomes
and performance measures for state-operated hospitals and centers.
Unless specified, the outcomes and performance measures must be
calculated on an average monthly basis from the previous calendar
year, as follows:
(a) The average wait time from the time of the receipt of a
court order for the treatment of an individual who is determined
incompetent to stand trial until the individual's admission to the
center for forensic psychiatry or other state-operated psychiatric
hospital.
(b) The average number of individuals determined not guilty by
reason of insanity by an order of the court who, on the first day
of each month, are waiting to receive admission into the center for
forensic psychiatry or other state-operated psychiatric hospital.
(c) The average number of adults who, on the first day of each
month, are waiting to receive admission into another state-operated
hospital or center through the civil admissions process.
(d) The average number of children who, on the first day of
each month, are waiting to receive admission into another state-
operated hospital or center through the civil admissions process.
(e) The average wait time for an adult who is awaiting
admission into another state-operated hospital or center through
the civil admissions process.
(f) The average wait time for a child who is awaiting
admission into another state-operated hospital or center through
the civil admissions process.
(g) The number of individuals determined not guilty by reason
of insanity or incompetent to stand trial by an order of the court
who have been determined to be ready for discharge to the
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community, and the average wait time between being determined to be
ready for discharge to the community and actual community
placement.
(h) The number of adults admitted through the civil admission
process that have been determined to be ready for discharge to the
community, and the average wait time between being determined to be
ready for discharge to the community and actual community
placement.
(i) The number of children admitted through the civil
admission process that have been determined to be ready for
discharge to the community, and the average wait time between being
determined to be ready for discharge to the community and actual
community placement.
(j) The most recent 12-month total number of individuals
determined not guilty by reason of insanity by an order of the
court ordering the individual to be admitted into the center for
forensic psychiatry or other state-operated psychiatric hospital.
(k) The most recent 12-month total number of adults requested
to be admitted to a state-operated hospital or center through the
civil admissions process.
(l) The most recent 12-month total number of children requested
to be admitted to a state-operated hospital or center through the
civil admissions process.
(m) The number of individuals determined not guilty by reason
of insanity by an order of the court who were removed from the
admissions waiting list and the reason for the removal from the
admissions waiting list.
(n) The number of adults awaiting admission through the civil
admission process removed from the admission waiting list and the
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reason for the removal from the admission waiting list.
(o) The number of children awaiting admission through the
civil admission process removed from the admission waiting list and
the reason for the removal from the admission waiting list.
(p) The number of individuals determined not guilty by reason
of insanity by an order of the court and not admitted into the
center for forensic psychiatry or other state-operated hospital or
center, and the rationale for the individual not being admitted.
(q) The number of adults not admitted into the other state-
operated hospitals or centers through the civil admissions process
and the rationale for the individual not being admitted.
(r) The number of children not admitted into a state-operated
hospital or center through the civil admission process and the
rationale for the individual not being admitted.
(2) Not later than April 1 of the current fiscal year, the
department shall submit a report to the standard report recipients
of this part on the outcomes and performance measures required
under subsection (1).
Sec. 1060. Not later than March 1 of the current fiscal year,
the department shall submit a report on mandatory overtime, staff
turnover, and staff retention at the state psychiatric hospitals
and centers to the standard report recipients. The report must
include, but is not limited to, the following:
(a) The number of direct care and clinical staff positions
that are currently vacant by hospital, and how that number compares
to the number of vacancies during the previous fiscal year.
(b) A breakdown of voluntary and mandatory overtime hours
worked by position and by hospital, and how that breakdown compares
to the breakdown of voluntary and mandatory overtime hours during
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the previous fiscal year.
(c) The ranges of wages paid by position and by hospital, and
how the ranges of wages paid compare to wages paid during the
previous fiscal year.
Sec. 1061. Not later than March 1 of the current fiscal year,
the department shall report to the standard report recipients a
proposed timeline for either the future use or the demolition of
the Walter P. Reuther Psychiatric Hospital, and an estimated cost
of the timeline.
Sec. 1063. (1) From the funds appropriated in part 1 for
southeast Michigan state psychiatric hospital –children and
adolescents, the department shall maintain a psychiatric
transitional unit and children's transition support team. The unit
and support team described in this subsection shall augment the
continuum of behavioral health services for high-need youth and
provide additional continuity of care and transition into
supportive community-based services.
(2) The outcome and performance measures for the unit and
support team described in subsection (1) include, but are not
limited to, the following:
(a) The rate of rehospitalization for youth served through the
unit or support team at 30 and 180 days.
(b) The measured change in the Michigan Child and Adolescent
Needs and Strengths tool for youth and families served through the
unit or support team.

CHILDREN'S SPECIAL HEALTH CARE SERVICES
Sec. 1360. From the funds appropriated in part 1, the
department may do 1 or more of the following:
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(a) Provide special formulas for eligible individuals with
specified metabolic and allergic disorders.
(b) Provide medical care and treatment to eligible individuals
with cystic fibrosis who are 26 years of age or older.
(c) Provide medical care and treatment to eligible individuals
with hereditary coagulation defects, commonly known as hemophilia,
who are 26 years of age or older.
(d) Provide human growth hormone to eligible individuals.
(e) Provide mental health care to eligible individuals for
mental health needs that result from, or are a symptom of, the
individual's qualifying medical condition.
(f) Provide medical care and treatment to eligible individuals
with sickle cell disease who are 26 years of age or older.
Sec. 1361. From the funds appropriated in part 1 for medical
care and treatment, the department may spend the funds to continue
developing and expanding telemedicine capacity to allow families
with children in the children's special health care services
program to access specialty providers more readily and in a more
timely manner. The department may spend funds to support chronic
complex care management of children enrolled in the children's
special health care services program to minimize hospitalizations
and reduce costs to the program while improving outcomes and
quality of life. As used in this section, "children's special
health care services program" or "program" means the program
established under section 5815 of the public health code, 1978 PA
368, MCL 333.5815.

HEALTH AND AGING SERVICES ADMINISTRATION
Sec. 1505. Not later than March 1 of the current fiscal year,
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the department shall submit a report to the standard report
recipients on the actual reimbursement savings and cost offsets
that have resulted from the funds appropriated in part 1 for the
office of inspector general and third-party liability efforts in
the previous fiscal year.
Sec. 1507. From the funds appropriated in part 1 for office of
inspector general, the inspector general shall audit and recoup
inappropriate or fraudulent payments from Medicaid managed care
organizations to health care providers. Unless authorized by
federal law or a law of this state, the department shall not fine,
temporarily halt operations of, disenroll as a Medicaid provider,
or terminate a managed care organization or health care provider
from providing services due to the discovery of an inappropriate
payment found during the course of an audit.
Sec. 1512. From the funds appropriated in part 1, the
department shall maintain the Medicaid encounter quality initiative
report to separate nonclinical administrative costs from actual
claims and encounter costs.
Sec. 1518. The department shall coordinate with the department
of licensing and regulatory affairs to ensure that, on the issuance
of an order suspending the license of an adult foster care
facility, home for the aged, or nursing home, the department of
licensing and regulatory affairs provides a notice to the
department, to the house and senate appropriations subcommittees on
the department budget, and to the members of the house of
representatives and senate that represent the legislative districts
of the county in which the adult foster care facility, home for the
aged, or nursing home is located.
Sec. 1521. Not later than January 1, 2027, the department
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shall require compliance with community engagement activities as a
requirement for enrollment and redetermination for the Healthy
Michigan plan.
Sec. 1522. (1) Except as required under federal law, when
determining eligibility for medical assistance, the department
shall not accept unverified, self-attestation of any of the
following:
(a) Income.
(b) Residency.
(c) Identity.
(d) Household composition.
(e) Citizenship or immigration status.
(2) In November and May, the department shall request and
review information from the department of labor and economic
opportunity and the department of treasury concerning recipients of
medical assistance that indicate a change in circumstances that may
affect eligibility, including changes to employment or wages.
(3) In May, the department shall request and review
information from the department of treasury concerning recipients
of medical assistance that indicates a change in circumstances that
may affect eligibility including adjusted gross income and family
composition.
(4) In November and May, the department shall request and
review information from the department of corrections concerning
recipients of medical assistance that indicates a change in
circumstances that may affect eligibility.
(5) In November and May, the department shall request and
review information from the United States Social Security
Administration concerning recipients of medical assistance that
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indicates a change in circumstances that may affect eligibility,
including earnings and earned-income, beneficiary records, and
pensions.
(6) In November and May, the department shall request and
review information from the United States Department of Health and
Human Services concerning recipients of medical assistance that
indicates a change in circumstances that may affect eligibility,
including income, employment, as maintained within the national
directory of new hires database, and child support enforcement
related data.
(7) In November and May, the department shall request and
review information from the United States Department of Housing and
Urban Development concerning recipients of medical assistance that
indicates a change in circumstances that may affect eligibility,
including payments and earnings.
(8) In May, the department shall request and review
information from the United States Internal Revenue Service
concerning recipients of medical assistance that indicates a change
in circumstances that may affect eligibility, including tax
filings, adjusted gross income, and family composition.
(9) The department shall enter into data-sharing agreements
with the departments, agencies, and bureaus described in
subsections (2) to (8) as necessary to effectuate the requirements
of this section.
(10) The department may contract with third parties for review
of information concerning recipients of medical assistance
indicating changes in circumstances that may affect eligibility.
(11) On receiving information concerning recipients of medical
assistance that indicates a change in circumstances that may affect
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eligibility, the department shall promptly conduct eligibility
redeterminations for applicable recipients.
Sec. 1523. (1) On a semiannual basis, the department shall
request and review change of address information from returned mail
by the United State Postal Service, the National Change of Address
Database, and Medicaid managed care organizations.
(a) On a semiannual basis, the department shall cross-
reference all change of address information with department records
for recipients of medical assistance to identify recipients who
have moved out of state.
(b) On a semiannual basis, the department shall cross-
reference Michigan bridge card transactions that occurred out of
state with department records for recipients of medical assistance
to identify recipients who have moved out of state.
(c) On receiving information concerning recipients of medical
assistance that indicate changes in residency that may affect
eligibility, the department shall promptly conduct eligibility
redeterminations for applicable recipients.
(d) The department shall implement the requirements of this
subsection not later than January 1, 2027.
(2) On a semiannual basis, the department shall submit medical
assistance enrollment information to the CMS national Medicaid
enrollment database, to identify individuals enrolled in multiple
states. The department shall implement the requirements of this
subsection not later than October 1, 2029.
(3) Not later than August 31, the department shall submit a
report to the standard report recipients detailing the
implementation and administration of this section, including, but
not limited to, all of the following:
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(a) The number of recipients of medical assistance flagged
through change of address information and Michigan bridge card
transactions occurring out of state.
(b) The number of recipients of medical assistance determined
ineligible in accordance with the requirements of this section.
(c) Any cost savings resulting from the implementation and
administration of this section.
Sec. 1524. (1) On a semiannual basis, the department shall
request and review death master file information from the United
States Social Security Administration, and in conjunction with a
review of state birth and death records, cross-reference the
information obtained with department records on recipients of
medical assistance to identify recipients who are deceased.
(2) The department shall remove all deceased recipients of
medical assistance on confirmation of death and shall not authorize
reimbursements for medical assistance services rendered after date
of death.
(3) The department shall recoup any improper payments under
subsection (2).
(4) On a quarterly basis, the office of inspector general
shall conduct reviews to ensure compliance with the requirements of
this section and shall provide a report on the outcomes of the
reviews to the standard report recipients.
(5) As used in this section, "death master file" means the
database maintained by the United States Social Security
Administration containing reported deaths.
(6) The department shall implement the requirements of this
section not later than January 1, 2027.
Sec. 1525. (1) Not later than October 1, the department shall
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report the medical assistance error rate to the standard report
recipients and the house and senate standing committees on
oversight.
(2) The report required under subsection (1) must be made
publicly available on the department's website.
(3) As used in this section, "medical assistance error rate"
means erroneous excess payments for medical assistance as that term
is defined in 42 USC 1396b(u)(1)(D).
Sec. 1526. The department shall limit retroactive coverage for
medical assistance to no more than that allowable under Public Law
119-21.
Sec. 1527. Not later than September 1, the department shall
submit an annual report to the standard report recipients detailing
compliance with section 71118 of Public Law 119-21. The report must
include budget neutrality calculations for existing state Medicaid
waivers.
Sec. 1528. (1) The department shall not authorize
participation in the medical assistance program for a provider or
the provider's affiliates, subsidiaries, successors, and clinics,
to which all of the following apply:
(a) That is an organization described in section 501(c)(3) of
the internal revenue code, 26 USC 501, and exempt from tax under
section 501a of the internal revenue code, 26 USC 501a.
(b) That is an essential community provider described in 45
CFR 156.235, to which both of the following apply:
(i) Primarily engages in family planning services, reproductive
health, and related medical care, and provides abortions.
(ii) The total amount of federal and state expenditures under
the medical assistance program, under title XIX of the social
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security act, 42 USC 1396 to 1396w-8, for medical assistance
furnished in fiscal year 2022-23 made directly, or by a covered
organization, to the provider, or the provider's affiliates,
subsidiaries, successors, or clinics as a part of a nationwide
health care provider network, exceeded $800,000.00.
(2) The department shall implement the requirements of this
section not later than October 1, 2026.
Sec. 1529. (1) The department shall not request a good-faith
effort exemption, or any other federal waiver or state plan
amendment, to delay compliance with the Medicaid community
engagement requirements under section 71119 of Public Law 119-21.
Instead, the department shall implement the Medicaid community
engagement requirements under section 71119 of Public Law 119-21
not later than the first day of the first quarter that begins after
December 31, 2026.
(2) Not later than November 1 of the current fiscal year, the
department shall submit a report to the standard report recipients
on the status of implementing the Medicaid community engagement
requirements described in subsection (1) by not later than the
first day of the first quarter that begins after December 31, 2026.
Sec. 1530. The department shall not seek or implement a
Medicaid state plan amendment or a waiver under section 1115 or
1915 of the social security act, 42 USC 1315 and 1396n, without
first obtaining statutory approval from the legislature. This
section does not affect any state plan amendment or waiver program
implemented before October 1, 2026.

HEALTH SERVICES
Sec. 1605. The protected income level for Medicaid coverage
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determined under section 106(1)(b)(iii) of the social welfare act,
1939 PA 280, MCL 400.106, is 100% of the related public assistance
standard.
Sec. 1606. For the purpose of guardian and conservator
charges, the department may deduct up to $83.00 per month as an
allowable expense against a recipient's income when determining
Medicaid eligibility and patient pay amounts.
Sec. 1607. (1) The department shall immediately presume that
an applicant for Medicaid whose qualifying condition is pregnancy
is eligible for Medicaid coverage, unless the preponderance of
evidence in the applicant's application indicates otherwise. The
applicant who is qualified as described in this subsection is
allowed to select or remain with the Medicaid participating
obstetrician of the applicant's choice.
(2) Each qualifying applicant is 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 must be paid at the
Medicaid fee-for-service rate if a contract does not exist between
the Medicaid participating obstetrical or prenatal care provider
and the managed care plan. The applicant must receive a listing of
Medicaid physicians and managed care plans in the immediate
vicinity of the applicant's residence.
(3) If an applicant, presumed to be eligible for Medicaid
under subsection (1), is subsequently found to be ineligible, a
Medicaid physician or managed care plan that has been providing
pregnancy services to the applicant is entitled to reimbursement
for the services until the Medicaid physician or managed care plan
is notified by the department that the applicant was found to be
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ineligible for Medicaid.
(4) If the preponderance of evidence in an application under
subsection (1) indicates that the applicant is not eligible for
Medicaid, the department shall refer the 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
applicants covered under this section that facilitates the
selection of a managed care plan at the time of application.
(6) The department shall require that Medicaid managed care
plans enroll women whose qualifying condition for Medicaid is
pregnancy.
(7) The department shall encourage physicians to provide an
applicant whose qualifying condition for Medicaid is pregnancy with
a referral to a Medicaid participating dentist at the applicant's
first pregnancy-related appointment.
Sec. 1608. (1) The department shall comply with all residency
and eligibility provisions of Public Law 119-21 when determining
eligibility for medical assistance.
(2) Any individual who is a citizen of the United States, or
qualified resident of the United States, whose legal residence was
located in another state, the District of Columbia, or territory of
the United States within the 12 months preceding application
submission for Healthy Michigan plan benefits must verify
compliance with federal community engagement requirements for the 3
months immediately preceding application submission in order to be
determined compliant with state community engagement requirements
for Healthy Michigan plan eligibility.
Sec. 1611. (1) For care provided to Medicaid recipients with
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other third-party sources of payment, Medicaid reimbursement shall
not exceed, in combination with such other resources, including
Medicare, those amounts established for Medicaid-only patients. The
Medicaid payment rate shall be accepted as payment in full. Other
than an approved Medicaid copayment, no portion of a provider's
charge shall be billed to the recipient or any person acting on
behalf of the recipient. This section does not affect the level of
payment from a third-party source other than the Medicaid program.
The department shall require a nonenrolled provider to accept
Medicaid payments as payment in full.
(2) Notwithstanding subsection (1), if a hospital service is
provided to a dual Medicare/Medicaid recipient with only Medicare
part B coverage, the Medicaid reimbursement must equal, when
combined with a payment for Medicare or other third-party source of
payment, the amount established for a Medicaid-only patient,
including a capital payment.
Sec. 1620. (1) If a Medicaid claim is a fee-for-service
Medicaid claim, the professional dispensing fee for a drug that is
listed as a medication on the Michigan pharmaceutical products list
is $20.02 or the pharmacy's submitted dispensing fee, whichever is
less.
(2) If a Medicaid claim is a fee-for-service Medicaid claim,
the professional dispensing fee for a drug that is not listed as a
specialty medication on the Michigan pharmaceutical products list
is as follows:
(a) If the drug is indicated as preferred on the department's
preferred drug list, $10.80 or the pharmacy's submitted dispensing
fee, whichever is less.
(b) If the drug is not on the department's preferred drug
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list, $10.64 or the pharmacy's submitted dispensing fee, whichever
is less.
(c) If the drug is indicated as nonpreferred on the
department's preferred drug list, $9.00 or the pharmacy's submitted
dispensing fee, whichever is less.
Sec. 1626. (1) Not later than January 15 of the current fiscal
year, each pharmacy benefit manager that receives reimbursements
directly, through a department-administered fee-for-services
contract, or through a Medicaid health plan, from the funds
appropriated in part 1 for health services must submit all of the
following information to the department for the previous fiscal
year:
(a) The total number of prescriptions that were dispensed.
(b) The aggregate fiscal year paid pharmacy claims repriced
using the wholesale acquisition cost for each drug on its
formulary.
(c) The aggregate amount of rebates, discounts, and price
concessions that the pharmacy benefit manager received for each
drug on its formulary. The aggregate amount of rebates must include
any utilization discounts the pharmacy benefit manager received
from a manufacturer.
(d) The aggregate amount of administrative fees that the
pharmacy benefit manager received from all pharmaceutical
manufacturers.
(e) The aggregate amount identified in subdivisions (b) and
(c) that were retained by the pharmacy benefit manager and did not
pass through to the department or to the Medicaid health plan.
(f) The aggregate amount of reimbursements the pharmacy
benefit manager paid to contracting pharmacies.
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(g) Any other information considered necessary by the
department.
(2) Not later than March 1 of the current fiscal year, the
department shall submit a report including the information provided
under subsection (1) to the standard report recipients.
(3) Any nonaggregated information submitted under this section
is confidential and must not be disclosed to any person by the
department. The information described in this subsection is not a
public record of the department.
Sec. 1628. From the funds appropriated in part 1 for hospital
services and therapy, Healthy Michigan plan, and Healthy Michigan
plan – fee-for-service, the department shall continue to allocate
$3,000,000.00 in general fund/general purpose revenue and any
associated federal match to maintain the Medicaid reimbursement
rate for dental services provided at ambulatory surgical centers
and outpatient hospitals. The funding provided in this section must
be used to maintain the minimum rate of reimbursement for dental
services provided in ambulatory surgical centers at $1,495.00 and
maintain the minimum rate of reimbursement for dental services
provided in outpatient hospitals at $2,300.00.
Sec. 1629. The department shall utilize maximum allowable cost
pricing for generic drugs that is based on wholesaler pricing to
providers. The wholesaler pricing must be based on the price
available from at least 2 wholesalers who deliver drugs in this
state.
Sec. 1630. Not later than April 1 of the current fiscal year,
from the funds appropriated in part 1 for Medicaid dental services
and Healthy Kids Dental, the department shall submit a report to
the standard report recipients on the dental service benefit. The
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report must cover all of the following areas:
(a) Information on the implementation of the Adult Medicaid
dental benefit redesign including all of the following information:
(i) The number of dental providers, by Medicaid health plan in
this state, who provided 1 or more Medicaid dental services in the
fiscal year ending September 30, 2022, and the number of additional
providers who were added in the previous fiscal year, with a
delineation in the reported numbers based on the average payment
per visit and before and after the implementation of the Adult
Medicaid dental benefit redesign.
(ii) The status of enhanced care coordination.
(iii) The array of covered dental benefits and services before
the Adult Medicaid dental benefit redesign and how the available
benefits and services changed or expanded after the Adult Medicaid
dental benefit redesign.
(b) Information on the Healthy Kids Dental program including
all of the following information:
(i) The number of children enrolled in the Healthy Kids Dental
program who visited the dentist in the previous fiscal year broken
down by dental benefit manager.
(ii) The number of dentists who accept payment from the Healthy
Kids Dental program broken down by dental benefit manager.
(iii) The annual change in dental utilization of children
enrolled in the Healthy Kids Dental program broken down by dental
benefit manager.
(iv) Service expenditures for the Healthy Kids Dental program
broken down by dental benefit manager.
(v) Administrative expenditures for the Healthy Kids Dental
program broken down by dental benefit manager.
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Sec. 1631. (1) The department shall require copayments on
dental, podiatric, and vision services provided to Medicaid
recipients, except as prohibited by federal law or a law of this
state.
(2) Except as otherwise prohibited by federal law or a law of
this state, the department shall require Medicaid recipients to pay
the following copayments:
(a) Two dollars for a physician office visit.
(b) Three dollars for a hospital emergency room visit.
(c) Fifty dollars for the first day of an inpatient hospital
stay.
(d) Two dollars for an outpatient hospital visit.
(e) One dollar for a generic drug or any drug indicated as
preferred on the department's preferred drug list and $3.00 for a
brand-name drug not indicated as preferred on the department's
preferred drug list.
Sec. 1640. From the funds appropriated in part 1, the
department shall maintain the rate increase for the home help
individual caregiver rate and the home help agency provider rate
specified in the department's Medicaid provider letters L 24-66, L
24-67, and L 24-74.
Sec. 1641. An institutional provider that is required to
submit a cost report under the Medicaid program shall submit cost
reports completed in full not more than 5 months after the end of
the institutional provider's fiscal year.
Sec. 1644. (1) From the funds appropriated in part 1, the
department shall maintain wages at a level not less than the amount
in effect the previous fiscal year. This funding must include all
costs incurred by the employer, including, but not limited to,
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payroll taxes, due to the wage increase. As used in this
subsection, "direct care workers" means a registered professional
nurse, licensed practical nurse, competency-evaluated nursing
assistant, and respiratory therapist.
(2) From the funds appropriated in part 1, the department
shall maintain wages at a level not less than the amount in effect
during the previous fiscal year for direct care workers who are
employed by licensed adult foster care facilities and licensed
homes for the aged and who provide Medicaid-funded fee-for-service
personal care services that were not eligible for any direct care
worker pay adjustment under Medicaid-funded managed care. This
funding must include all costs incurred by the employer, including,
but not limited to, payroll taxes, due to the wage increase.
Sec. 1645. (1) From the funds appropriated in part 1, the
department shall maintain the wages of eligible nonclinical staff
employed by skilled nursing facilities. The funding must include
all costs incurred by the employer, including payroll taxes, due to
prior wage increases.
(2) The nonclinical staff eligible for the wages described in
subsection (1) are those whose costs are reported in the following
job classifications in nursing facility institutional cost reports
shared with the department:
(a) Other housekeeping.
(b) Other maintenance worker.
(c) Other plant operations.
(d) Other laundry.
(e) Dining room assistants.
(f) Other dietary workers.
(g) Other medical records.
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(h) Other social services.
(i) Other diversion therapy.
(j) Beauty and barber.
(k) Gift, flower, coffee, and canteen worker.
Sec. 1646. From the funds appropriated in part 1, the
department shall maintain the Medicaid reimbursement rates for
orthotic and prosthetic providers in place in the previous fiscal
year.
Sec. 1647. The department shall recognize home office nursing
costs attributable to patient care as base costs. The costs
described under this section must not be reclassified to support
costs or purchased services. The department shall implement the
requirements of this section beginning October 1, 2026.
Sec. 1657. (1) The department shall not make reimbursement for
Medicaid to screen and stabilize a Medicaid recipient, including
stabilization of a psychiatric crisis, in a hospital emergency
room, 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 shall receive authorization
from the recipient's HMO prior to admitting the recipient.
(3) Subsections (1) and (2) do not require an alteration to an
existing agreement between an HMO and its contracting hospitals and
do not require an HMO to reimburse for services that are not
considered to be medically necessary.
Sec. 1662. (1) From the funds appropriated in part 1, the
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department shall require an annual external quality review of each
contracting HMO. The external quality review must analyze and
evaluate aggregated information on quality, timeliness, and access
to health care services that the HMO or its contractors furnish to
Medicaid beneficiaries. The department shall create a report
containing each quality review required under this subsection.
(2) The department shall require Medicaid HMOs to provide
EPSDT utilization data through the encounter data system, and HEDIS
well child health measures in accordance with the National
Committee for Quality Assurance prescribed methodology.
(3) The department shall submit a copy of the analysis of the
Medicaid HMO annual audited reports on HEDIS and the report under
subsection (1) to the standard report recipients within 30 days
after the department's receipt of the final information required
from the contractors.
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 an income at or
below 212% of the federal poverty level, who are uninsured and have
not had coverage by other comprehensive health insurance within 6
months of applying for MIChild benefits, and who are residents of
this state. The department shall develop detailed eligibility
criteria through the behavioral and physical health and aging
services administration public concurrence process. The eligibility
criteria must be consistent with the provisions of this part and
part 1.
(2) The department shall provide up to 1 year of continuous
eligibility to a child eligible for the MIChild program unless the
child reaches age 19.
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Sec. 1677. From the funds appropriated in part 1 for the
MIChild program, the department shall provide, at a minimum, all
benefits available under the Michigan benchmark 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 use
disorder 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
use disorder services, including services furnished in a mental
hospital operated by this state 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 use disorder treatment services that may include
inpatient, outpatient, and residential substance use disorder
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. 1682. (1) In addition to the appropriations in part 1,
the department is authorized to receive and spend penalty money
received as the result of noncompliance with Medicaid certification
regulations. Penalty money, characterized as private funds,
received by the department shall increase authorizations and
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allotments in the long-term care accounts.
(2) Any unexpended penalty money, at the end of the year, must
carry forward to the following year.
(3) Not later than March 1 of the current fiscal year, the
department shall report to the standard report recipients on
penalty money received by the department as described in subsection
(1). The report must include, but is not limited to, the following
information:
(a) The amount of penalty monies received by the department in
the previous fiscal year listed by the assessed entity.
(b) A list of the entities that were assessed penalties in the
previous fiscal year with the rationale for each penalty.
Sec. 1692. (1) The department 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 agreements described in this subsection and
pursuant to federal law and a law of this state.
(2) From the funds appropriated in part 1 for health services
school-based services payments, the department is authorized to do
all of the following:
(a) Finance activities within the behavioral and physical
health and aging services administration related to eligible
services.
(b) Reimburse participating school districts pursuant to the
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fund-sharing ratios negotiated in the state-local agreements
authorized in subsection (1).
(c) Offset general fund costs associated with the Medicaid
program.
Sec. 1694. From the funds appropriated in part 1 for special
Medicaid reimbursement, $2,628,500.00 of general fund/general
purpose revenue and any associated federal match must be
distributed for poison control services to an academic health care
system that has a high volume of providing care to indigent
individuals.
Sec. 1697. The department shall require that Medicaid health
plans administering adult dental benefits maintain a network of
dental providers in sufficient numbers, mix, and geographic
locations throughout their respective service areas in order to
provide adequate dental care for Healthy Michigan plan enrollees.
Sec. 1700. Not later than December 1 of the current fiscal
year, the department shall report to the standard report recipients
on the distribution of funding provided, and the net benefit if the
special hospital payment is not financed with general fund/general
purpose revenue, to each eligible hospital during the previous
fiscal year from the following special hospital payments:
(a) GME.
(b) Special rural hospital payments provided under section
1802(1)(b) of this part.
(c) Lump-sum payments to rural hospitals for obstetrical care
provided under section 1802(1)(a) of this part.
Sec. 1702. From the funds appropriated in part 1, the
department shall allocate $2,830,000.00 in general fund/general
purpose revenue and any associated federal match to maintain the
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rates in place in the previous fiscal year for private duty nursing
services for Medicaid beneficiaries under the age of 21.
Sec. 1757. The department shall obtain proof from all Medicaid
recipients that they are United States citizens or otherwise
legally residing in this country and that they are residents of
this state before approving Medicaid eligibility.
Sec. 1762. The department shall ensure consistency with CMS
guidance related to medical loss ratio requirements.
Sec. 1763. (1) From the funds appropriated in part 1, the
department shall ensure that the pharmacy and therapeutics
committee and drug utilization review board account for net costs
of individual prescription drugs for this state's Medicaid program
before recommending or approving the addition of a drug to this
state's single preferred drug list.
(2) For the purpose of this section, "net cost" means costs
associated with pharmaceuticals that include, but are not limited
to, all of the following:
(a) Wholesale acquisition cost.
(b) A cost of a brand name drug with a generic alternative,
compared to the lowest cost generic version of the drug where a
maximum allowable cost price has been determined, and the lowest
cost alternative is preferred.
(c) A cost associated with federal and supplemental rebates
that are available, or anticipated, under 42 U.S.C. 1396r-8.
(d) Dispensing and administrative costs associated with the
provision of a drug.
(3) The department shall require that the pharmacy and
therapeutics committee and the drug utilization review board
document their consideration of cost information, including
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comparative cost effectiveness among clinically appropriate
alternatives, in the meeting materials or minutes supporting each
recommendation.
(4) A drug must not be included in this state's single
preferred drug list unless the pharmacy and therapeutics committee
or drug utilization review board have affirmatively determined that
the drug's inclusion is both clinically appropriate and cost
effective.
(5) Not later than February 1, the department shall submit a
report to the standard report recipients that includes both of the
following:
(a) A description of the process used to evaluate drug costs
under this section.
(b) A list of drugs included within this state's single
preferred drug list during the previous fiscal year.
Sec. 1764. The department's contracted actuaries shall
annually certify whether rates paid to Medicaid health plans and
specialty PIHPs are actuarially sound in accordance with federal
requirements. The department shall provide to the standard report
recipients a copy of the rate certification required under this
section and the approval of rates paid to Medicaid health plans and
specialty PIHPs for any fiscal year not later than October 1 for
Medicaid capitation rate certifications and not later than November
15, February 15, May 15, and August 15 for any Medicaid capitation
rate amendments. Following the rate certification, the department
shall ensure that any new or revised policies with a substantive
impact on capitation rates are reviewed by the contracted actuaries
and considered for future rate amendments.
Sec. 1775. From the funds appropriated in part 1, by not later
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than March 1 of the current fiscal year, the department shall
provide a report to the standard report recipients on the MI
Coordinated Health integrated dual-eligible managed care program.
The report must include all of the following:
(a) The total average monthly enrollment for the previous
fiscal year.
(b) The average monthly enrollment by county for the previous
fiscal year.
(c) The state's Medicaid cost savings realized by managed
coordination of Medicare and Medicaid benefits for dual-eligible
individuals in the previous fiscal year.
(d) Any inclusion or removal of counties from eligible program
regions, with associated department rationale, that occurred in the
previous fiscal year.
(e) Any plan for expansion or reduction of eligible program
regions, with associated department rationale, to occur in the
current fiscal year or the subsequent fiscal year.
Sec. 1786. From the funds appropriated in part 1, the
department shall maintain Medicaid reimbursement for the
administration of injectable, nasal, and oral vaccines at $23.03.
Sec. 1787. From the funds appropriated in part 1 for health
plan services, Healthy Michigan plan, Healthy Michigan plan – fee-
for-service, and long-term care services, the department shall
maintain the Medicaid reimbursement rates in place in the previous
fiscal year for CPT codes 31579, 92507, 92508, 92520, 92521, 92522,
92523, 92524, 92526, 92597, 92607, 92608, 92609, 92610, 92630,
92633, 92700, 94010, 97129, 97130, 97533, 97799, G2250, G2251, and
S9152.
Sec. 1788. From the funds appropriated in part 1, the
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department shall provide Medicaid reimbursement rates, including
Medicaid reimbursements from the ambulance provider quality
assurance assessment, for ground ambulance services up to 100% of
the Medicare allowable rates for Locality 01 for ground ambulance
services.
Sec. 1789. From the funds appropriated in part 1 for federally
qualified health centers, the department shall allocate not less
than $11,300,000.00 in general fund/general purpose revenue and any
associated federal match to maintain Medicaid prospective payment
system reimbursement rates.
Sec. 1790. The department shall maintain the current
practitioner rates paid for CPT codes 90791 through 90899 for
psychiatric procedures through Medicaid fee-for-service and through
the comprehensive Medicaid health plans for psychiatric procedures
provided for Medicaid recipients under the age of 21.
Sec. 1791. From the funds appropriated in part 1 for health
plan services and physician services, the department shall provide
Medicaid reimbursement rates for neonatal services at 100% of the
Medicare rate received for those services in effect on the date the
services are provided to eligible Medicaid recipients. The neonatal
services and physician services eligible for reimbursement rates
under this section are described as CPT codes 99468, 99469, 99471,
99472, 99475, 99476, 99477, 99478, 99479, and 99480.
Sec. 1792. (1) The department shall provide for Medicaid
reimbursements for enrolled portable x-ray and ultrasound providers
for transportation charges related to services rendered to patients
residing in long-term care facilities, including nursing homes and
assisted living facilities, or who are receiving services through
home-based care.
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(2) The reimbursement policies required under this section
must take effect not later than October 1, 2026.
Sec. 1793. Not later than April 30, the department shall
evaluate pharmacy encounter data through the first 2 quarters of
the fiscal year to determine, in consultation with the Medicaid
health plans, if rates must be recertified. Not later than May 30,
the department shall report the evaluation results to the standard
report recipients and the Medicaid health plans.
Sec. 1794. (1) From the funds appropriated in part 1, the
department shall provide Medicaid reimbursements for hospital-based
substance use disorder peer-supports.
(2) Not later than March 1 of the current fiscal year, the
department shall report to the standard report recipients on the
statewide amounts and each hospital amount for hospital-based
substance use disorder peer-supports during the first quarter of
the current fiscal year, including for all of the following:
(a) The number of individuals served.
(b) The Medicaid reimbursement utilization.
(c) The total expenditures.
Sec. 1801. From the funds appropriated in part 1 for physician
services and health plan services, the department shall continue
the increase to Medicaid rates for primary care services provided
only by primary care providers. The department shall not provide
the increase to Medicaid rates under this section to primary care
providers whose primary practice is as a non-primary-care
subspecialty. The department shall establish policies that most
effectively limit the increase to primary care providers for
primary care services only. As used in this section, "primary care
provider" means a physician, or a practitioner working in
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collaboration with a physician, who is either licensed under part
170 or part 175 of the public health code, 1978 PA 368, MCL
333.17001 to 333.17097 and 333.17501 to 333.17556, and who works as
a primary care provider in general practice or is board-eligible or
certified with a specialty designation of family medicine, general
internal medicine, or pediatric medicine, or is a provider who
provides the department with documentation of equivalency.
Sec. 1802. (1) From the funds appropriated in part 1 for
hospital services and therapy, the department shall provide for the
following:
(a) $8,470,200.00 in general fund/general purpose revenue as
lump-sum payments to noncritical access hospitals that qualified
for rural hospital access payments in fiscal year 2013-2014 and
that have historically provided obstetrical care. Payment amounts
must be based on the volume of obstetrical care cases and newborn
care cases for all such cases billed by each qualified hospital in
the most recent year for which data is available. The department
shall make payments not later than January 1 of the current fiscal
year. For the current fiscal year, a hospital that met established
occupied bed criteria based on Medicaid cost reports as of the
fiscal year ending September 30, 2011, and that is located within a
county with a population of not more than 195,000 and within a
city, village, or township with a population of not more than
15,000, according to the 2020 federal decennial census, is
eligible.
(b) $15,204,800.00 in general fund/general purpose revenue and
any associated federal match awarded as rural access payments to
noncritical access hospitals that meet criteria established by the
department for services to low-income rural residents. One of the
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reimbursement components of the criteria established by the
department under this subsection must be assistance with labor and
delivery services.
(2) Payments under this section must be made by January 1 of
the current fiscal year.
(3) The department shall publish the distribution of payments
for the current fiscal year and the previous fiscal year.
Sec. 1803. (1) From the funds appropriated in part 1 for rural
health transformation program, the department shall provide grants
to hospitals and providers, in accordance with federal
requirements.
(2) Not later than January 15 of the current fiscal year, the
department shall provide to the standard report recipients the
rural health transformation program grant application and plan
submitted to CMS, as revised for the subsequent award year. The
department shall identify any proposals within the submission
intended to increase the grant award amount when complying with the
reporting requirement of this subsection.
(3) The department shall submit to the standard report
recipients any required reports submitted to CMS for program
oversight or amendment concurrently with CMS submission.
(4) Not later than May 1, if an amount equal to or greater
than 50 percent of the funds appropriated in part 1 for rural
health transformation program remains unexpended or unencumbered,
the department shall report to the standard report recipients on
remedial actions the department is undertaking to ensure that the
remainder of the funds are encumbered by not later than the end of
the current grant award year.
(5) Not later than August 1, if an amount equal to or greater
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than 33 percent of the funds appropriated in part 1 for rural
health transformation program remains unexpended or unencumbered,
the department shall report to the standard report recipients on
remedial actions the department is undertaking to ensure that the
remainder of the funds are encumbered by not later than the end of
the current grant award year.
(6) All programmatic metrics required by CMS for program
oversight and quality assurance must be made publicly available and
posted on the department's website, and include all dashboards
created in accordance with the CMS approved grant award. The
dashboard metrics must include, but are not limited to, the
following:
(a) Separate dashboards for each of the overarching
programmatic areas, including, but not limited to, the following:
(i) Transforming rural health through partnerships.
(ii) Workforce for wellness initiative.
(iii) Interoperability in action initiative.
(iv) Care closer to home.
(b) Funds encumbered by grantee, to include amount and date of
encumbrance.
(c) Remaining unencumbered funds for the current grant award
year.
(d) Notification if any enacted or proposed programmatic or
policy changes resulting from the rural health transformation
program would likely result in net increases in this state's costs
for programmatic or service continuation after the federal grant
award period ends.
(e) The location of health care hubs and associated spokes,
for facilities designated under the department hub-and-spoke model
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for grant allocation, including, but not limited to, area of care
coverage measured by population served, services provided, and
travel time and distance to care.
(7) The department shall report on a quarterly basis to the
standard report recipients on the progress of Michigan Health
Information Network expansion as a result of the funds appropriated
in part 1 for rural health transformation program. The report must
include, but is not limited to, the following:
(a) The number of providers connected during the reporting
period.
(b) The cumulative number of providers connected since the
beginning of the 5-year award period.
(c) The geographic regions covered by MIHIN as a result of the
rural health transformation program.
(8) The department shall seek to utilize department resources
and personnel to complete administrative requirements of the grant
program before utilizing contractual services. Not later than
August 1, the department shall report to the standard report
recipients on the details of the indirect costs allocation for the
funds allocated to the Michigan Public Health Institute for
contractual support of the rural health transformation program
administration and oversight.
(9) From the funds appropriated in part 1 for rural health
transformation program, the department shall explore the
development of a regional demonstration implementing a value-based
care payment methodology. Not later than August 1, the department
shall report to the standard report recipients on activities
related to accomplishing the requirements of this subsection.
(10) From the funds appropriated in part 1 for rural health
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transformation program, the department shall allocate $6,400,000.00
to the MiDocs consortium to create new primary care residency slots
in rural communities.
(11) From the funds appropriated in part 1 for rural health
transformation program, the department shall establish a general
OB-GYN residency program to provide for primary care residency
slots located in rural areas. The department may coordinate with
the MiDocs consortium to comply with this subsection.
(12) The department shall establish and convene rural health
transformation program stakeholder meetings not less than quarterly
during the grant award year to assess program outcomes, identify
and mitigate problems, and coordinate programmatic operations.
Stakeholder meetings must be held in a manner that is publicly
accessible, and must not supplant, or be held in lieu of, rural
health transformation program advisory council meetings.
(13) The revised application for the continuation of grant
funding submitted to CMS for rural health transformation program
for the subsequent fiscal year must include a contingency plan to
allow for direct payments to rural hospitals.
(14) All reports pursuant to the reporting requirements of
this section must be made publicly available and posted to the
department's rural health transformation program website.
Sec. 1804. The department may utilize the federal public
assistance reporting information system to continue to work to
identify Medicaid recipients who are veterans and who may be
eligible for federal veterans' health care benefits or other
benefits and shall continue to refer veterans to the department of
military and veterans affairs for assistance in securing additional
benefits.
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Sec. 1810. In advance of the annual rate setting development,
Medicaid health plans must be given at least 60 days to dispute and
correct any discarded encounter data before rates are certified.
The department shall notify each contracting Medicaid health plan
of any encounter data that have not been accepted for the purposes
of rate setting.
Sec. 1812. Not later than June 1 of the current fiscal year,
and using the most recent available cost reports, the department
shall complete a report of all direct and indirect costs associated
with residency training programs for each hospital that receives
funds appropriated in part 1 for graduate medical education or
through the MiDocs consortium. The report shall be submitted to the
standard report recipients.
Sec. 1820. (1) In order to avoid duplication of effort, if a
Medicaid health plan has been reviewed and accredited by a national
accrediting entity for health care services, the department shall
use applicable national accreditation review criteria to determine
compliance with corresponding requirements in this state.
(2) The department shall continue to comply with federal law
and laws of this state and shall not initiate an action that
negatively impacts beneficiary safety.
(3) As used in this section, "national accrediting entity"
means the National Committee for Quality Assurance, the URAC,
formerly known as the Utilization Review Accreditation Commission,
or another appropriate entity, as approved by the department.
Sec. 1831. (1) From the funds appropriated in part 1 for
hospital services and therapy, the department shall allocate
$9,000,000.00 to continue to support hospitals in this state to
improve maternal safety and outcomes by administering and expanding
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a data-driven maternal safety and quality improvement initiative
that is based on interdisciplinary and consensus-based practices.
The initiative expansion must focus on mitigating pregnancy-
associated injury and death, work to improve outcomes for
underserved groups, and address problems related to substance use
disorders.
(2) Not later than March 15, the department shall report to
the standard report recipients on the utilization of funds
allocated under this section. The report must include, but is not
limited to, all of the following:
(a) Recipients of funds, by amount and intended purpose, for
the previous fiscal year.
(b) Quantitative and qualitative metrics, by recipient,
measuring effect of allocations on the 3 programmatic goals
established under subsection (1), for the previous fiscal year.
Sec. 1833. (1) In addition to the funds appropriated in part
1, the department is authorized to expend an amount not to exceed
$3,155,000,000.00 for state restricted insurance provider
assessment and associated federal Medicaid reimbursement matching
revenues, if revenues are available under sections 7, 11, and 17 of
the insurance provider assessment act, 2018 PA 175, MCL 550.1757,
550.1761, and 550.1767.
(2) Not later than 10 calendar days after expenditure
authorization in subsection (1) is utilized, the department shall
report to the standard report recipients all of the following:
(a) Total state restricted expenditures incurred for this use
of authorization under subsection (1), by line item.
(b) Total federal expenditures incurred for this use of
authorization under subsection (1), by line item.
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(c) Total gross expenditures incurred for this use of
authorization under subsection (1).
(d) Total year-to-date expenditure authorization remaining
under subsection (1).
Sec. 1834. (1) In addition to the funds appropriated in part
1, the department is authorized to expend an amount not to exceed
$6,077,000,000.00 for state restricted quality assurance assessment
program and associated federal Medicaid reimbursement matching
revenues, if revenues are available and the department has received
CMS approval of the expenditures under the state's Medicaid
preprint.
(2) Not later than 10 calendar days after expenditure
authorization in subsection (1) is utilized, the department shall
report to the standard report recipients all of the following:
(a) Total state restricted expenditures incurred for this use
of authorization under subsection (1), by line item.
(b) Total federal expenditures incurred for this use of
authorization under subsection (1), by line item.
(c) Total gross expenditures incurred for this use of
authorization under subsection (1).
(d) Total year-to-date expenditure authorization remaining
under subsection (1).
Sec. 1837. The department shall continue, and expand where
appropriate, utilization of telemedicine and telepsychiatry as
strategies to increase access to services for Medicaid recipients.
Sec. 1846. From the funds appropriated in part 1 for graduate
medical education, the department shall distribute the funds with
an emphasis on the following health care workforce goals:
(a) The encouragement of the training of physicians in
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specialties, including primary care, that are necessary to meet the
future needs of residents of this state.
(b) The training of physicians in settings that include
ambulatory sites and rural locations.
(c) The training of practitioners providing pediatric
psychiatry services.
Sec. 1850. The department may allow Medicaid health plans to
assist with maintaining eligibility through outreach activities to
ensure continuation of Medicaid eligibility and enrollment in
managed care. The assistance may include mailings, telephone
contact, or face-to-face contact with beneficiaries enrolled in the
individual Medicaid health plan. Medicaid health plans may offer
assistance in completing paperwork for beneficiaries enrolled in
the Medicaid health plan.
Sec. 1851. From the funds appropriated in part 1 for Healthy
Michigan plan, the department shall allocate $1,000,000.00 in
general fund/general purpose revenue and any associated federal
match to enhance Medicaid health plan outreach, with providers who
had contracts in the previous fiscal year, to identify, educate,
and prevent chronic kidney disease in high-risk populations and
regions.
Sec. 1854. The funds appropriated in part 1 for PACE must
support a current fiscal year enrollment cap that is not less than
9,950.
Sec. 1855. From the funds appropriated in part 1 for PACE, to
the extent that funding is available in the PACE line item and
unused program slots are available, the department may do the
following:
(a) Increase the number of slots for a local and already-
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established PACE if the local PACE has provided appropriate
documentation to the department indicating its ability to expand
capacity to provide services to additional PACE clients.
(b) Suspend the 10 member per month individual PACE enrollment
increase cap in order to allow unused and unobligated slots to be
allocated to address unmet demand for PACE services.
Sec. 1856. (1) From the funds appropriated in part 1 for
hospice services, $5,000,000.00 shall be expended to provide room
and board for Medicaid-eligible individuals who meet hospice
eligibility requirements and receive services at Medicaid enrolled
hospice residences in this state. The department shall distribute
funds through grants based on the total beds located in all
eligible residences that have been providing these services as of
October 1, 2017. An eligible grant applicant may inform the
department of the applicant's request to reduce the grant amount
allocated for the applicant's residence and the funds must be
distributed proportionally to increase the total grant amount of
the remaining grant-eligible residences. Grant amounts shall be
paid out monthly with 1/12 of the total grant amount distributed
each month to the grantees.
(2) Not later than September 15 of the current fiscal year,
each Medicaid-enrolled hospice with a residence that receives funds
under this section shall provide a report to the department on the
utilization of the grant funding provided in subsection (1). The
report must be provided in a format prescribed by the department
and must include the following information:
(a) The number of patients served.
(b) The number of days served.
(c) The daily room and board rates for the patients served.
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(d) If there is not sufficient funding to cover the total room
and board need, the number of patients who did not receive care due
to insufficient grant funding.
(3) If funds awarded under this section remain unused at the
end of the current fiscal year, the Medicaid-enrolled hospice with
a residence shall return those unused funds to this state.
Sec. 1859. The department shall partner with the Michigan
Association of Health Plans and Medicaid health plans to develop
and implement strategies for the use of information technology
services for Medicaid research activities. The department shall
make available state medical assistance program data, including
Medicaid behavioral data, to the Michigan Association of Health
Plans and Medicaid health plans or any vendor considered qualified
by the department to perform research activities consistent with
this state's goals of improving health; increasing the quality,
reliability, availability, and continuity of care; and reducing the
cost of care for the eligible population of Medicaid recipients.
Sec. 1862. From the funds appropriated in part 1, the
department shall maintain payment rates for Medicaid obstetrical
services at 95% of Medicare levels effective October 1, 2014.
Sec. 1870. (1) From the funds appropriated in part 1 for
hospital services and therapy, the department shall allocate
$6,400,000.00 in general fund/general purpose revenue plus any
contributions from public entities, up to $5,000,000.00, and any
associated federal match to the MiDocs consortium to create new
primary care residency slots in underserved communities. The new
primary care residency slots must be in 1 of the following
specialties: family medicine, general internal medicine, general
pediatrics, general OB-GYN, psychiatry, or general surgery.
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(2) The department shall seek any necessary approvals from CMS
to allow the department to implement the program described in this
section.
(3) Assistance with repayment of medical education loans, loan
interest payments, or scholarships provided by the MiDocs
consortium shall be contingent upon a minimum 2-year commitment to
practice in an underserved community in this state post-residency
and an agreement to forego any sub-specialty training for at least
2 years post-residency with the exception of a child and adolescent
psychiatry followship that must be integrated with a psychiatry
residency training program in a MiDocs consortium affiliated
institution.
(4) The MiDocs consortium shall work with the department to
integrate the Michigan inpatient psychiatric admissions discussion
(MIPAD) recommendations and, when possible, prioritize training
opportunities in state psychiatric hospitals and community mental
health organizations.
(5) The department shall maintain the MiDocs consortium
initiative advisory council to help support implementation of the
program described in this section, and to provide oversight. The
advisory council must be composed of the MiDocs consortium, the
Michigan Area Health Education Centers, the Michigan Primary Care
Association, the Michigan Center for Rural Health, the Michigan
Academy of Family Physicians, and any other appointees designated
by the department.
(6) Not later than September 1 of the current fiscal year, the
MiDocs consortium shall submit a report to the standard report
recipients that includes all of the following information:
(a) Audited financial statement of per-resident costs.
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(b) Education and clinical quality data.
(c) Roster of trainees, including areas of specialty and
locations of training.
(d) Medicaid revenue by training site.
(7) The department shall monitor outcome and performance
measures for this program, including, but not limited to, the
following:
(a) Increasing this state's ability to recruit, train, and
retain primary care physicians and other select specialty
physicians in underserved communities.
(b) Maximizing training opportunities with community health
centers, rural critical access hospitals, solo or group private
practice physician practices, schools, and other community-based
clinics, in addition to the required training through rotations at
inpatient hospitals.
(c) Increasing the number of residency slots for family
medicine, general internal medicine, general pediatrics, general
OB-GYN, psychiatry, and general surgery.
(8) Unexpended and unencumbered funds up to a maximum
$6,400,000.00 in rural health transformation program federal grant
revenue, $6,400,000.00 in general fund/general purpose revenue plus
any contributions from public entities, up to $5,000,000.00, and
any associated federal match remaining in accounts appropriated in
part 1 for rural health transformation program and hospital
services and therapy are designated as work project appropriations,
and any unencumbered or unallotted funds must not lapse at the end
of the fiscal year and must be available for expenditures for the
MiDocs consortium to create new primary care residency slots in
underserved communities under this section and section 1803 until
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the work project has been completed. All of the following are in
compliance with section 451a of the management and budget act, 1984
PA 431, MCL 18.1451a:
(a) The purpose of the work project is to fund the cost of the
MiDocs consortium to create new primary care residency slots in
underserved communities.
(b) The work project will be accomplished by contracting with
the MiDocs consortium to oversee the creation of new primary care
residency slots.
(c) The total estimated completion cost of the work project is
$26,600,000.00.
(d) The tentative completion date for the work project is
September 30, 2031.
Sec. 1872. From the funds appropriated in part 1 for personal
care services, the department shall maintain the monthly Medicaid
personal care supplement paid to adult foster care facilities and
homes for the aged that provide personal care services to Medicaid
recipients in place during the previous fiscal year.
Sec. 1874. The department shall ensure, in counties where PACE
services are available, that PACE is included as an option in all
options counseling and enrollment brokering for aging services and
managed care programs, including, but not limited to, Area Agencies
on Aging, centers for independent living, and the MiChoice home and
community-based waiver. The department must include approved
marketing and discussion materials for options counseling.
Sec. 1879. Not later than May 15 of the current fiscal year,
the department shall submit to the standard report recipients a
report with Medicaid pharmaceutical information. The report shall
include, for the previous fiscal year, the total Medicaid
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pharmaceutical costs and the total Medicaid pharmaceutical rebates.
The report must categorize the total Medicaid pharmaceutical costs
and total Medicaid pharmaceutical rebates recognized by the
contracted health plans and the department. In addition, the report
must also include all of the following information:
(a) The total estimated pharmaceutical benefit expenses
incurred by contracted health plans from the previous fiscal year
and through the first 2 quarters of the current fiscal year.
(b) The total estimated pharmaceutical benefit expenses
included in approved initial rates for contracted health plans from
the previous fiscal year and total estimated pharmaceutical benefit
expenses included in approved initial rates for contracted health
plans for the first 2 quarters of the current fiscal year.
(c) The total Medicaid pharmaceutical rebates received by the
department in the previous fiscal year and the single preferred
drug list supplemental rebates invoices in the previous fiscal
year.
(d) Information as to whether the average benefit expense for
the composite average across all rate cells and service categories
included in capitation rates, based on actual enrollment and
anticipated recoveries, for the previous fiscal year and through
the first 2 quarters of the current fiscal year exceeded the
reported contracted health plan's experience, adjusted for
completion over the same reporting periods.
(e) The following information related to the current Medicaid
pharmacy carve-out of pharmaceutical products as provided for in
section 109h of the social welfare act, 1939 PA 280, MCL 400.109h:
(i) The number of prescriptions paid by the department during
the previous fiscal year.
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(ii) The total amount of expenditures for prescriptions paid by
the department during the previous fiscal year.
(iii) The number of and total expenditures for prescriptions
paid by the department for generic equivalents during the previous
fiscal year.
Sec. 1880. (1) The department shall align all pharmacy-related
policies with the United States Food and Drug Administration
quality and clinical standards. Any single preferred drug list
utilization management criteria will be established in consultation
with the Medicaid health plans and the Michigan pharmacy and
therapeutics committee described in section 9705 of the public
health code, 1978 PA 368, MCL 333.9705, with consideration given to
applicable United States Food and Drug Administration dosing
guidelines, subsequent evidence-based literature or studies, and
current treatment guidelines.
(2) The department shall revise existing pharmacy coverage
policies to limit the authorization of anti-obesity GLP-1 receptor
agonists exclusively to individuals classified as class III
obesity. Coverage is contingent on documented failure of all other
clinically appropriate weight-loss interventions and must be
considered only as a measure to avert the need for higher-cost
bariatric surgery.
(3) The department shall utilize generic and biosimilar
pharmaceuticals on this state's preferred drug list for both
Medicaid managed care and fee-for-service.
(4) The department shall not require a managed care
organization to adhere to this state's single preferred drug list
as a contractual obligation.
Sec. 1881. (1) The department, in collaboration with the
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Medicaid health plans, shall review statutory, policy, or
contractual changes over the last 15 years in service coverage,
case management, evaluation and screening requirements, utilization
management practices, prior authorization requirements, provider
network requirements, and any other practices or requirements that
have led to Medicaid cost increases and provide recommendations as
to whether they should or should not be revised. Not later than
April 1, the department shall submit a report to the standard
report recipients that includes a summary of the findings.
(2) The department shall implement the cost savings
recommendations identified in subsection (1) to reduce Medicaid
expenditures, for both managed care and fee-for-service, through
modifications of department policy, administrative efficiencies,
revisions of optional services, and any other area identified in
collaboration with Medicaid managed care organizations.
Sec. 1888. The department shall establish contract performance
standards associated with the capitation withhold provisions for
Medicaid health plans at least 3 months before the implementation
of those standards. The determination of whether performance
standards have been met must be based primarily on recognized
concepts such as 1-year continuous enrollment and the health care
effectiveness data and information set, HEDIS, audited data.
Sec. 1889. All quality assurance assessment program revenue
collected under section 20161 of the public health code, 1978 PA
368, MCL 333.20161, must only be expended on services provided
under the Healthy Michigan plan, under 2013 PA 107, or the state
Medicaid program, under Title XIX and Title XXI.
Sec. 1890. (1) The negative appropriation for Medicaid
resource optimization in part 1 must be satisfied through Medicaid
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savings and reductions identified by the director and approved by
the state budget director. Medicaid savings and reductions must
include, but are not limited to, both of the following:
(a) Savings from changes to optional Medicaid services.
(b) Savings from administrative and managed care overhead
efficiencies.
(2) Adjustments to appropriation authorizations necessary to
implement the requirements of subsection (1) must be made only
after approval of transfers under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(3) The state budget director is authorized to reduce federal,
local, private, and state restricted appropriation amounts in part
1 to reflect savings from those fund sources associated with
reductions made to state general fund/general purpose
appropriations under subsection (2).

INFORMATION TECHNOLOGY
Sec. 1901. (1) The department shall submit a report on a
semiannual basis to the standard report recipients that lists the
projects approved in the previous 6 months and provides the purpose
for approving each project including any federal, state, court, or
legislative requirement for each project.
(2) Once an award for an expansion of information technology
is made, the department shall submit a report to the standard
report recipients that provides the projected cost of the expansion
broken down by use and type of expense.
Sec. 1902. (1) From the funds appropriated in part 1 for
comprehensive child welfare information system, the department
shall submit a report not later than March 1 to the standard report
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recipients. The report must include, but is not limited to, the
following:
(a) The total expenditures by fiscal year, from all sources,
on the development of the comprehensive child welfare information
system.
(b) The expenditure plan for the subsequent fiscal year for
the development, implementation, and maintenance of the
comprehensive child welfare information system.
(c) The details on upgrades, remediation of user-reported
issues, and other modifications to currently implemented modules of
the comprehensive child welfare information system that occurred
during the current fiscal year and are planned for the subsequent
fiscal year.
(d) The current timeline for the full implementation of the
comprehensive child welfare information system.
(2) The department shall continue to provide the report
described in subsection (1) after the implementation of the
comprehensive child welfare information system is complete and
operational.
Sec. 1903. From the funds appropriated in part 1 for Michigan
statewide automated child welfare information system, the
department shall submit a report by not later than March 1 to the
standard report recipients. The report must include, but is not
limited to, the following:
(a) The current timeline for the phaseout of MiSACWIS and
MiSACWIS's replacement by the comprehensive child welfare
information system.
(b) Expenditures, from all funding sources, for maintenance,
upgrades, and remediation of user-reported issues in the previous
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fiscal year.
(c) Any cost savings realized by decommissioning MiSACWIS.
Sec. 1906. From the funds appropriated in part 1 for
information technology services and projects, the department shall
allocate $1,750,000.00 general fund/general purpose revenue, and
all associated federal matching revenue, to a public and private
nonprofit collaboration that is designated as this state's
statewide health information exchange by cooperative agreement, to
implement health information technology strategies for health
information exchange development, data management, and population
health at a statewide level.
Sec. 1909. (1) From the funds appropriated in part 1 for child
support automation, the department shall only encumber or expend
funds for the operation, maintenance, and improvements of the
Michigan child support enforcement system.
(2) From the funds appropriated in part 1 for bridges
information system, the department shall only encumber or expend
funds for the operation, maintenance, and improvements of Bridges
and MIBridges.
(3) From the funds appropriated in part 1 for Michigan
Medicaid information system, the department shall only encumber or
expend funds for the operation, maintenance, and improvements of
the community health automated Medicaid processing system.
(4) From the funds appropriated in part 1 for Michigan
statewide automated child welfare information system, the
department shall only encumber or expend funds for the operation,
maintenance, and improvements of MiSACWIS.
(5) From the funds appropriated in part 1 for comprehensive
child welfare information system, the department shall only
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encumber or expend funds for the operation, maintenance, and
improvements to the comprehensive child welfare information system.
(6) From the funds appropriated in part 1 for comprehensive
child welfare information system, the department shall continue
development of a new information system to replace MiSACWIS
consistent with the plan provided by the department to the United
States District Court for Eastern District of Michigan as a part of
the settlement. The development of the comprehensive child welfare
information system must adhere to department of technology,
management, and budget and information technology investment fund
(ITIF) policies and practices, including use of the state unified
information technology environment methodology and agile
development. The project team shall also participate in and comply
with the enterprise portfolio management office process and product
quality assurance. To ensure full transparency, the project must be
included in the ITIF portfolio for executive, legislative, and
external reporting purposes. As a component of the ITIF portfolio,
the project is subject to governance and oversight by the
information technology investment management board.

ONE-TIME APPROPRIATIONS
Sec. 1914. (1) From the funds appropriated in part 1 for
opioid response activities, the department shall allocate
$62,750,000.00 from the Michigan opioid healing and recovery fund
created under section 3 of the Michigan trust fund act, 2000 PA
489, MCL 12.253, to programs and services to address the opioid
crisis in a manner consistent with the opioid judgment, settlement,
or compromise of claims pertaining to violations, or alleged
violations, of law related to the manufacture, marketing,
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distribution, dispensing, or sale of opioids. The funds cannot be
used to purchase drug paraphernalia. The funds must be allocated as
follows:
(a) $34,500,000.00 to invest in a series of transitional and
permanent supportive recovery housing new developments,
acquisitions, and renovations throughout this state.
(b) $17,000,000.00 for increasing treatment retention and
access to care by expanding medications for opioid use disorder and
crisis services throughout this state through physical
infrastructure, mobile service expansion, and programming support.
(c) $1,000,000.00 for the opioid advisory commission to
complete a statewide evidence-based needs assessment as required
under section 851 of the legislative council act, 1986 PA 268, MCL
4.1851.
(2) Funds appropriated in part 1 for opioid response
activities are designated as work project appropriations. Any
unencumbered or unallotted funds shall not lapse at the end of the
fiscal year and will be available for projects under this section
until the work project has been completed. The following is in
compliance with section 451a of the management and budget act, 1984
PA 431, MCL 18.1451a:
(a) The purpose of the work project is to address the opioid
crisis in a manner consistent with the opioid judgment, settlement,
or compromise of claims pertaining to violations, or alleged
violations, of law related to the manufacture, marketing,
distribution, dispensing, or sale of opioids.
(b) The work project will be accomplished using resources or
contracts with service providers, or both.
(c) The total estimated completion cost of the work project is
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$62,750,000.00.
(d) The tentative completion date for the work project is
September 30, 2029.

ARTICLE 6C
DEPARTMENT OF HEALTH AND HUMAN SERVICES - PUBLIC HEALTH
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of health
and human services for the fiscal year ending September 30, 2027,
from the following funds:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
APPROPRIATION SUMMARY
Full-time equated classified positions 735.4
Full-time employees 626.7
Limited-term employees 9.5
Noncareer/per diem employees 2.3
Part-time employees 0.5
Permanent-intermittent employees 3.4
Seasonal employees 0.0
GROSS APPROPRIATION $ 1,136,050,200
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 3,473,400
ADJUSTED GROSS APPROPRIATION $ 1,132,576,800
Federal revenues:
Capped federal revenues 11,912,900
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Social security act, temporary assistance for
needy families 5,131,700
Total other federal revenues 517,410,000
Special revenue funds:
Total local revenues 50,921,900
Total private revenues 141,839,900
Michigan merit award trust fund 4,068,700
Total other state restricted revenues 79,312,600
State general fund/general purpose $ 321,979,100
Sec. 102. HEALTH AND HUMAN SERVICES POLICY AND
INITIATIVES
Full-time equated classified positions 58.6
Certificate of need program administration--
FTEs 9.0 $ 2,334,800
Child advocacy centers 1,407,000
Child advocacy centers - supplemental grants 3,000,000
Crime victim grants administration services--
FTEs 12.0 2,671,100
Crime victim justice assistance grants 50,117,600
Crime victim rights services grants 19,869,900
Crime victim rights sustaining grants 28,203,900
Departmentwide employee economic adjustments 1,923,200
Domestic violence prevention and treatment--
FTEs 15.6 20,107,300
Human trafficking intervention services--FTE 1.0 200,000
Michigan essential health provider 3,145,900
Minority health grants and contracts--FTEs 3.0 1,077,600
Nurse education and research program 378,300
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Policy and planning administration--FTEs 16.0 1,730,200
Primary care services--FTEs 2.0 3,662,000
Rape prevention and services 5,270,100
Rural health services 155,600
Uniform statewide sexual assault evidence kit
tracking system 369,500
GROSS APPROPRIATION $ 145,624,000
Appropriated from:
Interdepartmental grant revenues:
IDG from department of licensing and regulatory
affairs 828,300
IDG from department of lifelong education,
advancement, and potential 2,400
IDG from department of treasury, Michigan
finance authority 117,700
Federal revenues:
Capped federal revenues 11,912,900
Social security act, temporary assistance for
needy families 4,629,400
Total other federal revenues 56,350,500
Special revenue funds:
Total private revenues 855,000
Child advocacy centers fund 1,407,000
Compulsive gaming prevention fund 1,040,500
Crime victim's rights fund 18,798,200
Sexual assault victims' prevention and
treatment fund 3,000,000
Total other state restricted revenues 3,193,500
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State general fund/general purpose $ 43,488,600
Sec. 103. EPIDEMIOLOGY, EMERGENCY MEDICAL
SERVICES, AND LABORATORY
Full-time equated classified positions 399.5
Bioterrorism preparedness--FTEs 39.8 $ 23,950,800
Childhood lead program--FTEs 3.0 2,126,200
Emergency medical services program--FTEs 19.3 6,033,500
Epidemiology administration--FTEs 52.5 21,177,400
Healthy homes program--FTEs 65.0 53,602,700
Laboratory services--FTEs 97.3 31,103,700
Newborn screening follow-up and treatment
services--FTEs 10.1 6,056,600
PFAS and environmental contamination response--
FTEs 42.1 18,479,600
Vital records and health statistics--FTEs 70.4 11,497,600
GROSS APPROPRIATION $ 174,028,100
Appropriated from:
Interdepartmental grant revenues:
IDG from department of environment, Great
Lakes, and energy 2,525,000
Federal revenues:
Total other federal revenues 66,196,500
Special revenue funds:
Total private revenues 1,342,600
Total other state restricted revenues 29,736,100
State general fund/general purpose $ 74,227,900
Sec. 104. LOCAL HEALTH AND ADMINISTRATIVE
SERVICES
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Full-time equated classified positions 156.2
AIDS prevention, testing, and care programs--
FTEs 54.7 $ 107,279,100
Cancer prevention and control program--FTEs 18.0 10,667,600
Chronic disease control and health promotion
administration--FTEs 25.2 9,431,800
Community health programs--FTEs 5.0 17,500,000
Diabetes and kidney program--FTEs 4.0 2,861,100
Essential local public health services 81,419,300
Implementation of 1993 PA 133, MCL 333.17015 20,000
Local health services--FTEs 4.0 8,195,300
Medicaid outreach cost reimbursement to local
health departments 11,086,500
Public health administration--FTEs 9.0 2,213,000
Sexually transmitted disease control program--
FTEs 15.3 6,275,200
Smoking prevention program--FTEs 9.1 10,402,900
Violence prevention--FTEs 11.9 8,308,700
GROSS APPROPRIATION $ 275,660,500
Appropriated from:
Federal revenues:
Social security act, temporary assistance for
needy families 2,300
Total other federal revenues 71,311,300
Special revenue funds:
Total local revenues 10,150,000
Total private revenues 74,556,600
Total other state restricted revenues 16,066,800
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State general fund/general purpose $ 103,573,500
Sec. 105. FAMILY HEALTH SERVICES
Full-time equated classified positions 121.1
Child and adolescent health care and centers $ 39,196,900
Dental programs--FTEs 3.6 7,149,000
Drinking water declaration of emergency 3,971,000
Family, maternal, and child health
administration--FTEs 41.1 8,936,700
Family planning local agreements 14,874,000
Immunization program--FTEs 16.0 19,213,400
Local MCH services 7,018,100
Pregnancy prevention program 1,297,900
Prenatal care outreach and service delivery
support--FTEs 19.5 48,440,700
Special projects 5,774,200
Sudden and unexpected infant death and
suffocation prevention program 321,300
Women, infants, and children program
administration and special projects--FTEs 40.9 18,045,400
Women, infants, and children program local
agreements and food costs 240,434,200
GROSS APPROPRIATION $ 414,672,800
Appropriated from:
Federal revenues:
Social security act, temporary assistance for
needy families 500,000
Total other federal revenues 256,284,900
Special revenue funds:
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Total local revenues 40,771,900
Total private revenues 64,785,700
Total other state restricted revenues 3,270,500
State general fund/general purpose $ 49,059,800
Sec. 106. AGING SERVICES
Community services $ 59,047,200
Employment assistance 2,979,400
Nutrition services 52,004,200
Respite care program 7,268,700
Senior volunteer service programs 4,765,300
GROSS APPROPRIATION $ 126,064,800
Appropriated from:
Federal revenues:
Total other federal revenues 67,266,800
Special revenue funds:
Total private revenues 300,000
Michigan merit award trust fund 4,068,700
Total other state restricted revenues 2,800,000
State general fund/general purpose $ 51,629,300

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the current fiscal year, total
state spending under part 1 from state sources is $405,360,400.00
and state spending under part 1 from state sources to be paid to
local units of government is $159,754,900.00. The following
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itemized statement identifies appropriations from which spending to
local units of government will occur:
DEPARTMENT OF HEALTH AND HUMAN SERVICES
HEALTH AND HUMAN SERVICES POLICY AND
INITIATIVES
Crime victim rights services grants $ 4,454,800
Crime victim rights sustaining grants 7,343,700
Domestic violence prevention and treatment 72,200
Primary care services 10,300
EPIDEMIOLOGY, EMERGENCY MEDICAL SERVICES, AND
LABORATORY
Emergency medical services program 6,700
Epidemiology administration 521,000
Healthy homes program 958,200
Laboratory services 94,600
PFAS and environmental contamination response 700
LOCAL HEALTH AND ADMINISTRATIVE SERVICES
AIDS prevention, testing, and care programs 3,663,100
Cancer prevention and control program 30,000
Community health programs 687,700
Essential local public health services 69,050,700
Local health services 1,356,800
Public health administration 200
Sexually transmitted disease control program 720,400
Smoking prevention program 450,000
FAMILY HEALTH SERVICES
Dental programs 2,346,000
Family planning local agreements 4,165,000
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Immunization program 1,389,700
Pregnancy prevention program 65,000
Prenatal care outreach and service delivery
support 7,464,100
AGING SERVICES
Community services 33,510,000
Nutrition services 14,513,000
Respite care program 5,664,000
Senior volunteer service programs 1,217,000
TOTAL OF PAYMENTS TO LOCAL UNITS OF GOVERNMENT $ 159,754,900
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "AIDS" means acquired immunodeficiency syndrome.
(b) "CCBHC" means certified community behavioral health
clinic.
(c) "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.
(d) "CMS" means the Centers for Medicare and Medicaid
Services.
(e) "CPT" means current procedural terminology.
(f) "Current fiscal year" means the fiscal year ending
September 30, 2027.
(g) "Department" means the department of health and human
services.
(h) "Director" means the director of the department.
(i) "EPSDT" means early and periodic screening, diagnosis, and
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treatment.
(j) "Federal poverty level" means the poverty guidelines
revised periodically and published in the Federal Register by the
Secretary of the United States Department of Health and Human
Services under the Secretary's authority to revise the poverty line
under 42 USC 9902.
(k) "FQHC" means federally qualified health center.
(l) "FTE" means full-time equated.
(m) "GME" means graduate medical education.
(n) "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.
(o) "HEDIS" means health care effectiveness data and
information set.
(p) "HMO" means health maintenance organization.
(q) "IDEA" means the individuals with disabilities education
act, 20 USC 1400 to 1482.
(r) "IDG" means interdepartmental grant.
(s) "MCH" means maternal and child health.
(t) "Medicaid" means benefits under the medical assistance
program established under title XIX of the social security act, 42
USC 1396 to 1396w-8, and administered by the department under the
social welfare act, 1939 PA 280, MCL 400.1 to 400.119b.
(u) "Medicare" means benefits under the federal Medicare
program established under title XVIII of the social security act,
42 USC 1395 to 1395mmm.
(v) "MiCAFE" means Michigan's coordinated access to food for
the elderly.
(w) "MIChild" means the program described in section 1670 of
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this part.
(x) "MiSACWIS" means Michigan statewide automated child
welfare information system.
(y) "PACE" means program of all-inclusive care for the
elderly.
(z) "PAS/ARR-OBRA" means the preadmission screening and annual
resident review required under the omnibus budget reconciliation
act of 1987, section 1919(e)(7) of the social security act, 42 USC
1396r.
(aa) "PATH" means Partnership. Accountability. Training. Hope.
(bb) "PFAS" means perfluoroalkyl and polyfluoroalkyl
substances.
(cc) "PIHP" means an entity designated by the department as a
regional entity or a specialty prepaid inpatient health plan for
Medicaid mental health services, services to individuals with
developmental disabilities, and substance use disorder services.
Regional entities are described in section 204b of the mental
health code, 1974 PA 258, MCL 330.1204b. Specialty prepaid
inpatient health plans are described in section 109f of the social
welfare act, 1939 PA 280, MCL 400.109f.
(dd) "Previous fiscal year" means the fiscal year ending
September 30, 2026.
(ee) "Quarterly basis" means February 1, April 1, July 1, and
September 30 of the current fiscal year.
(ff) "Semiannual basis" means March 1 and September 30 of the
current fiscal year.
(gg) "Settlement" means the settlement agreement entered in
the case of Dwayne B. v Snyder, Docket No. 2:06-cv-13548 in the
United States District Court for the Eastern District of Michigan.
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(hh) "SSI" means supplemental security income.
(ii) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on the department budget, the senate and house fiscal
agencies, the senate and house policy offices, and the state budget
office.
(jj) "Temporary assistance for needy families" or "TANF" or
"title IV-A" means part A of title IV of the social security act,
42 USC 601 to 619.
(kk) "Title IV-B" means part B of title IV of the social
security act, 42 USC 621 to 629m.
(ll) "Title IV-D" means part D of title IV of the social
security act, 42 USC 651 to 669b.
(mm) "Title IV-E" means part E of title IV of the social
security act, 42 USC 670 to 679c.
(nn) "Title X" means subchapter VIII of the public health
service act, 42 USC 300 to 300a-8, which establishes grants to
states for family planning services.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
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(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
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shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
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revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
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affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) Not later than April 1, the department shall
maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $20,000,000.00 for
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federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393. Federal contingency
authorization must not be made available to increase TANF
authorization.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $20,000,000.00 for state
restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $5,000,000.00 for local
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $2,000,000.00 for private
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $174,401,600.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $174,401,600.00. Total appropriations for retiree
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health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
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comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
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verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
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18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
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department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
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department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
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or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.
Sec. 250. If either of the following events occurs, not later
than 30 days after the event occurs, the department shall notify
the standard report recipients of that fact:
(a) A legislative objective of this part or of a bill or
amendment to a bill to amend the social welfare act, 1939 PA 280,
MCL 400.1 to 400.119b, cannot be implemented because implementation
would conflict with or violate federal law.
(b) A federal grant for which a notice of an award has been
received cannot be used or will not be used.
Sec. 251. (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
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amounts available in prior year revenues.
(2) The department's ability to satisfy appropriation fund
sources in part 1 is not limited to collections and accruals
pertaining to services provided in the current fiscal year and
includes reimbursements, refunds, adjustments, and settlements from
prior years.
Sec. 252. Not later than February 1 of the current fiscal
year, the department shall submit, to the standard report
recipients, a report on the detailed names and amounts of estimated
federal, restricted, private, and local sources of revenue that
support the appropriations in each of the line items in part 1 for
the previous fiscal year. The report must itemize, rather than
aggregate, specific revenue sources deposited into the generic
statewide integrated governmental management application (SIGMA)
fund numbers 1200, 1274, 4000, and 5000.
Sec. 253. As required under part 23 of the public health code,
1978 PA 368, MCL 333.2301 to 333.2321, the appropriations in part 1
must include the following:
(a) Immunizations.
(b) Communicable disease control.
(c) Sexually transmitted infection control.
(d) Tuberculosis control.
(e) Prevention of gonorrhea eye infection in newborns.
(f) Screening newborn infants for the conditions listed in
section 5431 of the public health code, 1978 PA 368, MCL 333.5431,
or recommended by the newborn screening quality assurance advisory
committee created under section 5430 of the public health code,
1978 PA 368, MCL 333.5430.
(g) Health and human services annex of the Michigan Emergency
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Management Plan.
(h) Prenatal care.
(i) Mental health.
Sec. 254. (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
Michigan Public Health Institute to carry out the activities
described in this subsection for up to a 1-year period.
(2) On a semiannual basis, the department shall submit, to the
standard report recipients, a report that includes 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.
(3) On a semiannual basis, the department shall provide, to
the standard report recipients, 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
the department's budget in the previous fiscal year and allocated
to the Michigan Public Health Institute.
Sec. 255. The department shall ensure that faith-based
organizations are able to apply and compete for services, programs,
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or contracts that the organizations are qualified and suitable to
fulfill. The department shall not disqualify faith-based
organizations solely on the basis of the religious nature of the
organizations or the guiding principles or statements of faith for
the organizations.
Sec. 256. In accordance with section 1b of the social welfare
act, 1939 PA 280, MCL 400.1b, the department shall treat part 1 and
this part as a time-limited addendum to the social welfare act,
1939 PA 280, MCL 400.1 to 400.119b.
Sec. 257. (1) Not later than 30 days before the implementation
date of a major policy change, the department shall report the
change to the standard report recipients.
(2) The department shall make the department's entire policy
and procedures manual available and accessible to the public on the
department's website.
(3) The department shall attach each policy bulletin issued
during the previous calendar year to the report under section 213.
Sec. 258. The department may establish and collect fees for
publications, videos and related materials, conferences, and
workshops. Collected fees are appropriated when received and must
be used to offset expenditures for publication printing and
mailing, costs of the publications, videos and related materials,
conferences, and workshops. The department shall not collect fees
under this section that exceed the cost of the expenditures. If
collected fees are appropriated under this section in an amount
that exceeds the current fiscal year appropriation, not later than
30 days after the collected fee appropriation, the department shall
notify the standard report recipients of that fact.
Sec. 259. The department may retain all of this state's share
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of food assistance overissuance collections as an offset to general
fund/general purpose costs. Retained collections must be applied
against federal funds deductions in all appropriation units where
department costs related to the investigation and recoupment of
food assistance overissuances are incurred. Retained collections in
excess of the investigation and recoupment costs must be applied
against the federal funds deducted in the departmental
administration and support appropriation unit.
Sec. 260. 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 must be used as the first source
of funds in the subsequent fiscal year.
Sec. 261. If the department receives tobacco tax funds and
Healthy Michigan fund revenue from part 1, not later than April 1
of the current fiscal year, the department shall submit, to the
standard report recipients, a report on both of the following
activities during the previous fiscal year:
(a) Tobacco tax revenue appropriations in the Medicaid
program.
(b) Information for each project implemented with revenue
under this section, including all of the following:
(i) The project's name.
(ii) The appropriation line item and amount.
(iii) The project's target population.
(iv) A description of the project.
(v) The outcomes or accomplishments of the project.
Sec. 262. If the department is authorized under federal law or
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the law of this state to collect an overpayment owed to the
department, beginning 60 days after the initial notification date
of the overpayment amount, the department may assess a penalty of
1% per month. If an overpayment is caused by department error, a
penalty may be assessed 6 months after the initial notification
date of the overpayment amount. The department shall not collect
penalty interest in an amount that exceeds the amount of the
original overpayment. This state's share of any funds collected
under this section must be deposited in the general fund of this
state.
Sec. 263. (1) On a quarterly basis, the department shall
submit, to the standard report recipients, a report on the status
of the implementation of any noninflationary, noncaseload,
programmatic funding increases in the current fiscal year from the
previous fiscal year. The report must confirm the implementation of
already-implemented funding increases and provide an explanation
for any planned implementation of funding increases that have not
yet occurred. For any planned implementation of funding increases
that have not yet occurred, the report must include an expected
implementation date and the reason for delayed implementation.
(2) For any programmatic funding increases not reported as
implemented or in the process of being implemented in the first 2
reports under subsection (1), the department shall submit, to the
standard report recipients, a status update in the last 2 reports
required under subsection (1).
Sec. 265. The department shall provide the approved spending
plan for each line item receiving an appropriation in the current
fiscal year to the senate and house of representatives
appropriations subcommittees on the department budget and the
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senate and house fiscal agencies not later than 60 days after
approval by the department or not later than January 15 of the
current fiscal year, whichever is earlier. In all places that a
line-item appropriation number is listed, a line-item appropriation
name must be included. The spending plan must include the following
information regarding planned expenditures for each category:
allocation in the previous period, change in the allocation, and
new allocation. The spending plan must include the following
information regarding each revenue source for the line item:
category of the fund source indicated by general fund/general
purpose, state restricted, local, private, or federal. Figures
included in the approved spending plan must not be assumed to
constitute the actual final expenditures, as line items may be
updated on an as-needed basis to reflect changes in projected
expenditures and projected revenue. The department shall supplement
the spending plan information by providing a list of all active
contracts and grants in the department's contract system. For
amounts listed in the other contracts category of each spending
plan, the department shall include the name of the line item and
the name of the fund source for each contract, grant, and amount
for the current fiscal year. For amounts listed in the all other
costs category of each spending plan, the department shall provide
a list detailing planned expenditures and amounts for the current
fiscal year and include the name of the line item and the name of
the fund source related to each expenditure and amount.
Sec. 267. Not later than March 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report on total actual expenditures in the previous fiscal year for
advertising and media outreach, including the purpose, amount, and
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fund source by program or appropriation line item.
Sec. 268. Not later than March 1 of the current fiscal year,
the department shall submit a description of programs report to the
standard report recipients. For each program, the report must
include the appropriation unit; the line item name and number; the
appropriation history; the program name; the program overview; a
financing summary; and, where applicable, the program's legal
basis, effectiveness, and outcomes.
Sec. 269. On a quarterly basis, the department shall submit,
to the standard report recipients, a report on any line-item
appropriation for which the department estimates total annual
expenditures would exceed the funds appropriated for the line-item
appropriation by 5% or more. The department shall provide a
detailed explanation for any relevant line-item appropriation
exceedance, identify the corrective actions undertaken to mitigate
line-item appropriation expenditures from exceeding the funds
appropriated for the line-item appropriation by a greater amount,
and identify other corrective actions if no legislative transfer or
supplemental is approved. This section does not apply for line-item
appropriations that are part of the May revenue estimating
conference caseload and expenditure estimates.
Sec. 270. (1) The department shall ensure that each federally
recognized tribe is able to apply and compete for services,
programs, grants, and contracts.
(2) For competitive grant programs described in this part,
each federally recognized tribe is eligible to apply for grant
funds made available to organizations exempt from federal income
tax under section 501(c)(3) of the internal revenue code of 1986,
26 USC 501, and to local units of government.
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Sec. 271. (1) Except as provided in this subsection, before
submission of a waiver, state plan amendment, or similar proposal
to CMS or another federal agency, the department shall notify the
standard report recipients of the planned submission. This
subsection does not apply to the submission of a waiver, state plan
amendment, or similar proposal that does not propose a material
change or is outside of the ordinary course of a waiver, state plan
amendment, or similar proposal.
(2) On a semiannual basis, the department shall submit, to the
standard report recipients, a report that summarizes the status of
any new or ongoing discussions with CMS, the United States
Department of Health and Human Services, or another federal agency
regarding any potential or future waiver applications and the
status of any submitted waivers that have not yet received federal
approval. If there is not a reportable item at the time that a
semiannual report is due, a report is not required.
Sec. 272. The department shall advise the legislature of the
receipt of a notification from the attorney general's office of a
legal action in which expenses had been recovered under section 10b
of the medicaid false claims act, 1977 PA 72, MCL 400.610b. If
applicable, not later than February 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report that includes, but is not limited to, all of the following:
(a) The total amount recovered from the legal action.
(b) The program or service for which the money was originally
expended.
(c) Details on the disposition of the funds recovered, such as
the appropriation or revenue account in which the money was
deposited.
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(d) A description of the facts involved in the legal action.
Sec. 273. On the day that is 1 week after the day that the
governor submits the executive budget proposal for the ensuing
fiscal year to the legislature, the department, in collaboration
with the state budget office, shall submit, to the standard report
recipients, a report on spending and revenue projections for each
of the capped federal funds listed in this subsection. The report
must contain actual spending and revenue in the previous fiscal
year, spending and revenue projections for the current fiscal year
as enacted, and spending and revenue projections in the executive
budget proposal for the immediately ensuing fiscal year for each
individual line item for the department budget. The report must
also include federal funds transferred to other departments. The
capped federal funds include, but are not limited to, all of the
following:
(a) TANF.
(b) Title XX social services block grant.
(c) Title IV-B subpart I child welfare services block grant.
(d) Title IV-B subpart II promoting safe and stable families
funds.
(e) Low-income home energy assistance program.
Sec. 274. (1) On a quarterly basis, the department, with the
approval of the state budget director, is authorized to realign
sources between other federal, TANF, and capped federal financing
authorizations to maximize federal revenues. The realignment of
financing must not produce any of the following:
(a) A gross increase or decrease in the department's total
individual line item authorizations.
(b) A net increase or decrease in total federal revenues.
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(c) A net increase in TANF authorization.
(2) On a quarterly basis, the department shall submit, to the
standard report recipients, a report on the realignment of federal
fund sources transacted to date in the current fiscal year under
subsection (1), including the dates, line items, and amounts of the
transactions. If, at the time a quarterly report is due, a
transaction was not made under subsection (1), a report is not
required.
(3) Not later than 30 days after the date on which year-end
book closing is completed, the department shall submit, to the
standard report recipients, a report on the realignment of federal
fund sources that took place as part of the year-end closing
process for the previous fiscal year.
Sec. 275. Any public advertisement for public assistance must
inform the public of the welfare fraud hotline operated by the
department.
Sec. 276. Not later than April 1 of the current fiscal year,
the department shall submit, to the standard report recipients, a
report on funds appropriated for the healthy moms, healthy babies
initiative. The report must include the budgeted amount, year-to-
date expenditures, remaining balance of appropriations, and the
percent of budget spent for each appropriation related to the
initiative. The report must also include information on how the
funds have assisted with meeting the goals and outcomes of the
initiative.
Sec. 277. (1) The department may accept monetary and
nonmonetary gifts, bequests, donations, contributions, or grants
from any private source to support, in whole or in part, a
departmental function or program. The department shall expend or
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use the gifts, bequests, donations, contributions, or grants for
the purposes designated by the private source, if the purpose is
specified and part 1 has sufficient authorization.
(2) In the demonstration projects line item, money remaining
in the fund under this section at the end of the fiscal year does
not lapse to the general fund but must be carried forward to the
subsequent fiscal year.

HEALTH AND HUMAN SERVICES POLICY AND INITIATIVES
Sec. 1140. From the funds appropriated in part 1 for primary
care services, $400,000.00 is allocated to free health clinics
operating in this state. The department shall distribute the funds
equally to each free health clinic. As used in this section, "free
health clinic" means a nonprofit organization that uses a volunteer
health professional to provide care to an uninsured individual.
Sec. 1143. From the funds appropriated in part 1 for primary
care services, the department shall allocate no less than
$675,000.00 for island primary health care access and services
including island clinics, in the following amounts:
(a) Beaver Island, $250,000.00.
(b) Mackinac Island, $250,000.00.
(c) Drummond Island, $150,000.00.
(d) Bois Blanc Island, $25,000.00.
Sec. 1145. The department shall take steps necessary to work
with the Indian Health Service, tribal health program facilities,
or Urban Indian Health Program facilities, that provide services
under a contract with a Medicaid managed care entity to ensure that
the facilities described in this section receive the maximum amount
allowable under federal law for Medicaid services.
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Sec. 1146. (1) From the funds appropriated in part 1 for
domestic violence prevention and treatment, the department shall
allocate $1,000,000.00 to support programs that serve survivors of
domestic violence, sexual violence, and human trafficking. The
funds appropriated in this section must be allocated in the
following manner:
(a) $500,000.00 must be used by the department to provide
technical assistance, training, and support to a victim service
organization and must be allocated to the victim service
organization that received funds under section 1146(a) of article 6
of 2025 PA 22 for the purpose described in that section. To be
eligible for funding under this subsection, the victim service
organization must meet all of the following requirements:
(i) Be a nonprofit organization organized under the laws of
this state that is exempt from federal income tax under section
501(c)(3) of the internal revenue code of 1986, 26 USC 501.
(ii) Be a statewide tribal domestic violence and sexual assault
coalition serving the tribes located in this state.
(iii) Be recognized as the tribal coalition in this state by the
Office on Violence Against Women within the United States
Department of Justice.
(b) $500,000.00 must be allocated to the entity that received
funds under section 1146(b) of article 6 of 2025 PA 22 for the
purpose described in that section.
(2) Not later than March 1 of the current fiscal year, the
department shall submit to the standard report recipients a report
on the distribution of funds, a description of the services
provided, and the number of people served.
Sec. 1153. From the funds appropriated in part 1 for crime
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victim rights sustaining grants, the department shall allocate
$102,600.00 of state general fund/general purpose revenue for a
sexual assault nurse examiners program at the same hospital that
received funds under section 1153 of article 6 of 2025 PA 22 for
the purpose described in that section. The funds allocated under
this section must be used to support staff compensation and
training, victim needs, and community awareness, education, and
prevention programs.
Sec. 1155. (1) From the funds appropriated in part 1 for the
uniform statewide sexual assault evidence kit tracking system, in
accordance with the final report of the Michigan sexual assault
evidence kit tracking and reporting commission, the department
shall allocate $369,500.00 for administering a uniform statewide
sexual assault evidence kit tracking system. The system must
include all of the following:
(a) A uniform statewide system to track the submission and
status of sexual assault evidence kits.
(b) A uniform statewide system to audit untested kits that
were collected on or before March 1, 2015 and were released by
victims to law enforcement.
(c) Secure electronic access for victims.
(d) The ability to accommodate concurrent data entry with kit
collection through mechanisms that include, but are not limited to,
web entry through computers or smartphones, and through scanning
devices.
(2) The sexual assault evidence tracking fund established in
section 1451 of article X of 2017 PA 158 shall continue to be
maintained in the department of treasury. Money in the sexual
assault evidence tracking fund at the close of a fiscal year
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remains in the sexual assault evidence tracking fund, does not
revert to the general fund, and is appropriated as provided by law
for the development and implementation of a uniform statewide
sexual assault evidence kit tracking system as described in
subsection (1).
Sec. 1157. (1) From the funds appropriated in part 1 for child
advocacy centers - supplemental grants, the department shall
allocate $3,000,000.00 to provide additional funding to child
advocacy centers to support the general operations of child
advocacy centers. The department shall allocate the additional
funding to each center according to the formula under this section.
The department shall set a formula in consultation with children's
advocacy centers of Michigan (CAC-MI) to allocate the additional
funding. The formula must include base funding for each program and
factors, such as the number of children in the service area, square
miles of the service area, and prior service levels. The purpose of
the additional funding is to increase the amount of services
provided to children and their families who are victims of abuse
over the amount provided in the previous fiscal year.
(2) Not later than March 1 of the current fiscal year, the
department shall submit to the standard report recipients a report
on the distribution of child advocacy center – supplemental grants
funding from the previous fiscal year. The report must include the
amount allocated to each specific child advocacy center or other
community-based child protection entity, including, but not limited
to, child abuse councils.
Sec. 1158. From the funds appropriated in part 1 for crime
victim rights sustaining grants, the department shall allocate
$28,101,300.00 to supplement the loss of federal victims of crime
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act and state crime victim rights funding. The department must
distribute the funds consistent with the regular allocation formula
for crime victim justice grants and crime victim rights services
grants.
Sec. 1160. Not later than March 1 of the current fiscal year,
the department shall submit to the standard report recipients a
report on the distribution of crime victim rights justice
assistance grants, crime victim rights services grants, and crime
victim rights sustaining grants from the previous fiscal year. The
report must include the number of people served listed by agency,
the amount allocated to nonprofit agencies for crime victim
services listed by agency, and the amount of funding that each
agency has used for administrative purposes.

EPIDEMIOLOGY, EMERGENCY MEDICAL SERVICES, AND LABORATORY
Sec. 1180. From the funds appropriated in part 1 for
epidemiology administration and for childhood lead program, the
department shall maintain a public health drinking water program
and maintain enhanced efforts to monitor child blood lead levels.
The public health drinking water program must ensure that
appropriate investigations of potential health hazards occur for
all community and noncommunity drinking water supplies where
chemical exceedances of action levels, health advisory levels, or
maximum contaminant limits are identified. The goals of the
childhood lead program must include improving the identification of
children affected by lead exposure, improving the timeliness of
case follow-up, and attaining nurse care management for children
with lead exposure, and to achieve a long-term reduction in the
percentage of children in this state with elevated blood lead
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levels.
Sec. 1181. From the funds appropriated in part 1 for
epidemiology administration, the department shall maintain a vapor
intrusion response program. The vapor intrusion response program
shall assess risks to public health at vapor intrusion sites and
respond to vapor intrusion risks if appropriate. The goals of the
vapor intrusion response program must include reducing the number
of individuals who are exposed to toxic substances through vapor
intrusion and improving health outcomes for individuals who are
identified as having been exposed to vapor intrusion.
Sec. 1182. Not later than April 1 of the current fiscal year,
the department shall submit a report to the standard report
recipients on the expenditures and activities undertaken by the
lead abatement program during the previous fiscal year using the
funds previously appropriated for the healthy homes program. The
report must include, but is not limited to, a funding allocation
schedule, the expenditures by category of expenditure and by
subcontractor, a description of program elements, the number of
housing units abated of lead-based paint hazards by zip code, and a
description of program accomplishments and progress.

LOCAL HEALTH AND ADMINISTRATIVE SERVICES
Sec. 1220. The amount appropriated in part 1 for
implementation of the 1993 additions of or amendments to sections
9161, 16221, 16226, 17015, and 17515 of the public health code,
1978 PA 368, MCL 333.9161, 333.16221, 333.16226, 333.17015, and
333.17515, must be used to reimburse local health departments for
costs incurred to implement section 17015(18) of the public health
code, 1978 PA 368, MCL 333.17015.
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Sec. 1221. If a county that participates in a district health
department or has an associated arrangement with another local
health department takes action to stop participating in that
arrangement after October 1 of the current fiscal year, the
department may assess a penalty from the local health department's
operational accounts in an amount equal to no more than 6.25% of
the local health department's essential local public health
services funding. The department shall assess a penalty only if a
county requests the dissolution of the health department.
Sec. 1222. (1) The department shall prospectively allocate
funds appropriated in part 1 for essential local public health
services 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. The department shall consult with the
department of agriculture and rural development before allocating
funds for food protection under this section. The department shall
consult with the department of environment, Great Lakes, and energy
before allocating funds for public water supply, private
groundwater supply, and on-site sewage management under this
section.
(2) The department shall not distribute funds under subsection
(1) to a county unless the county maintains local spending in the
current fiscal year in an amount that is equal to or exceeds the
amount the county expended in fiscal year 1992-1993 for the
services described in subsection (1).
(3) Not later than February 1 of the current fiscal year, the
department shall submit a report to the standard report recipients
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on the planned allocation of the funds appropriated for essential
local public health services.
(4) The department shall continue to implement the
distribution formula for allocating essential local public health
services funding to local health departments as specified in
section 1234 of article X of 2018 PA 207.
(5) From the funds appropriated in part 1 for essential local
public health services, each local public health department is
allocated not less than the amount allocated to that local public
health department during the previous fiscal year.
Sec. 1227. The department shall establish criteria for all
funds allocated for health and wellness initiatives. The criteria
must include a requirement that a program receiving funding is
evidence-based and supported by research, includes interventions
that have been shown to demonstrate outcomes that lower cost and
improve quality, and is designed for statewide impact. The
department shall give preference to a program that uses the funding
as match for additional resources, including, but not limited to,
federal sources.
Sec. 1231. (1) From the funds appropriated for local health
services, up to $4,750,000.00 is allocated for grants to local
health departments to support PFAS response and emerging public
health threat activities. The department shall allocate a portion
of the funding in a collaborative fashion with local health
departments in jurisdictions experiencing PFAS contamination. The
department shall allocate the remainder of the funding to address
infectious and vector-borne disease threats, and other
environmental contamination issues, including, but not limited to,
vapor intrusion, drinking water contamination, and lead exposure.
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The department shall allocate the funding to address issues
including, but not limited to, staffing, planning and response, and
creating and disseminating materials related to PFAS contamination
issues and other emerging public health issues and threats.
(2) Not later than March 1 of the current fiscal year, the
department shall submit a report to the standard report recipients
on actual expenditures in the previous fiscal year and planned
spending in the current fiscal year of the funds described in
subsection (1). The report must include recipient entities, the
amount of allocation, the general category of allocation, and
detailed uses.
Sec. 1232. The department may work to ensure that the United
States Department of Defense reimburses the state for costs
associated with PFAS and environmental contamination response at
military training sites and support facilities.
Sec. 1233. The department shall not expend general fund and
state restricted fund appropriations in part 1 for PFAS and
environmental contamination response if federal funding or private
grant funding is available for the same expenditures.
Sec. 1239. The department shall participate in and give
necessary assistance to the Michigan PFAS action response team
(MPART) pursuant to Executive Order No. 2019-03. The department
shall collaborate with MPART and other departments to carry out
appropriate activities, actions, and recommendations as coordinated
by MPART. Efforts must be continuous to ensure that the
department's activities are not duplicative with activities of
another department or agency.
Sec. 1240. From the funds appropriated in part 1 for chronic
disease control and health promotion administration, $70,000.00 is
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allocated to support a rare disease advisory council and the
responsibilities of the rare disease advisory council, which may
include all of the following:
(a) Developing a list of rare diseases.
(b) Posting the list of rare diseases on the department's
website.
(c) Updating the list of rare diseases.
(d) Annually investigating and reporting to the legislature on
1 rare disease on the list, and including legislative
recommendations in the report.
Sec. 1241. (1) From the funds appropriated in part 1 for
community health programs, the department shall support preventive
health supports and services in regions with high health care
access and outcome disparities. The department shall use the funds
appropriated under this section to provide for all of the
following:
(a) Financial support for the operation of community-based
health clinics. A community-based health clinic shall provide
preventive health supports and services, be established in
communities with high social vulnerability and health disparities,
and be operated in cooperation with trusted community partners with
demonstrated experience in serving as an access point for
preventive health supports and services.
(b) Financial support for the operation of healthy community
zones. The healthy community zones must utilize long-term
strategies to address access to healthy food, affordable housing,
and safety networks.
(c) Financial support for the operation of mobile health units
to provide preventive health supports and services for individuals
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residing in areas with high disparities in health care outcomes and
access.
(2) Not later than March 1 of the current fiscal year, the
department shall submit to the standard report recipients a report
on the outcome of the community health programs described in
subsection (1). The report must include, but is not limited to, all
of the following:
(a) The list of communities served.
(b) The types of health services offered by grant recipients.
(c) A spending report from the grant recipients.

FAMILY HEALTH SERVICES
Sec. 1301. (1) Not later than April 1 of the current fiscal
year, the department shall submit to the standard report recipients
a report 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 must include information on all of the following:
(a) The funding allocations.
(b) The actual number of women, children, and adolescents
served and the amounts expended for each group for the previous
fiscal year.
(c) A breakdown of the expenditure of the funds between urban
and rural communities.
(2) The department shall ensure that the distribution of funds
through the programs described in subsection (1) takes into account
the needs of rural communities.
(3) As used in this section, "rural community" means any of
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the following:
(a) A county, city, village, or township with a population of
30,000 or less.
(b) A county, city, village, or township described in
subdivision (a), if it is located within a metropolitan statistical
area.
Sec. 1302. From the funds appropriated in part 1 for special
projects, the department shall allocate $500,000.00 of TANF revenue
to purchase child restraint systems for newborn children who are
TANF eligible. The child restraint systems must meet the standards
of all applicable federal law and the laws of this state, be
purchased in volume by this state, and be distributed through
maternal infant health program providers.
Sec. 1303. From the funds appropriated in part 1 for prenatal
care outreach and service delivery support, the department shall
allocate $1,600,000.00 to local health departments in counties
currently without home visiting programs to support pregnant
mothers and their families.
Sec. 1306. (1) From the funds appropriated in part 1 for the
drinking water declaration of emergency, the department shall
allocate funds to address needs in a city in which a declaration of
emergency was issued because of drinking water contamination. The
funds allocated under this section may be used to support any of
the following activities:
(a) Nutrition assistance, nutritional and community education,
food bank resources, and food inspections.
(b) Epidemiological analysis and case management of
individuals at risk of elevated blood lead levels.
(c) Support for child and adolescent health centers, and the
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children's health care access program.
(d) Nursing services, breastfeeding education, evidence-based
home visiting programs, intensive services, and outreach for
children exposed to lead coordinated through local community mental
health organizations.
(e) Department local office operations costs.
(f) Lead poisoning surveillance, investigations, treatment,
and abatement.
(g) Nutritional incentives provided to local residents through
the double up food bucks expansion program.
(h) Genesee County health department food inspectors to
perform water testing at local food service establishments.
(i) Transportation related to health care delivery.
(j) Senior initiatives.
(k) Lead abatement contractor workforce development.
(l) Any other activity that the department considers
appropriate.
(2) From the funds appropriated in part 1 for the drinking
water declaration of emergency, the department shall allocate
$500,000.00 for rides to wellness through the Flint mass
transportation authority.
Sec. 1308. From the funds appropriated in part 1 for prenatal
care outreach and service delivery support, the department shall
allocate not less than $500,000.00 for evidence-based programs to
reduce infant mortality. The funds must be used for enhanced
support and education to nursing teams or other teams of health
professionals that the department considers qualified, client
recruitment in areas designated as underserved for obstetrical and
gynecological services and in other high-need communities,
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strategic planning to expand and sustain programs, and marketing
and communications of programs to raise awareness, engage
stakeholders, and recruit nurses.
Sec. 1311. From the funds appropriated in part 1 for prenatal
care outreach and service delivery support, the department shall
allocate not less than $2,750,000.00 of state general fund/general
purpose revenue for a rural home visit program. The department
shall give equal consideration to all eligible evidence-based
providers in all regions in contracting for rural home visitation
services.
Sec. 1313. (1) From the funds appropriated in part 1, the
department shall continue developing an outreach program on fetal
alcohol syndrome services, targeting health promotion, prevention,
and intervention.
(2) The department shall explore federal grant funding to
address prevention services for fetal alcohol syndrome and to
reduce alcohol consumption among pregnant women.
(3) The department shall explore federal grant funding to
address prevention services to reduce marihuana use among pregnant
women.
Sec. 1314. From the funds appropriated in part 1, the
department shall enhance the department's education and outreach
efforts that encourage women of childbearing age to seek the
confirmation of a pregnancy at the earliest indication of a
possible pregnancy and to initiate continuous and routine prenatal
care on the confirmation of a pregnancy. The department shall
ensure that the department's programs, policies, and practices
promote prenatal and obstetrical care by doing all of the
following:
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(a) Supporting access to care.
(b) Reducing and eliminating barriers to care.
(c) Supporting recommendations for best practices.
(d) Encouraging optimal prenatal habits, including, but not
limited to, prenatal medical visits, use of prenatal vitamins, and
the cessation of tobacco use, alcohol use, marihuana use, or other
drug use.
(e) Tracking birth outcomes to study improvements in
prevalence of neonatal substance exposure, marihuana exposure,
fetal alcohol syndrome, and other preventable neonatal disease.
(f) Tracking maternal increase in healthy behaviors following
childbirth.
Sec. 1315. From the funds appropriated in part 1 for dental
programs, $200,000.00 is allocated to the entity that received
funds under section 1315 of article 6 of 2025 PA 22, for the
administration of a volunteer dental program that provides dental
services to the uninsured.
Sec. 1316. The department shall use revenue from permit fees
for mobile dental facilities that the department receives under
section 21605 of the public health code, 1978 PA 368, MCL
333.21605, to offset the costs of processing and issuing permits
for mobile dental facilities.
Sec. 1317. From the funds appropriated in part 1 for the
smoking prevention program, $4,100,000.00 of revenue from the
Healthy Michigan fund created in section 5953 of the public health
code, 1978 PA 368, MCL 333.5953, must be allocated to fund an
awareness campaign to provide information to the public on the
dangers of using substances, such as marihuana and tobacco, during
pregnancy.
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Sec. 1325. From the funds appropriated in part 1 for prenatal
care outreach and service delivery support, the department shall
allocate $5,000,000.00 to support grants to local collaboratives to
enhance the ability of local collaboratives to coordinate and
improve maternal and infant health outcomes. To receive a grant
under this section, a local collaborative must be a part of a
perinatal quality collaborative.
Sec. 1341. The department shall use income eligibility and
verification guidelines established by the Food and Nutrition
Service agency of the United States Department of Agriculture to
determine eligibility of individuals for the special supplemental
nutrition program for women, infants, and children (WIC) as stated
in current WIC policy.
Sec. 1343. (1) From the funds appropriated in part 1 for
dental programs, the department shall allocate $4,260,000.00 of
state and local funds, plus any private contributions received to
support the program, to establish and maintain the dental oral
assessment program described in section 9316 of the public health
code, 1978 PA 368, MCL 333.9316.
(2) Not later than December 31 of the current fiscal year, the
department shall submit a report to the standard report recipients
that provides a summary of the dental reports the department
receives from principals and administrators under section 9316 of
the public health code, 1978 PA 368, MCL 333.9316.
Sec. 1349. Subject to federal approval, from the funds
appropriated in part 1 for immunization program, the department
shall allocate all of the following funds to support a statewide
media campaign for improving this state's immunization rates:
(a) $740,000.00 of general fund/general purpose revenue.
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(b) Any available work project funds.
(c) Any available federal match through a contract
administered by the department with oversight from the behavioral
and physical health and aging services administration and the
public health administration.
Sec. 1350. The department shall make available on its website
the nonmedical waiver form for the public to access and submit for
the purposes of exempting a child from the immunization
requirements of part 92 of the public health code, 1978 PA 368, MCL
333.9201 to 333.9229. The department shall not require individuals
to schedule in-person appointments with a local health department
to receive a nonmedical waiver form. The department shall allow
individuals to receive virtual education on vaccines. The
department shall provide notice to the public within 45 days of
this section taking effect.

AGING SERVICES
Sec. 1402. The department may encourage the Food Bank Council
of Michigan to collaborate directly with each area agency on aging
and any other organization that provides senior nutrition services
to secure the food access of older adults.
Sec. 1404. From the funds appropriated in part 1 for community
services, the department shall allocate $658,000.00 to area
agencies on aging for home and community-based services.
Sec. 1417. Not later than March 31 of the current fiscal year,
the department shall submit to the standard report recipients a
report that contains all of the following information:
(a) The total allocation of state resources made to each area
agency on aging by individual program and administration.
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(b) Detailed expenditures by each area agency on aging by
individual program and administration, including both state-funded
resources and locally funded resources.
Sec. 1421. From the funds appropriated in part 1 for community
services, $1,100,000.00 is allocated for locally determined needs
that are provided by area agencies on aging.

ARTICLE 7
DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of
insurance and financial services for the fiscal year ending
September 30, 2027, from the following funds:
DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES
APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 390.5
Full-time employees 339.0
Limited-term employees 21.0
Noncareer/per diem employees 2.0
Part-time employees 2.0
Permanent-intermittent employees 0.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 73,271,400
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 778,600
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15
16
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18
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ADJUSTED GROSS APPROPRIATION $ 72,492,800
Federal revenues:
Total federal revenues 250,000
Special revenue funds:
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 72,242,800
State general fund/general purpose $ 0
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 21.5
Unclassified salaries--FTEs 6.0 $ 235,600
Administrative hearings 40,100
Department services--FTEs 16.0 3,681,400
Executive director programs--FTEs 5.5 638,600
Property management 1,156,300
Worker's compensation 1,900
Departmentwide employee economic adjustments 1,061,400
GROSS APPROPRIATION $ 6,815,300
Appropriated from:
Interdepartmental grant revenues:
IDG from MDLARA, for debt management 8,200
Special revenue funds:
Captive insurance regulatory and supervision
fund 49,300
Consumer finance fees 334,200
Continuing education fund 31,600
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Credit union regulatory fund 802,300
Deferred presentment service transaction fees 138,700
Insurance bureau fund 3,083,800
Insurance licensing and regulation fees 1,178,200
MBLSLA fund 694,800
Multiple employer welfare arrangement 100
State bank regulatory fund 494,100
State general fund/general purpose $ 0
Sec. 103. INSURANCE AND FINANCIAL SERVICES
REGULATION
Full-time equated classified positions 369.0
Consumer services and protection--FTEs 106.0 $ 18,023,900
Financial institutions evaluation--FTEs 132.0 24,679,800
Insurance evaluation--FTEs 131.0 21,946,100
GROSS APPROPRIATION $ 64,649,800
Appropriated from:
Interdepartmental grant revenues:
IDG from MDLARA, for debt management 770,400
Federal revenues:
Federal revenues 250,000
Special revenue funds:
Captive insurance regulatory and supervision
fund 645,300
Consumer finance fees 2,439,500
Continuing education fund 548,900
Credit union regulatory fund 8,545,500
Deferred presentment service transaction fees 3,767,500
Insurance bureau fund 26,875,500
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Insurance licensing and regulation fees 8,124,600
MBLSLA fund 5,999,400
Multiple employer welfare arrangement 35,400
State bank regulatory fund 6,647,800
State general fund/general purpose $ 0
Sec. 104. INFORMATION TECHNOLOGY
Information technology services and projects $ 1,806,300
GROSS APPROPRIATION $ 1,806,300
Appropriated from:
Special revenue funds:
Captive insurance regulatory and supervision
fund 11,500
Consumer finance fees 93,400
Continuing education fund 7,900
Credit union regulatory fund 218,000
Deferred presentment service transaction fees 40,300
Insurance bureau fund 855,400
Insurance licensing and regulation fees 240,600
MBLSLA fund 195,200
State bank regulatory fund 144,000
State general fund/general purpose $ 0

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
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$72,242,800.00 and total state spending under part 1 from state
sources to be paid to local units of government is $0.00.
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "Department" means the department of insurance and
financial services.
(b) "Director" means the director of the department.
(c) "FTE" means full-time equated position in the classified
service of this state.
(d) "IDG" means interdepartmental grant.
(e) "MBLSLA fund" means the restricted account established
under section 8 of the mortgage brokers, lenders, and servicers
licensing act, 1987 PA 173, MCL 445.1658.
(f) "MDLARA" means the Michigan department of licensing and
regulatory affairs.
(g) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on licensing and regulatory affairs and insurance and
financial services, the senate and house fiscal agencies, the
senate and house policy offices, and the state budget office.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
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the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
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(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
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(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
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(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) The department shall maintain, on a publicly
accessible website, a department scorecard that identifies, tracks,
and updates on a quarterly basis key metrics that are used to
monitor and improve the department's performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
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to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $200,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $1,000,000.00 for state
restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $5,008,800.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $5,008,800.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
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account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
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to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
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all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and MCL
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
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department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
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department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
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employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
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Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.
Sec. 250. Unless prohibited by law, the department may accept
credit card or other electronic means of payment for licenses,
fees, or permits. Not later than February 1, the department shall
report on fees collected from credit card payments for licenses,
fees, and permits in the previous year.
Sec. 251. Funds appropriated in part 1 must not be expended to
support any legislative participation in insurance activities
coordinated by insurance and legislative associations.
Sec. 252. The department shall submit a report to the standard
report recipients by September 30 detailing any expenditure of
funds for a television or radio production that was made to a
third-party vendor in the fiscal year ending September 30, 2026.
The report must include all of the following information for each
expenditure:
(a) Total amount of the expenditure.
(b) Fund source for the expenditure.
(c) Name of any vendor that created the production and the
amount paid to each vendor.
(d) Purpose of the production.

INSURANCE AND FINANCIAL SERVICES REGULATION
Sec. 301. The annual health insurance rate change report
prepared pursuant to 45 CFR 154.301(b) shall be transmitted
electronically to the standard report recipients and must include
the following:
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(a) The number that are approved by the department.
(b) The number of denials issued by the department.
(c) The number of objections issued by the department.
(d) The percentage of rate filings processed within the
applicable statutory time frames.
(e) The average number of calendar days to process rate
filings.
Sec. 302. In addition to the funds appropriated in part 1, the
funds collected by the department in connection with a
conservatorship under section 32 of the mortgage brokers, lenders,
and servicers licensing act, 1987 PA 173, MCL 445.1682, and funds
collected by the department from corporations being liquidated
under the insurance code of 1956, 1956 PA 218, MCL 500.100 to
500.8302, must be appropriated for all expenses necessary to
provide for the required services. Funds are available for
expenditure when they are received by the department of treasury
and must not lapse to the general fund at the end of the fiscal
year. The total amount appropriated under this section and section
303 must not exceed $600,000.00.
Sec. 303. The department may make available to interested
entities customized listings of nonconfidential information in its
possession. The department may establish and collect a reasonable
charge to provide this service. The revenue from this service is
appropriated when received and must be used to offset expenses to
provide the service. Any balance of this revenue collected and
unexpended at the end of the fiscal year must lapse to the
appropriate restricted fund. The total amount appropriated under
this section and section 302 must not exceed $600,000.00.
Sec. 304. The department must electronically transmit the
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annual report prepared under section 238 of the insurance code of
1956, 1956 PA 218, MCL 500.238, and section 2108 of the banking
code of 1999, 1999 PA 276, MCL 487.12108, to the standard report
recipients at the time of the publication of the report.
Sec. 305. The department shall update examination manuals and
letters of guidance to state-chartered financial institutions as
necessary to reflect how the department will evaluate institutions
that provide banking or other financial services to marihuana-
related businesses or businesses that transport, test, grow,
process, or sell marihuana, based on state statute and guidance.
The department may also include guidance or information on how
federal law and regulations may impact state-chartered
institutions.

ARTICLE 8
JUDICIARY
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the judiciary for the
fiscal year ending September 30, 2027, from the following funds:
JUDICIARY
APPROPRIATION SUMMARY
Full-time equated exempted positions 643.5
GROSS APPROPRIATION $ 371,833,300
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 1,902,300
ADJUSTED GROSS APPROPRIATION $ 369,931,000
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Federal revenues:
Total federal revenues 7,323,000
Special revenue funds:
Total local revenues 0
Total private revenues 1,912,900
Total other state restricted revenues 96,695,100
State general fund/general purpose $ 264,000,000
Sec. 102. SUPREME COURT
Full-time equated exempted positions 306.0
Community dispute resolution--FTEs 3.0 $ 3,388,800
Drug treatment courts--FTEs 2.0 13,266,700
Foster care review board--FTEs 10.0 1,445,600
Jail reform advisory support--FTE 1.0 160,100
Judicial information systems--FTEs 91.0 14,124,000
Judicial institute--FTEs 17.0 2,906,500
Justice for all--FTEs 2.0 1,539,700
Mental health courts and diversion services--
FTE 1.0 5,779,400
Michigan legal help 1,000,000
Next generation Michigan court system 4,116,000
Other federal grants 275,100
State court administrative office--FTEs 83.0 15,690,000
Supreme court administration--FTEs 96.0 9,138,600
Supreme court unit economic adjustments 1,118,900
Swift and sure sanctions program 1,537,600
Veterans courts 1,061,200
GROSS APPROPRIATION $ 76,548,200
Appropriated from:
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Interdepartmental grant revenues:
IDG from department of corrections 52,300
IDG from department of state police 1,500,000
IDG from department of state police, Michigan
justice training fund 100,000
Federal revenues:
DOJ, drug court training and evaluation 300,000
DOT, National Highway Traffic Safety
Administration 2,358,700
Federal funds 275,100
HHS, access and visitation grant 508,000
HHS, children's justice grant 259,800
HHS, court improvement project 1,019,000
HHS, safe access for victims economic security
grant 420,000
HHS, state opioid response grant 352,200
HHS, title IV-D child support program 912,800
HHS, title IV-E foster care program 333,600
Special revenue funds:
Interest on lawyers trust accounts 414,400
Private funds 501,100
State justice institute 529,000
Community dispute resolution fund 2,435,500
Court of appeals filing/motion fees 1,450,000
Drug treatment court fund 1,920,500
Justice system fund 657,100
Law exam fees 808,700
Miscellaneous revenue 249,400
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State court fund 422,800
State general fund/general purpose $ 58,768,200
Sec. 103. COURT OF APPEALS
Full-time equated exempted positions 179.0
Court of appeals operations--FTEs 179.0 $ 28,391,900
GROSS APPROPRIATION $ 28,391,900
Appropriated from:
State general fund/general purpose $ 28,391,900
Sec. 104. BRANCHWIDE APPROPRIATIONS
Full-time equated exempted positions 6.0
Branchwide appropriations--FTEs 6.0 $ 10,657,400
GROSS APPROPRIATION $ 10,657,400
Appropriated from:
State general fund/general purpose $ 10,657,400
Sec. 105. JUSTICES' AND JUDGES' COMPENSATION
Judge positions--591.0 justices and judges
Supreme court justices' salaries--7.0 justices $ 1,270,500
Circuit court judges' state base salaries--
223.0 judges 32,563,500
Circuit court judicial salary standardization 10,196,800
Court of appeals judges' salaries--25.0 judges 5,188,500
District court judges' state base salaries--
232.0 judges 33,877,700
District court judicial salary standardization 10,608,600
Probate court judges' state base salaries--
104.0 judges 15,060,600
Probate court judicial salary standardization 4,715,300
Judges' retirement system defined contributions 9,734,600
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OASI, Social Security 8,661,600
GROSS APPROPRIATION $ 131,877,700
Appropriated from:
Special revenue funds:
Court fee fund 3,119,300
State general fund/general purpose $ 128,758,400
Sec. 106. JUDICIAL AGENCIES
Full-time equated exempted positions 14.0
Judicial tenure commission--FTEs 14.0 $ 2,995,100
GROSS APPROPRIATION $ 2,995,100
Appropriated from:
State general fund/general purpose $ 2,995,100
Sec. 107. INDIGENT DEFENSE - CRIMINAL
Full-time equated exempted positions 112.5
Appellate public defender program--FTEs 94.0 $ 17,198,300
Juvenile life resentencing--FTEs 18.5 3,121,500
Michigan appellate assigned counsel system
roster attorney compensation grants 3,208,100
GROSS APPROPRIATION $ 23,527,900
Appropriated from:
Interdepartmental grant revenues:
IDG from department of state police 250,000
Federal revenues:
Federal funds 583,800
Special revenue funds:
Interest on lawyers trust accounts 88,400
Michigan justice fund 380,000
Miscellaneous revenue 172,400
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State general fund/general purpose $ 22,053,300
Sec. 108. INDIGENT CIVIL LEGAL ASSISTANCE
Indigent civil legal assistance $ 7,937,000
GROSS APPROPRIATION $ 7,937,000
Appropriated from:
Special revenue funds:
State court fund 7,937,000
State general fund/general purpose $ 0
Sec. 109. TRIAL COURT OPERATIONS
Full-time equated exempted positions 26.0
Court equity fund reimbursements $ 60,815,700
Drug case-flow program 250,000
Drunk driving case-flow program 3,300,000
Judicial technology improvement fund 4,815,000
Juror compensation reimbursement--FTE 1.0 6,619,900
Statewide e-file system--FTEs 25.0 12,097,500
GROSS APPROPRIATION $ 87,898,100
Appropriated from:
Special revenue funds:
Court equity fund 50,440,000
Drug case information management fund 250,000
Drunk driving case-flow assistance fund 3,300,000
Judicial electronic filing fund 12,097,500
Judicial technology improvement fund 4,815,000
Juror compensation fund 6,619,900
State general fund/general purpose $ 10,375,700
Sec. 110. ONE-TIME APPROPRIATIONS
Juvenile life resentencing $ 2,000,000
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GROSS APPROPRIATION $ 2,000,000
Appropriated from:
State general fund/general purpose $ 2,000,000

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$360,695,100.00 and total state spending under part 1 from state
sources to be paid to local units of government is $162,355,300.00.
The following itemized statement identifies appropriations from
which spending to local units of government will occur:
JUDICIARY
SUPREME COURT
Drug treatment courts $ 9,216,700
Judicial information systems 10,449,100
Mental health courts and diversion services 5,779,400
Next generation Michigan court system 4,116,000
State court administrative office 200,000
Swift and sure sanctions program 1,537,600
Veterans courts 1,061,200
JUSTICES' AND JUDGES' COMPENSATION
Circuit court judicial salary standardization $ 10,196,800
District court judicial salary standardization 10,608,600
OASI, Social Security 1,515,900
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Probate court judges' state base salaries 15,060,600
Probate court judicial salary standardization 4,715,300
TRIAL COURT OPERATIONS
Court equity fund reimbursements $ 60,815,700
Drug case-flow program 250,000
Drunk driving case-flow program 3,300,000
Judicial technology improvement fund 4,815,000
Juror compensation reimbursement 6,619,900
Statewide e-file system 12,097,500
TOTAL $ 162,355,300
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "DOJ" means the United States Department of Justice.
(b) "DOT" means the United States Department of
Transportation.
(c) "FTE" means full-time equated exempted positions.
(d) "HHS" means the United States Department of Health and
Human Services.
(e) "IDG" means interdepartmental grant.
(f) "OASI" means old age survivor's insurance.
(g) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on corrections and judiciary, the senate and house
fiscal agencies, the senate and house policy offices, and the state
budget office.
(h) "Title IV-D" means the part of the federal social security
act, 42 USC 301 to 1397mm, pertaining to the child support
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enforcement program.
(i) "Title IV-E" means the part of the federal social security
act, 42 USC 301 to 1397mm, pertaining to the foster care program.
Sec. 205. (1) The judicial branch shall use the internet to
fulfill the reporting requirements of this part and shall make each
report readily accessible to the public and conspicuously post each
required report in a single archivable location on the judicial
branch's website not later than the due date required for each
report.
(2) In addition to placing all reports required in the current
fiscal year on the judicial branch's website, the judicial branch
shall maintain on its website all reports placed on the website
from previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The judicial branch shall transmit all required reports
for the current fiscal year to the standard report recipients and
any other required recipients by email. The email shall include a
copy of the report and a link to access the report online.
Sec. 206. The judicial branch shall receive and retain copies
of all reports funded from appropriations in part 1. The judicial
branch shall follow federal and state law and guidelines for short-
term and long-term retention of records. The judicial branch shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. From the funds appropriated in part 1, the judicial
branch shall maintain a searchable website accessible by the public
at no cost that posts all of the expenditures made by the judicial
branch within a fiscal year. A post must include the purpose of the
expenditure. The judicial branch shall not provide financial
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information on the public website that would violate a federal or
state law, rule, regulation, or guideline that establishes privacy
or security standards applicable to that financial information.
Sec. 208. Not later than December 15, the judicial branch
shall cooperate with the state budget office to prepare and submit
a report that provides estimates of the total general fund/general
purpose appropriation lapses at the close of the previous fiscal
year. The report must summarize the projected year-end general
fund/general purpose appropriation lapses by major judicial program
or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the judicial branch shall
cooperate with the state budget office to provide an annual report
on estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the judicial branch
shall report on private and other third-party funds received by the
judicial branch in the previous fiscal year. The report must
include the amount of funding received, the specific source of
funding received, the purpose for which funding was expended, and
the amount of any remaining funds.
Sec. 211. The state court administrative office shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by judicial
branch employees in the previous fiscal year that was funded in
whole or in part with funds appropriated in the judicial branch's
budget. The report must include all of the following information:
(a) The dates of each travel occurrence.
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(b) The total transportation and related expenses of each
travel occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $9,414,300.00 for the judicial branch.
From this amount, total appropriations for pension-related legacy
costs for the judicial branch are estimated at $9,414,300.00. Total
appropriations for retiree health care legacy costs for the
judicial branch are estimated at $0.00.
Sec. 218. To the extent possible, the judicial branch shall
not expend appropriations under part 1 until all existing
authorized work project funds available for the same purposes are
exhausted.
Sec. 219. The judicial branch shall submit reports that
summarize all work project accounts not later than December 31,
March 30, June 30, and September 30. The reports must include all
of the following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
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work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The judicial branch shall not take disciplinary
action against an employee of the judicial branch because the
employee communicates with a member of the legislature or
legislative staff, unless the communication is prohibited by law
and the judicial branch is exercising its authority as provided by
law.
Sec. 230. (1) Funds appropriated in part 1 to an entity in the
judicial branch must not be expended or transferred to another
account without written approval of the authorized agent of the
judicial entity. If the authorized agent of the judicial entity
notifies the state budget director of its approval of an
expenditure or transfer, the state budget director shall
immediately make the expenditure or transfer. The authorized
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judicial entity agent shall be designated by the chief justice of
the supreme court.
(2) Funds appropriated to the judicial branch must not be
expended by a component in the judicial branch without the approval
of the supreme court.

JUDICIAL BRANCH
Sec. 301. From the funds appropriated in part 1 for the
judicial branch, $711,900.00 is allocated for circuit court
reimbursement under section 3 of 1978 PA 16, MCL 800.453, and for
costs associated with the court of claims.
Sec. 302. A member of the legislature may request a report or
data from the data collected in the judicial data warehouse. The
report must be made available to the public upon request, unless
disclosure is prohibited by court order or state or federal law. If
data is provided under this section, the data must be public and
nonidentifying information, as determined by the state court
administrative office. As used in this section, "nonidentifying
information" means information that does not include personal
information that, if released, would be considered invasion of
privacy.
Sec. 303. From the funds appropriated in part 1 for community
dispute resolution, community dispute resolution centers shall
provide dispute resolution services specified in the community
dispute resolution act, 1988 PA 260, MCL 691.1551 to 691.1564, help
reduce suspensions and truancy, and improve school environment. The
funds appropriated in part 1 for community dispute resolution may
be used to develop or expand juvenile diversion services in
coordination with local prosecutors.
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Sec. 304. If funds in the court fee fund are insufficient to
pay judges' compensation, the difference between the appropriated
amount from that fund for judges' compensation and the actual
amount available after the amount appropriated for trial court
reimbursement is made is appropriated from the state general fund
for judges' compensation. If an appropriation from the state
general fund is necessary under this section, not later than 14
days after the appropriation, the state court administrative office
shall submit a report.
Sec. 305. From the funds appropriated in part 1, the state
court administrative office shall submit a report on drug
treatment, mental health, and veterans court programs in this state
not later than March 1. The report must include all of the
following information for each individual court, by program:
(a) The number of each type of program.
(b) The number of program participants.
(c) The impact of the programs on offender criminal
involvement and recidivism.
(d) An accounting of previous fiscal year expenditures,
including grant amounts requested, grant amounts awarded, and grant
amounts expended.
Sec. 306. (1) The funds appropriated in part 1 for drug
treatment courts must be administered by the state court
administrative office to operate drug treatment court programs. A
drug treatment court shall use all available county and state
personnel involved in the disposition of cases, including, but not
limited to, parole and probation agents, prosecuting attorneys,
defense attorneys, and community corrections providers. The funds
may be used in connection with other federal, state, and local
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funding sources.
(2) From the funds appropriated in part 1, the chief justice
shall allocate sufficient funds for the Michigan judicial institute
to provide in-state training for those identified in subsection (1)
and new drug treatment court judges.
(3) The state court administrative office may prioritize
funding for courts that have a higher number of filed substance use
disorder cases.
(4) To assist the department of corrections and avoid prison
bed space growth for nonviolent offenders, the judicial branch
shall receive $1,500,000.00 in Byrne formula grant funding through
an interdepartmental grant from the department of state police to
be used to support drug treatment court costs consistent with Byrne
grant program criteria.
Sec. 307. (1) From the funds appropriated in part 1 for swift
and sure sanctions programs, the state court administrative office
shall administer a program to distribute grants to qualifying
courts in accordance with the objectives and requirements of the
probation swift and sure sanctions act, chapter XIA of the code of
criminal procedure, 1927 PA 175, MCL 771A.1 to 771A.8. Courts
interested in participating in the swift and sure sanctions program
may apply to the state court administrative office for a portion of
the funds appropriated in part 1 under this section.
(2) Not later than March 1, the state court administrative
office, in coordination with the department of corrections, shall
submit a report on the swift and sure sanctions program that
includes all of the following information for each individual
court, by program:
(a) A list of courts that participate in the program.
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(b) The number of offenders who participate in the program.
(c) The criminal history of offenders who participate in the
program.
(d) The recidivism rate of offenders who participate in the
program, including the rate of return to jail, prison, or both.
(e) A detailed description of the establishment and parameters
of the program.
(f) An accounting of previous fiscal year expenditures,
including, but not limited to, grant amounts requested by the
courts, grant amounts awarded to the courts, and grant amounts
expended by the courts.
Sec. 308. From the funds appropriated in part 1, the judicial
branch shall support a statewide legal self-help internet website
and local nonprofit self-help centers that use the statewide
website to provide assistance to individuals who represent
themselves in civil legal proceedings. The state court
administrative office shall summarize the costs to maintain the
website, provide statistics on the number of individuals who visit
the website, and provide information on content usage, form
completion, and user feedback not later than March 1 for the
previous fiscal year.
Sec. 309. From the funds appropriated in part 1, the state
court administrative office shall submit a report on the statewide
judicial case management system not later than March 1. The report
must provide a status update on development and implementation of
the statewide judicial case management system and must include all
appropriation and expenditure data for all previous and the current
fiscal years.
Sec. 311. (1) If Byrne formula grant funding is awarded to the
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state appellate defender office in excess of the amount
appropriated in part 1, the state appellate defender office may
receive and expend not more than $250,000.00 of Byrne formula grant
funds as an interdepartmental grant from the department of state
police.
(2) If the state appellate defender office receives federal
grant funding from the United States Department of Justice in
excess of the amount appropriated in part 1, the state appellate
defender office may receive and expend not more than $300,000.00 in
federal grant funds.
Sec. 312. As prescribed in section 23 of article IX of the
state constitution of 1963, all financial records, accountings,
audit reports, and other reports of public moneys shall be public
records and open to inspection. Not later than October 1, 2026, the
state court administrative office shall cooperate with the
department of technology, management, and budget to authorize
access by the senate and house fiscal agencies to financial
information for the judicial branch that is contained within
statewide integrated governmental management applications.
Sec. 313. (1) From the funds appropriated in part 1, the state
appellate defender office shall operate the program to ensure this
state's compliance with Montgomery v Louisiana, 577 US 190 (2016),
People v Parks, 510 Mich 225 (2022), People v Stovall, 510 Mich 301
(2022), People v Poole, ___ Mich App ___; ___ NW2d ___ (2024) (COA
#352589, January 18, 2024), People v Czarnecki, Mich (2025), and
People v Taylor, Mich (2025). The purpose of the program is to
ensure competent, resourced, and supervised counsel in cases that
involve resentencing individuals who are serving a life sentence
for an offense committed when the individuals were 20 years of age
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or younger.
(2) The state appellate defender office shall submit a report
not later than March 1 on the number of cases investigated and
prepared by the state appellate defender office under subsection
(1). The report must include a calculation of the hours spent and
the incremental costs associated with the investigation and robust
examination of each case.
Sec. 314. (1) The funds appropriated in part 1 for Michigan
appellate assigned counsel system roster attorney compensation
grants must be deposited into the restricted Michigan appellate
assigned counsel system attorney compensation fund created in
subsection (2).
(2) The Michigan appellate assigned counsel system attorney
compensation fund is created in the state treasury. The state
treasurer may receive money or other assets from any source to
deposit into the fund. The state treasurer shall direct the
investment of the fund and credit to the fund interest and earnings
from fund investments. Unexpended funds at the close of the fiscal
year must remain in the fund and shall not lapse to the general
fund. The judicial branch shall be the administrator of the fund
for auditing purposes. The judicial branch shall expend money from
the fund to provide payments to indigent defense systems as
provided under section 8a of the appellate defender act, 1978 PA
620, MCL 780.718a.
(3) All funds available in the Michigan appellate assigned
counsel system attorney compensation fund are appropriated and
available for expenditure as provided by law.

ONE-TIME APPROPRIATIONS
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Sec. 401. From the one-time funds appropriated in part 1 for
juvenile life resentencing, the state appellate defender office may
hire up to 14.0 limited term employees to support the financial
impact of recent supreme court decisions that require resentencing
of individuals who were sentenced to life without parole for crimes
they committed at ages 19 and 20.

ARTICLE 9
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of labor
and economic opportunity for the fiscal year ending September 30,
2027, from the following funds:
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
APPROPRIATION SUMMARY
Full-time equated unclassified positions 34.5
Full-time equated classified positions 2,403.0
Full-time employees 2,304.0
Limited-term employees 173.0
Noncareer/per diem employees 25.0
Part-time employees 3.0
Permanent-intermittent employees 1.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 1,458,314,400
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
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ADJUSTED GROSS APPROPRIATION $ 1,458,314,400
Federal revenues:
Total federal revenues 871,575,800
Special revenue funds:
Total local revenues 5,650,000
Total private revenues 6,483,900
Total other state restricted revenues 472,183,800
State general fund/general purpose $ 102,420,900
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 34.5
Full-time equated classified positions 66.0
Unclassified salaries--FTEs 34.5 $ 4,869,600
Departmentwide employee economic adjustments 5,534,300
Executive direction and operations--FTEs 66.0 3,665,100
Property management 6,275,500
GROSS APPROPRIATION $ 20,344,500
Appropriated from:
Federal revenues:
DED, vocational rehabilitation and independent
living 4,781,200
DOL, federal funds 267,000
DOL-ETA, unemployment insurance 1,629,400
DOL, occupational safety and health 874,000
Federal funds 50,000
Special revenue funds:
Private funds 9,000
Asbestos abatement fund 69,600
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Contingent fund, penalty and interest 32,300
Corporation fees 2,554,400
Defaulted loan collection 2,500
Distance education fund 6,000
Land bank fast track fund 17,500
Michigan state housing development authority
fees and charges 1,444,200
Private occupational school license fees 58,600
Radiological health fees 259,400
Safety education and training fund 1,218,400
Second injury fund 205,800
Securities fees 2,447,800
Self-insurers security fund 128,300
Silicosis and dust disease fund 86,300
State brownfield redevelopment fund 3,300
State historic preservation office fees and
charges 2,000
Workers' compensation administrative revolving
fund 27,700
State general fund/general purpose $ 4,169,800
Sec. 103. WORKFORCE DEVELOPMENT
Full-time equated classified positions 172.0
23+ high school diploma program $ 2,000,000
At-risk youth grants 5,184,500
Federal work requirements support 15,000,000
Going pro 30,000,000
High school equivalency-to-school program 250,000
Michigan high-speed internet office--FTE 1.0 100,000
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MiSTEM advisory council--FTEs 3.0 665,300
Workforce development--FTEs 168.0 285,000,000
GROSS APPROPRIATION $ 338,199,800
Appropriated from:
Federal revenues:
DAG, employment and training 4,560,400
DED-OESE, GEAR-UP 5,500,000
DED-OVAE, adult education 19,000,000
DED-OVAE, basic grants to states 19,000,000
DOL, federal funds 38,000,000
DOL-ETA, workforce investment act 111,000,000
Federal funds 9,524,200
Social security act, temporary assistance for
needy families 63,698,800
Special revenue funds:
Local funds 300,000
Private funds 4,893,800
21st century jobs trust fund 8,099,800
Contingent fund, penalty and interest 1,985,000
Corporation fees 30,000,000
Defaulted loan collection 166,100
State general fund/general purpose $ 22,471,700
Sec. 104. REHABILITATION SERVICES
Full-time equated classified positions 669.0
Bureau of services for blind persons--FTEs 116.0 $ 26,301,100
Centers for independent living 10,767,000
Michigan rehabilitation services--FTEs 553.0 150,520,000
Subregional libraries state aid 451,800
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GROSS APPROPRIATION $ 188,039,900
Appropriated from:
Federal revenues:
DED, vocational rehabilitation and independent
living 135,640,300
Federal funds 700,000
Supplemental security income 4,821,300
Special revenue funds:
Local - blind services 100,000
Local - vocational rehabilitation match 5,250,000
Private - blind services 20,000
Private - gifts, bequests, and donations 160,000
Michigan business enterprise program fund 350,000
Rehabilitation service fees 100,000
State general fund/general purpose $ 40,898,300
Sec. 105. EMPLOYMENT SERVICES
Full-time equated classified positions 337.0
Bureau of employment relations--FTEs 15.0 $ 3,106,600
Compensation supplement fund 820,000
First responder presumed coverage claims 3,850,000
Insurance funds administration--FTEs 13.0 3,500,000
Michigan occupational safety and health
administration--FTEs 191.0 38,972,300
Private and occupational distance learning--
FTEs 3.0 979,100
Radiation safety section--FTEs 22.0 3,600,000
Wage and hour program--FTEs 30.0 4,682,200
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Workers' compensation board of magistrates--
FTEs 9.0 2,316,000
Workers' disability compensation agency--FTEs 53.0 7,481,300
Workers' disability compensation appeals
commission--FTE 1.0 359,200
GROSS APPROPRIATION $ 69,666,700
Appropriated from:
Federal revenues:
DOL, occupational safety and health 16,433,600
HHS, mammography quality standards 500,000
Special revenue funds:
Asbestos abatement fund 870,100
Corporation fees 12,303,600
Distance education fund 480,400
First responder presumed coverage fund 3,850,000
Private occupational school license fees 498,700
Radiological health fees 3,100,000
Safety education and training fund 11,739,000
Second injury fund 2,200,000
Securities fees 11,238,200
Self-insurers security fund 900,000
Silicosis and dust disease fund 400,000
Workers' compensation administrative revolving
fund 2,436,600
State general fund/general purpose $ 2,716,500
Sec. 106. UNEMPLOYMENT INSURANCE AGENCY
Full-time equated classified positions 700.0
Unemployment insurance agency--FTEs 690.0 $ 200,000,000
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Unemployment insurance agency - advocacy
assistance 1,500,000
Unemployment insurance appeals commission--FTEs 10.0 4,430,600
GROSS APPROPRIATION $ 205,930,600
Appropriated from:
Federal revenues:
DOL-ETA, unemployment insurance 186,000,600
Special revenue funds:
Contingent fund, penalty and interest 19,930,000
State general fund/general purpose $ 0
Sec. 107. COMMISSIONS
Full-time equated classified positions 19.0
Asian Pacific American affairs commission--FTE 1.0 $ 224,500
Commission on Middle Eastern American affairs--
FTE 1.0 215,100
Hispanic/Latino commission of Michigan--FTE 1.0 298,500
Michigan community service commission--FTEs 14.0 16,345,000
Michigan women's commission--FTEs 2.0 1,545,100
GROSS APPROPRIATION $ 18,628,200
Appropriated from:
Federal revenues:
Federal funds 14,980,900
Special revenue funds:
Private funds 1,201,100
State general fund/general purpose $ 2,446,200
Sec. 108. INFORMATION TECHNOLOGY
Information technology services and projects $ 15,375,500
GROSS APPROPRIATION $ 15,375,500
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Appropriated from:
Federal revenues:
DED, vocational rehabilitation and independent
living 1,596,600
DOL-ETA, unemployment insurance 11,501,600
DOL, occupational safety and health 186,200
Federal funds 296,400
Special revenue funds:
Asbestos abatement fund 17,700
Corporation fees 242,000
Distance education fund 10,400
Private occupational school license fees 41,200
Radiological health fees 78,000
Safety education and training fund 201,700
Second injury fund 90,400
Securities fees 603,000
Self-insurers security fund 62,800
Silicosis and dust disease fund 22,500
State general fund/general purpose $ 425,000
Sec. 109. MICHIGAN STRATEGIC FUND
Full-time equated classified positions 130.0
Community college skilled trades equipment
program $ 3,017,500
Entrepreneurship ecosystem 2,475,000
Facility for rare isotope beams 7,300,000
Job creation services--FTEs 130.0 28,169,600
Lighthouse preservation program 125,000
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Michigan office of defense and aerospace
innovation 4,000,000
Pure Michigan 20,000,000
Research institution grant 1,500,000
Rural jobs and capital investment 7,500,000
Small business supports 40,425,200
GROSS APPROPRIATION $ 114,512,300
Appropriated from:
Federal revenues:
Federal funds 1,500,000
State historic preservation, national park
service grants 1,900,000
Special revenue funds:
Private - special project advances 200,000
21st century jobs trust fund 66,900,200
Contingent fund, penalty and interest 3,017,500
Michigan lighthouse preservation fund 125,000
Michigan state housing development authority
fees and charges 4,811,300
Rural jobs and capital investment creation fund 7,500,000
State brownfield redevelopment fund 1,092,300
State historic preservation office fees and
charges 200,000
State general fund/general purpose $ 27,266,000
Sec. 110. MICHIGAN STATE HOUSING DEVELOPMENT
AUTHORITY
Full-time equated classified positions 301.0
Community development block grants $ 47,000,000
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Housing and rental assistance--FTEs 301.0 52,120,800
Michigan housing and community development
program 50,000,000
MSHDA technology services and projects 1,880,500
Payments on behalf of tenants 166,860,000
Property management 3,343,200
GROSS APPROPRIATION $ 321,204,500
Appropriated from:
Federal revenues:
HUD, lower income housing assistance 166,860,000
HUD-CPD, community development block grant 49,773,300
Special revenue funds:
Michigan housing and community development fund 50,000,000
Michigan state housing development authority
fees and charges 54,571,200
State general fund/general purpose $ 0
Sec. 111. STATE LAND BANK AUTHORITY
Full-time equated classified positions 9.0
State land bank authority--FTEs 9.0 $ 6,412,400
GROSS APPROPRIATION $ 6,412,400
Appropriated from:
Federal revenues:
Federal funds 1,000,000
Special revenue funds:
Land bank fast track fund 3,385,000
State general fund/general purpose $ 2,027,400
Sec. 112. ONE-TIME APPROPRIATIONS
Going pro $ 10,000,000
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Legislatively directed spending items 150,000,000
GROSS APPROPRIATION $ 160,000,000
Appropriated from:
Special revenue funds:
Corporation fees 10,000,000
Legislative spending transparency fund 150,000,000
State general fund/general purpose $ 0

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$574,604,700.00 and total state spending under part 1 from state
sources to be paid to local units of government is $31,459,500.00.
The following itemized statement identifies appropriations from
which spending to local units of government will occur:
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
At-risk youth grants $ 5,184,500
Michigan rehabilitation services 275,000
Workforce development programs 26,000,000
TOTAL $ 31,459,500
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "Department" means the department of labor and economic
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opportunity and entities contained within its organization,
including, but not limited to, the fund.
(b) "Director" means the director of the department.
(c) "FTE" means full-time equated.
(d) "Fund", unless the context clearly implies a different
meaning, means the Michigan strategic fund.
(e) "MEDC" means the Michigan economic development
corporation, which is the public body corporate created under
section 28 of article VII of the state constitution of 1963 and the
urban cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to
124.512, by contractual interlocal agreement effective April 5,
1999, between local participating economic development corporations
formed under the economic development corporations act, 1974 PA
338, MCL 125.1601 to 125.1636, and the fund.
(f) "MEGA" means the Michigan economic growth authority.
(g) "MiSTEM" means Michigan science, technology, engineering,
and mathematics.
(h) "MSHDA" means the Michigan state housing development
authority.
(i) "PATH" means Partnership. Accountability. Training. Hope.
(j) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on labor and economic opportunity, the senate and
house fiscal agencies, the senate and house policy offices, and the
state budget office.
(k) "STEM" means science, technology, engineering, and
mathematics.
(l) "USDOL" means the United States Department of Labor.
Sec. 204. If the state administrative board, acting under
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section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
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department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
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a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
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(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) Not later than April 1, the department shall
maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
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legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $15,000,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $5,000,000.00 for state
restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $1,000,000.00 for local
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $1,000,000.00 for private
contingency authorization. Amounts appropriated are not available
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for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $29,919,000.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $29,919,000.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
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comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
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(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
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(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
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grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
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(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
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sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
Sec. 301. General fund appropriations in part 1 must not be
expended for items in cases where federal funding or private grant
funding is available for the same expenditures.
Sec. 302. Federal pass-through funds to local institutions and
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governments that are received in amounts in addition to those
included in part 1 and that do not require additional state
matching funds are appropriated for the purposes intended. The
department may carry forward into the succeeding fiscal year
unexpended federal pass-through funds to local institutions and
governments that do not require additional state matching funds.
The department shall report the amount and source of the funds not
later than 10 business days after receiving any additional pass-
through funds.
Sec. 303. Requirements under this part applicable to the fund
and the fund's activities apply regardless of whether the fund
delegates its functions and authority to the MEDC.
Sec. 304. (1) Grants supported with private revenues received
by the department are appropriated upon receipt and are available
for expenditure by the department for purposes specified within the
grant agreement and as permitted under state and federal law.
(2) Not later than 10 days after the receipt of a private
grant appropriated in subsection (1), the department shall notify
the standard report recipients of the receipt of the grant,
including the fund source, purpose, and amount of the grant.
(3) The amount appropriated under subsection (1) must not
exceed $1,500,000.00.
(4) Not later than March 15, the department shall report the
amount of private revenue generated in the previous fiscal year and
the amount of private revenue carried forward into the current
fiscal year.
Sec. 305. (1) The department may charge registration fees to
attendees of informational, training, or special events that are
sponsored by the department and related to activities that are
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under the department's purview.
(2) The fees under subsection (1) must reflect the costs for
the department to sponsor the informational, training, or special
events.
(3) Revenue generated by the registration fees under
subsection (1) is appropriated upon receipt and available for
expenditure to cover the department's costs of sponsoring
informational, training, or special events.
(4) Revenue generated by registration fees under this section
in excess of the department's costs of sponsoring informational,
training, or special events must carry forward to the subsequent
fiscal year and not lapse to the general fund.
(5) The amount appropriated under subsection (3) must not
exceed $500,000.00.
(6) Not later than March 15, the department shall report the
amount of registration fees generated in the previous fiscal year
and the amount of registration fees carried forward into the
current fiscal year.
Sec. 306. (1) The department may sell documents at a price not
to exceed the cost of production and distribution. Money received
from the sale of these documents must revert to the department. In
addition to the funds appropriated in part 1, these funds are
available for expenditure when they are received by the department
of treasury. This subsection applies only to R 418.10101 to R
418.101503 of the Michigan Administrative Code.
(2) Unexpended funds at the end of the fiscal year must carry
forward to the subsequent fiscal year and not lapse to the general
fund. The money carried forward under this section must be used as
the first source of funds in the subsequent fiscal year.
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(3) Not later than March 15, the department shall report the
amount of revenue generated from the sale of documents produced and
distributed by the department in the previous fiscal year and the
amount of revenue generated from the sale of documents produced and
distributed by the department carried forward into the current
fiscal year.
Sec. 307. (1) If the revenue collected by the department for
radiological health administration and projects from fees and
collections exceeds the amount appropriated in part 1, the revenue
must be carried forward into the subsequent fiscal year. The
revenue carried forward under this section must be used as the
first source of funds in the subsequent fiscal year.
(2) Not later than March 15, the department shall report the
total amount of revenue from fees and collections for any
radiological health administration and projects that was carried
forward from the previous fiscal year.

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY
Sec. 401. (1) Not later than March 15, MSHDA shall submit a
report on the status of the authority's housing production goals
under all financing programs established or administered by the
authority. The report must include all of the following:
(a) Information on efforts to raise affordable multifamily and
single-family housing production goals.
(b) A summary of each MSHDA program that is intended to
increase the supply of affordable multifamily and single-family
housing.
(c) An explanation of how programs summarized in subdivision
(b) are utilized by the citizens of this state.
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(d) MSHDA's status in obtaining its multifamily and single-
family housing production goals.
(2) MSHDA shall not restrict eligibility in any financing
program for housing units without a permanent foundation unless
this restriction is required by the funding source.
Sec. 402. (1) The funds appropriated in part 1 for the
Michigan housing and community development program must be expended
for projects as described in sections 58b and 58c of the state
housing development authority act of 1966, 1966 PA 346, MCL
125.1458b and 125.1458c.
(2) MSHDA shall transmit the annual report required under
section 58b of the state housing development authority act of 1966,
1966 PA 346, MCL 125.1458b, to the standard report recipients at
the time the report is produced.
Sec. 403. Not later than March 15, the department shall report
on the work that MSHDA has undertaken with the department, the
fund, and the department of health and human services and any other
department.

STATE LAND BANK AUTHORITY
Sec. 451. (1) In addition to the amounts appropriated in part
1, the state land bank authority may expend revenues received under
the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774,
for the purposes authorized by the act, including, but not limited
to, the acquisition, lease, management, demolition, maintenance, or
rehabilitation of real or personal property, payment of debt
service for notes or bonds issued by the authority, and other
expenses to clear or quiet title property held by the authority.
The state land bank authority may establish partnerships with local
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land bank authorities.
(2) Not later than March 15, the state land bank authority
shall submit a report on the number of real properties acquired,
leased, managed, demolished, maintained, or rehabilitated in the
previous fiscal year and list any partnerships that the state land
bank authority has with any local land bank authorities. The report
must also include a list of any properties sold by or otherwise
transferred from the state land bank authority in the previous
fiscal year.

MICHIGAN STRATEGIC FUND
Sec. 501. The report required under section 9 of the Michigan
strategic fund act, 1984 PA 270, MCL 125.2009, must be transmitted
not later than March 15.
Sec. 502. In addition to the appropriations in part 1, Travel
Michigan may receive and expend private revenue related to the use
of "Pure Michigan" and all other copyrighted slogans and images.
This revenue may come from the direct licensing of the name and
image or from the royalty payments from various merchandise sales.
Revenue collected is appropriated for the marketing of this state
as a travel destination. The funds are available for expenditure
when they are received by the department of treasury. If the fund
receives revenues from the use of "Pure Michigan", the fund shall
provide a report that lists the revenues by source received from
the use of "Pure Michigan" and all other copyrighted slogans and
images. The report must provide a detailed list of expenditures of
revenues received under this section. The report must be provided
not later than March 15.
Sec. 503. (1) Funds appropriated in part 1 for Pure Michigan
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must be used for the following purposes:
(a) Conduction of market research regionally, nationally, and
internationally for use in marketing campaigns.
(b) Production of advertisements that promote Michigan as a
travel and tourism destination.
(c) Placement of advertisements that have a diverse
representation in regional, national, and international marketing
campaigns to promote Michigan as a state that welcomes all
individuals and families.
(d) Not more than 4.0% of the appropriation for administration
of the program.
(2) Subject to the approval of the Michigan strategic fund
board, the fund may contract any of the activities under subsection
(1).
(3) The fund may work in cooperation with local units of
government, nonprofit entities, and private entities on Pure
Michigan promotion campaigns. The fund shall include agreements
prior to undertaking cooperative marketing campaigns.
(4) The department shall provide an annual report not later
than March 15 on the utilization of funds for eligible activities
in subsection (1), including a breakdown by eligible use, efforts
taken to broaden the scope of marketing activities to diverse
populations, a breakdown of funds spent within this state and
outside of this state, and how much was expended on market
research.
(5) As prescribed by the legislature, funds appropriated to
Pure Michigan must be used only for this state to market itself as
a travel and tourist destination with the sole purpose of
attracting new visitors and retaining former visitors. All of the
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following apply to marketing under this subsection:
(a) Promotion may be made by print, television, radio, and
social media.
(b) The purpose of the advertisements under subdivision (a)
must be to attract tourism and leisure travelers to this state.
(c) Advertisements that incorporate the Pure Michigan Byways
campaign satisfy the requirement under subdivision (b).
(6) From the funds appropriated in part 1 for Pure Michigan,
$3,000,000.00 must be used by the fund for special events.
Sec. 506. As a condition of receiving funds appropriated in
part 1 and not later than March 15, the fund must provide a report
of all approved amendments to projects for the immediately
preceding year under sections 88r and 90b of the Michigan strategic
fund act, 1984 PA 270, MCL 125.2088r and 125.2090b. The report must
provide a description of each amendment, by award, that includes,
but is not limited to, the following:
(a) The amended award amount relative to the prior award
amount.
(b) The amended number of committed jobs relative to the prior
number of committed jobs.
(c) The amended amount of qualified investment committed
relative to the prior amount of qualified investment committed.
(d) A description of any change in scope of the project.
(e) A description of any change in project benchmarks,
deadlines, or completion dates.
(f) The reason or justification for the amendment approval.
Sec. 507. (1) As a condition of receiving funds appropriated
in part 1, the fund must request the following information from the
MEDC:
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(a) Approved budget from the MEDC executive committee for the
current fiscal year and actual budget expenditures for the previous
fiscal years.
(b) Expenditures and revenues as part of the current and
previous year budgets, including the available fund balance for the
current and previous fiscal years.
(c) The total number of FTEs, by state and corporate status
and whether the position is currently filled or unfilled.
(d) A reporting of activities, programs, and grants consistent
with the previous fiscal year budget.
(e) A description of all subprograms funded with the small
business supports line item.
(2) Information received by the fund under this section must
be posted online and distributed to the standard report recipients
not later than March 15.
Sec. 508. As a condition of receiving funds under part 1, any
interlocal agreement entered into by the fund must include language
that states that if a local unit of government has a contract or
memorandum of understanding with a private economic development
agency, the MEDC will work cooperatively with that private
organization in that local area.
Sec. 509. (1) From the funds appropriated in part 1, the
department shall notify the standard report recipients not later
than 45 days after the purchase of land or options on land and
include in the notification the location of the land, information
on the entity that sold the land, and the purchase price of the
land or option on land.
(2) If land or options on land are purchased under subsection
(1), the fund shall provide a report not later than March 15 that
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provides a list of all properties purchased, all options on land
purchased, the location of the land purchased, and the purchase
price.
Sec. 510. As a condition for receiving funds in part 1, not
later than March 15, the fund shall provide a report for the
previous fiscal year on the jobs for Michigan investment fund,
created in section 88h of the Michigan strategic fund act, 1984 PA
270, MCL 125.2088h. The report must include, but is not limited to,
all of the following:
(a) A detailed listing of revenues, by fund source, to the
jobs for Michigan investment fund. The listing must include the
manner and reason for which the funds were appropriated to the jobs
for Michigan investment fund.
(b) A detailed listing of expenditures, by project, from the
jobs for Michigan investment fund.
(c) A fiscal year-end balance of the jobs for Michigan
investment fund.
Sec. 511. (1) From the appropriations in part 1 to the fund
and granted or transferred to the MEDC, any unexpended or
unencumbered balance must be disposed of in accordance with the
requirements in the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594, unless carryforward authorization has been
otherwise provided for.
(2) Any encumbered funds, including encumbered funds
subsequently unobligated, must be used for the same purposes for
which funding was originally appropriated in this part and part 1.
(3) For funds appropriated in part 1 to the fund, any
carryforward authorization subsequently created through a work
project must be preserved until a cash or accrued expenditure has
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been executed or the allowable work project time period has
expired.
Sec. 512. (1) As a condition of receiving funds under part 1,
the fund must ensure that the MEDC and the fund comply with all of
the following:
(a) The freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(b) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
(c) Annual audits of all financial records by the auditor
general or the auditor general's designee.
(d) All reports required by law to be submitted to the
legislature.
(2) If the MEDC is unable for any reason to perform duties
under this part, the fund may exercise those duties.
Sec. 513. As a condition for receiving the appropriations in
part 1, any staff of the MEDC involved in private fund-raising
activities must not be party to any decisions regarding the
awarding of grants, incentives, or tax abatements from the fund,
the critical industry program, the Michigan strategic site
readiness program, the MEDC, or the MEGA.
Sec. 514. All of the funds appropriated in part 1 for small
business supports must be used to provide support to small
businesses, as defined by the United States Small Business
Administration. These supports must include all of the following
activities:
(a) Grants to support small business and community incubators.
(b) Grants to small business development centers.
(c) Grants to support community development financial
institutions.
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(d) Grants to small business service providers.
(e) Grants for technical assistance for small businesses.
(f) Grants for manufacturing and automation support services
for small businesses.
(g) Grants for early stage funding and venture capital for new
and startup companies.
Sec. 515. (1) The fund shall report on the status of the film
incentives at the same time as it submits the annual report
required under section 455 of the Michigan business tax act, 2007
PA 36, MCL 208.1455. The department of treasury shall provide the
fund with the data necessary to prepare the report. Incentives
included in the report shall include all of the following:
(a) The tax credit provided under section 455 of the Michigan
business tax act, 2007 PA 36, MCL 208.1455.
(b) The tax credit provided under section 457 of the Michigan
business tax act, 2007 PA 36, MCL 208.1457.
(c) The tax credit provided under section 459 of the Michigan
business tax act, 2007 PA 36, MCL 208.1459.
(d) The amount of any tax credit claimed under former section
367 of the income tax act of 1967, 1967 PA 281.
(e) Any tax credits provided for film and digital media
production under the Michigan economic growth authority act, 1995
PA 24, MCL 207.801 to 207.810.
(f) Loans to an eligible production company or film and
digital media private equity fund authorized under section 88d(3),
(4), and (5) of the Michigan strategic fund act, 1984 PA 270, MCL
125.2088d.
(2) The report must include all of the following information:
(a) For each tax credit, the number of contracts signed, the
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projected expenditures qualifying for the credit, and the estimated
value of the credits. For loans, the number of loans made under
each section, the interest rate of those loans, the loan amount,
the percent of the projected budget of each production financed by
those loans, and the estimated interest earnings from the loan.
(b) For credits authorized under section 455 of the Michigan
business tax act, 2007 PA 36, MCL 208.1455, for productions
completed by December 31, the expenditures of each production
eligible for the credit that has filed a request for certificate of
completion with the film office, broken down into expenditures for
goods, services, or salaries and wages and showing separately
expenditures in each local unit of government, including
expenditures for personnel, whether or not they were made to a
Michigan entity, and whether or not they were taxable under the
laws of this state.
(c) For loans, the report must include the number of loans
that have been fully repaid, with principal and interest shown
separately, and the number of loans that are delinquent or in
default, and the amount of principal that is delinquent or is in
default.
(d) For each of the tax credit incentives and loan incentives
listed in subsection (1), a breakdown for each project or
production showing each of the following:
(i) The number of temporary jobs created.
(ii) The number of permanent jobs created.
(iii) The number of persons employed in Michigan as a result of
the incentive, on a full-time equated basis.
(3) For any information not included in the report due to the
provisions of section 455(6), 457(6), or 459(6) of the Michigan
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business tax act, 2007 PA 36, MCL 208.1455, 208.1457, and 208.1459,
the report shall do all of the following:
(a) Indicate how the information would describe the commercial
and financial operations or intellectual property of the company.
(b) Attest that the information has not been publicly
disseminated at any time.
(c) Describe how disclosure of the information may put the
company at a competitive disadvantage.
(4) Any information not disclosed due to the provisions of
section 455(6), 457(6), or 459(6) of the Michigan business tax act,
2007 PA 36, MCL 208.1455, 208.1457, and 208.1459, must be presented
at the lowest level of aggregation that would no longer describe
the commercial and financial operations or intellectual property of
the company.
(5) As a condition of receiving funds in part 1, not later
than March 15, the fund shall provide a report on the activities of
the Michigan film and digital media office for the previous fiscal
year. The report must include, but is not limited to, a listing of
all projects the Michigan film and digital media office provided
assistance on, a listing of the services provided for each project,
and an estimate of investment leveraged.
Sec. 516. As a condition of receiving an award from the fund,
each business incubator or accelerator that received an award from
the fund must maintain and update a dashboard of indicators to
measure the effectiveness of the business incubator and accelerator
programs. Indicators must include the direct jobs created, new
companies launched as a direct result of business incubator or
accelerator involvement, businesses expanded as a direct result of
business incubator or accelerator involvement, direct investment in
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client companies, private equity financing obtained by client
companies, grant funding obtained by client companies, and other
measures developed by the recipient business incubators and
accelerators in conjunction with the MEDC. Dashboard indicators
must be reported for the previous fiscal year and cumulatively, if
available. Each recipient shall submit a copy of their dashboard
indicators to the fund by March 1. The fund shall transmit the
local reports not later than March 15.
Sec. 519. For the funds appropriated in part 1 for small
business supports, the fund shall report quarterly on the amount of
funds considered appropriated, pre-encumbered, encumbered, and
expended by current fiscal year appropriation and each work project
for any previous fiscal years. The report must also include a
listing of all previous appropriations for business attraction and
community revitalization, or a predecessor, that were considered
appropriated, pre-encumbered, encumbered, or expended that have
lapsed back to the fund for any purpose.
Sec. 520. (1) The fund, in conjunction with the department of
treasury, shall report not later than November 1 on the annual cost
of the MEGA tax credits. The report must include for each year the
board-approved credit amount, adjusted for credit amendments where
applicable, and the actual and projected value of tax credits for
each year from 1995 to the expiration of the credit program. For
years for which credit claims are complete, the report must include
the total of actual certificated credit amounts. For years that
claims are still pending or not yet submitted, the report must
include a combination of actual credits where available and
projected credits. Credit projections must be based on updated
estimates of employees, wages, and benefits for eligible companies.
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(2) In addition to the report under subsection (1), the fund,
in conjunction with the department of treasury, shall report not
later than November 1 on the annual cost of all other certificated
credits by program, for each year until the credits expire or can
no longer be collected. The report must include estimates on the
brownfield redevelopment credit, film credits, MEGA photovoltaic
technology credit, MEGA polycrystalline silicon manufacturing
credit, MEGA vehicle battery credit, and other certificated
credits.
Sec. 521. As a condition of receiving appropriations in part
1, prior to authorizing the transfer of any previously authorized
tax credit that would increase the liability to this state, the
fund, on behalf of the fund's board, must notify the standard
report recipients of the transfer of any previously authorized tax
credit that would increase the liability to this state not fewer
than 30 days prior to the authorization of the tax credit transfer.
Sec. 523. In addition to the funds appropriated in part 1, the
funds collected by state historic preservation programs for
document reproduction and services and application fees are
appropriated for all expenses necessary to provide the required
services. These funds are available for expenditure when they are
received and may be carried forward into the succeeding fiscal
year.
Sec. 524. Tax capture revenues collected in accordance with
written agreements under the good jobs for Michigan program and
transferred from the general fund for deposit into the good jobs
for Michigan fund, and for both calculated payments from the good
jobs for Michigan fund to authorized businesses and distributions
to the fund for administrative expenses, are appropriated under the
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provisions of chapter 8D of the Michigan strategic fund act, 1984
PA 270, MCL 125.2090g to 125.2090j.
Sec. 525. The department shall provide a report not later than
March 15 that includes, but is not limited to, fiscal year-to-date
expenditures by division and program unit within the job creation
services line item. The report must contain detailed information on
expenditures and programs within the state historic preservation
office, including a list of any entities that receive financial
support from the state historic preservation office.
Sec. 526. (1) The funds appropriated in part 1 for Michigan
office of defense and aerospace innovation shall be used by the
Michigan strategic fund to protect and grow the defense and
homeland security industry in this state by protecting this state's
current department of defense missions, infrastructure, and
industry, including securing new missions and increasing defense
and homeland security spending in this state. These funds may be
used for, but are not limited to, the following activities:
(a) Helping businesses in this state identify federal defense
contract opportunities.
(b) Providing technical assistance for bid responses to
federal defense contracts.
(c) Strengthening cybersecurity compliance at businesses in
this state to qualify for federal defense contracts.
(2) Not later than March 15, the Michigan office of defense
and aerospace innovation shall provide an annual report. The report
must include, but is not limited to, all of the following:
(a) A strategic plan for the organization.
(b) An overview of the defense industry in this state,
including identification of recent accomplishments and services
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provided to businesses in this state in the most recent year.
(c) A list of expenditures used to fund memberships in
organizations and costs associated with attending conferences and
expositions in the previous fiscal year.
(d) The most recent annual figures on direct domestic defense-
related contracts and grants awarded to Michigan-based entities in
the previous fiscal year.
(e) A summary of contracts or defense industry business with
international clients.
Sec. 527. From the funds appropriated in part 1 for rural jobs
and capital investment, the fund, in conjunction with the MEDC and
the department, shall make grants, loans, or other types of
economic assistance available to rural jobs and capital investment
funds in this state as provided under section 90n of the Michigan
strategic fund act, 1984 PA 270, MCL 125.2090n.
Sec. 528. From the funds appropriated in research institution
grant, a grant of not less than $1,500,000.00 must be awarded
through a competitive grant process to an independent research
institution not affiliated with a university or hospital that does
basic research in the areas of cancer and Parkinson’s Disease that
also receives grants from the National Institutes of Health.
Dollars awarded must go 100% to basic research and not for costs
associated with administering the grant.

EMPLOYMENT SERVICES
Sec. 602. (1) In addition to the funds appropriated in part 1,
all funds necessary to pay approved claims and administrative costs
incurred during this fiscal year, as allowed in the Christopher R.
Slezak first responder presumed coverage fund created in section
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405 of the worker's disability compensation act of 1969, 1969 PA
317, MCL 418.405, are appropriated for the purposes authorized
under section 405 of the worker's disability compensation act of
1969, 1969 PA 317, MCL 418.405.
(2) The department shall provide a year-end report to the
Michigan gaming control board, the department of treasury, and the
standard report recipients that includes, but is not limited to,
the total of all approved claims and administrative costs incurred
as of September 30 of the current fiscal year.

WORKFORCE DEVELOPMENT
Sec. 701. The department shall administer the PATH training
program in accordance with the requirements of section 407(d) of
title IV of the social security act, 42 USC 607, the social welfare
act, 1939 PA 280, MCL 400.1 to 400.119b, and all other applicable
laws and regulations.
Sec. 702. (1) From the funds appropriated in part 1 for
workforce development, the department may allocate funding for
grants to nonprofit organizations that offer programs under the
workforce innovation and opportunity act, 29 USC 3101 to 3361, for
eligible youth that focus on apprenticeship readiness, pre-
apprenticeship and apprenticeship activities, entrepreneurship,
work-readiness skills, job shadowing, or financial literacy.
Additionally, programs eligible for funding under this section must
include the participation of local business partners. The
department shall develop other appropriate eligibility requirements
to ensure compliance with applicable federal rules and regulations.
(2) Not later than March 15, the department shall report at
least all of the following:
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(a) Total grants expended under this section in the previous
fiscal year.
(b) The total number of students served from the grants
appropriated under this section.
(c) A list of all organizations and the amount each
organization received from the funding appropriated under this
section.
Sec. 703. From the funds appropriated in part 1, the
department shall make available, in person or by telephone, 1
disabled veterans outreach program specialist or local veterans
employment representative to Michigan works service centers, as
resources permit, during hours of operation, and shall continue to
make the appropriate placement of veterans and disabled veterans a
priority.
Sec. 704. (1) In addition to the funds appropriated in part 1,
any unencumbered and unrestricted funds allocated under the federal
workforce innovation and opportunity act, 29 USC 3101 to 3361, or
trade adjustment assistance funds available from previous fiscal
years are appropriated for the purposes originally intended.
(2) The department shall report not later than March 15 on the
amount, by fiscal year, of funds allocated under the federal
workforce innovation and opportunity act, 29 USC 3101 to 3361,
appropriated under this section.
Sec. 705. (1) The department shall publish data and reports on
April 30 and October 30 on the department website concerning the
status of Going pro funded in part 1. The report must include the
following:
(a) The number of awardees participating in the program and
the names of those awardees organized by major industry group.
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(b) The amount of funding received by each awardee under the
program.
(c) The amount of funding leveraged from each awardee.
(d) The training models established by each awardee.
(e) The number of individuals enrolled in classroom training,
on-the-job training, or new USDOL registered apprentices.
(f) The number of qualified employees who completed the
approved training.
(g) The number of applications received and the number of
grants awarded for each region.
(h) The number of individuals hired and trained, the number of
incumbent workers trained, and the number of USDOL registered
apprentices.
(i) Going pro expenditures by fiscal year. Active fiscal years
must display projected expenditure data and closed fiscal years
must display final expenditure data.
(2) The department shall expand workforce training and
reemployment services to better connect workers to in-demand jobs
and identify specific outcomes with performance metrics for this
initiative, including, but not limited to, new apprenticeships,
individuals to be hired and trained, current employees trained,
training completed, employment retention rate at 6 months, and
hourly wage at 6 months.
Sec. 706. (1) To the extent consistent with sections 7 and 9
of the Going pro talent fund act, 2018 PA 260, MCL 408.157 and
408.159, the department shall administer the program as follows:
(a) The department shall work cooperatively with grantees to
maximize the amount of funds from part 1 that are available for
direct training.
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(b) The department, workforce development partners, including
regional Michigan works agencies, and employers shall collaborate
and work cooperatively to prioritize and streamline the expenditure
of the funds appropriated in part 1. The department shall ensure
that Going pro provides a collaborative statewide network of
workforce and employee skill development partners that addresses
the employee talent needs throughout this state.
(c) The department shall do all of the following:
(i) Develop program goals and detailed guidance for prospective
participants to follow to qualify under the program.
(ii) Post the program goals and detailed guidance on the
department's website and distribute the program goals and detailed
guidance to workforce development partners, including local
Michigan works agencies, not later than October 1.
(iii) Conduct periodic assessments of employer and employee
needs that are evaluated on a regional basis.
(iv) Identify solutions and goals to be implemented to satisfy
employer and employee needs.
(v) Add scoring criteria that incentivize awards to new
program applicants.
(d) The department shall use not more than 2% of the total
Going pro appropriation for administration of the program.
(e) Not less than 5% of available funding must be reserved for
businesses in talent fund priority industry sectors that submit
competitive applications.
(f) Allow the MiSTEM council to assist in processing grant
applications.
(2) The department shall, to the extent possible, distribute
not less than 50% of the Going pro appropriation to first-time
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grant recipients and to grant recipients who did not receive an
award under the program in the previous fiscal year.
Sec. 707. The funds appropriated in part 1 for MiSTEM advisory
council must be used to support the staff for the MiSTEM network,
and for administrative, training, and travel costs related to the
MiSTEM council. The MiSTEM network may receive funds from private
sources. If the MiSTEM network receives funds from a private
source, those funds are appropriated and must be expended in
alignment with the statewide STEM strategy. If the MiSTEM network
receives funds from a private source, not later than 10 days after
receipt of the funds, the department shall report to the standard
report recipients the name of the private source and the amount of
the funds the private source provided to the MiSTEM network. The
staff for the MiSTEM network shall do all of the following:
(a) Serve as a liaison among and between the department, the
department of lifelong education, advancement, and potential, the
department of education, the MiSTEM council, the governor's
workforce development board, the MiSTEM regions, and any other
relevant organization or entity in a manner that creates a robust
statewide STEM culture, empowers STEM teachers, integrates business
and education into the STEM network, and ensures high-quality STEM
experiences for pupils.
(b) Coordinate the implementation of a marketing campaign,
including, but not limited to, a website that includes dashboards
of outcomes, to build STEM awareness and communicate STEM needs and
opportunities to pupils, parents, educators, and the business
community.
(c) Work with the department of education and the MiSTEM
council to coordinate, award, and monitor MiSTEM state and federal
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grants to the MiSTEM network regions and conduct reviews of grant
recipients, including, but not limited to, pupil experience and
feedback.
(d) Report to the governor, the legislature, and the MiSTEM
council annually on the activities and performance of the MiSTEM
network regions.
(e) Coordinate recurring discussions and work with regional
staff to ensure that a network or loop of feedback and best
practices are shared, including funding, programming, professional
learning opportunities, discussion of MiSTEM strategic vision, and
regional objectives.
(f) Coordinate major grant application efforts with the MiSTEM
council to assist regional staff with grant applications on a local
level. The MiSTEM council shall leverage private and nonprofit
relationships to coordinate and align private funds in addition to
funds appropriated under this section.
(g) Train state and regional staff in the STEMworks rating
system, in collaboration with the MiSTEM council and the Michigan
department of education.
(h) Hire MiSTEM network region staff in collaboration with the
network region fiscal agent.
Sec. 708. (1) From the funds appropriated in part 1 for
workforce development, the department shall provide a report on the
status of workforce development not later than March 15. The report
must include the following:
(a) The amount of funding allocated to each Michigan works
agency and the total funding allocated to the workforce training
programs statewide by fund source.
(b) The number of participants enrolled in education or
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training programs by each Michigan works agency.
(c) The average duration of training for training program
participants by each Michigan works agency.
(d) The number of participants enrolled in remedial education
programs and the number of participants enrolled in literacy
programs.
(e) The number of participants enrolled in programs at 2-year
institutions.
(f) The number of participants enrolled in programs at 4-year
institutions.
(g) The number of participants enrolled in proprietary schools
or other technical training programs.
(h) The number of participants who completed an education or
training program.
(i) The number of participants who completed a training
program and secured employment in a field related to their
training.
(j) The average wage earned by participants who completed a
training program and secured employment within 1 year.
(k) The actual revenues received by the fund source and fund
appropriated for each discrete workforce development program area.
(l) The average cost of training per individual served, with an
average provided for participants at 2-year institutions,
participants at 4-year institutions, and participants at
proprietary schools and other technical training programs.
(2) Data collection for the report must be for the previous
state fiscal year.
Sec. 709. (1) From the funds appropriated in part 1 for
federal work requirements support, $15,000,000.00 is allocated for
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the purpose of assisting individuals who must comply with both of
the following:
(a) The supplemental nutrition assistance program (SNAP) work
requirements under section 10102 of Public Law 119-21.
(b) The Medicaid community engagement requirements under
section 71119 of Public Law 119-21.
(2) For the purpose of counting qualifying hours for community
service activities, the department shall permit only community
service activities that are the performance of voluntary work or
duties that are a public benefit and serve to improve quality of
life, enhance resident self-sufficiency, or increase resident self-
responsibility in the community. A community service activity is
not employment and must not include political activities.
(3) On a quarterly basis, the department shall provide a
report on all of the following outcomes related to compliance with
the SNAP work requirements and the Medicaid community engagement
requirements under sections 10102 and 71119 of Public Law 119-21,
with monthly data provided as available:
(a) The number of individuals receiving SNAP or Medicaid who
were referred to Michigan works agencies.
(b) The number of individuals receiving SNAP or Medicaid who
were referred to Michigan works agencies and who were compliant
with the work and community engagement requirements.
(c) The number of individuals receiving SNAP or Medicaid who
were referred to Michigan works agencies and who were not compliant
with the work and community engagement requirements.
(d) The total number of hours worked for all of the following
qualifying activities by the individuals receiving SNAP or Medicaid
who were referred to Michigan works agencies:
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(i) Paid employment.
(ii) Community service activities.
(iii) A qualifying work program.
(iv) An educational program.
(v) Any other qualifying activity.
(e) The number of individuals who no longer participate or
receive SNAP or Medicaid benefits due to full employment.
Sec. 710. (1) The funds appropriated in part 1 for 23+ high
school diploma program must be awarded for a program to assist
Michigan residents who are 23 years of age or older in obtaining
high school diplomas and placement in career training programs.
(2) For purposes of this section, an eligible program provider
may be a public, nonprofit, or private accredited diploma-granting
institution, but must have not less than 2 years of experience
providing dropout recovery services in this state.
(3) The department shall issue a request for qualifications
for eligible program providers to participate in the program. To be
considered a qualified program provider, the institution must offer
all of the following:
(a) Dropout reengagement services.
(b) Academic intake assessments.
(c) An integrated learning plan.
(d) A course catalog that includes all graduation
requirements.
(e) Remediation coursework.
(f) Academic resilience assessment and intervention.
(g) Employability skills development such as WorkKeys
preparation.
(h) Industry recognized credentials.
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(i) Credit for on-the-job training.
(j) A robust support framework, including technology, social
support, and academic support.
(4) The department shall announce qualified program providers
not later than January 1 of the current fiscal year. Qualified
program providers must start providing programming by February 1 of
the current fiscal year.
(5) The department shall reimburse qualified program providers
for each month of satisfactory monthly progress as described in
section 23a of the state school aid act of 1979, 1979 PA 94, MCL
388.1623a, at a rate of $500.00 per month. A payment shall be made
to a qualified program provider for the completion of the following
by an eligible participant:
(a) $500.00 for the completion of an employability skills
program equal to at least 1 unit of high school credit obtained
through classroom or online instruction.
(b) $250.00 for the attainment of an industry-recognized
credential requiring up to 50 hours of training.
(c) $500.00 for the attainment of an industry-recognized
credential requiring 50 to 100 hours of training.
(d) $750.00 for the attainment of an industry-recognized
credential requiring more than 100 hours of training.
(e) $1,000.00 for the attainment of a high school diploma
awarded for satisfying Michigan merit curriculum requirements or an
approved personal curriculum, as defined by the Michigan department
of education.
(f) $2,500.00 for placement in a job in an in-demand career
pathway.
(6) The department shall develop policies and guidelines to
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implement this section. The department may prioritize funding for
previously qualified program providers based on all of the
following criteria:
(a) The highest number of students served by a previously
qualified program provider during the previous fiscal year.
(b) The highest number of graduates in a previously qualified
program during the previous fiscal year.
(c) The previously qualified program provider's ability to
offer statewide access during the previous fiscal year.
Sec. 711. The funds appropriated in part 1 for at-risk youth
grants must be awarded to the Michigan franchise holder of the
national Jobs for America's Graduates program for the
administration of the Jobs for Michigan's Graduates program.
Sec. 712. (1) The funds appropriated in part 1 for the high
school equivalency-to-school program must be used to purchase and
distribute vouchers that cover the cost of high school equivalency
testing and certification under this section. The department shall
administer a Michigan high school equivalency-to-school program
that covers the cost of taking a high school equivalency test free
of charge for individuals who meet all of the following
requirements:
(a) The individual has not previously been administered a high
school equivalency test free of charge under this section.
(b) The individual meets at least 1 of the following
requirements:
(i) Prior to taking the high school equivalency test, the
individual successfully completed a department-approved high school
equivalency preparation program.
(ii) Prior to taking the high school equivalency test, the
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individual completed the official high school equivalency practice
test and the individual's score indicated that the individual is
likely to pass.
(2) A department-approved high school equivalency preparation
program must include all of the following:
(a) Instructional and tutorial assistances.
(b) High school equivalency test practice.
(c) Required attendance at program instructional sessions.
(d) A curriculum that prepares students for opportunities in
postsecondary education and the job market.
(e) Information on potential postsecondary and career
pathways.
(f) Counseling on preparing for and applying to college.
(g) Personal and job readiness skills development.
(h) Comprehensive information on college costs and financial
aid.
(i) College and career assessments.
(j) Computer-based instruction, practice, or remediation.
(3) The department shall post online an announcement of the
Michigan high school equivalency-to-school program, minimum
standards for high school equivalency preparation program approval,
and approval procedures.
(4) The department shall do all of the following:
(a) Develop procedures consistent with this section under
which individuals can take the high school equivalency test without
charge.
(b) Provide program information for educators and students on
the department website, including explanations of the procedures
developed under subparagraph (a), and contact information for
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questions about the program.
(c) Provide an estimate of the full-year cost of the program
to the standard report recipients.
(5) Not later than September 30, the department shall report
on utilization of the high school equivalency incentive program,
including numbers of high school equivalency certifications issued
by location, year-to-date expenditures, and numbers of participants
qualifying under subsection (1)(b)(i) or (ii), or both.
Sec. 713. (1) The department shall provide reporting regarding
the interagency agreement with the department of health and human
services, which concerns TANF funding to provide job readiness and
welfare-to-work programming. The reporting must include specific
outcome and performance reporting requirements, as described in
this section. TANF funding provided to the department in the
current fiscal year is contingent on compliance with the data and
reporting requirements described in this section. The department
shall provide all of the following items for the previous year not
later than January 1 of the current fiscal year:
(a) An itemized spending report on TANF funding, including all
of the following:
(i) Direct services to clients.
(ii) Administrative expenditures.
(b) The number of family independence program clients served
through the TANF funding, including all of the following:
(i) The number and percentage who obtained employment through
Michigan Works!.
(ii) The number and percentage who fulfilled their TANF work
requirement through other job readiness programming.
(iii) Average TANF spending per client.
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(iv) The number and percentage of clients who were referred to
Michigan Works! but did not receive a job or job readiness
placement and the reasons why.
(2) Not later than March 15 of the current fiscal year, the
department shall provide to the senate and house appropriations
subcommittees on health and human services and the standard report
recipients an annual report on the following matters itemized by
Michigan works agency:
(a) The number of referrals to Michigan works job readiness
programs.
(b) The number of referrals to Michigan works job readiness
programs who became a participant in the Michigan works job
readiness programs.
(c) The number of participants who obtained employment.
(d) The cost per participant case.
(3) As used in this section, "TANF" means temporary assistance
for needy families as described in 42 USC 601 to 619.
Sec. 718. Not later than December 31, the Michigan high-speed
internet office shall report to the legislature on any impediments
to grantees of the federal broadband grant programs administered by
the Michigan high-speed internet office, including utilization of
utility pole attachments and public railroad crossings.
Sec. 719. (1) Each regional Michigan works agency shall
increase the number of employers within its respective region that
the Michigan works agency collaborates with in order to increase
the number of employers that participate within the Michigan works
ecosystem.
(2) On a quarterly basis, the department shall provide a
report that contains monthly data on the number of added and
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removed employers, categorized by industry sector, in each Michigan
works region.

UNEMPLOYMENT
Sec. 801. The unemployment insurance agency shall provide a
report updated at least quarterly that includes, but is not limited
to, fiscal year-to-date expenditures by division and program unit.
The unemployment insurance agency shall transmit each quarterly
report no later than 60 days after the end of each quarter.
Sec. 802. (1) From the funds appropriated in part 1, the
department, on behalf of the unemployment insurance agency, shall
provide a quarterly report not later than 60 days after the end of
each quarter that includes, but is not limited to, the following:
(a) The average number of unique claimants for the quarter.
(b) The average number of eligible claimants with
certification for the quarter.
(c) The average number of claims paid for the quarter.
(d) The total amount of standard unemployment insurance
payments paid for the quarter.
(e) The total amount of unemployment insurance tax generated
for the quarter.
(f) The balance of the Michigan unemployment trust fund at the
end of the quarter.
(2) The department shall include the same information required
in subsection (1) for the previous 12 months. The department shall
include the most recent quarterly report on the department's
website.
Sec. 803. From the funds appropriated in part 1, the
department shall provide a quarterly report not later than 60 days
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after the end of each quarter that includes, but is not limited to,
the following:
(a) The number of new fraudulent and noncompliant cases that
have been identified or issued by the unemployment insurance
agency, classified by employer or claimant, during the quarter.
(b) The total amount of penalties and interest issued on
fraudulent and noncompliant cases during the quarter.
(c) The total amount of penalties and interest dollars
received during the quarter by employer or claimant.
(d) The total amount of collectible penalties and interest
still owed to this state by employer or claimant.
(e) The number of fraudulent and noncompliant cases that have
been appealed by an employer or claimant during the quarter.
Sec. 804. (1) The funds appropriated in part 1 for
unemployment insurance agency must be used to staff unemployment
insurance agency branch offices for in-person appointments for
unemployment insurance agency claimant services.
(2) The department shall provide a biannual report not later
than March 15 and September 30 that includes all of the following:
(a) The number and location of in-person offices.
(b) The average number of staff at each location over the
previous 6 months.
(c) The volume of in-person claimants served at each location
in the previous 6 months.
(d) For the previous 6 months, the average number of staff at
each location where the unemployment insurance agency offers in-
person appointments, the average number of staff assigned to
offering virtual appointments, and the average number of staff
assigned to offering telephone appointments.
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(e) For the previous 6 months, the volume of in-person
claimants served at each location, the volume of claimants served
through virtual appointments, and the volume of claimants served
through telephone appointments.
Sec. 806. (1) From the funds appropriated in part 1 for
unemployment insurance agency, the department shall maintain
customer service standards for employers and claimants making use
of the various means by which they can access the system.
(2) The department shall identify specific outcomes and
performance metrics for this initiative, including, but not limited
to, the following:
(a) Unemployment benefit fund balance.
(b) Process improvement - fiscal integrity.
(c) Process improvement - determination timeliness.
(d) Process improvement - determination quality.
Sec. 807. Funds earned or authorized by the USDOL in addition
to the appropriation in part 1 for the unemployment insurance
agency are appropriated and may be expended for staffing and
related expenses incurred in the operation of its programs. These
funds may be spent after the department notifies the standard
report recipients of the purpose and amount of each grant award.

REHABILITATION SERVICES
Sec. 901. The Michigan rehabilitation services and bureau of
services for blind persons shall work collaboratively with service
organizations and government entities to identify allowable match
dollars to secure available federal vocational rehabilitation
funds.
Sec. 902. From the funds appropriated in part 1, the
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department shall provide an annual report on efforts taken to
improve the Michigan rehabilitation services not later than March
15. The report must include all of the following items:
(a) Changes in administrative costs and staffing, service
delivery plans and implementation steps achieved, and
reorganization plans and implementation steps achieved.
(b) For the previous fiscal year, the number of individuals
with disabilities served and the number of students with
disabilities served.
(c) The number of services provided in each allowable
vocational rehabilitation service category.
(d) Plans to integrate Michigan rehabilitative services
programs into other services provided by the department.
(e) Quarterly expenditures by major spending category.
(f) Employment and job retention rates from both Michigan
rehabilitation services and its nonprofit partners.
(g) Success rate in achieving the program goals, by geographic
region, in a manner determined by the department.
(h) An explanation of each program goal that is set for
Michigan rehabilitation services.
Sec. 903. (1) From the funds appropriated in part 1 for
Michigan rehabilitation services, the department shall allocate
funding along with available federal match to support the provision
of vocational rehabilitation services to eligible agricultural
workers with disabilities. Authorized services shall assist
agricultural workers with disabilities in acquiring or maintaining
quality employment and independence.
(2) Not later than March 15, the department shall report on
the total number of clients served and the total amount of federal
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matching funds obtained throughout the duration of the program.
Sec. 904. If the department is at risk of entering into an
order of selection for services, the department shall notify the
standard report recipients within 2 weeks of receiving
notification.
Sec. 905. (1) Funds appropriated in part 1 for independent
living must be used to support the general operations of centers
for independent living in delivering mandated independent living
services in compliance with federal rules and regulations,
including 2 CFR 200, by existing centers for independent living to
serve underserved areas, and for projects to build the capacity of
centers for independent living to deliver independent living
services. Applications for the funds must be reviewed in accordance
with criteria and procedures established by the department. Funds
must be used in a manner consistent with the state plan for
independent living. Services provided should assist people with
disabilities to move toward self-sufficiency, including, but not
limited to, support for accessing transportation and health care,
obtaining employment, community living, nursing home transition,
information and referral services, education, youth transition
services, veterans, and stigma reduction activities and community
education. This includes the independent living guide services that
specifically focus on economic self-sufficiency.
(2) Not later than March 15 and in partnership with service
providers, the department shall provide a report on direct customer
and system outcomes and performance measures.
Sec. 906. Federal workforce innovation and opportunity
vocational rehabilitation funds from prior years that are received
in amounts in addition to those included in part 1 and that have
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already met state matching requirements are appropriated for the
purposes intended. The department may carry forward into the
succeeding fiscal year unexpended federal workforce innovation and
opportunity vocational rehabilitation funds that do not require
additional state matching funds.
Sec. 907. (1) The appropriation in part 1 for bureau of
services for blind persons includes funds for case services. These
funds may be used for tuition payments for blind clients.
(2) Revenue collected by the bureau of services for blind
persons and from private and local sources that is unexpended at
the end of the fiscal year must carry forward to the subsequent
fiscal year.
Sec. 908. The bureau of services for blind persons may provide
and enter into agreements to provide general services, training,
meetings, information, special equipment, software, facility use,
and technical consulting services to other principal executive
departments, state agencies, local units of government, the
judicial branch of government, other organizations, and patrons of
department facilities. The department may charge fees for these
services that are reasonably related to the cost of providing the
services. In addition to the funds appropriated in part 1, funds
collected by the department for these services are appropriated for
all expenses necessary. The funds appropriated under this section
are allotted for expenditure when they are received by the
department of treasury.
Sec. 909. (1) The funds appropriated in part 1 for a regional
or subregional library must not be released until a budget for that
regional or subregional library has been approved by the department
for expenditures for library services directly serving the blind
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and persons with disabilities.
(2) To receive subregional state aid appropriated in part 1, a
regional or subregional library's fiscal agency must agree to
maintain local funding support at the same level in the current
fiscal year as in the fiscal agency's previous fiscal year. If a
reduction in expenditures equally affects all agencies in a local
unit of government that includes the regional or subregional
library's fiscal agency, the reduction must not be interpreted as a
reduction in local support and must not disqualify a regional or
subregional library from receiving state aid under part 1. If a
reduction in income affects a library cooperative or district
library that includes a regional or subregional library's fiscal
agency or a reduction in expenditures for the regional or
subregional library's fiscal agency, a reduction in expenditures
for the regional or subregional library must not be interpreted as
a reduction in local support and must not disqualify a regional or
subregional library from receiving state aid under part 1.

COMMISSIONS
Sec. 951. Any commission established in statute or by
executive order that receives appropriations in part 1 must produce
a report by January 31. The report must include, but is not limited
to, all of the following:
(a) Total number of people with whom the commission directly
interacts through programming.
(b) Total number of public events that the commission
conducted.
(c) A description of the activities that the commission
initiated to promote cooperation with other commissions.
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(d) The programmatic costs of the commission.
(e) A list of all grant recipients.
(f) The amount each grant recipient received.

ONE-TIME APPROPRIATIONS
Sec. 1001. (1) The legislative spending transparency fund is
created in the state treasury.
(2) The state treasurer shall direct the investment of money
in the legislative spending transparency fund. Expenditures from
the legislative spending transparency fund shall be made only to
support items that are appropriated in compliance with sections 364
and 364a of the management and budget act, 1984 PA 431, MCL 18.1364
and 18.1364a.
(3) Interest and earnings from the investment of money
deposited into the legislative spending transparency fund must be
deposited into the general fund.
(4) From the unexpended and unencumbered funds remaining in
the strategic outreach and attraction reserve fund and in work
project accounts for the strategic outreach and attraction reserve
fund, the critical industry program, and the Michigan strategic
site readiness program, the Michigan strategic fund shall work with
the state budget director to lapse a total of $150,000,000.00. This
money is appropriated to and must be deposited in the legislative
spending transparency fund.
(5) From the unexpended and unencumbered funds remaining in
the strategic outreach and attraction reserve fund and in work
project accounts for the strategic outreach and attraction reserve
fund, the critical industry program, and the Michigan strategic
site readiness program, the Michigan strategic fund shall work with
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the state budget director to lapse a total of $206,722,900.00. This
money is appropriated to and must be deposited in the general fund.
(6) As used in this section:
(a) "Critical industry program" means the critical industry
program created under section 88s of the Michigan strategic fund
act, 1984 PA 270, MCL 125.2088s.
(b) "Michigan strategic site readiness program" means the
Michigan strategic site readiness program created under section 88t
of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088t.
(c) "Strategic outreach and attraction reserve fund" means the
strategic outreach and attraction reserve fund created in section 4
of the Michigan trust fund act, 2000 PA 489, MCL 12.254.
Sec. 1002. (1) From the funds appropriated in part 1 for
legislatively directed spending items, $1,000,000.00 must be awarded to
the village of Carsonville in Sanilac County for construction of new
municipal wells and associated infrastructure.
(2) From the funds appropriated in part 1 for legislatively directed
spending items, $2,500,000.00 must be awarded to the city of Mount Clemens
in Macomb County for a housing development project.
(3) From the funds appropriated in part 1 for legislatively directed
spending items, $3,500,000.00 must be awarded to the Macomb County
department of roads for construction on Rivergate Drive.
(4) From the funds appropriated in part 1 for legislatively directed
spending items, $15,000,000.00 must be awarded to the city of Owosso in
Shiawassee County for replacement of nitrification towers at the Owosso
wastewater treatment plant.
(5) From the funds appropriated in part 1 for legislatively directed
spending items, $600,000.00 must be awarded to Bangor Charter Township in
Bay County for improvements to the municipal water distribution system.
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(6) From the funds appropriated in part 1 for legislatively directed
spending items, $1,995,000.00 must be awarded to the city of Bay City in
Bay County for the Lafayette Bridge replacement and reconstruction
project.
(7) From the funds appropriated in part 1 for legislatively directed
spending items, $1,500,000.00 must be awarded to Denmark Township in
Tuscola County for replacement of the township’s sewer lagoon liner.
(8) From the funds appropriated in part 1 for legislatively directed
spending items, $500,000.00 must be awarded to 906 Adventure Team in
Marquette County for development and construction of Gluski Park.
(9) From the funds appropriated in part 1 for legislatively directed
spending items, $682,000.00 must be awarded to the Baraga County road
commission for flood damage recovery.
(10) From the funds appropriated in part 1 for legislatively
directed spending items, $700,000.00 must be awarded to the city of
Negaunee in Marquette County for the purchase of an apparatus fire truck.

(11) From the funds appropriated in part 1 for legislatively
directed spending items, $1,400,000.00 must be awarded to Superior Central
Schools for creation of safe parking and drop-off sites.
(12) From the funds appropriated in part 1 for legislatively
directed spending items, $35,000.00 must be awarded to United Way of
Marquette County for expansion of the volunteer income tax assistance
program.
(13) From the funds appropriated in part 1 for legislatively
directed spending items, $1,000,000.00 must be awarded to Waucedah
Township in Dickinson County for the replacement of Waucedah Road.
(14) From the funds appropriated in part 1 for legislatively
directed spending items, $2,500,000.00 must be awarded to the Mason-
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Griffith Founders Chapter of Trout Unlimited for infrastructure and river
restoration on the Au Sable River and the upper Manistee River.
(15) From the funds appropriated in part 1 for legislatively
directed spending items, $25,000.00 must be awarded to Bedford Township in
Monroe County for a veterans memorial.
(16) From the funds appropriated in part 1 for legislatively
directed spending items, $5,000,000.00 must be awarded to the Michigan
Research Institute to deploy infrastructure at Camp Grayling to support
its creation as a national contested logistics training center and
manufacturing capabilities at Selfridge Air National Guard Base.
(17) From the funds appropriated in part 1 for legislatively
directed spending items, $1,500,000.00 must be awarded to Target Alpena
Development Corporation for development of workforce housing, grant
assistance, and small business infrastructure.
(18) From the funds appropriated in part 1 for legislatively
directed spending items, $1,700,000.00 must be awarded to Holland Hospital
in Ottawa County to expand services and to offer advanced endoscopy.
(19) From the funds appropriated in part 1 for legislatively
directed spending items, $100,000.00 must be awarded to Holland Tulip Time
Festival Inc. for festival programming.
(20) From the funds appropriated in part 1 for legislatively
directed spending items, $4,250,000.00 must be awarded to the city of
Algonac in St. Clair County to support canal siphon crossing replacements,
sewer line replacements, and other infrastructure projects.
(21) From the funds appropriated in part 1 for legislatively
directed spending items, $600,500.00 must be awarded to the city of St.
Clair in St. Clair County to address failing soil stabilization.
(22) From the funds appropriated in part 1 for legislatively
directed spending items, $1,000,000.00 must be awarded to Lake Superior
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State University for electrical and data system upgrades.
(23) From the funds appropriated in part 1 for legislatively
directed spending items, $600,000.00 must be awarded to Michigan
Technological University for an analysis of Mackinac Bridge conditions and
closures.
(24) From the funds appropriated in part 1 for legislatively
directed spending items, $2,500,000.00 must be awarded to North Central
Michigan College to support the purchase of a facility for a new dental
hygiene program.
(25) From the funds appropriated in part 1 for legislatively
directed spending items, $56,000.00 must be awarded to the Albion
department of public safety in Calhoun County to support purchases of
public safety equipment.
(26) From the funds appropriated in part 1 for legislatively
directed spending items, $950,000.00 must be awarded to Bedford Charter
Township in Calhoun County for rebuilding the township’s fire station 1.
(27) From the funds appropriated in part 1 for legislatively
directed spending items, $845,000.00 must be awarded to the Clarence
Township fire department in Calhoun County for the purchase of a fire
truck.
(28) From the funds appropriated in part 1 for legislatively
directed spending items, $500,000.00 must be awarded to Greater Kingdom
International in Calhoun County to support the revitalization and
redevelopment of Orchard Park.
(29) From the funds appropriated in part 1 for legislatively
directed spending items, $300,000.00 must be awarded to Haven of Rest
Ministries in Calhoun County for life recovery programs.
(30) From the funds appropriated in part 1 for legislatively
directed spending items, $250,000.00 must be awarded to Lee Township in
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Calhoun County to support construction of a township maintenance building
to house first responder equipment and vehicles.
(31) From the funds appropriated in part 1 for legislatively
directed spending items, $85,000.00 must be awarded to the Michigan
Sheriffs’ Association for victim support and trainings.
(32) From the funds appropriated in part 1 for legislatively
directed spending items, $750,000.00 must be awarded to Washington Heights
United Methodist Church and Community in Calhoun County to support the
healthy homes and homeownership stabilization project.
(33) From the funds appropriated in part 1 for legislatively
directed spending items, $750,000.00 must be awarded to Watertown Township
in Tuscola County for the purchase of a fire truck.
(34) From the funds appropriated in part 1 for legislatively
directed spending items, $2,827,500.00 must be awarded to the Lapeer
County road commission for reconstruction of Bowers Road from M-53 to
Wilder Road.
(35) From the funds appropriated in part 1 for legislatively
directed spending items, $2,000,000.00 must be awarded to the Waterford
Charter Township regional fire department in Oakland County for
construction of a modern regional fire station.
(36) From the funds appropriated in part 1 for legislatively
directed spending items, $834,400.00 must be awarded to the city of the
Village of Clarkston in Oakland County to improve walkability and
pedestrian safety.
(37) From the funds appropriated in part 1 for legislatively
directed spending items, $2,200,000.00 must be awarded to the city of Rose
City in Ogemaw County for improvements to the public water supply system.
(38) From the funds appropriated in part 1 for legislatively
directed spending items, $300,000.00 must be awarded to Northern Bay
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Ambulance in Bay County for the purchase of an ambulance.
(39) From the funds appropriated in part 1 for legislatively
directed spending items, $350,000.00 must be awarded to Adrian Charter
Township in Lenawee County for a consolidated public safety facility for
the township.
(40) From the funds appropriated in part 1 for legislatively
directed spending items, $1,500,000.00 must be awarded to the Lenawee Now
Foundation for a career pilot program.
(41) From the funds appropriated in part 1 for legislatively
directed spending items, $1,200,000.00 must be awarded to Ronald Township
in Ionia County for construction of a township community center and fire
station.
(42) From the funds appropriated in part 1 for legislatively
directed spending items, $910,000.00 must be awarded to the Elsie Area
fire department in Clinton County for a dedicated permanent fire station.

(43) From the funds appropriated in part 1 for legislatively
directed spending items, $500,000.00 must be awarded to the village of
Maple Rapids in Clinton County for design and engineering costs associated
with the Maple Rapids Bridge.
(44) From the funds appropriated in part 1 for legislatively
directed spending items, $800,000.00 must be awarded to the village of
Breckenridge in Gratiot County for rehabilitation of gravity sewer mains
and manhole protection.
(45) From the funds appropriated in part 1 for legislatively
directed spending items, $1,000,000.00 must be awarded to Veterans of
Foreign Wars post 4037 and American Legion post 167 in Oakland County for
a comprehensive building remodel.
(46) From the funds appropriated in part 1 for legislatively
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directed spending items, $3,000,000.00 must be awarded to the Center for
Behavioral Health and Justice at Wayne State University to enhance
collaboration, cooperation, and interoperability between 911, 988, law
enforcement, community mental health, and other community resources.
(47) From the funds appropriated in part 1 for legislatively
directed spending items, $1,012,900.00 must be awarded to the city of
Riverview fire department in Wayne County for the purchase of a fire truck
and associated equipment.
(48) From the funds appropriated in part 1 for legislatively
directed spending items, $6,500,000.00 must be awarded to the city of
Southgate in Wayne County to rehabilitate the city’s aging water
distribution system.
(49) From the funds appropriated in part 1 for legislatively
directed spending items, $222,000.00 must be awarded to the city of
Southgate in Wayne County for upgrading police radios.
(50) From the funds appropriated in part 1 for legislatively
directed spending items, $1,900,000.00 must be awarded to the city of
Wyandotte in Wayne County for the purchase of an aerial ladder truck.
(51) From the funds appropriated in part 1 for legislatively
directed spending items, $600,000.00 must be awarded to Bessemer Area
Schools to bring elevators into compliance with code.
(52) From the funds appropriated in part 1 for legislatively
directed spending items, $600,000.00 must be awarded to Gogebic Community
College to replace three elevators.
(53) From the funds appropriated in part 1 for legislatively
directed spending items, $2,000,000.00 must be awarded to Families and
Children Together in Genesee County for program expansion.
(54) From the funds appropriated in part 1 for legislatively
directed spending items, $950,000.00 must be awarded to Groveland Township
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in Oakland County for the installation of ten high-capacity wells.
(55) From the funds appropriated in part 1 for legislatively
directed spending items, $3,300,000.00 must be awarded to the Muskegon
County road commission to repair Blackmer Road in Ravenna Township.
(56) From the funds appropriated in part 1 for legislatively
directed spending items, $4,170,100.00 must be awarded to the city of
Linden in Genesee County to support the final phase of a drinking water
source infrastructure project.
(57) From the funds appropriated in part 1 for legislatively
directed spending items, $1,000,000.00 must be awarded to the village of
Shepherd in Isabella County to support a sanitary sewer lining and manhole
rehabilitation project.
(58) From the funds appropriated in part 1 for legislatively
directed spending items, $500,000.00 must be awarded to IM Kids 3rd Meal
in Ionia County to secure and equip a facility to serve as a permanent
location for the program.
(59) From the funds appropriated in part 1 for legislatively
directed spending items, $3,000,000.00 must be awarded to the city of
Buchanan in Berrien County and to Bertrand Township in Berrien County for
the extension of water and sewer lines to Bertrand Crossing Industrial
Park.
(60) From the funds appropriated in part 1 for legislatively
directed spending items, $344,800.00 must be awarded to the St. Clair
County road commission for the repair and maintenance of Airport Drive.
(61) From the funds appropriated in part 1 for legislatively
directed spending items, $1,000,000.00 must be awarded to Kids’ Food
Basket in west Michigan for operational support.
(62) From the funds appropriated in part 1 for legislatively
directed spending items, $350,000.00 must be awarded to the city of
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Escanaba in Delta County for the purchase of a ladder truck.
(63) From the funds appropriated in part 1 for legislatively
directed spending items, $3,730,000.00 must be awarded to the city of
Utica in Macomb County for water main replacement projects.

(64) From the funds appropriated in part 1 for legislatively
directed spending items, $8,000,000.00 must be awarded to Construction
Education Trust in Macomb County to support the purchase, construction,
renovation, and equipping of training and education facilities, curriculum
development, and marketing.
(65) From the funds appropriated in part 1 for legislatively
directed spending items, $2,000,000.00 must be awarded to Macomb County
public works to complete the daylighting of the Sterling Relief Drain.
(66) From the funds appropriated in part 1 for legislatively
directed spending items, $3,000,000.00 must be awarded to Munson
Healthcare for initial startup and operational costs for an adult crisis
residential unit in the Grand Traverse Mental Health Crisis and Access
Center.
(67) From the funds appropriated in part 1 for legislatively
directed spending items, $167,100.00 must be awarded to the city of
Jackson police department for the purchase and equipping of traffic unit
vehicles.
(68) From the funds appropriated in part 1 for legislatively
directed spending items, $300,000.00 must be awarded to Jackson County for
the creation of a federally certified aviation maintenance technician
trade school.
(69) From the funds appropriated in part 1 for legislatively
directed spending items, $1,185,100.00 must be awarded to the Jackson
County sheriff’s office to remodel a portion of the Chanter Road Facility
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for services for female inmates.
(70) From the funds appropriated in part 1 for legislatively
directed spending items, $212,300.00 must be awarded to Jackson Hillsdale
community mental health board to purchase an innovative mobile mental
health crisis unit.
(71) From the funds appropriated in part 1 for legislatively
directed spending items, $99,500.00 must be awarded to the Jackson School
of the Arts in Jackson County for enrollment stabilization.
(72) From the funds appropriated in part 1 for legislatively
directed spending items, $750,000.00 must be awarded to Michigan’s
Military Heritage Museum based in Jackson County for facility expansion,
modernization of exhibits, and introduction of new features.
(73) From the funds appropriated in part 1 for legislatively
directed spending items, $200,000.00 must be awarded to Save Our Youth
Help Them Prosper based in Jackson County to support a youth career
mentorship program.
(74) From the funds appropriated in part 1 for legislatively
directed spending items, $200,000.00 must be awarded to the Shop Rat
Foundation based in Jackson County to equip the advanced manufacturing
training center with computer numerical control machinery.
(75) From the funds appropriated in part 1 for legislatively
directed spending items, $450,000.00 must be awarded to the city of
Beaverton in Gladwin County for installation of water mains.
(76) From the funds appropriated in part 1 for legislatively
directed spending items, $650,000.00 must be awarded to the city of
Coleman in Midland County for improvements to the existing sanitary sewer
lift station that serves the industrial district.
(77) From the funds appropriated in part 1 for legislatively
directed spending items, $1,100,000.00 must be awarded to Georgetown
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Charter Township in Ottawa County for the purchase of a fire truck.
(78) From the funds appropriated in part 1 for legislatively
directed spending items, $500,000.00 must be awarded to Ottawa County for
a groundwater feasibility study.
(79) From the funds appropriated in part 1 for legislatively
directed spending items, $1,000,000.00 must be awarded to the Allegan
County drain commissioner for improvements to the Bates Drain.
(80) From the funds appropriated in part 1 for legislatively
directed spending items, $2,000,000.00 must be awarded to Macomb County
public works for stormwater infrastructure improvements and repairs.
(81) From the funds appropriated in part 1 for legislatively
directed spending items, $450,000.00 must be awarded to the city of Auburn
Hills in Oakland County for the purchase of an advanced life support
ambulance.
(82) From the funds appropriated in part 1 for legislatively
directed spending items, $6,000,000.00 must be awarded to the Capuchin
Soup Kitchen in Wayne County for construction of a new mixed-use building.
(83) From the funds appropriated in part 1 for legislatively
directed spending items, $700,000.00 must be awarded to Berlin Charter
Township in Monroe County to connect subdivision septic systems to the
Flat Rock municipal septic system.

(84) From the funds appropriated in part 1 for legislatively
directed spending items, $1,520,000.00 must be awarded to the Brownstown
fire department in Wayne County for the purchase of a ladder truck.
(85) From the funds appropriated in part 1 for legislatively
directed spending items, $80,000.00 must be awarded to the city of
Rockwood in Wayne County to purchase and equip a new police patrol
vehicle.
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(86) From the funds appropriated in part 1 for legislatively
directed spending items, $1,400,000.00 must be awarded to the city of
Rochester in Oakland County for expansion and renovation of the Rochester
Community House.
(87) From the funds appropriated in part 1 for legislatively
directed spending items, $405,000.00 must be awarded to Common Ground
Crisis Center, headquartered in the village of Bingham Farms, to support
and expand the mass violence and disaster response and recovery program.
(88) From the funds appropriated in part 1 for legislatively
directed spending items, $500,000.00 must be awarded to Communities
Overcoming Violent Encounters to support a building campaign to strengthen
and modernize an emergency shelter and advocacy center.
(89) From the funds appropriated in part 1 for legislatively
directed spending items, $1,300,000.00 must be awarded to Access Health,
headquartered in the city of Muskegon, to sustain the impact of Access
Health’s model.
(90) From the funds appropriated in part 1 for legislatively
directed spending items, $2,100,000.00 must be awarded to the Tri-Cities
Family YMCA, headquartered in the city of Grand Haven, for essential
infrastructure improvements and upgrades.
(91) From the funds appropriated in part 1 for legislatively
directed spending items, $800,000.00 must be awarded to the Van Buren
County road commission for the total replacement of a structurally
deficient bridge that carries CR 657 over the east branch of the Paw Paw
River.
(92) From the funds appropriated in part 1 for legislatively
directed spending items, $6,000,000.00 must be awarded to the city of
Howell in Livingston County for infrastructure improvements to D-19 and
the I-96 interchange.
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(93) From the funds appropriated in part 1 for legislatively
directed spending items, $250,000.00 must be awarded to Crime Stoppers of
Michigan to support the organization’s programs.
(94) From the funds appropriated in part 1 for legislatively
directed spending items, $300,000.00 must be awarded to Veterans of
Foreign Wars post 6464 in Livingston County for facility modernization and
repairs.
(95) From the funds appropriated in part 1 for legislatively
directed spending items, $60,000.00 must be awarded to the city of Hudson
in Lenawee County for targeted rehabilitation and equipment upgrades at
the city’s senior center.
(96) From the funds appropriated in part 1 for legislatively
directed spending items, $44,300.00 must be awarded to the Sherwood
Township fire department for construction of a new well.
(97) From the funds appropriated in part 1 for legislatively
directed spending items, $3,000,000.00 must be awarded to Shelby
Township in Macomb County to complete reconstruction of the
Schoenherr Road Bridge over the middle branch of the Clinton River.
Sec. 1003. From the unexpended and unencumbered funds
remaining in the strategic outreach and attraction reserve fund and
in work project accounts for the strategic outreach and attraction
reserve fund, the critical industry program, and the Michigan
strategic site readiness program, the Michigan strategic fund shall
work with the state budget director to lapse a total of
$300,000,000.00. This money is appropriated to and must be
deposited in the countercyclical budget and economic stabilization
fund.

ARTICLE 10
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DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of
licensing and regulatory affairs for the fiscal year ending
September 30, 2027, from the following funds:
DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
APPROPRIATION SUMMARY
Full-time equated unclassified positions 20.0
Full-time equated classified positions 1,806.0
Full-time employees 1,576.0
Limited-term employees 31.0
Noncareer/per diem employees 27.0
Part-time employees 3.0
Permanent-intermittent employees 2.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 589,772,400
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 27,184,700
ADJUSTED GROSS APPROPRIATION $ 562,587,700
Federal revenues:
Total federal revenues 29,928,800
Special revenue funds:
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 272,224,900
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State general fund/general purpose $ 260,434,000
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 20.0
Full-time equated classified positions 97.0
Unclassified salaries--FTEs 20.0 $ 2,599,600
Executive director programs--FTEs 19.0 3,407,500
Financial operations--FTEs 67.0 8,320,700
Property management 4,406,100
Regulatory effectiveness office--FTEs 11.0 1,700,200
Worker's compensation 13,200
Departmentwide employee economic adjustments 4,532,200
GROSS APPROPRIATION $ 24,979,500
Appropriated from:
Interdepartmental grant revenues:
IDG from MDIFS, accounting services 150,000
IDG revenues, administrative hearings and rules 318,800
Federal revenues:
DOJ 700
DOT, gas pipeline safety 33,100
EPA, underground storage tanks 39,900
HHS-Medicaid, certification of health care
providers and suppliers 423,400
HHS-Medicare, certification of health care
providers and suppliers 678,000
Special revenue funds:
Aboveground storage tank fees 94,300
Accountancy enforcement fund 33,100
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Adult foster care facilities licenses fund 8,800
Boiler inspection fund 318,300
Builder enforcement fund 83,200
Construction code fund 1,011,800
Corporation fees 5,480,900
Direct shipper enforcement revolving fund 3,600
Elevator fees 391,800
Fire alarm fees 7,400
Fire safety standard and enforcement fund 3,600
Fire service fees 324,300
Fireworks safety fund 64,000
Health professions regulatory fund 2,134,800
Health systems fees 215,000
Industrial hemp licensing and registration fund 300
Licensing and regulation fund 771,000
Liquor license revenue 342,300
Liquor purchase revolving fund 3,119,700
Marihuana registry fund 195,200
Marihuana regulation fund 1,604,100
Marihuana regulatory fund 734,700
Michigan unarmed combat fund 5,800
Mobile home code fund 253,900
Nurse aide and medication aide registration
fund 20,700
Nurse professional fund 42,800
PMECSEMA fund 62,700
Property development fees 7,800
Public utility assessments 3,450,200
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Real estate appraiser education fund 2,900
Real estate education fund 15,600
Real estate enforcement fund 19,300
Refined petroleum fund 139,800
Securities fees 1,437,800
Securities investor education and training fund 10,100
Security business fund 9,100
Survey and remonumentation fund 79,600
Tax tribunal fund 81,700
Utility consumer representation fund 55,200
State general fund/general purpose $ 698,400
Sec. 103. PUBLIC SERVICE COMMISSION
Full-time equated classified positions 222.0
Public service commission--FTEs 222.0 $ 37,575,300
GROSS APPROPRIATION $ 37,575,300
Appropriated from:
Federal revenues:
DOT, gas pipeline safety 2,363,300
Special revenue funds:
Civil fines, excavation, and blasting fund 500,000
Public utility assessments 34,712,000
State general fund/general purpose $ 0
Sec. 104. LIQUOR CONTROL COMMISSION
Full-time equated classified positions 146.0
Liquor licensing and enforcement--FTEs 117.0 $ 18,176,300
Management support services--FTEs 29.0 4,984,900
GROSS APPROPRIATION $ 23,161,200
Appropriated from:
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Special revenue funds:
Direct shipper enforcement revolving fund 317,900
Liquor control enforcement and license
investigation revolving fund 175,000
Liquor license fee enhancement fund 76,400
Liquor license revenue 8,514,300
Liquor purchase revolving fund 14,077,600
State general fund/general purpose $ 0
Sec. 105. OCCUPATIONAL REGULATION
Full-time equated classified positions 912.0
Bureau of community and health systems--FTEs 162.0 $ 26,602,500
Bureau of construction codes--FTEs 188.0 29,516,800
Bureau of fire services--FTEs 86.0 14,102,300
Bureau of professional licensing--FTEs 198.0 38,329,400
Bureau of survey and certification--FTEs 173.0 26,917,200
Corporations, securities, and commercial
licensing bureau--FTEs 105.0 17,171,400
Urban search and rescue 1,000,000
GROSS APPROPRIATION $ 153,639,600
Appropriated from:
Federal revenues:
DHS, fire training systems 528,000
DOT, hazardous materials training and planning 20,000
EPA, underground storage tanks 820,600
Federal revenues 109,000
HHS-Medicaid, certification of health care
providers and suppliers 9,201,600
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HHS-Medicare, certification of health care
providers and suppliers 14,808,100
Special revenue funds:
Aboveground storage tank fees 343,700
Accountancy enforcement fund 1,146,300
Adult foster care facilities licenses fund 373,600
Boiler inspection fund 2,827,300
Builder enforcement fund 597,700
Construction code fund 12,772,700
Corporation fees 9,953,700
Division on deafness fund 73,400
Elevator fees 7,900,500
Fire alarm fees 138,400
Fire safety standard and enforcement fund 32,300
Fire service fees 3,160,900
Fireworks safety fund 1,259,100
Health professions regulatory fund 24,981,400
Health systems fees 4,204,300
Licensing and regulation fund 11,193,200
Liquor purchase revolving fund 225,000
Marihuana regulatory fund 500,000
Mobile home code fund 1,987,300
Nurse aide and medication aide registration
fund 1,692,400
Nurse professional fund 1,855,100
PMECSEMA fund 1,450,200
Property development fees 178,700
Real estate appraiser education fund 5,800
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Real estate education fund 569,300
Real estate enforcement fund 708,400
Refined petroleum fund 2,602,400
Securities fees 5,266,900
Securities investor education and training fund 491,000
Security business fund 178,000
Survey and remonumentation fund 845,100
State general fund/general purpose $ 28,638,200
Sec. 106. CANNABIS REGULATORY AGENCY
Full-time equated classified positions 182.0
Cannabis regulatory agency--FTEs 182.0 $ 27,576,400
GROSS APPROPRIATION $ 27,576,400
Appropriated from:
Special revenue funds:
Industrial hemp licensing and registration fund 264,200
Marihuana registry fund 2,006,200
Marihuana regulation fund 18,832,100
Marihuana regulatory fund 6,473,900
State general fund/general purpose $ 0
Sec. 107. MICHIGAN OFFICE OF ADMINISTRATIVE
HEARINGS AND RULES
Full-time equated classified positions 168.0
Michigan office of administrative hearings and
rules--FTEs 168.0 $ 33,135,000
GROSS APPROPRIATION $ 33,135,000
Appropriated from:
Interdepartmental grant revenues:
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IDG revenues - administrative hearings and
rules 25,950,900
Special revenue funds:
Construction code fund 25,100
Corporation fees 913,800
Health professions regulatory fund 806,700
Health systems fees 151,400
Licensing and regulation fund 836,500
Liquor purchase revolving fund 451,200
Marihuana regulation fund 231,900
Marihuana regulatory fund 90,500
Public utility assessments 2,717,700
Securities fees 959,300
State general fund/general purpose $ 0
Sec. 108. COMMISSIONS
Full-time equated classified positions 38.0
Michigan indigent defense commission--FTEs 18.0 $ 3,323,700
Michigan tax tribunal--FTEs 20.0 4,213,900
Michigan unarmed combat commission 126,200
GROSS APPROPRIATION $ 7,663,800
Appropriated from:
Special revenue funds:
Corporation fees 3,391,800
Michigan unarmed combat fund 126,200
Tax tribunal fund 822,100
State general fund/general purpose $ 3,323,700
Sec. 109. GRANTS
Firefighter training grants $ 2,300,000
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Liquor law enforcement grants 8,923,900
Marihuana operation and oversight grants 2,555,100
Michigan indigent defense commission grants 211,799,900
Remonumentation grants 5,654,800
Utility consumer representation 2,043,900
GROSS APPROPRIATION $ 233,277,600
Appropriated from:
Special revenue funds:
Fireworks safety fund 2,300,000
Liquor license revenue 8,923,900
Local indigent defense reimbursement 300,000
Marihuana regulation fund 2,555,100
Survey and remonumentation fund 5,654,800
Utility consumer representation fund 2,043,900
State general fund/general purpose $ 211,499,900
Sec. 110. PROSECUTING ATTORNEYS COORDINATING
COUNCIL
Full-time equated classified positions 14.0
Prosecuting attorneys coordinating council--
FTEs 14.0 $ 2,655,100
GROSS APPROPRIATION $ 2,655,100
Appropriated from:
Special revenue funds:
Prosecuting attorneys training fees 455,100
State general fund/general purpose $ 2,200,000
Sec. 111. MICHIGAN COMMISSION ON LAW ENFORCEMENT
STANDARDS
Full-time equated classified positions 27.0
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In-service training--FTEs 7.0 $ 13,271,100
Justice training grants--FTEs 3.0 10,000,000
Public safety officers benefit fund--FTE 1.0 303,000
Standards and training--FTEs 16.0 4,060,800
Training only to local units 855,000
GROSS APPROPRIATION $ 28,489,900
Appropriated from:
Federal revenues:
DOJ 280,200
Special revenue funds:
Law enforcement officers training fund 25,300
Marihuana regulatory fund 3,390,100
Michigan justice training fund 10,000,000
Private security licensing fees 5,000
Retired law enforcement officer safety fund 25,000
Secondary road patrol and training fund 855,000
State general fund/general purpose $ 13,909,300
Sec. 112. INFORMATION TECHNOLOGY
Information technology services and projects $ 16,659,700
GROSS APPROPRIATION $ 16,659,700
Appropriated from:
Interdepartmental grant revenues:
IDG revenues - administrative hearings and
rules 765,000
Federal revenues:
DOT, gas pipeline safety 80,600
HHS-Medicaid, certification of health care
providers and suppliers 203,400
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HHS-Medicare, certification of health care
providers and suppliers 338,900
Special revenue funds:
Aboveground storage tank fees 18,300
Accountancy enforcement fund 13,800
Boiler inspection fund 204,600
Construction code fund 741,400
Corporation fees 2,658,000
Elevator fees 348,900
Fire safety standard and enforcement fund 1,300
Fire service fees 286,600
Fireworks safety fund 112,500
Health professions regulatory fund 2,162,500
Health systems fees 190,000
Industrial hemp licensing and registration fund 2,100
Licensing and regulation fund 344,000
Liquor license revenue 188,900
Liquor purchase revolving fund 2,954,400
Marihuana regulation fund 1,737,700
Marihuana regulatory fund 690,300
Mobile home code fund 145,000
Nurse aide and medication aide registration
fund 75,700
PMECSEMA fund 523,500
Public utility assessments 1,183,600
Real estate appraiser education fund 500
Real estate education fund 2,500
Real estate enforcement fund 3,900
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Refined petroleum fund 124,200
Securities fees 240,000
Securities investor education and training fund 3,200
Survey and remonumentation fund 39,800
Tax tribunal fund 110,100
State general fund/general purpose $ 164,500
Sec. 113. ONE-TIME APPROPRIATIONS
Accounting continuing education $ 200,000
Real estate continuing education 400,000
Tax tribunal - small claims 359,300
GROSS APPROPRIATION $ 959,300
Appropriated from:
Special revenue funds:
Accountancy enforcement fund 200,000
Corporation fees 359,300
Real estate education fund 400,000
State general fund/general purpose $ 0

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending from state sources under part 1 is
$532,658,900.00 and state spending from state sources to be paid to
local units of government is $255,359,800.00. The itemized
statement below identifies appropriations from which spending to
local units of government will occur:
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DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
Firefighter training grants $ 2,300,000
In-service training 13,271,100
Justice training grants 10,000,000
Liquor law enforcement grants 8,923,900
Marihuana operation and oversight grants 2,555,100
Michigan indigent defense commission grants 211,799,900
Remonumentation grants 5,654,800
Training only to local units 855,000
TOTAL $ 255,359,800
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "Department" means the department of licensing and
regulatory affairs.
(b) "DHS" means the United States Department of Homeland
Security.
(c) "Director" means the director of the department.
(d) "DOT" means the United States Department of
Transportation.
(e) "EPA" means the United States Environmental Protection
Agency.
(f) "FOIA" means the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246.
(g) "FTE" means full-time equated position in the classified
service of this state.
(h) "HHS" means the United States Department of Health and
Human Services.
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(i) "IDG" means interdepartmental grant.
(j) "MDIFS" means the Michigan department of insurance and
financial services.
(k) "PMECSEMA" means pain management education and controlled
substances electronic monitoring and antidiversion.
(l) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on licensing and regulatory affairs and insurance and
financial services, the senate and house fiscal agencies, the
senate and house policy offices, and the state budget office.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
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report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
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estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
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civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) The department shall maintain, on a publicly
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accessible website, a department scorecard that identifies, tracks,
and updates on a quarterly basis key metrics that are used to
monitor and improve the department's performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $1,000,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $1,500,000.00 for state
restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
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and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $200,000.00 for local
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 for private
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $21,488,800.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $21,488,800.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
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account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
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to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
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all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
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department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
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department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
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employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
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Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.
Sec. 250. The department shall submit a report to the standard
report recipients by September 30 detailing any expenditure of
funds for a television or radio production that was made to a
third-party vendor in the fiscal year ending September 30, 2026.
The report must include the following information for each
expenditure:
(a) Total amount of the expenditure.
(b) Fund source for the expenditure.
(c) Name of any vendor that created the production and the
amount paid to each vendor.
(d) Purpose of the production.
Sec. 251. From the funds appropriated in part 1, the
department shall post on a publicly accessible website a report
describing materials that department employees and contractors are
required to review or complete as part of their mandatory training,
including mandatory examinations, surveys, audio or visual
recordings, and reading materials.
Sec. 252. (1) The department may charge registration fees to
attendees of informational, training, or special events that are
sponsored by the department and related to activities under the
department's purview.
(2) The registration fees must reflect the costs for the
department to sponsor the informational, training, or special
events.
(3) Revenue generated by the registration fees is appropriated
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on receipt and may be expended by the department to cover the
department's costs of sponsoring informational, training, or
special events.
(4) Revenue generated by registration fees in excess of the
department's costs of sponsoring informational, training, or
special events carries forward to the subsequent fiscal year and
does not lapse to the general fund.
(5) The amount appropriated under subsection (3) must not
exceed $1,000,000.00.
Sec. 253. The department may provide to interested entities
otherwise unavailable customized listings of nonconfidential
information, such as the names and addresses of licensees, in the
department's possession. The department may establish and collect a
reasonable fee to provide this service. Revenue generated from this
service is appropriated on receipt and must be used to offset the
expenses of the service. Any balance of this revenue collected and
unexpended at the end of the fiscal year lapses to the appropriate
restricted fund.
Sec. 254. (1) The department shall sell documents at a price
not to exceed the cost of production and distribution. Money
received from the sale of these documents reverts to the
department. In addition to the funds appropriated in part 1, funds
received by the department under this subsection may be expended by
the department upon receipt by the department of treasury. This
subsection applies for only the following:
(a) Corporation and securities division documents, reports,
and papers required or permitted by law in accordance with section
1060(6) of the business corporation act, 1972 PA 284, MCL 450.2060.
(b) The Michigan liquor control code of 1998, 1998 PA 58, MCL
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436.1101 to 436.2303.
(c) The mobile home commission act, 1987 PA 96, MCL 125.2301
to 125.2350; the business corporation act, 1972 PA 284, MCL
450.1101 to 450.2098; the nonprofit corporation act, 1982 PA 162,
MCL 450.2101 to 450.3192; and the uniform securities act (2002),
2008 PA 551, MCL 451.2101 to 451.2703.
(d) Construction code manuals.
(e) Copies of transcripts from administrative law hearings.
(2) In addition to the funds appropriated in part 1, funds
appropriated for the department under sections 57, 58, and 59 of
the administrative procedures act of 1969, 1969 PA 306, MCL 24.257,
24.258, and 24.259, and section 203 of the legislative council act,
1986 PA 268, MCL 4.1203, are appropriated for all expenses
necessary to provide for the cost of publication and distribution.
(3) Unexpended funds at the end of the fiscal year carry
forward to the subsequent fiscal year and do not lapse to the
general fund.
Sec. 255. (1) Grants supported with private revenues received
by the department are appropriated on receipt and may be expended
by the department for the purposes specified within the grant
agreement and as permitted under state and federal law.
(2) Not later than 10 days after the receipt of a private
grant appropriated in subsection (1), the department shall notify
the chairpersons of the subcommittees, the senate and house fiscal
agencies, and the state budget office of the receipt of the grant,
including the fund source, purpose, and amount of the grant.
(3) The amount appropriated under subsection (1) must not
exceed $4,000,000.00.
Sec. 256. Unless prohibited by law, the department may accept
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credit card or other electronic means of payment for licenses,
fees, or permits. Not later than February 1, the department shall
report on fees collected from credit card payments for licenses,
fees, and permits in the previous year.
Sec. 257. The department may carry into the succeeding fiscal
year unexpended federal pass-through funds to local institutions
and governments that do not require additional state matching
funds. Federal pass-through funds to local institutions and
governments that are received in amounts in addition to those
included in part 1 and that do not require additional state
matching funds are appropriated for the purposes intended for the
federal pass-through funds. Not later than 14 days after the
receipt of federal pass-through funds, the department shall notify
the chairpersons of the subcommittees, the senate and house fiscal
agencies, and the state budget office of pass-through funds
appropriated under this section.
Sec. 258. (1) Not later than December 31, the department shall
submit a report that pertains to licensing and regulatory programs
overseen by the following agencies:
(a) Liquor control commission.
(b) Bureau of fire services.
(c) Corporations, securities, and commercial licensing bureau.
(d) Bureau of professional licensing.
(2) The report under subsection (1) must be in a format that
is consistent between the agencies listed in subsection (1) and
must provide, but is not limited to, the following information for
the previous fiscal year, as applicable, for each agency:
(a) Revenue generated by and expenditures disbursed for each
regulatory product.
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(b) Revenue generated, by regulatory product or regulated
activity.
(c) The renewal cycle and amount of each fee charged.
(d) Number of initial applications.
(e) Number of initial applications denied.
(f) Number of license renewals.
(g) Average amount of time to approve or deny completed
applications.
(h) Number of examinations proctored for initial applications.
(i) A description of the types of complaints received.
(j) A description of the process used to resolve complaints.
(k) Number of complaints received.
(l) Number of complaints investigated.
(m) Number of complaints closed with no action.
(n) Number of complaints resulting in administrative actions
or citations.
(o) Average amount of time to complete investigations.
(p) Number of enforcement actions, including license
revocations, suspensions, and fines.
(q) A description of the types of enforcement actions taken
against licensees.
(r) Number of administrative hearing adjudications.
(3) An agency listed in subsection (1)(a) or (b) shall report
by regulated activity and an agency listed in subsection (1)(c) or
(d) shall report by regulatory product or regulated activity, or
both.
(4) As used in this section:
(a) "Regulated activity" means the particular activities,
entities, facilities, and industries regulated by the agencies
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specified in subsection (1).
(b) "Regulatory product" means each occupation, profession,
trade, or program, which includes licensure, certification,
registration, inspection, review, permitting, approval, or any
other regulatory service provided by the agencies specified in
subsection (1) for each regulated activity.
Sec. 259. Pending litigation related to a licensee must not
delay investigations and licensing actions taken by the department
toward that licensee under its statutory authority, unless
otherwise prohibited by law.
Sec. 260. It is the intent of the legislature that the
department establish an employee performance monitoring process
that is consistent throughout the department, in addition to
current civil service commission evaluations. The department shall
submit quarterly reports to the subcommittees, the senate and house
fiscal agencies, and the state budget office on changes to the
employee performance monitoring process that are planned or
implemented, as well as the number of employee evaluations
performed.
Sec. 261. (1) From the funds appropriated in part 1 for
administrative services, the department shall expend not less than
$250,000.00 to provide 1 hour of customer service and business
ethics training to each classified employee and 2 hours of customer
service and business ethics training to each unclassified employee.
The training must include, but is not limited to, instruction in
customer service professionalism, consumer support, and ethics in
business.
(2) Not later than November 3, the department shall submit a
report to the standard report recipients containing all of the
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following information:
(a) The number of classified and unclassified employees that
received the customer service and business ethics training.
(b) A copy of the material that was presented in the customer
service and business ethics training.
(c) Information on the entity that provided the customer
service and business ethics training.
Sec. 262. The department shall allow the chairs, majority vice
chairs, and minority vice chairs of the senate and house
appropriations committees and the chairs, majority vice chairs, and
minority vice chairs of the senate and house subcommittees on
licensing and regulatory affairs and insurance and financial
services access to all facilities managed by the department at any
time Monday through Friday, 8 a.m. to 5 p.m.
Sec. 280. (1) The attorney general support fund is created
within the department of treasury.
(2) Any unexpended funds in the attorney general support fund
created in this section shall be carried forward and are available
for expenditure under this section.
(3) Funds may be spent from the attorney general support fund
only on appropriation, or legislative transfer pursuant to section
393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(4) The state treasurer may receive money or other assets from
any source for deposit into the attorney general support fund. The
state treasurer shall direct the investment of the attorney general
support fund. The state treasurer shall credit to the attorney
general support fund interest and earnings from the attorney
general support fund.
(5) Funds in the attorney general support fund at the close of
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the fiscal year remain in the attorney general support fund and do
not lapse to the general fund.
(6) The department is the administrator of the fund for
auditing purposes.
(7) From fees authorized under section 1060 of the business
corporation act, 1972 PA 284, MCL 450.2060, $8,112,200.00 is
appropriated to the attorney general support fund.
(8) From the attorney general support fund created in
subsection (1), $8,112,200.00 is appropriated.

PUBLIC SERVICE COMMISSION
Sec. 301. (1) The public service commission administers the
low-income energy assistance grant program on behalf of the
Michigan department of health and human services via an interagency
agreement. Funds supporting the grant program are appropriated to
the department on the awarding of grants and may be expended for
grant payments and administrative-related expenses incurred in the
operation of the grant program.
(2) No later than March 30, the public service commission
shall submit a report to the standard report recipients based on
the grants administered, including:
(a) Median annual household income for recipients of the
grant.
(b) Number of grants administered in each county of this
state.
Sec. 302. (1) From the funds appropriated in part 1, the
Michigan public service commission shall conduct at least 4 public
hearings in this state. Subject to the requirements of this
section, if there is a city in this state with a population between
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195,000 and 700,000 according to the most recent federal decennial
census, a public hearing required under this section must be
conducted in that city.
(2) Not later than September 30, the Michigan public service
commission shall submit a report to the standard report recipients
that details the outcomes of the public hearings required under
this section and summarizes the public comments that were received
during the public hearings.
Sec. 303. (1) From the funds appropriated in part 1 for the
Michigan public service commission, the department shall designate
1 FTE to assist consumers with utility issues, utility disruption,
or outages.
(2) On a monthly basis, the commission shall make the
following available on its website:
(a) The average electric rates for commission-regulated
electric utilities.
(b) A comparison of monthly residential electric bills for
commission-regulated electric utilities.
(c) The power supply cost recovery factors for all commission-
regulated electric utilities.
(d) The natural gas rates for commission-regulated natural gas
utilities.
(e) The gas cost recovery factors for commission-regulated
natural gas utilities.
(f) Monthly reliability data for commission-rate-regulated
electric utilities.
(g) The number of utility consumers assisted by the commission
for utility disruption, outages, and other utility issues.
(h) The number of formal complaints received in the month.
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Sec. 304. The Michigan public service commission shall publish
all documents pertaining to each rate case on a single page on the
commission's website. For each rate increase approval, the
commission shall submit a report to the senate and house
appropriations committees and senate and house standing committees
on energy that summarizes the commission's decision and
justification for the rate increase approval. The report shall
include a breakdown of the specific costs that the rate increase is
intended to recover for the utility.

LIQUOR CONTROL COMMISSION
Sec. 401. (1) From the funds appropriated in part 1 from the
direct shipper enforcement revolving fund, the liquor control
commission shall expend the funds as required under section 203(11)
of the Michigan liquor control code of 1998, 1998 PA 58, MCL
436.1203, to investigate and audit unlawful direct shipments of
wine by unlicensed wineries and retailers, with priority directed
toward unlicensed out-of-state retailers and third-party marketers.
In addition to other investigative methods, the commission shall
use shipping records available to the commission under section
203(21) of the Michigan liquor control code of 1998, 1998 PA 58,
MCL 436.1203, to assist with the effort to investigate and audit
unlawful direct shipments of wine by unlicensed wineries and
retailers. The liquor control commission shall refer all identified
unlicensed out-of-state retailers and third-party marketers to the
attorney general.
(2) Not later than February 1, the liquor control commission
shall provide a report to the legislature and the standard report
recipients that details the commission's activities to investigate
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and audit the illegal shipping of wine and the results of the
activities. The report must include all of the following:
(a) Work hours spent, specific actions performed, and the
number of full-time equated positions dedicated to identifying and
stopping unlicensed out-of-state retailers, third-party marketers,
and wineries that ship illegally in Michigan.
(b) General overview of expenditures associated with efforts
to identify and stop unlicensed out-of-state retailers, third-party
marketers, and wineries that ship illegally in this state.
(c) Number of out-of-state entities found to have illegally
shipped wine into this state and total number of 750 ml bottles,
number of cases with 750 ml bottles, number of liters, number of
gallons, or weight of illegally shipped wine. These items must be
itemized by total number of retailers and total number of wineries.
(d) Suggested areas of focus on how to address direct shipper
enforcement and illegal importation in the future.
(e) Number of unlicensed out-of-state entities found to have
illegally shipped wine into this state that were identified with
the shipping records described in subsection (1).
(f) Number of notices sent under subsection (3).
(3) From the funds appropriated in part 1 from the direct
shipper enforcement revolving fund, the liquor control commission
shall send a notice to each unlicensed out-of-state entity found to
have illegally shipped wine into this state. The notice must
include all of the following statements:
(a) That shipping wine into this state by unlicensed out-of-
state retailers and third-party marketers is illegal, and wineries
shipping into this state must obtain a direct shipper license.
(b) That under section 909 of the Michigan liquor control code
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of 1998, 1998 PA 58, MCL 436.1909, making unlawful shipments of
wine into this state may be a felony punishable by imprisonment for
not more than 4 years or a fine of not more than $5,000.00, or
both.
(c) That the matter has been referred to the attorney general.

OCCUPATIONAL REGULATION
Sec. 501. The department shall not expend the funds
appropriated under this part and part 1 for the bureau of fire
services unless, in accordance with section 2c of the fire
prevention code, 1941 PA 207, MCL 29.2c, inspection and plan review
fees are charged according to the following fee schedule:
Operation and maintenance inspection fee
Facility type Facility size Fee
Hospitals Any $8.00 per bed
Facility type Facility size Fee
Nursing Homes Any $5.00 per bed
Facility type Facility size Fee
Homes for the
Aged
Any
$5.00 per bed
Facility type Facility size Fee
Adult Foster Care Greater than 6
residents
$5.00 per bed
Plan review and construction inspection fees for
hospitals and schools
Project cost range Fee
$101,000.00 or less minimum fee of $155.00
$101,001.00 to $1,500,000.00 $1.60 per $1,000.00
$1,500,001.00 to $10,000,000.00 $1.30 per $1,000.00
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$10,000,001.00 or more $1.10 per $1,000.00
or a maximum fee of $60,000.00.
Sec. 502. The funds collected by the department for licenses,
permits, and other elevator regulation fees under the Michigan
Administrative Code and as determined under section 8 of 1976 PA
333, MCL 338.2158, and section 16 of 1967 PA 227, MCL 408.816, that
are unexpended at the end of the fiscal year carry forward to the
subsequent fiscal year.
Sec. 503. Not later than February 15, the department shall
submit a report to the standard report recipients that provides all
of the following information:
(a) The number of veterans who were separated from service in
the Armed Forces of the United States with an honorable character
of service or under honorable conditions (general) character of
service, individually or if the veteran holds a majority interest
of a corporation or limited liability company, that were exempted
from paying licensure, registration, filing, or any other fees
collected under each licensure or regulatory program administered
by the bureau of construction codes, the bureau of professional
licensing, and the corporations, securities, and commercial
licensing bureau during the previous fiscal year.
(b) The specific fees and total amount of revenue exempted
under each licensure or regulatory program administered by the
bureau of construction codes, the bureau of professional licensing,
and the corporations, securities, and commercial licensing bureau
during the previous fiscal year.
(c) The actual costs of providing licensing and other
regulatory services to veterans exempted from paying licensure,
registration, filing, or any other fees during the previous fiscal
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year and a description of how the actual costs were calculated.
(d) The estimated amount of revenue that will be exempted
under each licensure or regulatory program administered by the
bureau of construction codes, the bureau of professional licensing,
and the corporations, securities, and commercial licensing bureau
in both the current and subsequent fiscal years and a description
of how the exempted revenue was estimated.
Sec. 504. Revenue collected by the department for the bureau
of community and health systems from fees and collections that
exceeds the amount appropriated in part 1, the revenue must be
carried forward into the subsequent fiscal year. The revenue
carried forward under this section must be used as the first source
of funds in the subsequent fiscal year.
Sec. 505. (1) To defray the costs associated with responding
to false final inspection appointments and to discourage the
practice of calling for final inspections when a project is
incomplete or noncompliant with a plan of correction previously
provided by the bureau of fire services, the bureau of fire
services may assess a fee of not more than $500.00 for responding
to a second or subsequent confirmed false inspection appointment.
Fees collected under this section must be deposited into the
restricted account described in section 2c of the fire prevention
code, 1941 PA 207, MCL 29.2c, and explicitly identified within the
statewide integrated governmental management applications system.
(2) Not later than September 30, the department shall submit a
report to the standard report recipients that provides all of the
following:
(a) The amount of the fee assessed under subsection (1).
(b) The number of fees assessed and issued per region.
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(c) The cost allocation for the work performed and reduced as
a result of this section.
(d) Any recommendations for consideration by the legislature.
Sec. 506. Not later than November 30, the department shall
submit a report to the standard report recipients on the Michigan
automated prescription system. The report must include, but is not
limited to, all of the following:
(a) The total number of licensed health professionals
registered to the Michigan automated prescription system.
(b) The total number of dispensers registered to the Michigan
automated prescription system.
(c) The total number of prescribers using the Michigan
automated prescription system.
(d) The total number of dispensers using the Michigan
automated prescription system.
(e) The total number of cases related to overprescribing,
overdispensing, and drug diversion where the department took
administrative action because of information and data generated
from the Michigan automated prescription system.
(f) The total number of hospitals, doctor's offices,
pharmacies, and other health facilities that have integrated the
Michigan automated prescription system into the facility's
electronic health records systems.
(g) The total number of delegate users registered to the
Michigan automated prescription system.
(h) The department's recommendations for electronic health
integration and optimizing data interpretation for the purpose of
advancing utilization practices.
Sec. 507. (1) From the funds appropriated in part 1 for bureau
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of construction codes, not less than $900,000.00 must be allocated
for additional inspections and enforcement activities related to
the carnival-amusement safety act of 1966, 1966 PA 225, MCL 408.651
to 408.670, and the ski area safety act of 1962, 1962 PA 199, MCL
408.321 to 408.344.
(2) Not later than March 30, the department shall submit a
report to the standard report recipients that details the
allocation of funds under this section. The report must include an
itemized listing of how the funds were used.
Sec. 508. (1) Funds remaining in the homeowner construction
lien recovery fund are appropriated to the department for payment
of court-ordered homeowner construction lien recovery fund
judgments entered before August 23, 2010. Subject to available
funds, the payment of final judgments must be made in the order in
which the final judgments were entered and began accruing interest.
(2) No later than September 30, the department shall transmit
a report to the standard report recipients that details the revenue
sources for the fund.
Sec. 509. From the funds appropriated in part 1 for the bureau
of fire services, in accordance with the requirements under section
21c of the fire prevention code, 1941 PA 207, MCL 29.21c, the
bureau shall perform or work in cooperation with local units of
government to perform inspections at places of public assembly that
pose the highest risk to occupants for injury or fatality based on
the size, density, or the nature of activities performed within the
facility.
Sec. 510. From the funds appropriated in part 1 for bureau of
survey and certification, the department shall submit a report
pertaining to bureau activities, including surveys and
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investigations of nursing homes, hospitals, and acute continuing
care providers to the standard report recipients not later than
March 30.
Sec. 511. From the amount appropriated in part 1 for bureau of
community and health systems administration, on receipt of the
order of suspension of a licensed adult foster care home, home for
the aged, or nursing home, the department shall serve the facility
and provide contemporaneous notice to the offices of legislators
representing a district where the licensed facility is situated and
to the senate and house subcommittees on health and human services.
Sec. 512. (1) From the funds appropriated in part 1 for
corporations, securities, and commercial licensing bureau, the
department shall make the necessary changes to the MiBusiness
Registry Portal to allow each entity to opt in to a primary user
authentication system that would permit only the designated primary
user to submit filings for the entity.
(2) If amendments to the Michigan limited liability company
act, 1993 PA 23, MCL 450.4101 to 450.5200, the business corporation
act, 1972 PA 284, MCL 450.1101 to 450.2098, and the nonprofit
corporation act, 1982 PA 162, MCL 450.2101 to 450.3192, are enacted
that would allow the department to implement a process for entities
to opt in to a primary user authentication system, then this
section will go into effect.

CANNABIS REGULATORY AGENCY
Sec. 601. Not later than January 31, the department shall
submit a comprehensive report to the standard report recipients for
all marihuana programs administered by the cannabis regulatory
agency. This report must include, but is not limited to, all of the
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following information for the previous fiscal year regarding the
marihuana programs under the Michigan Medical Marihuana Act, 2008
IL 1, MCL 333.26421 to 333.26430, the medical marihuana facilities
licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, and the
Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL
333.27951 to 333.27967:
(a) The number of initial applications received, by license
category.
(b) The number of initial applications approved and the number
of initial applications denied, by license category.
(c) The average amount of time, from receipt to approval or
denial, to process an initial application, by license category.
(d) The number of renewal applications approved, by license
category and by county.
(e) The number of renewal applications received, by license
category and by county, if applicable.
(f) The number of renewal applications denied, by license
category and by county.
(g) The average amount of time, from receipt to approval or
denial, to process a renewal application, by license category, if
applicable.
(h) The percentage of initial applications not approved or
denied within the time requirements established in the respective
act, by license category, if applicable.
(i) The percentage of renewal applications not approved or
denied within the time requirements established in the respective
act, by license category, if applicable.
(j) The total amount collected from application fees or
established regulatory assessment and the specific fund the amount
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is deposited into, by license category.
(k) The registered names and addresses of all facilities
licensed under each act, by license category and by county.
(l) The number of complaints received pertaining to each act,
by license type or regulatory activity.
(m) A description of the types of complaints received.
(n) A description of the process used to resolve complaints.
(o) The number of investigations opened pertaining to each
license category.
(p) The number of investigations closed pertaining to each
license category.
(q) The average amount of time to complete investigations
pertaining to each license category.
(r) The number of enforcement actions pertaining to each
license category.
(s) A description of the types of enforcement actions taken
against licensees.
(t) The number of administrative-hearing adjudications
pertaining to each license type.
(u) A list of the fees charged for license applications,
license renewals, and registry cards.
(v) The costs of administering the licensing program under
each act.
Sec. 602. From the funds appropriated in part 1, the cannabis
regulatory agency shall post on a publicly accessible website a
list of all of the following:
(a) The number of investigative reports that identify
violations of the Michigan Medical Marihuana Act, 2008 IL 1, MCL
333.26421 to 333.26430, the medical marihuana facilities licensing
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act, 2016 PA 281, MCL 333.27101 to 333.27801, or the Michigan
Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951
to 333.27967, or violations of administrative rules promulgated
under the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421
to 333.26430, the medical marihuana facilities licensing act, 2016
PA 281, MCL 333.27101 to 333.27801, or the Michigan Regulation and
Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967.
(b) The number of investigative reports that identify
suspected marihuana product that does not have the tracking numbers
assigned by the statewide monitoring system affixed, tagged, or
labeled as required by law.
(c) The number of complaints filed by the public with the
agency that concern either of the following:
(i) Marihuana product that does not have the tracking numbers
assigned by the statewide monitoring system affixed, tagged, or
labeled as required by law.
(ii) Unlicensed commercial production or sale of delta-8 THC.
(d) The number and outcome of all agency disciplinary
proceedings initiated against any licensee subject to the reports
or complaints in subdivisions (a), (b), and (c).
(e) The number of reports the agency referred to the
department of state police or other appropriate law enforcement
agency.
(f) For any licensee subject to disciplinary proceedings
initiated by the agency:
(i) Name of the licensee.
(ii) Description of the allegation.
(iii) Complaint type.
(iv) Process used to resolve the allegation.
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(v) Name of the law enforcement agency the allegation was
referred to, including the date of the referral.
(vi) Current license status and whether or not the license was
suspended, surrendered, or revoked.
(vii) Fines or other penalties issued.
(g) The number of licenses suspended, surrendered, or revoked.
Sec. 603. (1) Not later than January 31, the department shall
submit a comprehensive report to the standard report recipients for
all hemp programs administered by the cannabis regulatory agency.
The report must include, but is not limited to, all of the
following:
(a) The total amount of fees collected by the cannabis
regulatory agency from regulatory and licensing activities related
to hemp and hemp processor-handlers.
(b) The total cost of administering hemp regulatory and
licensing programs.
(c) The total number of hemp processor-handlers licensed in
this state, by county.
(d) A list and description of any fees that the cannabis
regulatory agency assesses on hemp processor-handler licensees.
(2) Not later than January 31, the department shall submit a
comprehensive report to the standard report recipients for all hemp
programs administered by the cannabis regulatory agency. The report
must include, but is not limited to, all of the following:
(a) The total amount of fees collected by the cannabis
regulatory agency from regulatory and licensing activities related
to hemp and hemp processor-handlers.
(b) The total cost of administering hemp regulatory and
licensing programs.
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(c) The total number of hemp processor-handlers in this state,
by county.
(d) A list and description of any fees that the cannabis
regulatory agency assesses on hemp processor-handler licensees.
(e) The number of inspections conducted per year and the
result of each inspection.
(f) The number of hemp license applications and hemp license
approvals per year.
Sec. 604. The cannabis regulatory agency shall not exhibit
undue partiality toward or bias against any licensee.

COMMISSIONS
Sec. 801. If Byrne formula grant funding is awarded to the
Michigan indigent defense commission created under section 5 of the
Michigan indigent defense commission act, 2013 PA 93, MCL 780.985,
the Michigan indigent defense commission may receive and expend
Byrne formula grant funds as an interdepartmental grant from the
department of state police. The Michigan indigent defense
commission may receive and expend federal grant funds from the
United States Department of Justice.
Sec. 802. From the funds appropriated in part 1, not later
than March 1, the Michigan indigent defense commission shall submit
a report to the standard report recipients on all of the following
information:
(a) The incremental costs associated with the standard
development process, the compliance plan process, and the
collection of data from all indigent defense systems and attorneys
providing indigent defense. The Michigan indigent defense
commission shall place particular emphasis on the costs that may be
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avoided after standards are developed and compliance plans are in
place.
(b) A detailed explanation of the total cost calculation for
each indigent defense standard and juvenile indigent defense
standard for which grant recipients are receiving state grant
funding. This explanation must include a comprehensive itemization
of the types of costs included for each standard.
(c) An itemized listing of how much funding each grant
recipient is receiving for each indigent defense standard and
juvenile indigent defense standard.
(d) An explanation of the specific causal factors associated
with any increase or decrease of Michigan indigent defense
commission grant funding from the fiscal year 2023-2024 level.
Sec. 803. If Senate Bill No. 81 of the 103rd Legislature or
House Bill No. 4070 of the 103rd Legislature are enacted, then the
Michigan indigent defense commission shall utilize available
funding to begin the development and implementation of minimum
standards for youth defense services in accordance with the
Michigan indigent defense commission act, 2013 PA 93, MCL 780.981
to 780.1003.
Sec. 804. From the funds appropriated in part 1, the Michigan
indigent defense commission shall notify the standard report
recipients not more than 60 days after the adoption of any new
indigent defense standard. The notification must include an
estimated cost projection to fund the adopted indigent defense
standard for the initial and subsequent fiscal years.
Sec. 805. A grant distributed by the Michigan indigent defense
commission must not be used by an indigent defense system to
support any construction expenses for a new structure. This section
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does not prohibit expenditures for renovations to existing
structures, if such a renovation is part of an indigent criminal
defense system's approved compliance plan.
Sec. 806. A grant distributed by the Michigan indigent defense
commission must not be used to provide criminal defense services to
individuals who are not citizens of the United States, unless the
individual is a qualified alien as that term is defined under 8 USC
section 1641.

GRANTS
Sec. 901. (1) From the funds appropriated in part 1 for
marihuana operation and oversight grants, the department shall
expend the funds for grants to counties for education and outreach
programs that relate to the Michigan medical marihuana program and
the adult-use marihuana program, in accordance with section 6(l) of
the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26426, and
section 14 of the Michigan Regulation and Taxation of Marihuana
Act, 2018 IL 1, MCL 333.27964. The grant funds may be generated
from application and license fees authorized under section 8(1)(b)
of the Michigan Regulation and Taxation of Marihuana Act, 2018 IL
1, MCL 333.27958. The grants must be distributed proportionately
based on the number of registry identification cards issued to or
renewed for the residents of each county that applied for a grant
under subsection (2). For the purposes of this subsection,
operation and oversight grants are for education, communication,
and outreach regarding the Michigan Medical Marihuana Act, 2008 IL
1, MCL 333.26421 to 333.26430, and the Michigan Regulation and
Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967.
Grants provided under this section must not be used for law
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enforcement purposes.
(2) Not later than December 1, the department shall post a
listing of potential grant funds available to each county on the
department's website. In addition, the department shall work
collaboratively with counties regarding the availability of the
grant funds. A county that requests grant funds shall apply on a
form developed by the department and available on the department's
website. The form must contain the county's specific projected plan
for use of the grant funds and its agreement to maintain all
records and to submit documentation to the department to support
the use of the grant funds.
(3) To be eligible to receive a grant under subsection (1), a
county shall apply not later than January 1 and submit a report to
the department not later than September 15 on how the grant was
expended. The department shall submit a report to the standard
report recipients not later than October 15 of the subsequent
fiscal year that details the grant amounts by recipient and the
reported uses of the grants in the previous fiscal year and details
the calculation for the amount for which each county was eligible.
Sec. 902. (1) The funds appropriated in part 1 for firefighter
training grants must be expended only for payments to counties to
reimburse organized fire departments for firefighter training and
other activities required under the firefighters training council
act, 1966 PA 291, MCL 29.361 to 29.377.
(2) If the funds appropriated in part 1 for firefighter
training grants are expended by the firefighters training council
created under section 3 of the firefighters training council act,
1966 PA 291, MCL 29.363, for payments to counties under section 14
of the firefighters training council act, 1966 PA 291, MCL 29.374,
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all of the following apply to the extent otherwise permissible by
law:
(a) The funds appropriated in part 1 for firefighter training
grants must be allocated in accordance with section 14(2) of the
firefighters training council act, 1966 PA 291, MCL 29.374.
(b) If the funds allocated to any county under subdivision (a)
are less than $5,000.00, the funds allocated to each county under
subdivision (a) must be adjusted to provide for a minimum payment
of $5,000.00 to each county.
(3) Not later than February 1, the department shall submit a
financial report to the standard report recipients that identifies
all of the following information for the previous fiscal year:
(a) The amount of the payments that would be made to each
county if the distribution formula described in section 14(2) of
the firefighters training council act, 1966 PA 291, MCL 29.374,
would have been utilized to allocate the total amount appropriated
in part 1 for firefighter training grants.
(b) The amount of the payments approved by the firefighters
training council for allocation to each county.
(c) The amount of the payments actually expended or encumbered
within each county.
(d) A description of any other payments or expenditures made
under the authority of the firefighters training council.
(e) The amount of payments approved for allocations to
counties that was not expended or encumbered and lapsed back to the
fireworks safety fund.

MICHIGAN COMMISSION ON LAW ENFORCEMENT STANDARDS
Sec. 1001. (1) MCOLES shall establish standards for the
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selection, employment, training, education, licensing, and
licensure revocation of all law enforcement officers and provide
the basic law enforcement training curriculum for law enforcement
training academy programs statewide.
(2) MCOLES shall maintain staffing and resources necessary to
update law enforcement standards within 120 days of the enactment
date of any new legislation.
(3) From the funds appropriated in part 1, MCOLES, by March 1,
shall submit a report to the standard report recipients that
includes a summary of MCOLES activities during the prior calendar
year. The report required under this subsection must include, but
is not limited to, both of the following information:
(a) An account of the distribution of training funds
administered by MCOLES.
(b) A list of recipients that received training funds under
subdivision (a) and the amount received by each recipient and for
what purpose it was used.
(4) As used in this section, "MCOLES" means the Michigan
commission on law enforcement standards created under section 3 of
the Michigan commission on law enforcement standards act, 1965 PA
203, MCL 28.603.
Sec. 1002. The general fund/general purpose funds appropriated
in part 1 for the public safety officers benefit fund must be
deposited into the public safety officers benefit fund created in
section 3 of the public safety officers benefit act, 2004 PA 46,
MCL 28.633. All funds in the public safety officers benefit fund
are appropriated and available for expenditure in accordance with
section 3 of the public safety officers benefit act, 2004 PA 46,
MCL 28.633.
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Sec. 1003. Funds appropriated in part 1 for in-service
training must be deposited into the law enforcement officers
training fund created in section 11(7) of the Michigan commission
on law enforcement standards act, 1965 PA 203, MCL 28.611. All
funds in the law enforcement officers training fund are
appropriated and available for expenditure to support the
implementation of required annual in service training standards for
all licensed law enforcement officers, in accordance with rules
promulgated under section 11(2) of the Michigan commission on law
enforcement standards act, 1965 PA 203, MCL 28.611.

ONE-TIME APPROPRIATIONS
Sec. 1101. From the funds appropriated in part 1 for
accounting continuing education, the bureau of professional
licensing must expend not less than $200,000.00 for grants to the
Michigan Association of CPAs to support the maintenance and
operation of the continuing professional education tracker and web
portal.
Sec. 1102. From the funds appropriated in part 1 for real
estate continuing education, the bureau of professional licensing
must expend not less than $400,000.00 for grants to the Michigan
Realtors Association to support the approval and tracking of real
estate continuing education in this state.
Sec. 1103. (1) From the one-time funds appropriated in part 1
for tax tribunal – small claims, the department of licensing and
regulatory affairs may hire up to 2.0 limited-term employees to
support a backlog in small claims cases within the Michigan Tax
Tribunal.
(2) Unexpended funds appropriated in part 1 for tax tribunal –
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small claims are designated as a work project appropriation.
Unencumbered or unallotted funds must not lapse at the end of the
fiscal year and must be available for expenditures under this
section until the project has been completed. The following is in
compliance with section 451a of the management and budget act, 1984
PA 431, MCL 18.1451a:
(a) The purpose of the project is to support a backlog in
small claims cases within the Michigan Tax Tribunal.
(b) The project will be accomplished by utilizing state
employees, contracting with vendors, or both.
(c) The total estimated cost of the project is $359,300.00.
(d) The estimated completion date is September 30, 2029.

ARTICLE 11
DEPARTMENT OF LIFELONG EDUCATION, ADVANCEMENT, AND POTENTIAL
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of lifelong
education, advancement, and potential for the fiscal year ending
September 30, 2027, from the following funds:
DEPARTMENT OF LIFELONG EDUCATION, ADVANCEMENT,
AND POTENTIAL
APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 322.0
Full-time employees 285.0
Limited-term employees 30.0
Noncareer/per diem employees 8.0
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Part-time employees 0.0
Permanent-intermittent employees 10.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 629,852,800
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 629,852,800
Federal revenues:
Total federal revenues 417,418,700
Special revenue funds:
Total private revenues 1,000,000
Total other state restricted revenues 1,897,300
State general fund/general purpose $ 209,536,800
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 37.0
Unclassified salaries--FTEs 6.0 $ 958,100
Executive direction and operations--FTEs 37.0 6,352,200
Property management 255,400
Worker's compensation 3,000
Departmentwide employee economic adjustments 884,400
GROSS APPROPRIATION $ 8,453,100
Appropriated from:
Federal revenues:
Federal revenues 1,773,000
Adult foster care facilities licenses fund 1,300
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Michigan merit award trust fund 16,000
State general fund/general purpose $ 6,662,800
Sec. 103. INFORMATION TECHNOLOGY
Information technology services and projects $ 502,100
GROSS APPROPRIATION $ 502,100
Appropriated from:
Federal revenues:
Federal revenues 111,900
State general fund/general purpose $ 390,200
Sec. 104. OFFICE OF EARLY CHILDHOOD EDUCATION
Full-time equated classified positions 219.0
Child care licensing and regulation--FTEs 157.0 $ 28,487,600
Child development and care contracted services 22,900,000
Child development and care external support 11,074,100
Child development and care public assistance 523,812,000
Head start collaboration office--FTE 1.0 226,600
Office of great start operations--FTEs 61.0 17,218,500
Tri-share child care program 2,096,700
GROSS APPROPRIATION $ 605,815,500
Appropriated from:
Federal revenues:
Federal revenues 414,813,100
Special revenue funds:
Private foundations 1,000,000
Certification fees 64,600
Child care home and center licenses fund 501,700
State general fund/general purpose $ 189,436,100
Sec. 105. OFFICE OF EDUCATION PARTNERSHIPS
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Full-time equated classified positions 21.0
Before- and after-school administration--FTEs 2.0 $ 341,200
Camp licensing unit--FTEs 7.0 700,300
Family and community engagement--FTEs 12.0 1,183,200
GROSS APPROPRIATION $ 2,224,700
Appropriated from:
Federal revenues:
Federal revenues 720,700
Special revenue funds:
Adult foster care facilities licenses fund 42,900
State general fund/general purpose $ 1,461,100
Sec. 106. OFFICE OF HIGHER EDUCATION
Full-time equated classified positions 45.0
Dual enrollment payments $ 3,500,000
Michigan Indian tuition waiver--FTE 1.0 159,700
Student financial assistance programs--FTEs 44.0 8,697,700
GROSS APPROPRIATION $ 12,357,400
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 1,270,800
State general fund/general purpose $ 11,086,600
Sec. 107. ONE-TIME APPROPRIATIONS
Michigan center for adult college success $ 500,000
GROSS APPROPRIATION $ 500,000
Appropriated from:
State general fund/general purpose $ 500,000

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
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FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$211,434,100.00 and total state spending under part 1 from state
sources to be paid to local units of government is $0.00.
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "Department" means the department of lifelong education,
advancement, and potential.
(b) "DHHS" means the Michigan department of health and human
services.
(c) "Director" means the director of the department.
(d) "FTE" means full-time equated position in the classified
service of this state.
(e) "IDG" means interdepartmental grant.
(f) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on the department, the senate and house fiscal
agencies, the senate and house policy offices, and the state budget
office.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
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particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
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including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
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department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
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(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) The department shall maintain, on a publicly
accessible website, a department scorecard that identifies, tracks,
and updates on a quarterly basis key metrics that are used to
monitor and improve the department's performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
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relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $10,000,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $500,000.00 for state
restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $350,000.00 for local
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $2,000,000.00 for private
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
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30, 2027 are estimated at $4,108,800.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $4,108,800.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
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(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
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Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
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state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
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generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
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(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
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agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.

OFFICE OF EDUCATION PARTNERSHIPS
Sec. 401. From the funds appropriated in part 1 for family and
community engagement, the department shall, at a minimum, do all of
the following:
(a) Establish or partner with family engagement centers across
this state to increase parent and guardian involvement in their
child's education.
(b) Ensure translation and interpretation services are
available and implemented pursuant to department guidance.
(c) Partner with intermediate school districts to assist in
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getting information and resources to their constituent districts.
(d) Develop an early literacy engagement plan to help parents
or guardians become involved in their child's education.

OFFICE OF HIGHER EDUCATION
Sec. 701. (1) From the funds appropriated in part 1, in
addition to other statutorily required duties, the department shall
do all of the following:
(a) Review and evaluate all state financial aid programs. The
department shall prioritize improving postsecondary educational
outcomes, including student completion rates, and improving
affordability of postsecondary programs in this state.
(b) Serve as the coordinating office for all agencies of the
executive branch of government that are responsible for financial
aid programs administered by this state.
(c) Survey stakeholders, including public, tribal, and private
not-for-profit colleges and universities, state departments and
agencies, and statewide postsecondary education associations on
student financial aid policy to improve this state's administration
of programs.
(d) Collaborate with the center for educational performance
and information and individual colleges and universities to ensure
streamlined and coordinated collection of data analyzing the
following:
(i) Postsecondary education costs, including a comparison to
national and regional averages.
(ii) Student enrollment.
(iii) Degree completion.
(e) Provide access to higher education institutional data
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inventory on an accessible, public facing dashboard to assist
students, prospective students, and their families in making
decisions on postsecondary education.
(f) Coordinate with other state agencies and school districts
to increase utilization and awareness of postsecondary
opportunities, including, but not limited to, early and middle
college, dual enrollment, and private skills training scholarships.
(g) Promote, track, and provide resources to increase
completion of the free application for federal student aid.
(2) From the funds appropriated in part 1, the department
shall meet, at a minimum, the following transparency requirements:
(a) Collect data necessary to complete all statutory reporting
requirements. The department shall notify the chairs of the house
and senate appropriations committees within 10 days if an entity
receiving funds from part 1 fails to comply with data collection
requirements.
(b) Maintain a link on the department's website to find data
submitted by postsecondary institutions through higher education
institutional data inventory.
(c) Maintain a link on the department's website to the center
for educational performance and information's MI School Data page
on postsecondary enrollment and completion tracking.
(3) As used in this section, "center for educational
performance and information" means the center for educational
performance and information created in section 94a of the state
school aid act of 1979, 1979 PA 94, MCL 388.1694a.
Sec. 705. The funds appropriated in part 1 for dual enrollment
payments for an eligible student enrolled in a state-approved
nonpublic school shall be distributed as provided under the
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postsecondary enrollment options act, 1996 PA 160, MCL 388.511 to
388.524, and the career and technical preparation act, 2000 PA 258,
MCL 388.1901 to 388.1913, in a form and manner as determined by the
department.

OFFICE OF EARLY CHILDHOOD EDUCATION
Sec. 1002. (1) From the funds appropriated in part 1, the
department shall ensure that the final child development and care
provider reimbursement rates are published on the department and
Great Start to Quality webpages.
(2) In addition to the funds appropriated in part 1, upon
receiving approval from the state budget director, the department
may receive and expend federal child care development block grant
funds that are at risk of lapsing back to the federal government.
The department may do this only if all of the following criteria
are met:
(a) The funds are at risk of lapsing back to the federal
government by the end of the current fiscal year.
(b) The department plans to expend the funds through a 1-time
rate increase to providers.
(c) The department makes the request to receive and expend the
grant funds to the state budget director not less than 30 days
before the expenditure of the funds.
(3) If the average cases over a 3-month period in the child
development and care program result in the current projected fiscal
year caseloads falling below the caseload agreement from the May
consensus revenue estimating conference, the department may
increase the hourly reimbursement rate to child care providers if
the following conditions are met:
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(a) The level of expenditures for the remainder of the year is
estimated to be significantly below the level estimated from the
May consensus revenue estimating conference.
(b) The department plans to expend the funds through an
ongoing rate increase to providers for the remainder of the fiscal
year.
(c) The department makes this request to the state budget
director not less than 30 days before the expenditure of the funds
that includes the rate increase.
(4) Upon receiving approval from the state budget director
under subsection (2) or (3), the department must notify the senate
and house fiscal agencies of the amount being appropriated, the
estimated rate increase to providers, and if the rate increase to
providers is 1-time or ongoing in nature.
(5) The department may withdraw the intent to expend the funds
under subsection (2) or (3) by notifying the state budget director
in writing.
Sec. 1003. (1) From the funds appropriated in part 1 for child
development and care contracted services, the department shall
create a report on all funding appropriated to contracts for the
early childhood comprehensive systems planning by this state during
the previous fiscal year. The report required under this section is
due by April 1 and must contain at least all of the following
information:
(a) Total funding appropriated to contracts for the early
childhood comprehensive systems planning by this state during the
previous fiscal year.
(b) The amount of funding for each grant awarded.
(c) The grant recipients.
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(d) The activities funded by each grant.
(e) An analysis of each grant recipient's success in
addressing the development of a comprehensive system of early
childhood services and supports.
(2) All department contracts for early childhood comprehensive
systems planning must be bid out through a statewide request-for-
proposal process.
Sec. 1007. (1) From the funds appropriated in part 1 for child
development and care – external support, child development and care
contracted services, and child care licensing and regulation, the
department shall create a joint report that includes, but is not
limited to, the following:
(a) The affordability of child care in this state, including,
but not limited to, the number of children eligible for and
participating in the child development and care program, the number
of children eligible for and participating in the child development
and care program for the last 5 years, and key takeaways from the
most recent market rate survey.
(b) The availability of child care in this state by county,
including, but not limited to, the number of licensed child care
providers, the change in the number of licensed child care
providers and slots over time, and the estimated demand for care.
(c) The health and safety of child care, including, but not
limited to, the 10 most common rule violations, the number of
licenses revoked and summarily suspended, and the number of license
violations for incomplete health and safety training and safe sleep
training.
(d) Any actions taken to strengthen health and safety of care,
including, but not limited to, the number of licensing consultants,
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their average caseload, the number of on-site visits they complete
by provider type and region, the types of activities that are
intended to improve health and safety in licensed care, and the
number of times those activities are performed by licensing
consultants.
(e) Information on the child care licensing process,
including, but not limited to, all of the following:
(i) The number of initial applications, initial applications
denied, license renewals, and licenses allowed to expire,
aggregated by license type.
(ii) The average amount of time to approve or deny completed
applications and a description of the most common reasons
applications are denied.
(iii) A description of the types of complaints received, a
description of the process used to resolve complaints, the average
amount of time to complete investigations, and the percentage of
investigations completed on time.
(iv) The number of complaints received, investigated,
determined to be unsubstantiated, and that result in disciplinary
action or rule violations.
(v) The number of administrative hearing adjudications.
(f) The quality of child care, including, but not limited to,
the number of licensed providers participating in the Great Start
to Quality program and the workforce registry, the number of new
participants and how participation has changed over the last 5
years, and the number of children participating in the child
development and care program enrolled in an enhancing quality level
or higher program.
(g) Any actions taken to improve child care quality,
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including, but not limited to, the number of quality consultants,
the average caseload, the number of on-site visits completed by
region, the types of activities that are intended to improve
quality and the number of times those activities are performed, and
the number of providers that have improved the provider's quality
rating since the start of the current fiscal year compared to the
same time period in the preceding fiscal year, reported as the
number of providers in each region.
(h) The child care workforce, including, but not limited to,
the number of child care professionals, average wages by role, the
number of individuals participating in the TEACH scholarship and
earning a credential, and the level of demand for staff.
(2) The department must post the joint report on the
department website and send the joint report to the state budget
director, the house and senate subcommittees that oversee the
department budget, and the house and senate fiscal agencies by
April 1 of the current fiscal year reflecting data for the previous
fiscal year.
Sec. 1008. From the funds appropriated in part 1 for office of
early childhood education, the department shall ensure efficient
service provision to coordinate services provided to families for
home visits, reduce duplication of state services and spending,
increase efficiencies, including, if a new section 32p is added to
the school aid act of 1979, 1979 PA 94, for the fiscal year ending
September 30, 2027, the home visits funded under that section, and
work with the DHHS as necessary.
Sec. 1009. From the funds appropriated in part 1 for child
development and care public assistance, the income entrance
eligibility threshold for the child development and care program is
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set to not more than 200% of the federal poverty guidelines.
Sec. 1011. From the funds appropriated in part 1 for child
development and care public assistance, for eligible children in
the child development and care program, the department shall
implement payments to providers based on attendance rather than
based on enrollment. This shall be done in a manner determined by
the department.
Sec. 1012. From the funds appropriated in part 1 for child
development and care contracted services, $1,500,000.00 must be for
the department to work in collaboration with DHHS to continue the
network of infant and early childhood mental health consultation,
which provides mental health consultation to child care providers.
Sec. 1030. (1) The funds appropriated in part 1 for the tri-
share child care program must be awarded for the continuation of
the child care facilitator program originally initiated and funded
as a pilot project in section 1047(31) of article 5 of 2020 PA 166,
and as continued and modified in successive appropriations.
(2) The department shall establish and support tri-share
regional facilitator hubs and statewide services.
(3) The department must create benchmarks for regional
facilitator hubs receiving appropriated funding.
(4) Any child care facilitator receiving funds under this
section must be a nonprofit, limited liability company, C-
corporation, S-corporation, or a sole proprietor.
(5) Child care facilitator hubs may use funds to enroll in the
tri-share child care program families living in Wisconsin but who
have a parent or caregiver who are employed in Michigan. A child
care provider providing care for a family described in this
subsection must be licensed in Michigan.
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(6) The department shall innovate program and administration
options to attract Michigan employer program participation.

ONE-TIME APPROPRIATIONS
Sec. 1103. From the funds appropriated in part 1, the Michigan
Center for Adult College Success must continue to improve adult
postsecondary enrollment and completion under the Michigan
reconnect grant act, 2020 PA 84, MCL 390.1701 to 390.1709.

ARTICLE 12
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of military
and veterans affairs for the fiscal year ending September 30, 2027,
from the following funds:
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
APPROPRIATION SUMMARY
Full-time equated unclassified positions 8.0
Full-time equated classified positions 918.5
Full-time employees 733.0
Limited-term employees 14.0
Noncareer/per diem employees 24.0
Part-time employees 24.0
Permanent-intermittent employees 38.0
Seasonal employees 2.0
GROSS APPROPRIATION $ 256,513,000
Interdepartmental grant revenues:
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Total interdepartmental grants and
intradepartmental transfers 101,800
ADJUSTED GROSS APPROPRIATION $ 256,411,200
Federal revenues:
Total federal revenues 154,412,200
Special revenue funds:
Total local revenues 0
Total private revenues 100,000
Total other state restricted revenues 12,973,100
State general fund/general purpose $ 88,925,900
Sec. 102. MILITARY
Full-time equated unclassified positions 8.0
Full-time equated classified positions 385.0
Unclassified salaries--FTEs 8.0 $ 1,728,100
Headquarters and armories--FTEs 93.0 22,556,200
Michigan youth challeNGe academy--FTEs 56.0 9,041,800
Military family relief fund 150,000
Military retirement 2,585,600
Military training sites and support facilities-
-FTEs
232.0

45,333,200
National Guard operations 600,500
Michigan National Guard member benefit fund--
FTEs
4.0

10,119,800
Starbase grant 2,322,000
Departmentwide employee economic adjustments 2,371,700
GROSS APPROPRIATION $ 96,808,900
Appropriated from:
Interdepartmental grant revenues:
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IDG - state police 101,800
Federal revenues:
DOD - DOA - NGB 66,615,100
Federal counternarcotics revenues 100,000
HHS - HCFA, Medicare, hospital insurance 100
HHS - HCFA, title XIX, Medicaid 36,300
USDVA - VHA 380,400
Special revenue funds:
Private donations 90,000
Billeting fund 1,378,500
Income and assessments 6,900
Michigan veterans trust fund 11,800
Military family relief fund 150,000
Morale, welfare, and recreation fund 100,000
National Guard facilities rental fund 187,700
National Guard test projects fund 100,000
State general fund/general purpose $ 27,550,300
Sec. 103. MICHIGAN VETERANS AFFAIRS AGENCY
Full-time equated classified positions 57.0
County veteran service grants--FTEs 2.0 $ 4,255,500
Michigan veterans affairs agency
administration--FTEs
46.0

7,931,300
Veterans trust fund administration--FTEs 8.0 1,185,200
Veterans trust fund grants 2,500,000
Veterans service grants--FTE 1.0 4,105,500
GROSS APPROPRIATION $ 19,977,500
Appropriated from:
Federal revenues:
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USDVA - VHA 753,400
Special revenue funds:
Private donations 10,000
Michigan veterans trust fund 3,685,200
Michigan veterans engagement fund 50,000
State general fund/general purpose $ 15,478,900
Sec. 104. MICHIGAN VETERANS' FACILITY AUTHORITY
Full-time equated classified positions 476.5
Chesterfield Township home for veterans--FTEs 110.0 $ 34,663,700
D.J. Jacobetti home for veterans--FTEs 179.0 26,342,500
Grand Rapids home for veterans--FTEs 176.0 39,801,000
Information technology services and projects 1,738,100
Michigan veteran homes administration--FTEs 11.0 3,870,500
Veterans cemetery--FTEs 0.5 133,100
GROSS APPROPRIATION $ 106,548,900
Appropriated from:
Federal revenues:
HHS - HCFA, Medicare, hospital insurance 1,345,300
HHS - HCFA, title XIX, Medicaid 8,745,000
USDVA - VHA 46,278,700
Special revenue funds:
Income and assessments 6,303,000
State general fund/general purpose $ 43,876,900
Sec. 105. CAPITAL OUTLAY
Armory maintenance $ 1,000,000
Land and acquisitions 1,000,000
Special maintenance - National Guard 30,000,000
Special maintenance - veterans facilities 500,000
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GROSS APPROPRIATION $ 32,500,000
Appropriated from:
Federal revenues:
DOD - DOA - NGB 30,000,000
Special revenue funds:
Michigan National Guard construction fund 1,000,000
State general fund/general purpose $ 1,500,000
Sec. 106. INFORMATION TECHNOLOGY
Information technology services and projects $ 677,700
GROSS APPROPRIATION $ 677,700
Appropriated from:
Federal revenues:
DOD - DOA - NGB 157,900
State general fund/general purpose $ 519,800

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$101,899,000.00 and state spending under part 1 from state sources
to be paid to local units of government is $4,088,000.00. The
following itemized statement identifies appropriations from which
spending to local units of government will occur:
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
County veteran service grants $ 4,041,500
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Military training sites and support facilities 46,500
TOTAL $ 4,088,000
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "CMS" means the United States Department of Health and
Human Services, Centers for Medicare and Medicaid Services.
(b) "Department" means the department of military and veterans
affairs.
(c) "DHHS" means the department of health and human services.
(d) "Director" means the director of the department.
(e) "FTE" means full-time equated position in the classified
service of this state.
(f) "IDG" means interdepartmental grant.
(g) "MVAA" means the Michigan veterans affairs agency created
by Executive Reorganization Order No. 2013-2, MCL 32.92.
(h) "MVFA" means the Michigan veterans' facility authority
created under section 3 of the Michigan veterans' facility
authority act, 2016 PA 560, MCL 36.103.
(i) "MVH" means the Michigan veteran homes as that term is
defined in section 2 of the Michigan veterans' facility authority
act, 2016 PA 560, MCL 36.102.
(j) "MYCA" means the Michigan youth challeNGe academy.
(k) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on military and veterans affairs, the senate and
house fiscal agencies, the senate and house policy offices, and the
state budget office.
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(l) "USDVA" means the United States Department of Veterans
Affairs.
(m) "USDVA-VHA" means the USDVA Veterans Health
Administration.
(n) "VSO" means veterans service organization.
(o) "Veterans' facility" means that term as defined in section
2 of the Michigan veterans' facility authority act, 2016 PA 560,
MCL 36.102.
(p) "Work project" means that term as defined in section 404
of the management and budget act, 1984 PA 431, MCL 18.1404, and
that meets the criteria in section 451a(1) of the management and
budget act, 1984 PA 431, MCL 18.1451a.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
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current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
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executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
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all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
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administrative rules.
Sec. 214. (1) Not later than April 1, the department shall
maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $8,600,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $1,100,000.00 for state
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restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $250,000.00 for local
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 for private
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $9,082,500.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $9,082,500.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
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(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
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leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
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(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
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shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
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indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
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(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
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the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.
Sec. 250. Funds appropriated in part 1 for capital outlay must
be carried forward at the end of the fiscal year consistent with
section 248 of the management and budget act, 1984 PA 431, MCL
18.1248.
Sec. 251. If the department intends to sell any department
real property, the department shall submit notification of that
intent to the standard report recipients 60 days before the public
announcement of that intention.
Sec. 252. The department shall provide biannual reports that
include the following data:
(a) A list of all major work projects, including a status
report of each project.
(b) The department's financial status, featuring a report of
budgeted versus actual expenditures by part 1 line item, including
a year-end projection of budget requirements.
(c) The number of active employees at the close of the
reporting period by job classification and departmental branch of
service.
Sec. 253. Not later than April 1, the department shall provide
to the standard report recipients a copy of its annual strategic
plan prepared in compliance with section 363 of the management and
budget act, 1984 PA 431, MCL 18.1363. The plan must include the
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mission, vision, goals, strategies, and performance measures of the
department.
Sec. 254. (1) Money privately donated to the department in
excess of the appropriation in part 1 is appropriated and available
for expenditure for departmental operations and for the purpose
designated by the private source, if specified.
(2) Any unexpended and unencumbered private donations to
support the department at the close of this fiscal year do not
lapse to the general fund and must be carried forward to the
subsequent fiscal year.
(3) Not later than January 15, the department shall submit a
report to the standard report recipients that provides an itemized
listing of private donations received by the department, the MVAA,
the MVFA, the MVH, or a veterans facility. The report required
under this subsection must include information about the purpose
for which the private donations will be, or were, expended, if
known. In addition to the report required under this subsection, if
the department, the MVAA, the MVFA, the MVH, or a veterans facility
receives a private donation that is $10,000.00 or greater, the
department shall submit a report to the standard report recipients
within 14 calendar days after receiving that donation providing the
amount of the donation and the purpose for which the funds are to
be expended, if known.

MILITARY
Sec. 301. (1) Not later than October 30, the department shall
report a list of the current unclassified positions, which shall
include the official titles and responsibilities of each position.
(2) Upon the department being granted a request for an
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additional unclassified employee position from the civil service
commission, or for any substantive changes to the duties of an
existing unclassified employee position, the department shall
report on these changes within 15 days.
Sec. 302. (1) The department shall operate and maintain
National Guard armories and implement a system to measure the
condition and adequacy of those armories.
(2) Not later than January 15, the department shall submit a
report to the standard report recipients on the status of the
armories that includes the following information:
(a) An assessment of the grounds and facilities of each armory
to objectively measure and determine the current facility condition
and capability to support authorized manpower, unit training, and
operations.
(b) Recommendations for the placement of new armories, the
relocation or consolidation of existing armories, or a change in
the mission of units assigned to armories to ideally position the
National Guard in current or projected population centers.
(c) Recommendations for the enhanced use of armories to
facilitate family support programs during deployments.
(d) An analysis of the feasibility, potential costs, and
benefits of use of armories shared with other local, state, or
federal agencies to improve responses to local emergencies as well
as the community support provided to armories.
(e) An investment strategy and proposed funding amounts in a
prioritized project list to correct the most critical facility
shortfalls across the inventory of armories in this state.
(f) A review of the status of construction activities and
expenditures of the armory modernization project funded in section
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107 of article 10 of 2022 PA 166 and section 104 of 2022 PA 194.
Sec. 303. (1) The department shall maintain the MYCA to
provide values, skills, education, and self-discipline instruction
for at-risk youth as provided under 32 USC 509.
(2) The department shall take steps to recruit candidates to
the MYCA from economically disadvantaged areas, including those
with low-income and high-unemployment backgrounds.
(3) The department shall partner with the DHHS to identify
youth who may be eligible for MYCA from those youth served by DHHS
services programs. The department shall give these eligible youth
priority for enrollment.
(4) The department shall maintain the MYCA to graduate at
least the target number of graduates consistent with the state's
cooperative agreement with the National Guard Bureau regarding
program operations.
(5) The department shall monitor individual academic success
as measured by the number of individuals who have received a
general equivalency diploma, high school diploma, or high school
credit recovery or by the improvement of tests of adult basic
education scores, or both.
(6) Any unexpended and unencumbered private donations to
support the MYCA at the close of this fiscal year do not lapse to
the general fund and must be carried forward to the subsequent
fiscal year.
Sec. 304. (1) Not later than January 15, the department shall
submit a report to the standard report recipients on the revenues,
expenditures, and fund balance of the military family relief fund.
The report must itemize expenditures by purpose, including, but not
limited to, for advertising and assistance and include information
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on the number of applications for assistance received, approved,
and denied for the previous fiscal year.
(2) From the funds appropriated in part 1, the department
shall provide outreach to the Michigan families of members of the
reserve component of the Armed Forces of the United States called
into active duty on the availability of assistance through the
military family relief fund.
(3) As used in this section, "military family relief fund"
means the military family relief fund created in section 3 of the
military family relief fund act, 2004 PA 363, MCL 35.1213.
Sec. 305. (1) The department shall do all of the following:
(a) Provide Army and Air National Guard forces, when directed,
for state and local emergencies and in support of national military
requirements.
(b) Operate and maintain Army National Guard training
facilities, including Fort Custer and Camp Grayling.
(c) Maintain a system that measures the condition and adequacy
of air facilities using both quality and functionality criteria.
(d) Operate and maintain Air National Guard air bases,
including Selfridge Air National Guard base, Battle Creek Air
National Guard base, and Alpena combat readiness training center.
(2) Not later than March 1, the department shall report the
following information for the previous calendar year:
(a) The apportioned and assigned strength of the Michigan Army
National Guard.
(b) The apportioned and assigned strength of the Michigan Air
National Guard.
(c) Recruiting, retention, and attrition data, including
measurement against stated performance goals, for the Michigan Army
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National Guard.
(d) Recruiting, retention, and attrition data, including
measurement against stated performance goals, for the Michigan Air
National Guard.
Sec. 306. (1) The billeting fund is created within the state
treasury.
(2) The state treasurer shall deposit money and other assets
received from any source into the fund. The state treasurer shall
direct the investment of money in the fund and credit interest and
earnings from the investments to the fund.
(3) All of the fees and other revenues generated from the
operation of the chargeable transient quarters program must be
deposited in the fund.
(4) Money in the fund at the close of the fiscal year remains
in the fund and does not lapse to the general fund.
(5) The department is the administrator of the fund for
auditing purposes.
(6) The department shall expend money from the fund to support
program operations and the maintenance and operations of the
chargeable transient quarters program as appropriated in part 1.
(7) Not later than January 15, the department shall submit a
report to the standard report recipients on the operations,
revenues, and expenditures of the fund for the previous fiscal
year.
Sec. 307. (1) From the funds appropriated in part 1 for
Michigan National Guard member benefit fund, the department shall
maintain a Michigan National Guard tuition assistance program as
provided under the Michigan National Guard tuition assistance act,
2014 PA 259, MCL 32.431 to 32.434. The Michigan National Guard
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tuition assistance program must do all of the following:
(a) Bolster military readiness by increasing recruitment and
retention of Michigan Army and Air National Guard members.
(b) Fill federally authorized strength levels for the state.
(c) Improve the Michigan Army and Air National Guard's
competitive draw from other military enlistment options in the
state.
(d) Enhance the ability of the Michigan Army and Air National
Guard to compete for guard members and federal dollars with
surrounding states.
(e) Increase the pool of eligible candidates within the
Michigan Army and Air National Guard to become commissioned
officers.
(2) The department shall make efforts to increase the number
of National Guard members who have received a credential or are
still enrolled in the Michigan National Guard tuition assistance
program after their initial term of enlistment. To evaluate the
effectiveness of the program, the department shall monitor the
number of new recruits and new reenlistments and the percentage of
those who become participants in the program to determine whether
the percentage of authorized Michigan Army and Air National Guard
strength obtained and retained is competitive in comparison with
the neighboring army and air national guards from Illinois,
Indiana, Ohio, and Wisconsin.
(3) Not later than March 1, the department shall provide a
report on the Michigan National Guard tuition assistance program.
The report must include, but is not limited to, the following
information for the previous fiscal year:
(a) The number of guard members, spouses, children, and
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dependents that received tuition assistance, broken down by the
number of each type of recipient.
(b) The educational institutions from which those guard
members, spouses, children, and dependents received education or
training under the program, broken down by the number of each type
of recipient and each type of educational or training program for
which tuition assistance was received.
(c) The total amount of financial assistance received by each
educational institution.
(d) The total funds expended on the program for financial
assistance for each type of recipient and each type of educational
or training program.
(e) The total funds expended on the program for administrative
costs of the department.
(f) For each FTE position appropriated in part 1 for the
Michigan National Guard tuition assistance program, a description
of the position's functions, assigned responsibilities, and, if
applicable, the length of time that the position has been vacant.
(g) The total number of applications for tuition assistance
approved and denied.
(h) The number of guard members, spouses, children, and
dependents receiving tuition assistance who successfully completed
an educational or training program for which tuition assistance was
received.
(i) A description of each educational or training program
offered through the Michigan National Guard tuition assistance
program.
(j) A list of any educational institutions and training
programs removed from eligibility and the rationale for that
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removal.
(k) An explanation of any identified barriers to the
successful utilization of the program, or other unmet needs of the
program and applicable proposals for legislative action to address
those barriers and needs.
Sec. 308. The department shall maintain the starbase program
at Air National Guard facilities, as provided under 10 USC 2193b,
to improve the knowledge, skills, and interest of students,
primarily in the fifth grade, in math, science, and technology. The
starbase program is to specifically target minority and at-risk
students for participation.
Sec. 309. (1) The National Guard test projects fund is created
within the state treasury.
(2) The state treasurer shall deposit money and other assets
received from any source into the fund. The state treasurer shall
direct the investment of money in the fund and credit interest and
earnings from the investments to the fund.
(3) All of the fees and other revenues generated from the
operation of the test projects program shall be deposited in the
fund.
(4) Money in the fund at the close of the fiscal year remains
in the fund and does not lapse to the general fund.
(5) The department is the administrator of the fund for
auditing purposes.
(6) Money in the fund shall be available for expenditure for
the support of program operations as appropriated in part 1.
Sec. 310. (1) The morale, welfare, and recreation fund is
created within the state treasury.
(2) The state treasurer shall deposit money and other assets
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received from any source into the fund. The state treasurer shall
direct the investment of money in the fund and shall credit
interest and earnings from the investments to the fund.
(3) The department is the administrator of the fund for
auditing purposes.
(4) All of the fees and other revenues generated from the
operation of the morale, welfare, and recreation program must be
deposited in the morale, welfare, and recreation fund. Money in the
fund is available for expenditure for the support of program
operations as appropriated in part 1.
(5) Money remaining in the fund at the close of the fiscal
year remains in the fund and does not lapse to the general fund.
Sec. 311. (1) The National Guard facilities rental fund is
created in the state treasury.
(2) The state treasurer shall deposit money and other assets
received from any source into the fund. The state treasurer shall
direct the investment of money in the fund and shall credit
interest and earnings from the investments to the fund.
(3) All of the fees and other revenues generated from the
operation of the National Guard facilities rental program must be
deposited in the fund.
(4) Money in the fund at the close of the fiscal year remains
in the fund and does not lapse to the general fund.
(5) The department is the administrator of the fund for
auditing purposes.
(6) Money in the fund is available for expenditure for the
support of program operations as appropriated in part 1.
Sec. 312. Not later than February 1, the department shall
provide the report required under section 251(7) of the Michigan
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military act, 1967 PA 150, MCL 32.651.
Sec. 313. The Michigan Army National Guard and Air National
Guard shall work to provide a culture that is free of sexual
assault, through an environment of prevention, education and
training, response capability, victim support, reporting
procedures, and appropriate accountability that enhances the safety
and well-being of all guard members.
Sec. 314. (1) From the funds appropriated in part 1 for
Michigan National Guard member benefit fund, the department shall
create and administer a Tricare premium reimbursement program, as
provided under the Tricare premium reimbursement program act, 2025
PA 36, MCL 32.471 to 32.475.
(2) Not later than March 1, the department shall submit a
report to the standard report recipients on the Tricare premium
reimbursement program that includes, but is not limited to, the
following information:
(a) The number of eligible members receiving assistance under
the program, broken down by service branch and including the amount
of the assistance issued, and the total number of National Guard
members by service branch.
(b) The total funds expended on Tricare premium
reimbursements.
(c) The total funds expended on the program for administrative
costs of the department.
(d) Any other pertinent information, as determined by the
department, on the program's operations and administration.
Sec. 315. (1) From the funds appropriated in part 1 for
Michigan National Guard member benefit fund, the department shall
create and administer a child care assistance program as provided
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under the Michigan National Guard child care assistance act, 2025
PA 37, MCL 32.451 to 32.455.
(2) Not later than March 1, the department shall submit a
report to the standard report recipients on the Michigan National
Guard child care assistance program that includes, but is not
limited to, the following information:
(a) The number of eligible members receiving child care
assistance under the program, broken down by service branch and
including the amount of the stipend issued, and the total number of
National Guard members by service branch.
(b) The number of children for whom a stipend was paid and the
associated number of hours paid broken down by service branch.
(c) The hourly rate paid.
(d) The total funds expended on the program for child care
stipends.
(e) The total funds expended on the program for administrative
costs of the department.
(f) Any other pertinent information, as determined by the
department, on the program's operations and administration.
Sec. 316. (1) The general fund/general purpose funds
appropriated in part 1 for the Michigan National Guard member
benefit fund must be deposited into the Michigan National Guard
member benefit fund. All funds in the Michigan National Guard
member benefit fund are appropriated and available for expenditure
to support the Michigan National Guard's tuition assistance
program, Tricare premium reimbursement program, and childcare
assistance program.
(2) As used in this section, "Michigan National Guard member
benefit fund" means the Michigan National Guard member benefit fund
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created in section 3 of the Michigan National Guard member benefit
fund act, 2025 PA 31, MCL 32.493.

MICHIGAN VETERANS AFFAIRS AGENCY
Sec. 405. (1) The Michigan veterans' trust fund board together
with the MVAA shall provide emergency grants for disbursement from
the Michigan veterans' trust fund.
(2) Not later than January 15, the MVAA shall submit a report
to the standard report recipients on the Michigan veterans' trust
fund that includes, for the previous fiscal year, the following
information:
(a) A description of the methodology of allocations and the
selection of emergency grant program authorized agents.
(b) A description of how the emergency grant program is
administered in each county.
(c) Expenditures for state operating costs and administrative
costs.
(d) The number of approved emergency grant applications, by
category of assistance, and the number of denied applications, by
reason of denial.
(e) A description of the MVAA's efforts to reduce program
administrative costs and maintain the Michigan veterans' trust fund
corpus at or above its original amount of $50,000,000.00.
(f) The financial status of the Michigan veterans' trust fund,
including revenues, beginning and year-end balances, and a
breakdown of expenditures for state and local purposes, grants, and
other program partnerships and initiatives, including details by
county and organization.
(g) Expenditures for program partnerships, delineated by
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organization, and expenditures for any other program initiatives.
Sec. 406. The MVAA shall do all of the following:
(a) Provide outreach services to Michigan veterans to advise
them on the benefits to which they are entitled or eligible, as
provided under Executive Reorganization Order No. 2013-2, MCL
32.92, including the military family relief fund created in section
3 of the military family relief fund act, 2004 PA 363, MCL 35.1213,
the Michigan veterans' trust fund, and USDVA health, financial, and
memorial benefits.
(b) Fulfill requests for military discharge certificates (DD-
214) upon request.
(c) Not later than March 1, submit a report to the standard
report recipients on the activities and outcomes of its outreach
services, including the percentage of Michigan veterans contacted
through its outreach programs, with a goal of 90%, and report that
percentage on the status of outreach.
Sec. 408. From the funds appropriated in part 1, the MVAA
shall provide for the regional coordination of services and do all
of the following:
(a) Coordinate with veteran benefit counselors throughout a
specified region.
(b) Coordinate services with all state departments and
agencies.
(c) Coordinate with regional workforce and economic
development agencies.
(d) Coordinate activities among local foundations, nonprofit
organizations, and community groups to improve accessibility,
enrollment, and utilization of the array of health care, education,
employment assistance, and quality of life services provided at the
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local level.
(e) Work with MVAA service officers, county veteran
counselors, VSO service officers, and other service providers to
increase awareness of available mental health care resources and
support services veterans may be eligible to receive.
(f) Coordinate with the DHHS to identify Medicaid recipients
who are veterans and who may be eligible for federal veterans
health care benefits or other benefits, to the extent that the
identification does not violate applicable confidentiality
requirements.
(g) Collaborate with the department of corrections to create
and maintain a process by which prisoners can obtain a copy of
their DD-214 form or other military discharge documentation if
necessary.
(h) Ensure that all MVAA service officers and VSO service
officers receive appropriate training in processing applications
for benefits payable to veterans due to military sexual trauma,
post-traumatic stress disorder, depression, anxiety, substance use
disorder, or other mental health issues.
Sec. 410. (1) The MVAA shall do all of the following:
(a) Provide claims processing services to Michigan veterans in
support of benefit claims submitted to the USDVA for the health,
financial, and memorial benefits for which they are eligible and
report annually on the number of benefit claims, by type, submitted
to the USDVA by MVAA.
(b) Develop and implement a process to ensure that all county
veterans counselors receive the training and accreditation
necessary to provide quality services to veterans. Not later than
March 1, the MVAA shall provide a report to the standard report
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recipients for the previous fiscal year that includes the number
and percentage of county veterans counselors trained by the MVAA
and the number and percentage who received funding from the MVAA to
attend training and a description of the training provided.
(2) From the funds appropriated in part 1 for MVAA, the MVAA
is authorized to expend up to $100,000.00 to hire legal services to
represent veterans benefit cases before federal court to maintain
accreditation under 38 CFR 14.628(d)(1)(iv).
Sec. 411. (1) The funds appropriated in part 1 for veterans
service grants must be deposited into the veterans service fund
created in this part. All funds available in the veterans service
fund are appropriated and available for expenditure as provided
under this section.
(2) The MVAA shall establish, administer, and award
competitive grants to 1 or more congressionally chartered VSOs or a
coalition of VSOs. The MVAA shall award grants to support efforts
to connect veterans and their dependents with federal compensation
and pension benefits and state veterans' benefits, including
emergency grants through the Michigan veterans' trust fund and
other local or nonprofit assistance that may be available to
veterans and their dependents. The MVAA shall establish a
competitive grant process that satisfies the following:
(a) Utilizes a service provision model to provide services
across the state and can be tracked regionally to ensure that
veterans and their dependents in this state, including those within
tribal communities, are provided with services, advocacy, and
outreach as close to the communities in which they live as
possible.
(b) Ensures that grantees are providing adequate veteran
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services and advocacy, through in-person and virtual meetings, that
enables the organization to meet performance goals established in
the grant agreement.
(c) Fosters innovative and transformative approaches and
techniques for the grantee to use when providing services,
advocacy, and outreach for veterans and their dependents.
(d) Requires grantees to use an MVAA-designated internet-based
claims data system to manage caseloads. License fees associated
with the claims data system described in this subdivision are
considered an allowable expenditure and may be reimbursed with
grant funds.
(e) Requires grantees, in coordination with the MVAA, to
provide services to incarcerated veterans who are within 1 year of
their earliest release date.
(f) Ensures that each grantee is issued performance goals.
(g) Ensures that each grantee expends grant awards as
prescribed in the grant agreement.
(h) Requires each grantee to report not less than quarterly on
all of the following:
(i) An accounting for all grant fund expenditures.
(ii) The number and type of claims originated and submitted by
the grantee to the USDVA.
(iii) The number and type of claims originated by an
organization other than the grantee and submitted by the grantee to
the USDVA.
(iv) The services provided to veterans and their dependents.
(v) Progress in achieving monthly performance benchmark goals.
(i) Ensures that each grantee is issued monthly performance
benchmark goals that each grantee must aim to achieve and require
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each grantee to report to the MVAA, in order to ensure that
benchmark goals are being achieved, or on target to be achieved, in
the fiscal year.
(3) The MVAA shall do all of the following:
(a) Follow all generally accepted accounting principles in
accordance with sections 141 and 485 of the management and budget
act, 1984 PA 431, MCL 18.1141 and 18.1485.
(b) When establishing, modifying, or amending the competitive
grant process described in subsection (1), consult and collaborate
with congressionally chartered VSOs in the state, or a coalition of
VSOs, and other stakeholders to ensure a comprehensive approach to
providing services, advocacy, and outreach to veterans and their
dependents.
(c) Provide notice to current grantees of any MVAA-proposed
modifications or amendments to the competitive grant process and
provide those grantees with an opportunity to respond through
written communication.
(d) Assess the accuracy rate of claims reported by grantees.
(e) Review and audit grantees' expenditure of grant funds to
ensure compliance with the grant agreement, as provided under
section 470 of the management and budget act, 1984 PA 431, MCL
18.1470.
(4) Not later than January 15, the MVAA shall provide a report
summarizing grant activities for the previous fiscal year,
including the amount of expenditures, number of service and
advocacy hours, number of claims for benefits submitted by type of
claim, and other information deemed appropriate by the MVAA.
(5) From the funds appropriated in part 1 for veterans service
grants, $214,000.00 must be allocated to cover necessary
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administrative and implementation costs incurred by the MVAA.
Sec. 412. (1) The veterans service fund is created in the
state treasury.
(2) The state treasurer shall deposit money and other assets
received from any source into the fund. The state treasurer shall
direct the investment of money in the fund and credit interest and
earnings from the investments to the fund.
(3) Money in the fund at the close of the fiscal year remains
in the fund and does not lapse to the general fund.
(4) The department is the administrator of the fund for
auditing purposes.
(5) The department shall expend money in the fund, as provided
by law.
Sec. 413. (1) The funds appropriated in part 1 for county
veteran service grants must be deposited into the restricted county
veteran service fund created in section 3a of 1953 PA 192, MCL
35.623a. All available funds in the restricted county veteran
service fund are appropriated and available for expenditure as
provided by law.
(2) From the restricted county veteran service fund created in
section 3a of 1953 PA 192, MCL 35.623a, $214,000.00 must be
allocated to the MVAA to cover necessary administrative and
implementation costs incurred by the MVAA.
(3) The MVAA shall provide a report not later than January 15
that includes the following information for the previous fiscal
year:
(a) A list of counties that received a grant under this
section and details concerning the methodology of allocations,
including, but not limited to, all program information distributed
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by the MVAA to counties and any applicable timelines and deadlines
imposed by the MVAA.
(b) The base, per capita, and total amounts of grant funding
each county received under section 3a(6) of 1953 PA 192, MCL
35.623a, including any amount of funding provided under the
emergent need relief program pursuant to section 3a(10) of 1953 PA
192, MCL 35.623a.
(c) A summary of each county's expenditures of grant funding.
(d) The amount of any unexpended grant funding disbursed to
the counties that has been recovered and returned to the county
veteran service fund.
(e) The balance of the county veteran service fund at the
close of the fiscal year.
(f) A list of counties that have requested funds in the
current fiscal year, the amount requested by each county, and the
total of these amounts.
(g) A list of counties that did not request funds in the
current fiscal year.
(h) The amount of any funds recovered by the MVAA through the
MVAA's finding of misused grant funds.
(i) An explanation of any obstacles or reasons for counties
not applying for or spending their eligible amount of grant
funding.
(j) The amount expended by the MVAA for grant administration
and implementation costs.
(k) Details concerning the methodology of allocations and the
selection of emergency grant program authorized agents.
(4) The MVAA shall notify the legislature not later than 30
days after any changes, alterations, or modifications are made to
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the amount of grant funding awarded to a county under section 3a of
1953 PA 192, MCL 35.623a.
(5) On a quarterly and annual basis, but not more than
quarterly, a county that receives grant funding under section 3a of
1953 PA 192, MCL 35.623a, shall submit a report to the MVAA that
includes, but is not limited to, all of the following:
(a) A line-item accounting of all expenditures made using
grant funds, including, but not limited to, salaries, training,
outreach, equipment, transportation, and operational expenses.
(b) A breakdown of the number of veterans served using grant
funds, including the number of veterans assisted, the types of
services provided, and the number and types of claims submitted.
(c) A comparison of the costs associated with delivering
services or products to veterans to the amount of grant funding
spent on delivering those services or products.
(d) A verification of county match funding, including
documentation that the county has maintained at least 70% of the
funding level from the previous fiscal year for veteran services.
(e) A description of how county expenditures align with the
intended outcomes of the county veteran service grant program,
including any challenges or deviations from planned activities.
(f) A certification, signed by the county veteran service
officer and a county fiscal officer, affirming that all
expenditures comply with county veteran service grant conditions
and applicable law.
Sec. 415. Not later than January 15, the MVAA shall submit a
report that includes all of the following:
(a) An analysis on the scope of homelessness among the state's
veteran population, including the estimated number of homeless
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veterans, by county.
(b) Challenges to securing housing for homeless veterans.
(c) Recommendations for future long-term partnerships between
the Michigan state housing development authority, the MVAA, local
units of government, and nonprofit organizations that could assist
in eliminating homelessness among veterans in this state.
Recommendations under this subdivision must minimize additional
costs to local units of government.
(d) Activities of the MVAA in the previous fiscal year to
support homeless veterans or eliminate homelessness among veterans.
Sec. 416. From the funds appropriated in part 1, the
department may partner with the DHHS to facilitate and administer a
program to contract with or provide grants to local health care
providers to accelerate the clinical research and deployment of
promising investigational treatments for suicide prevention that
have been granted breakthrough therapy designation by the United
States Food and Drug Administration and are eligible for expanded
access as defined by the United States Food and Drug
Administration, specifically for the treatment of post-traumatic
stress disorder, major depressive disorder, or treatment-resistant
depression in veterans of the United States military and first
responders.

MICHIGAN VETERANS' FACILITY AUTHORITY
Sec. 502. (1) From the funds appropriated in part 1, the MVH
and the MVFA shall provide compassionate and quality nursing care
services at each veterans' facility in this state so that resident
members can achieve their highest potential of wellness,
independence, self-worth, and dignity. The MVFA and the MVH shall
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provide nursing care services to veterans in accordance with
federal standards and report the results of the annual USDVA and
CMS surveys and certification as proof of compliance.
(2) Appropriations in part 1 for a veterans' facility shall
not be used for any purpose other than expenses related to the
operations of the veterans' facility.
Sec. 503. All contractors providing health care services at a
veterans' facility shall provide services in a manner that complies
with applicable USDVA and CMS regulations for state veterans' homes
and skilled nursing facilities, any rules governing the operation
of nursing homes licensed in this state, and any training and
education requirements associated with staff licensure or
certification.
Sec. 504. (1) The MVFA shall report and investigate all
complaints of abuse or neglect at a veterans' facility in
compliance with USDVA and CMS regulations for state veterans' homes
and skilled nursing facilities. The MVFA shall report on a
bimonthly basis the following information:
(a) A description of the process by which resident members and
others may file complaints of alleged abuse or neglect at a
veterans' facility.
(b) Summary statistics on the number and general nature of
complaints of abuse or neglect.
(c) Summary statistics on the final disposition of complaints
of abuse or neglect received.
(2) The MVFA shall display in high-traffic areas throughout
the veterans' facility the process by which visitors, resident
members, and staff of the veterans' facility may register
complaints.
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Sec. 505. The MVH shall do the following regarding member
care:
(a) Provide board-certified psychiatric care for all resident
members with mental health disorders in order to ensure that those
resident members receive needed services in a professional and
timely manner.
(b) Provide all resident members and staff a safe and secure
environment.
(c) Ensure that the veterans' facility effectively develops,
executes, and monitors all comprehensive care plans in accordance
with federal regulations and the veterans' facility's internal
policies, with a goal that a comprehensive care plan is fully
developed for all resident members.
Sec. 506. The MVH shall establish and implement internal
controls regarding all of the following:
(a) The use and management of food, maintenance, and
pharmaceutical and medical supply inventories.
(b) Calculating resident member maintenance assessments in
order to accurately calculate resident member maintenance
assessments for each billing cycle and ensure that all past due
resident member maintenance assessments are addressed within 30
days.
(c) Monetary donations and donated goods.
(d) The handling of resident member funds to ensure the
release of funds within 15 calendar days upon the resident member
leaving the home and to ensure that a representative of a resident
member is provided a full accounting of that resident member's
funds within 30 calendar days after the death of that resident
member.
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(e) Financial reporting and accounting.
Sec. 507. (1) The MVH shall post on its website the following:
(a) All policies adopted by the MVFA and the veterans'
facility related to the administrative operations of the veterans'
facility.
(b) The agenda and minutes of public meetings of the MVFA
board.
(2) The MVH shall provide a report that includes statistics
and information that demonstrates the performance of MVH compared
to available state and national veterans' homes or nursing homes.
(3) Not later than January 15, the MVH shall provide a report
on the following:
(a) Census data for each veterans' facility, including
information on level of care, service era of its resident members,
payer source, and average income and assessment rate.
(b) Per patient daily care hours provided by each veterans'
facility, by level of care.
(4) The MVH shall provide a bimonthly report on the financial
status of each veterans' facility and central MVFA/MVH
administration. Information shall include, but not be limited to,
actual year-to-date and projected year-end revenues and
expenditures, by fund source.
(5) The MVH shall provide a report on the results of any
annual or for-cause survey conducted by any entity with oversight
over the veterans' facility and any corresponding corrective action
plan. This information shall also be made available publicly
through the MVH website.
(6) In addition to the information required under section
12(1) of the Michigan veterans' facility authority act, 2016 PA
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560, MCL 36.112, not later than January 31, the MVFA shall provide
a report detailing the strategies and actions taken to maximize
revenues from non-general fund sources and cost savings strategies.
Sec. 508. In addition to the funds appropriated in part 1,
private revenues held by the MVH on a nonfiduciary basis for a
resident member of a veterans' facility are appropriated to pay
medical expenses, member assessments, and other expenses incurred
by that resident member. Any unexpended or unencumbered private
revenues held on a nonfiduciary basis by the MVH at the close of
the fiscal year do not lapse to the general fund and must be
carried forward into the subsequent fiscal year.
Sec. 509. Not later than January 15 , the MVFA shall provide a
report on the construction, operation, and finances of the new
Marquette veterans home funded in article 14 of 2022 PA 166.
Sec. 510. Except as otherwise provided by law, any unexpended
and unencumbered federal revenues received by the MVFA do not lapse
to the state general fund and must be carried forward into the
subsequent fiscal year.
Sec. 511. The department, with the approval of the state
budget office, is authorized to realign federal revenues sources of
the MVFA. This realignment of federal fund sourcing must not
produce a gross increase or decrease in the total authorization for
the individual MVFA line-item appropriations. The department shall
provide a quarterly report to the standard report recipients on
actions taken under this section.

CAPITAL OUTLAY
Sec. 601. (1) The department shall provide for the acquisition
and disposition of National Guard armories, facilities, and lands
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as provided under sections 368, 382, and 382a of the Michigan
military act, 1967 PA 150, MCL 32.768, 32.782, and 32.782a.
(2) The department shall provide a listing of property sales
and acquisitions annually.
Sec. 602. (1) The appropriations for armory maintenance and
special maintenance - National Guard must be expended in accordance
with the requirements of sections 302 and 305 and must be expended
according to the maintenance priorities of the department to repair
and modernize military training sites and support facilities,
including armories.
(2) Not later than January 15, the department shall provide a
report providing information on the status, projected costs, and
projected completion date of current and planned special
maintenance projects at the armories and other National Guard
facilities funded from capital outlay appropriations made in part 1
and in previous fiscal years.
Sec. 603. (1) The appropriations for special maintenance –
veterans' facility must be expended in accordance with the
requirements of section 502 and must be expended according to the
maintenance priorities of the MVFA to repair and modernize the
state's veterans' facility, which may include physical plant
expansions, renovations, or enhancements, and other projects
designed to enhance the quality of life and medical care of
resident members.
(2) Not later than January 15, the MVH shall provide a report
providing information on the status, projected costs, and projected
completion date of current and planned special maintenance projects
at each veterans' facility funded from capital outlay
appropriations made in part 1 and in previous fiscal years.
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ARTICLE 13
DEPARTMENT OF NATURAL RESOURCES
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of natural
resources for the fiscal year ending September 30, 2027, from the
following funds:
DEPARTMENT OF NATURAL RESOURCES
APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 2,281.2
Full-time employees 1,618.0
Limited-term employees 27.0
Noncareer/per diem employees 1,088.0
Part-time employees 1.0
Permanent-intermittent employees 31.0
Seasonal employees 267.0
GROSS APPROPRIATION $ 506,870,300
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 208,300
ADJUSTED GROSS APPROPRIATION $ 506,662,000
Federal revenues:
Total federal revenues 96,019,200
Special revenue funds:
Total local revenues 0
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Total private revenues 8,330,900
Total other state restricted revenues 365,601,900
State general fund/general purpose $ 36,710,000
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 143.4
Unclassified salaries--FTEs 6.0 $ 689,500
Accounting service center 1,574,400
Departmentwide employee economic adjustments 5,551,100
Executive direction--FTEs 11.6 2,240,900
Finance and operations--FTEs 107.8 17,853,900
Gifts and pass-through transactions 5,003,600
Legal services--FTEs 4.0 714,900
Minerals management--FTEs 16.0 2,819,600
Natural resources commission 49,000
Office of public lands--FTEs 4.0 1,364,900
Property management 3,392,300
GROSS APPROPRIATION $ 41,254,100
Appropriated from:
Interdepartmental grant revenues:
IDG, land acquisition services-to-work orders 208,300
Federal revenues:
Federal funds 1,441,600
Federal national forest timber fund 32,900
Michigan state waterways fund, federal 42,700
Special revenue funds:
Private funds 5,003,600
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Deer habitat reserve 170,400
Fisheries settlement 2,000
Forest development fund 5,226,000
Forest land user charges 12,800
Forest recreation account 108,000
Game and fish protection account 7,253,700
Land exchange facilitation and management fund 4,566,000
Local public recreation facilities fund 231,400
Mackinac Island State Park fund 25,200
Mackinac Island State Park operation fund 1,500
MacMullan Conference Center account 12,500
Marine safety fund 938,200
Michigan natural resources trust fund 1,717,500
Michigan state parks endowment fund 4,365,100
Nongame wildlife fund 14,700
Off-road vehicle safety education fund 900
Off-road vehicle trail improvement fund 328,700
Public use and replacement deed fees 30,800
Recreation improvement account 100,100
Recreation passport fees 6,900
Snowmobile registration fee revenue 51,300
Snowmobile trail improvement fund 170,000
Sportsmen against hunger fund 500
State park improvement account 3,698,100
Turkey permit fees 83,700
Waterfowl fees 3,400
Waterways account 1,224,200
Wildlife resource protection fund 65,300
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Youth hunting and fishing education and
outreach fund 800
State general fund/general purpose $ 4,115,300
Sec. 103. DEPARTMENT INITIATIVES
Full-time equated classified positions 12.4
Great Lakes restoration initiative $ 2,904,500
Invasive species prevention and control--FTEs 12.4 5,943,800
GROSS APPROPRIATION $ 8,848,300
Appropriated from:
Federal revenues:
Federal funds 2,904,500
State general fund/general purpose $ 5,943,800
Sec. 104. COMMUNICATION AND CUSTOMER SERVICES
Full-time equated classified positions 115.1
Cultural resource management--FTEs 5.0 $ 867,700
Marketing and outreach--FTEs 74.5 17,723,400
Michigan historical center--FTEs 35.6 5,982,100
Michigan wildlife council 1,400,000
GROSS APPROPRIATION $ 25,973,200
Appropriated from:
Federal revenues:
Federal funds 3,369,200
State park improvement, federal 322,200
Special revenue funds:
Forest development fund 176,100
Forest recreation account 18,800
Game and fish protection account 9,202,800
Land exchange facilitation and management fund 52,200
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Marine safety fund 40,400
Michigan historical center operations fund 365,400
Michigan state parks endowment fund 121,800
Nongame wildlife fund 12,200
Off-road vehicle trail improvement fund 120,200
Recreation passport fees 667,300
Snowmobile registration fee revenue 21,500
Snowmobile trail improvement fund 106,700
Sportsmen against hunger fund 300,000
State park improvement account 4,362,500
Waterways account 166,400
Wildlife management public education fund 1,400,000
Youth hunting and fishing education and
outreach fund 45,200
State general fund/general purpose $ 5,102,300
Sec. 105. WILDLIFE MANAGEMENT
Full-time equated classified positions 175.2
Natural resources heritage--FTEs 2.2 $ 653,200
Wildlife management--FTEs 173.0 42,259,600
GROSS APPROPRIATION $ 42,912,800
Appropriated from:
Federal revenues:
Federal funds 26,642,700
Special revenue funds:
Nongame wildlife fund, private 150,000
Private funds 315,700
Cervidae licensing and inspection fees 85,100
Deer habitat reserve 1,824,600
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Forest development fund 280,800
Game and fish protection account 11,931,100
Nongame wildlife fund 293,900
Pheasant hunting license fees 175,000
Turkey permit fees 1,099,800
Waterfowl fees 114,100
State general fund/general purpose $ 0
Sec. 106. FISHERIES MANAGEMENT
Full-time equated classified positions 182.9
Aquatic resource mitigation--FTEs 1.1 $ 737,200
Cormorant population management 150,000
Fish production--FTEs 49.4 11,173,300
Fisheries resource management--FTEs 132.4 24,605,600
GROSS APPROPRIATION $ 36,666,100
Appropriated from:
Federal revenues:
Federal funds 12,315,800
Special revenue funds:
Private funds 136,700
Fisheries settlement 737,100
Game and fish protection account 22,248,000
Invasive species fund 100
State general fund/general purpose $ 1,228,400
Sec. 107. LAW ENFORCEMENT
Full-time equated classified positions 282.0
Body cameras for conservation officers--FTEs 5.0 $ 517,500
General law enforcement--FTEs 277.0 37,377,700
GROSS APPROPRIATION $ 37,895,200
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Appropriated from:
Federal revenues:
Federal funds 8,365,800
Special revenue funds:
Cervidae licensing and inspection fees 53,400
Forest development fund 45,400
Forest recreation account 72,800
Game and fish protection account 21,815,700
Marine safety fund 1,398,900
Michigan state parks endowment fund 71,400
Off-road vehicle safety education fund 175,400
Off-road vehicle trail improvement fund 3,380,900
Snowmobile registration fee revenue 726,800
State park improvement account 72,800
Waterways account 21,700
Wildlife resource protection fund 1,176,700
State general fund/general purpose $ 517,500
Sec. 108. PARKS AND RECREATION DIVISION
Full-time equated classified positions 1,053.8
Forest recreation and trails--FTEs 67.0 $ 9,665,700
MacMullan Conference Center--FTEs 15.0 1,367,800
Michigan conservation corps 500,100
Recreational boating--FTEs 163.8 25,047,600
State parks--FTEs 808.0 104,062,000
GROSS APPROPRIATION $ 140,643,200
Appropriated from:
Federal revenues:
Federal funds 144,200
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Michigan state waterways fund, federal 2,129,600
Special revenue funds:
Private funds 1,000,000
Forest recreation account 4,181,600
MacMullan Conference Center account 1,367,800
Michigan state parks endowment fund 11,496,300
Off-road vehicle safety education fund 8,000
Off-road vehicle trail improvement fund 3,087,000
Pure Michigan trails fund 100
Recreation improvement account 590,700
Recreation passport fees 220,300
Snowmobile registration fee revenue 17,200
Snowmobile trail improvement fund 2,050,000
State park improvement account 86,660,700
State park improvement account - Belle Isle
subaccount 875,000
Waterways account 22,944,600
State general fund/general purpose $ 3,870,100
Sec. 109. MACKINAC ISLAND STATE PARK COMMISSION
Full-time equated classified positions 10.8
Historical facilities system--FTEs 9.8 $ 1,204,900
Mackinac Island State Park operations--FTE 1.0 137,800
GROSS APPROPRIATION $ 1,342,700
Appropriated from:
Special revenue funds:
Mackinac Island State Park fund 1,199,100
Mackinac Island State Park operation fund 137,800
State general fund/general purpose $ 5,800
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Sec. 110. FOREST RESOURCES DIVISION
Full-time equated classified positions 305.6
Forest management and timber market
development--FTEs 216.0 $ 41,012,100
Wildfire protection--FTEs 89.6 19,792,800
GROSS APPROPRIATION $ 60,804,900
Appropriated from:
Federal revenues:
Federal funds 6,101,100
Federal national forest timber fund 9,114,700
Special revenue funds:
Private funds 1,624,900
Commercial forest fund 26,000
Fire equipment fund 668,700
Forest development fund 29,884,000
Forest land user charges 247,500
Game and fish protection account 842,300
Waterways account 55,000
State general fund/general purpose $ 12,240,700
Sec. 111. GRANTS
Dam management grant program $ 350,000
Deer habitat improvement partnership initiative 154,200
Federal - clean vessel act grants 10,000
Federal - forest stewardship grants 1,990,900
Federal - rural community fire protection 542,300
Federal - urban forestry grants 278,900
Grants to communities - federal oil, gas, and
timber payments 2,668,700
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Grants to counties - marine safety 2,930,000
National recreational trails 41,600
Nonmotorized trail development and maintenance
grants 200,000
Off-road vehicle safety training grants 28,800
Off-road vehicle trail improvement grants 4,512,900
Recreation improvement fund grants 916,800
Recreation passport local grants 3,831,400
Snowmobile law enforcement grants 339,600
Snowmobile local grants program 9,549,400
Trail easements 11,600
GROSS APPROPRIATION $ 28,357,100
Appropriated from:
Federal revenues:
Federal funds 7,099,800
Special revenue funds:
Private funds 100,000
Deer habitat reserve 154,200
Local public recreation facilities fund 3,831,400
Marine safety fund 1,262,600
Off-road vehicle safety education fund 28,800
Off-road vehicle trail improvement fund 5,437,900
Permanent snowmobile trail easement fund 11,600
Recreation improvement account 916,800
Snowmobile registration fee revenue 339,600
Snowmobile trail improvement fund 8,624,400
State general fund/general purpose $ 550,000
Sec. 112. INFORMATION TECHNOLOGY
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Information technology services and projects $ 5,355,300
GROSS APPROPRIATION $ 5,355,300
Appropriated from:
Special revenue funds:
Commercial forest fund 1,100
Deer habitat reserve 30,800
Forest development fund 783,900
Forest land user charges 12,000
Forest recreation account 22,000
Game and fish protection account 1,928,900
Land exchange facilitation and management fund 15,300
Marine safety fund 82,600
Michigan natural resources trust fund 12,300
Michigan state parks endowment fund 678,800
Nongame wildlife fund 15,300
Off-road vehicle safety education fund 5,200
Off-road vehicle trail improvement fund 9,800
Pure Michigan trails fund 100
Recreation improvement account 24,600
Snowmobile registration fee revenue 5,800
Snowmobile trail improvement fund 37,800
Sportsmen against hunger fund 300
State park improvement account 758,100
Turkey permit fees 16,900
Waterfowl fees 1,700
Waterways account 253,800
Wildlife resource protection fund 21,100
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Youth hunting and fishing education and
outreach fund 1,000
State general fund/general purpose $ 636,100
Sec. 113. CAPITAL OUTLAY
(1) RECREATIONAL LANDS AND INFRASTRUCTURE
Federal - land and water conservation fund
payments $ 12,900,000
Off-road vehicle trail development and
maintenance 1,000,000
Recreational trail repairs and improvements 1,100,000
Snowmobile trail development and maintenance 2,800,000
State game and wildlife area infrastructure 1,500,000
State parks repair and maintenance 30,450,000
Wetland restoration, enhancement and
acquisition 2,000,000
GROSS APPROPRIATION $ 51,750,000
Appropriated from:
Federal revenues:
Federal funds 14,025,000
Special revenue funds:
Game and fish protection account 375,000
Michigan state parks endowment fund 12,600,000
Off-road vehicle trail improvement fund 1,000,000
Recreation improvement account 1,100,000
Recreation passport fees 16,350,000
Snowmobile trail improvement fund 2,800,000
Waterfowl hunt stamp 1,000,000
State general fund/general purpose $ 2,500,000
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(2) WATERWAYS BOATING PROGRAM
Local boating infrastructure maintenance and
improvements $ 5,000,000
State boating infrastructure maintenance 20,067,400
GROSS APPROPRIATION $ 25,067,400
Appropriated from:
Federal revenues:
Federal funds 1,667,400
Michigan state waterways fund, federal 300,000
Special revenue funds:
Waterways account 23,100,000
State general fund/general purpose $ 0

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending from state sources under part 1 is
$402,911,900.00 and total state spending under part 1 from state
sources to be paid to local units of government is $12,232,400.00.
The following itemized statement identifies appropriations from
which spending to local units of government will occur:
DEPARTMENT OF NATURAL RESOURCES
Dam management grant program $ 175,000
Fisheries resource management 125,000
Grants to counties – marine safety 1,407,300
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Invasive species prevention and control 2,385,200
Local boating infrastructure maintenance and
improvements
3,400,000
Nonmotorized trail development and maintenance
grants
100,000
Off-road vehicle safety training grants 28,800
Off-road vehicle trail improvement grants 1,204,400
Recreation improvement fund grants 916,800
Recreation passport local grants 2,000,000
Snowmobile law enforcement grants 339,600
Wildlife habitat improvement grants 150,300
TOTAL $ 12,232, 400
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "Department" means the department of natural resources.
(b) "Director" means the director of the department.
(c) "FTE" means full-time equated.
(d) "IDG" means interdepartmental grant.
(e) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittee on agriculture and rural development and natural
resources, the senate and house policy offices, and the state
budget office.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under this part, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
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serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
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(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on the
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds, if any.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
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funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues,
including specific sources of state restricted, federal, local, and
private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
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(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) Not later than April 1, the department shall
maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
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(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $5,000,000.00 for
state restricted contingency authorization. Amounts appropriated
are not available for expenditure until they have been transferred
to another line item in part 1 under section 393(2) of the
management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $23,478,400.00. From this amount, total
department appropriations for pension-related legacy costs are
estimated at $23,478,400.00. Total department appropriations for
retiree health care legacy costs for the department are estimated
at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
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expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
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capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
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States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
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include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
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(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
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previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
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and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.
Sec. 250. (1) In addition to the money appropriated in part 1,
there is appropriated, from the following state restricted funds
and accounts of the Michigan conservation and recreation legacy
fund, the following amounts to the following departments and
officers:
(a) Department of technology, management, and budget:
Game and fish protection account $ 659,600
Waterways account 177,200
State park improvement account 158,300
Forest development fund 354,600
(b) Department of attorney general:
Game and fish protection account $ 693,300
Waterways account 156,300
(c) Legislative auditor general:
Game and fish protection account $ 39,800
Waterways account 14,300
(d) Department of treasury:
Game and fish protection account $ 3,846,300
Waterways account 524,800
Michigan natural resources trust fund 3,618,700
(2) In addition to the money appropriated in part 1, there is
appropriated from the following state restricted funds to the civil
service commission the amount calculated for each fund pursuant to
section 5 of article XI of the state constitution of 1963:
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(a) Michigan conservation and recreation legacy fund.
(b) Forest development fund.
(c) Michigan natural resources trust fund.
(d) Michigan state parks endowment fund.
(e) Michigan nongame fish and wildlife trust fund.
Sec. 251. Pursuant to section 43703(3) of the natural
resources and environmental protection act, 1994 PA 451, MCL
324.43703, there is appropriated from the Michigan game and fish
protection trust fund to the game and fish protection account of
the Michigan conservation and recreation legacy fund, $6,000,000.00
for the fiscal year ending September 30, 2027.
Sec. 252. The department may contract with or provide grants
to local units of government, institutions of higher education, or
nonprofit organizations to support activities authorized by
appropriations in part 1. As used in this section, contracts and
grants include, but are not limited to, contracts and grants for
research, wildlife and fisheries management, forest management,
invasive species monitoring and control, and natural-resource-
related programs.
Sec. 253. (1) The department may accept monetary and
nonmonetary gifts, bequests, donations, contributions, or grants
from any private or public source to support, in whole or in part,
a departmental function or program. The department shall expend or
use such gifts, bequests, donations, contributions, or grants for
the purposes designated by the private or public source, if the
purpose is specified.
(2) Amounts remaining from revenue collected by the department
under this section that are unexpended and unencumbered must not
lapse to the general fund but must be carried forward to the
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subsequent fiscal year.
Sec. 254. Funds appropriated in part 1 must not be expended
for utility scale solar or wind development projects.

DEPARTMENT INITIATIVES
Sec. 281. From the amounts appropriated in part 1 for invasive
species prevention and control, the department shall allocate not
less than $2,400,000.00 for grants for the prevention, detection,
eradication, and control of invasive species.
Sec. 282. (1) In addition to the funds appropriated in part 1,
revenue deposited in the invasive species fund created in section
41311 of the natural resources and environmental protection act,
1994 PA 451, MCL 324.41311, is appropriated and may be expended for
invasive species immediate response efforts.
(2) The department shall annually notify the house of
representatives and senate appropriations subcommittees on natural
resources and the house of representatives and senate fiscal
agencies of any expenditure of funds appropriated under subsection
(1).
Sec. 283. The department shall not utilize any funding in part
1 on legal services against hunting operations concerning swine.
Sec. 284. The department shall not prohibit an individual from
feeding birds or wildlife within 300 feet of a residence if feed
quantity totals less than 2 gallons.
Sec. 285. State lands managed by the department shall be
identified as department-managed public lands or publicly owned
lands.
Sec. 287. The department shall prioritize right-of-way permits
or easements for construction or maintenance of broadband
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facilities on state land and shall not require a centerline survey
as a condition of the road right-of-way permit or easement if the
applicant can provide detailed engineering plans and if the
broadband facilities are contained completely in the right-of-way.
If the broadband provider secures a road right-of-way permit to
construct or maintain broadband facilities required by the
municipal, county, or state entity that owns or controls the public
road, the department shall not require the broadband provider to
obtain a permit or easement if the broadband facility is contained
completely within the road right-of-way. If installation of
broadband facilities cannot be contained completely within the
right-of-way and requires placement of the infrastructure on public
lands, an easement will be required, and a certified survey may be
required. If installation of broadband facilities being placed in
the road right-of-way requires utilization of public lands, a
permit may be required.

DEPARTMENT SUPPORT SERVICES
Sec. 302. The department may charge land acquisition projects
appropriated for the fiscal year ending September 30, 2027, and for
prior fiscal years, a standard percentage fee to recover actual
costs, and may use the revenue derived to fund the land acquisition
service charges provided for in part 1.
Sec. 303. As appropriated in part 1, the department may charge
both application fees and transaction fees related to the exchange
or sale of state-owned land or rights in land authorized by part 21
of the natural resources and environmental protection act, 1994 PA
451, MCL 324.2101 to 324.2165. To the extent consistent with part
21, fees shall be set by the director at a rate that allows the
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department to recover its costs for providing these services.
Sec. 305. (1) From the funds appropriated in part 1 from the
snowmobile trail improvement fund and the off-road vehicle trail
improvement fund, the department shall expend revenues from those
funds for administrative purposes only to the extent that those
administrative expenditures directly aid or benefit the statewide
snowmobile program or the statewide off-road vehicle program,
respectively.
(2) Administrative expenditures that directly aid or benefit
the statewide snowmobile program or the statewide off-road vehicle
program include salaries and fringes for program-specific field and
grant staff, trail inspections, contract and grant management, law
enforcement activities directly related to snowmobile or off-road
vehicle program operations, marketing and outreach activities
directly related to trail signage and public safety, information
technology services directly supporting trail operations or groomer
or ORV management systems, and accounting functions directly
related to the administration and payment of snowmobile or off-road
vehicle local grants.
(3) Administrative expenditures that do not directly aid or
benefit the statewide snowmobile program or the statewide off-road
vehicle program must not be charged to the snowmobile trail
improvement fund or the off-road vehicle trail improvement fund.
Prohibited expenditures include, but are not limited to, central
support services, executive direction, departmental administration,
legal services, indirect cost recoveries, statewide cost allocation
charges, accounting service center charges unrelated to snowmobile
or off-road vehicle grant payments, property management charges
unrelated to trail easements or leases, information technology
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services or projects not directly supporting field operations or
groomer or ORV management systems, treasury fees, civil service
assessments, or any other departmental or statewide overhead costs.
(4) The department shall not charge or assess indirect costs,
internal service charges, or other administrative overhead to the
snowmobile trail improvement fund or the off-road vehicle trail
improvement fund except as permitted under subsection (2).
(5) Nothing in this section prohibits the expenditure of funds
from the snowmobile trail improvement fund or the off-road vehicle
trail improvement fund for grooming, equipment, trail development
and maintenance, signage, local grants, or any other purpose
authorized under part 811 or 821 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.81101 to
324.81151 and 324.82101 to 324.82161, respectively.

COMMUNICATION AND CUSTOMER SERVICES
Sec. 401. In addition to supporting the existing archeological
responsibilities of the department within the Michigan History
Center, the funds appropriated in part 1 for cultural resource
management shall be utilized to continue the ongoing process of
increased consultation with known lineal descendants and officials
of Native American tribes on whose aboriginal lands a planned
archeological activity will occur or an inadvertent discovery has
been made. The consultation shall address the identification,
treatment, and disposition of Native American cultural items.
Sec. 408. Not later than December 1, the department shall
submit to the senate and house of representatives appropriations
subcommittees on natural resources a report on all land
transactions completed by the department in the prior fiscal year.
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For each land transaction, the report must include the size of the
parcel, or for subdivided parcels, the number of parcels, the
county and municipality in which the parcel is located, the dollar
amount of the transaction, the fund source or sources affected by
the transaction, and the transaction type.

FISHERIES MANAGEMENT
Sec. 501. Funds appropriated in part 1 for fisheries resource
management must not be used to designate the Little Manistee River
as a natural river, as defined in part 305 of the natural resources
and environmental protection act, 1994 PA 451, MCL 324.30501 to
324.30515.

WILDLIFE MANAGEMENT
Sec. 601. From the funds appropriated in part 1, the
department shall develop, in conjunction with Allegan County, and
implement a plan that expands public use in the Allegan state game
area. This expanded public use must include, but is not limited to,
the development of a bicycle and off-road vehicle trail. To ensure
maximum safety, the plan should not use existing road rights-of-way
unless needed to connect portions of the trail.

PARKS AND RECREATION DIVISION
Sec. 701. The department must provide the choice to opt in to
purchasing a recreation passport.

FOREST RESOURCES DIVISION
Sec. 802. From the funds appropriated in part 1, the
department shall, by January 1, prepare and submit to the senate
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appropriations subcommittee on agriculture and natural resources,
the house of representatives appropriations subcommittee on
agriculture and rural development and natural resources, and the
standing committees of the senate and house of representatives with
primary responsibility for natural resources issues a report on all
of the following:
(a) The number of acres of state forestland prepared for
timber harvesting in the prior fiscal year.
(b) The number of acres of state forestland timber sold for
harvest in the prior fiscal year.
(c) The amount of revenue generated from state forest timber
sale receipts in the prior fiscal year.
Sec. 803. In addition to the money appropriated in part 1, the
department may receive and expend money from federal sources to
provide response to wildfires and hazard incidents as required by a
compact with the federal government. If additional expenditure
authorization is required, the department shall so notify the state
budget office. The department shall notify the senate
appropriations subcommittee on agriculture and natural resources,
the house appropriations subcommittees subcommittee on agriculture
and rural development and natural resources, and the house and
senate fiscal agencies by November 15 of the expenditures under
this section during the prior fiscal year.
Sec. 807. (1) In addition to the funds appropriated in part 1,
there is appropriated from the disaster and emergency contingency
fund up to $800,000.00 to cover department costs related to any
disaster, as that term is defined in section 2 of the emergency
management act, 1976 PA 390, MCL 30.402.
(2) Funds appropriated under subsection (1) must not be
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expended unless the state budget director recommends the
expenditure and the department notifies the house and senate
committees on appropriations. Not later than December 1 each year,
the department shall provide a report to the senate and house
fiscal agencies and the state budget office on the use of the
disaster and emergency contingency fund during the prior fiscal
year.
(3) If Federal Emergency Management Agency (FEMA)
reimbursement is approved for costs paid from the disaster and
emergency contingency fund, the federal revenue shall be deposited
into the disaster and emergency contingency fund.

GRANTS
Sec. 1001. Federal pass-through funds to local institutions
and governments that are received in amounts in addition to those
included in part 1 for grants to communities - federal oil, gas,
and timber payments and that do not require additional state
matching funds are appropriated for the purposes intended. By
November 30, the department shall report to the senate
appropriations subcommittee on agriculture and natural resources,
the house of representatives appropriations subcommittee on
agriculture and rural development and natural resources, the senate
and house of representatives fiscal agencies, and the state budget
director on all amounts appropriated under this section during the
prior fiscal year.

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

ARTICLE 14
DEPARTMENT OF STATE POLICE
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
Sec. 101. There is appropriated for the department of state
police for the fiscal year ending September 30, 2027, from the
following funds:
DEPARTMENT OF STATE POLICE
APPROPRIATION SUMMARY
Full-time equated unclassified positions 3.0
Full-time equated classified positions 3,238.0
Full-time employees 3,013.0
Limited-term employees 77.0
Noncareer/per diem employees 57.0
Part-time employees 5.0
Permanent-intermittent employees 6.0
Seasonal employees 0.0
GROSS APPROPRIATION $ 919,460,200
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 20,539,900
ADJUSTED GROSS APPROPRIATION $ 898,920,300
Federal revenues:
Total federal revenues 97,321,400
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Special revenue funds:
Total local revenues 4,612,900
Total private revenues 35,000
Total other state restricted revenues 201,992,800
State general fund/general purpose $ 594,958,200
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 3.0
Full-time equated classified positions 135.0
Unclassified salaries--FTEs 3.0 $ 1,433,800
Department services--FTEs 39.0 10,561,900
Departmentwide 48,311,000
Executive direction--FTEs 57.0 11,164,500
Mobile office and system support--FTEs 39.0 6,511,700
Departmentwide employee economic adjustments 643,300
GROSS APPROPRIATION $ 78,626,200
Appropriated from:
Interdepartmental grant revenues:
IDG from department of state 9,800
IDG from department of transportation, state
trunkline fund 189,500
IDG from department of treasury, casino gaming
fees 417,700
IDG, training academy charges 248,000
IDT, auto theft funds 1,500
IDT, truck safety funds 123,500
Federal revenues:
DHS 233,200
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DOJ 61,800
DOJ, interest bearing 21,300
DOT 609,900
Federal indirect funds 2,789,000
Special revenue funds:
Local funds - AFIS fees 100
Local funds - LEIN fees 800
Local funds - reimbursed services 300
Local funds - school bus revenue 62,100
Auto theft prevention fund 35,700
Bottle bill enforcement fund 1,500
Criminal justice information center service
fees 3,936,500
Drunk driving prevention and training fund 9,100
Forensic science reimbursement fees 61,900
Hazardous materials training center fees 46,800
Highway safety fund 257,800
Marihuana regulation fund 1,200
Marihuana regulatory fund 242,800
Michigan justice training fund 3,700
Michigan merit award trust fund 23,100
Motor carrier fees 614,500
Narcotics-related forfeiture revenue 6,100
Nuclear plant emergency planning reimbursement 42,000
Reimbursed services 38,200
Sex offenders registration fund 2,500
State forensic laboratory fund 90,400
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State police administrator and coordinator 911
fund 41,000
State police service fees 400
State services fee fund 435,700
Tobacco tax revenue 86,100
Traffic crash revenue 4,100
Traffic law enforcement and safety fund 569,900
Truck driver safety fund 4,200
Vehicle sales proceeds 650,000
State general fund/general purpose $ 66,652,500
Sec. 103. LAW ENFORCEMENT SERVICES
Full-time equated classified positions 589.0
Biometrics and identification--FTEs 56.0 $ 12,967,700
Criminal justice information center--FTEs 154.0 34,506,500
Forensic science--FTEs 281.0 49,379,700
Grants and community services--FTEs 25.0 22,779,800
Office of school safety--FTEs 6.0 1,240,900
State 911 administration--FTEs 5.0 966,500
Training operations--FTEs 62.0 8,611,200
GROSS APPROPRIATION $ 130,452,300
Appropriated from:
Interdepartmental grant revenues:
IDG from department of state 418,900
IDG from department of transportation, state
trunkline fund 776,400
IDG, training academy charges 1,213,000
Intradepartmental transfers 1,000,000
Federal revenues:
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DOJ 14,784,900
DOJ, interest bearing 4,018,100
DOT 1,659,600
Special revenue funds:
Local funds - SRMS fees 919,200
Private donations 20,000
Auto theft prevention fund 9,008,800
Criminal justice information center service
fees 30,792,300
Drunk driving prevention and training fund 620,100
Forensic science reimbursement fees 1,098,700
Michigan set aside fund 600,000
Motor carrier fees 145,600
Precision driving track fees 316,900
Sex offenders registration fund 696,100
State forensic laboratory fund 892,600
State police administrator and coordinator 911
fund 966,500
State services fee fund 9,614,300
Student safety fund 98,100
Traffic crash revenue 588,300
State general fund/general purpose $ 50,203,900
Sec. 104. FIELD SERVICES
Full-time equated classified positions 1,975.0
Investigative services--FTEs 102.0 $ 38,344,600
Post operations--FTEs 1,873.0 473,909,800
GROSS APPROPRIATION $ 512,254,400
Appropriated from:
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Interdepartmental grant revenues:
IDG from department of treasury, casino gaming
fees 4,907,500
IDT, auto theft funds 909,800
Federal revenues:
DOJ 4,689,000
DOT 2,152,000
Forfeiture revenue 544,100
Reimbursed services, federal investigations 4,031,800
Special revenue funds:
Local funds - reimbursed services 1,259,000
Bottle bill enforcement fund 536,100
Highway safety fund 10,522,300
Marihuana regulation fund 2,946,800
Marihuana regulatory fund 2,403,300
Michigan merit award trust fund 701,100
Narcotics-related forfeiture revenue 1,348,400
Nonnarcotic forfeiture revenue 50,600
State police service fees 6,285,200
State services fee fund 1,028,600
Tobacco tax revenue 4,087,700
Traffic law enforcement and safety fund 61,459,400
Trooper school recruitment fund 5,069,700
State general fund/general purpose $ 397,322,000
Sec. 105. SPECIALIZED SERVICES
Full-time equated classified positions 539.0
Commercial vehicle enforcement--FTEs 164.0 $ 32,741,900
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Emergency management and homeland security--
FTEs 57.0 20,799,800
Hazardous materials programs--FTEs 19.0 22,612,800
Highway safety planning--FTEs 22.0 19,813,300
Intelligence operations--FTEs 201.0 36,638,600
Secondary road patrol program--FTE 1.0 18,003,200
Special operations--FTEs 75.0 20,988,800
GROSS APPROPRIATION $ 171,598,400
Appropriated from:
Interdepartmental grant revenues:
IDG from department of transportation, state
trunkline fund 8,053,800
IDG from department of treasury, public safety
answer point training 911 fund 100,000
Intradepartmental transfers 2,051,900
Federal revenues:
DHS 31,437,700
DOT 30,158,500
Special revenue funds:
Local funds - school bus revenue 1,895,600
Private donations 15,000
Bottle bill enforcement fund 230,000
Criminal justice information center service
fees 320,600
Hazardous materials training center fees 717,500
Marihuana regulation fund 257,100
Marihuana regulatory fund 709,800
Motor carrier fees 6,548,500
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Nuclear plant emergency planning reimbursement 2,298,800
Reimbursed services 1,855,100
Rental of department aircraft 52,400
Secondary road patrol and training fund 18,003,200
State police dispatch operator 911 fund 681,900
Truck driver safety fund 4,570,700
State general fund/general purpose $ 61,640,300
Sec. 106. INFORMATION TECHNOLOGY
Information technology services and projects $ 15,028,900
GROSS APPROPRIATION $ 15,028,900
Appropriated from:
Interdepartmental grant revenues:
IDG from department of transportation, state
trunkline fund 62,100
IDG from department of treasury, casino gaming
fees 40,000
IDG, training academy charges 5,700
Intradepartmental transfers 10,800
Federal revenues:
DHS 32,500
DOJ 65,500
DOT 32,500
Special revenue funds:
Local funds - AFIS fees 40,000
Local funds - LEIN fees 425,600
Local funds - school bus revenue 10,200
Auto theft prevention fund 3,100
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Criminal justice information center service
fees 5,719,900
Drunk driving prevention and training fund 1,800
Forensic science reimbursement fees 38,200
Highway safety fund 46,200
Marihuana regulatory fund 386,800
Michigan merit award trust fund 1,700
Motor carrier fees 85,200
Nuclear plant emergency planning reimbursement 6,400
Sex offenders registration fund 114,200
State forensic laboratory fund 25,000
State services fee fund 42,200
Tobacco tax revenue 10,700
Traffic crash revenue 123,400
Traffic law enforcement and safety fund 59,700
State general fund/general purpose $ 7,639,500
Sec. 107. ONE-TIME APPROPRIATIONS
Cold case investigations $ 1,000,000
Law enforcement training for communicating with
limited English speaking communities and those
deaf and hard of hearing 500,000
Trooper recruit schools 10,000,000
GROSS APPROPRIATION $ 11,500,000
Appropriated from:
State general fund/general purpose $ 11,500,000

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
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GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for fiscal year ending September 30,
2027, total state spending under part 1 from state sources is
$796,951,000.00 and total state spending under part 1 from state
sources to be paid to local units of government is $15,500,000.00.
The following itemized statement identifies appropriations from
which spending to local units of government will occur:
DEPARTMENT OF STATE POLICE
Law enforcement communication training $ 500,000
Secondary road patrol program 15,000,000
TOTAL $ 15,500,000
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "AFIS" means the automated fingerprint identification
system.
(b) "CJIS" means Criminal Justice Information Systems.
(c) "Department" means the department of state police.
(d) "DHS" means the United States Department of Homeland
Security.
(e) "Director" means the director of the department.
(f) "DNA" means deoxyribonucleic acid.
(g) "DOJ" means the United States Department of Justice.
(h) "DOT" means the United States Department of
Transportation.
(i) "FTE" means full-time equated position in the classified
service of this state.
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(j) "IDG" means interdepartmental grant.
(k) "IDT" means intradepartmental transfer.
(l) "LEIN" means the law enforcement information network.
(m) "MCOLES" means the Michigan commission on law enforcement
standards created in section 3 of the Michigan commission on law
enforcement standards act, 1965 PA 203, MCL 28.603.
(n) "SIGMA" means the statewide integrated governmental
management application.
(o) "SRMS" means the state records management system.
(p) "Standard report recipients" means the senate and house
appropriations committees, the senate and house appropriations
subcommittees on state police, the senate and house fiscal
agencies, the senate and house policy offices, and the state budget
office.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
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archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
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lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
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occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
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house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) Not later than April 1, the department shall
maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $2,000,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
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(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $4,000,000.00 for state
restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $126,492,400.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $99,258,100.00. Total appropriations for retiree
health care legacy costs for the department are estimated at
$27,234,300.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
amounts.
Sec. 220. To the extent permissible under section 261 of the
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management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
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rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
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(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
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how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
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(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
(a) The compensation is payable or paid upon the termination
of employment.
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(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.
Sec. 250. The department shall submit a biannual report on the
performance metrics cited or information required to be reported in
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this part, reasons for nonachievement of metric targets, and
proposed corrective actions.
Sec. 251. Not later than April 1, the department shall provide
to the standard report recipients a copy of its annual strategic
plan prepared in compliance with section 363 of the management and
budget act, 1984 PA 431, MCL 18.1363. The plan must include the
mission, vision, goals, strategies, and performance measures of the
department.
Sec. 252. (1) It is the intent of the legislature that the
department shall take all steps necessary to protect the data and
privacy of citizens who are not the focus of a departmental
investigation and to protect personal information from unauthorized
access or misuse. The protection required under this subsection
includes, but is not limited to, all of the following:
(a) Requiring vendors or service providers to protect data
shared with them.
(b) Ensuring that when personal data is collected, but no
longer utilized by the department, that reasonable steps be taken
to securely destroy records containing personal information when it
is to be discarded so that the information is rendered
indecipherable and is not sold for marketing or other purposes.
(2) The department shall provide written notification to any
data subject whose sensitive personal information is accessed or
acquired by an unauthorized person.
Sec. 253. (1) The department may accept monetary and
nonmonetary gifts, bequests, donations, contributions, or grants
from any private or public source to support, in whole or in part,
a departmental function or program. The department shall expend or
use the gifts, bequests, donations, contributions, or grants
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accepted under this subsection for the purposes designated by the
private or public source, if the purpose is specified.
(2) Revenue collected by the department under this section
that is unexpended and unencumbered must not lapse to the general
fund but must be carried forward to the subsequent fiscal year.
(3) Private revenues received under this section that exceed
the appropriations in part 1 are appropriated and may be received
and expended by the department for the purposes for which the funds
are received.
(4) If additional authorization is approved in SIGMA by the
state budget office under this section, the department shall notify
the senate and house appropriations subcommittees on state police
and the senate and house fiscal agencies within 10 days after the
approval. The notification must include the amount and funding
source of the additional authorization, the date of the approval,
and the projected use of the funds to be expended.
Sec. 254. (1) Federal revenues authorized by and available
from the federal government in excess of the appropriations in part
1 are appropriated and may be received and expended by the
department for purposes authorized under state law and subject to
federal requirements. The total amount of federal revenues that may
be received and expended under this section and section 604(3) must
not exceed $750,000,000.00.
(2) The department shall notify the standard report recipients
before expending federal revenues received and appropriated under
subsection (1).
(3) If additional authorization is approved in SIGMA by the
state budget office under this section, the department shall notify
the senate and house appropriations subcommittees on state police
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and the senate and house fiscal agencies within 10 days after the
approval. The notification must include the amount and funding
source of the additional authorization, the date of its approval,
and the projected use of the funds to be expended.

DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. The department shall notify the standard report
recipients when it recommends to close or consolidate any state
police post. The notification must include a local and state impact
study of the proposed post closure or consolidation.
Sec. 302. If the department presents a plan to the state
employer to privatize, the department shall submit a complete
project plan to the standard report recipients. The plan must
include the criteria under which the privatization initiative will
be evaluated. The evaluation must be completed and submitted to the
standard report recipients within 30 months after the department's
initial submission of the complete project plan.
Sec. 303. (1) When the department provides contractual
services to a local unit of government, the department shall be
reimbursed for all costs incurred in providing the services.
(2) The department shall define service cost models for those
services requiring reimbursement.
(3) Contractual services provided to an entity other than a
local unit of government may be provided by department personnel,
but only on an overtime basis outside the normal work schedule of
the personnel. All costs incurred in providing the services are
eligible for reimbursement.
(4) This section does not apply to services provided to state
agencies.
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(5) Revenues received for contractual or reimbursed services
in excess of the appropriations in part 1 are appropriated and may
be received and expended by the department for the purposes for
which the funds are received.
(6) If additional authorization is approved in SIGMA by the
state budget office under this section, the department shall notify
the senate and house appropriations subcommittees on state police
and the senate and house fiscal agencies within 10 days after the
approval. The notification must include the amount and funding
source of the additional authorization, the date of its approval,
and the projected use of the funds to be expended.
Sec. 304. The department may establish and collect fees for
publications, videos, conferences, workshops, and related
materials. Fees collected under this section must be used to offset
expenditures for costs of the publications, videos, workshops,
conferences, and related materials. The department shall not
collect fees under this section that exceed the cost of the
expenditures.
Sec. 305. A law enforcement officer funded under part 1 shall
not be required to issue a predetermined or specified number of
citations for violations of the Michigan vehicle code, 1949 PA 300,
MCL 257.1 to 257.923, or of a local ordinance that substantially
corresponds to the provisions of the Michigan vehicle code, 1949 PA
300, MCL 257.1 to 257.923, including parking or standing
violations. A law enforcement officer's performance evaluation
system must not require a predetermined or specified number of
citations to be issued.
Sec. 306. From the funds appropriated in part 1, the director
shall establish and maintain local headquarters in various places,
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and may do so by agreement, lease, or otherwise, as provided under
section 7 of 1935 PA 59, MCL 28.7.
Sec. 307. The department's investigative response team must
submit any compiled findings of an investigation of a critical
incident to the prosecutor of the county in which the critical
incident occurred for review. As used in this section, "critical
incident" means either of the following:
(a) Any event that results in the death or infliction of great
bodily harm to an employee of the department or to any other
individual while the individual is in the custody of a law
enforcement officer employed by the department or while a law
enforcement officer employed by the department is attempting to
gain control of the individual.
(b) Any accident involving a vehicle owned by the department
that was operated by an employee of the department at the time of
the accident that results in the death or infliction of great
bodily harm to the employee or any other individual involved in the
accident.

LAW ENFORCEMENT SERVICES
Sec. 401. (1) The department shall develop and deliver
professional, innovative, and quality training that supports the
enforcement and public safety efforts of the criminal justice
community.
(2) The department shall provide performance data, as provided
under section 250, for days of training being conducted by the
academy.
(3) From the funds appropriated in part 1 for training
operations, the department may provide or obtain the following
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training:
(a) Training that directly relates to the individual's job
description and role within the department.
(b) Professional development training.
(c) Training that provides the individual with the ability to
seek expanded opportunities within the department.
(d) Advanced education training.
(4) Not later than January 1, the department shall submit a
report to the standard report recipients and to the senate and
house appropriations committees that includes the following
information about the funds appropriated in part 1 for training
operations:
(a) The training courses that the department's employees
completed.
(b) If a training course is developed by the department, a
description of that course's curriculum and its purpose.
(c) The number of the department's employees who have received
and completed training pursuant to this section.
(5) The department shall distribute and review course
evaluations to ensure that quality training is provided.
Sec. 402. (1) In accordance with applicable state and federal
laws and regulations, the department shall maintain and ensure
compliance with CJIS databases and applications in the support of
public safety and law enforcement communities.
(2) The department shall improve the accuracy, timeliness, and
completeness of criminal history information by conducting a
minimum of 30 outreach activities targeted to criminal justice
agencies. The department shall report the number of these outreach
activities conducted, as provided under section 250.
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(3) The department shall provide for the compilation of crime
statistics consistent with the uniform crime reporting (UCR)
program and the national incident-based report system (NIBRS).
(4) The department shall provide for the compilation and
evaluation of traffic crash reports and the maintenance of the
state accident data collection system.
(5) The department shall make individual traffic crash reports
available for a fee of $15.00 per incident. The department may also
sell an extract of electronic traffic crash data for a fee of $0.25
per incident, provided that the name, address, and any other
personal identifying information have been excluded.
(6) By March 1, the department shall submit a report to the
standard report recipients detailing the number of traffic crash
reports provided, the amount of revenue collected, and all
expenditures incurred for activities under subsection (5) in the
preceding fiscal year. The report must include an analysis of
whether revenue from department activities under subsection (5) is
sufficient to offset all costs incurred for those activities and
must provide information regarding any deficit or surplus of
revenue.
(7) In accordance with applicable state and federal laws and
regulations, the department shall provide for the maintenance and
dissemination of criminal history records and juvenile records,
including to the extent necessary to exchange criminal history
records information with the Federal Bureau of Investigation and
other states through the interstate identification index, the
National Crime Information Center, and other federal CJIS databases
and indices.
(8) The department shall, in accordance with applicable state
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and federal laws, provide for the maintenance of records, including
criminal history records regarding firearms licensure, as provided
under 1927 PA 372, MCL 28.421 to 28.435.
(9) The department shall provide information on the number of
background checks processed through the internet criminal history
access tool (ICHAT), as provided in section 250.
(10) The following unexpended and unencumbered revenues
deposited into the criminal justice information center service fees
must not lapse to the general fund, but must be carried forward
into the subsequent fiscal year:
(a) Fees for fingerprinting and criminal record checks and
name-based criminal record checks under 1935 PA 120, MCL 28.271 to
28.274.
(b) Fees for application and licensing for initial and renewal
concealed pistol licenses under 1927 PA 372, MCL 28.421 to 28.435.
(c) Fees for searching, copying, and providing public records
under the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(d) Revenue from other sources, including, but not limited to,
investment and interest earnings.
(11) Unexpended and unencumbered revenue generated by state
records management system fees must not lapse to the general fund,
but must be carried forward into the subsequent fiscal year.
Sec. 403. (1) The department shall provide forensic testing
and analysis/profiling of DNA evidence to aid in law enforcement
investigations in this state.
(2) The department shall ensure its ability to maintain
accreditation by a federally designated accrediting agency, as
provided under 34 USC 12592.
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(3) The department shall provide forensic science services
with an average turnaround time of 55 days, assuming an annual
caseload volume commensurate with the average annual caseload
received by the forensic science division during the preceding 5
fiscal years, and shall work to achieve a goal of a 30-day average
turnaround time across all forensic science disciplines.
(4) The department shall provide the following data as
provided in section 250:
(a) The average turnaround time for processing forensic
evidence across all disciplines.
(b) Forensic laboratory staffing levels, including scientists
in training, and vacancies.
(c) The number of backlogged cases in each discipline.
Sec. 404. (1) The biometrics and identification division shall
maintain and manage the automated biometric identification system,
statewide network of agency photographs, and combined offender DNA
index system biometric databases.
(2) The department shall provide data on the number of 10-
print and palm-print submissions to the database, as provided in
section 250.
(3) The department shall maintain the staffing and resources
necessary to have a 28-day average wait time for scheduling a
polygraph examination, assuming an annual caseload received
commensurate with the average annual caseload received during the
preceding 5 fiscal years, with a goal of achieving a 15-day average
wait time.
(4) If changes are made to the department's protocol for
retaining and purging DNA analysis samples and records, the
department shall post a copy of the protocol changes on the
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department's website.
Sec. 405. Not later than December 1, the department shall
submit a report to the standard report recipients that includes,
but is not limited to, all of the following information:
(a) Sexual assault kit analysis backlog at the beginning of
the previous fiscal year.
(b) The number of sexual assault kits collected or submitted
for analysis during the previous fiscal year.
(c) The number of sexual assault kits analyzed and the number
of associated DNA profiles created and uploaded during the previous
fiscal year.
(d) Sexual assault kit analysis backlog at the end of the
previous fiscal year.
(e) The average turnaround time to analyze sexual assault kits
and to create and upload associated DNA profiles for the previous
fiscal year.
Sec. 406. The department shall provide administrative support
for the following grant and community service programs:
(a) The operations of the automobile theft prevention
authority.
(b) Administration of the Edward Byrne memorial justice
assistance grant program and other grant programs, including the
department's community policing efforts.
(c) Administration of the office of school safety.
(d) Administration and outreach of the OK2SAY program.
Sec. 407. Not later than March 30, the office of school safety
shall provide a school safety report to the legislature and the
senate and house fiscal agencies that must include reports of all
of the following:
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(a) The incidents of school violence or threats reported to
the state police by local law enforcement or local school
districts, or received through the Michigan incident crime report
(MICR).
(b) OK2SAY-based incidences and activities.
(c) Based upon an evaluation of school safety incidents and an
analysis of school safety grants, if applicable, recommendations on
best practices and other safety measures to ensure school safety in
this state.
Sec. 408. (1) The department shall make an organized,
strategic effort to recruit, onboard, train, and outfit trooper
school candidates and other new employees using the funds
appropriated in part 1.
(2) From the funds appropriated in part 1, the department
shall organize and operate not fewer than 2 trooper, motor carrier,
or state properties security recruit schools in the fiscal year.
(3) The department shall submit a report to the standard
report recipients within 60 days of the conclusion of any trooper,
motor carrier, or state properties security recruit school. The
report must include all of the following:
(a) The number of veterans and the number of MCOLES-certified
police officers who were admitted to and the number who graduated
from the recruit school.
(b) The total number of recruits who were admitted to the
recruit school, the number of recruits who graduated from the
recruit school, and the location at which each of these recruits is
assigned.
(4) The department may use the funds appropriated in part 1
that represent attrition savings to offset the cost of recruiting
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efforts described under subsection (1).
(5) The unexpended and unencumbered general fund/general
purpose funds appropriated in part 1 for training operations must
not lapse to the general fund at the end of the fiscal year but
must be deposited into the trooper recruit school fund created
under section 819b of the Michigan vehicle code, 1949 PA 300, MCL
257.819b.
Sec. 409. (1) From the funds appropriated in part 1, the
department shall, in collaboration with the department of civil
rights and MCOLES, provide the following training to local police
departments or officers free of charge:
(a) Cultural awareness and competency.
(b) Conflict management.
(c) Use of force on vulnerable individuals, including
children, individuals with disabilities, individuals with unmet
mental health needs, individuals under the influence of substances,
and pregnant individuals.
(d) Mental health and wellness for law enforcement officers.
(2) The training provided under subsection (1) may be offered
online in order to facilitate easy access and may be given by
department staff, contractors, or external vendors.
(3) On a quarterly basis, the department shall submit a report
to the standard report recipients on the number of officers, by
police department, that received training under this section.
Sec. 410. The department, in collaboration with the department
of health and human services and the department of education, shall
advise on initiatives in schools and other educational
organizations that include, but are not limited to, training for
educators, teachers, and other personnel in school settings for all
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of the following:
(a) Utilization of trauma-informed practices.
(b) Age-appropriate education and information on human
trafficking.
(c) Age-appropriate education and information on sexual abuse
prevention.
Sec. 411. Based on the availability of federal funding and
demonstrated need, as indicated by applications submitted to the
state court administrative office, the department shall provide
$1,500,000.00 in Edward Byrne memorial justice assistance grant
program funding to the judiciary by interdepartmental grant.
Sec. 412. From the funds appropriated in part 1 for grants and
community services, the department shall allocate not less than
$85,000.00 to administer a training program for county sheriff's
office victim services units.

FIELD SERVICES
Sec. 501. (1) Department enlisted personnel who are employed
to enforce traffic laws as provided in section 629e of the Michigan
vehicle code, 1949 PA 300, MCL 257.629e, are not prohibited from
responding to crimes in progress or other emergency situations and
are responsible for making every effort to protect all residents of
this state.
(2) The department shall maintain the staffing and resources
necessary to continually work to enhance traffic safety throughout
this state and shall dedicate a minimum of 455,200 hours to
statewide patrol. The department shall work to improve public
safety efforts within distressed cities by enhancing data analysis
capabilities and identifying crime trends and areas with high
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occurrence of crime.
(3) The department shall report on the number of residence
checks of registered sex offenders conducted, as provided under
section 250.
Sec. 502. (1) The department shall identify and apprehend
criminals through criminal investigations in this state.
(2) The department shall maintain the staffing and resources
necessary to provide a comparable number of hours investigating
crimes as the average annual number provided during the preceding 5
fiscal years.
(3) The department shall maintain the staffing and resources
necessary to annually meet or exceed a case clearance rate of 62%.
(4) The department shall provide training opportunities to
local law enforcement partners with the goal of increasing their
knowledge of gambling laws, legal issues, opioid-related
investigations, and other emerging law enforcement issues.
(5) The department shall maintain the staffing and resources
necessary to investigate the average annual number of opioid-
related investigations conducted by multijurisdictional task forces
and hometown security teams during the preceding 5 fiscal years.
The department shall work to enhance investigative and drug
interdiction efforts by enhancing data analysis capabilities and
linking investigations among multijurisdictional task forces and
hometown security teams.
Sec. 503. (1) The department shall provide protection to this
state, its economy, welfare, and vital state-sponsored programs
through the prevention and suppression of organized smuggling of
untaxed tobacco products in this state, through enforcement of the
tobacco products tax act, 1993 PA 327, MCL 205.421 to 205.436, and
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other laws pertaining to combating criminal activity in this state,
and by maintaining a tobacco tax enforcement unit.
(2) The department shall submit an annual report on December 1
to the standard report recipients and to the senate and house
appropriations subcommittees on general government that details
expenditures and activities related to tobacco tax enforcement for
the previous fiscal year.
Sec. 504. The department shall provide fire investigation
training and investigative assistance to public safety agencies in
this state.
Sec. 505. The department shall not take disciplinary action
against an employee of the department for providing, upon request,
assistance or mutual aid to a law enforcement officer employed by a
law enforcement agency of this state who is engaged in the fresh
pursuit of an individual on a freeway. As used in this section:
(a) "Fresh pursuit" means that term as defined in section 5 of
the uniform act on fresh pursuit, 1937 PA 189, MCL 780.105.
(b) "Freeway" means that term as defined in section 18a of the
Michigan vehicle code, 1949 PA 300, MCL 257.18a.
Sec. 506. The department shall make every reasonable effort to
provide, upon request, assistance or mutual aid to a federal law
enforcement agency or a law enforcement agency of this state that
is actively responding to any of the following:
(a) A public safety emergency.
(b) Civil unrest or a riot.
(c) One or more law enforcement officers in distress.

SPECIALIZED SERVICES
Sec. 601. (1) The department shall operate the Michigan
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intelligence operations center for homeland security as this
state's primary federally designated fusion center to receive,
analyze, gather, and disseminate threat-related information among
federal, state, local, tribal, and private sector partners.
(2) The department shall ensure public safety by providing
public and private sector partners with timely and accurate
information regarding critical information key resource threats, as
reported to or discovered by the Michigan intelligence operations
center for homeland security, and shall increase public awareness
on how to report suspicious activity through website or telephone
communications.
(3) The department shall maintain the staffing and resources
necessary to support the cyber section, including the Michigan
cyber command center, the computer crimes unit, and the internet
crimes against children task force. The department shall maintain
the staffing and resources necessary to complete the average annual
number of cases completed by the computer crimes unit during the
preceding 5 fiscal years. The computer crimes unit shall pursue
process improvement initiatives to effectively utilize staff
resources in providing investigatory assistance and evidentiary
analysis for law enforcement and criminal justice agencies
statewide. The department shall maintain the staffing and resources
necessary to complete the average annual casework that the Michigan
cyber command center completed during the preceding 5 fiscal years.
(4) The department shall maintain the staffing and resources
necessary to provide digital forensic analysis services with a goal
of decreasing backlogs of digital forensic analysis cases annually
until the department maintains a 60-day turnaround time.
Sec. 602. (1) The department shall provide specialized
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services in support of, and to enhance, local, state, and federal
law enforcement operations within this state, in accordance with
all applicable state and federal laws and regulations.
(2) The department shall maintain the staffing and resources
necessary to provide training to maintain readiness to respond
appropriately to at least the average annual number of requests for
specialty services which occurred during the preceding 5 fiscal
years.
(3) The canine unit shall be available for call out statewide
100% of the time.
(4) The bomb squad unit shall be available for call out
statewide 100% of the time.
(5) The emergency support teams shall be available for call
out statewide 100% of the time.
(6) The marine services team shall be available for call out
statewide 100% of the time.
(7) Aviation services shall be available for call out
statewide 100% of the time, unless prohibited by weather or
unexpected mechanical breakdowns.
(8) The department shall maintain the staff and resources
necessary to provide security services at the State Capitol Complex
facilities, the State Secondary Complex, and other state-owned or
leased properties, as provided under section 6c of 1935 PA 59, MCL
28.6c. The department shall also maintain the staff and resources
necessary to respond to emergencies at the State Capitol Complex,
State Secondary Complex, House Office Building, Binsfeld Office
Building, Townsend Parking Ramp, Roosevelt Parking Ramp, and other
areas as directed. The department shall maintain a goal of annually
conducting 35,000 property inspections of state owned and leased
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facilities.
Sec. 603. (1) The department shall maintain commercial vehicle
regulation, school bus inspections, and enforcement activities,
including enforcement of requirements concerning size, weight, and
load restrictions; operating authority; registration; fuel taxes;
transportation of hazardous materials; new entrant operations;
commercial driver licenses; and inspections pursuant to the federal
motor carrier assistance program.
(2) The department shall maintain the staffing and resources
necessary to meet inspection goals consistent with the department's
federal motor carrier assistance program activities.
(3) Revenue collected under the motor carrier act, 1933 PA
254, MCL 475.1 to 479.42, must be expended in accordance with that
act. Unexpended and unencumbered revenues must not lapse to the
general fund but must be carried forward into the subsequent fiscal
year.
Sec. 604. (1) The department shall coordinate the mitigation,
preparation, response, and recovery activities of municipal,
county, state, and federal governments, and other governmental
entities, for all hazards, disasters, and emergencies.
(2) The state director of emergency management may expend
money appropriated under part 1 to call on any agency or department
of this state or any resource of this state to protect life or
property or to provide for the health or safety of the population
in any area of this state in which the governor proclaims a state
of emergency or state of disaster under the emergency management
act, 1976 PA 390, MCL 30.401 to 30.421. The state director of
emergency management may expend the amounts the director considers
necessary to accomplish these purposes. The director shall submit
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to the state budget director, as soon as possible, a complete
report of all actions taken under the authority of this section.
The report must contain, as a separate item, a statement of all
money expended that is not reimbursable from federal funding. The
state budget director shall review the expenditures and submit
recommendations to the legislature in regard to any possible need
for a supplemental appropriation.
(3) In addition to the funds appropriated in part 1, the
department may receive and expend money from local, private,
federal, or state sources for the purpose of providing emergency
management training to local or private interests and for the
purpose of supporting emergency preparedness, response, recovery,
and mitigation activity. If additional expenditure authorization in
SIGMA is approved by the state budget office under this section,
the department and the state budget office shall notify the senate
and house appropriations subcommittees on state police and the
senate and house fiscal agencies within 10 days after the approval.
The notification must include the amount and source of the
additional authorization, the date of its approval, and the
projected use of the funds to be expended under the authorization.
The total amount of federal revenues that may be received and
expended under this section and section 254 must not exceed
$750,000,000.00.
(4) The department shall foster, promote, and maintain
partnerships to protect this state and homeland from all hazards.
(5) From the funds appropriated in part 1 for emergency
management and homeland security, the department shall allocate
$1,000,000.00 to support the development or augmentation of
facilities, infrastructure, and training programs to support future
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drone testing and training. The department shall use the funds
allocated under this subsection only for the purpose of increasing
the department's capacity to regulate government and commercial
drone operations at scale.
(6) From the funds appropriated in part 1 for emergency
management and homeland security, the department shall allocate
$2,000,000.00 to create and administer a competitive grant program
that provides grants to local units of government to support the
following:
(a) Airspace security.
(b) Drone readiness programs.
(c) Drone-as-first-responder programs.
(d) Drone operations management systems.
(e) Unmanned traffic management systems.
(f) The purchase of drones and drone equipment that do not
include parts sourced from a foreign country of concern.
(7) In addition to any other materials required by the
department, a local unit of government shall include all of the
following, if applicable, with an application to receive grant
funding under subsection (6):
(a) A proposed use of grant funds.
(b) A description of any current or planned drone readiness
program or drone-as-first-responder program.
(c) A description of any current or planned drone operations
management system or unmanned traffic management system.
(8) An individual grant to a local unit of government under
subsection (6) must not exceed $150,000.00. In determining a grant
allocation to a local unit of government under subsection (6), the
department shall consider, but is not limited to considering, the
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following:
(a) Whether the local unit of government has or is developing
a drone readiness program or a drone-as-first-responder program.
(b) Whether the local unit of government currently uses
drones.
(c) Whether the local unit of government currently maintains a
drone operations management system or an unmanned traffic
management system.
(d) The presence of any critical infrastructure or key
facilities within the jurisdiction of the local unit of government,
including, but not limited to, military installations.
(e) Population, service area, and geographic distribution.
(9) A local unit of government shall use grant funds awarded
under subsection (6) for only the following allowable expenditures:
(a) Drone sensor hardware.
(b) Drone operations management systems.
(c) Unmanned traffic management systems.
(d) Software and other information technology systems
necessary to support drone operations.
(e) Training and onboarding materials related to any allowable
expenditures under this subsection.
(10) From the funds appropriated in part 1 for emergency
management and homeland security, the department shall allocate
$400,000.00 to create and administer a competitive grant program to
assist counties in the development of critical incident mapping. An
individual grant to a county must not exceed $25,000.00, and a
county is eligible to receive only up to 3 individual grants. The
department shall make grant payments to counties under this
subsection on a schedule as determined by the department.
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(11) A county that is awarded a grant under subsection (10)
shall use the funds only to implement critical incident mapping
that satisfies all of the following:
(a) Is compatible with platforms and applications used by
local, state, and federal public safety officials.
(b) Does not require the purchase of additional software for
use.
(c) Is provided in a printable format.
(d) Is verified for accuracy through a walk-through of a
building and grounds.
(e) Is oriented true north.
(f) Includes accurate floor plan information overlaid on
current aerial imagery of a building.
(g) Includes site-specific labeling that matches the structure
of the building, including room labels, hallway names, external
door or stairwell numbers, locations of hazards, key utility
locations, key boxes, automated external defibrillators, and trauma
kits.
(h) Includes site-specific labeling that matches the building
grounds, including parking areas, athletic fields, surrounding
roads, and neighboring properties.
(i) Includes a gridded overlay with x/y coordinates.
(j) Includes information that best assists first responders in
an emergency, including, but not limited to, the following
information:
(i) Building numbers.
(ii) Floors.
(iii) Suite designations.
(iv) Room numbers.
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(v) Other available relevant location information for each
building.
(12) The department shall maintain the staffing and resources
necessary to do all of the following:
(a) Serve approximately 105 local emergency management
preparedness programs and 88 local emergency planning committees in
this state.
(b) Operate and maintain the state's emergency operations
center and provide command and control in support of emergency
response services.
(c) Maintain readiness, including training and equipment to
respond to civil disorders and natural disasters commensurate with
the capabilities of fiscal year 2010-2011.
(d) Perform hazardous materials response training.
(13) The department shall conduct a minimum of 3 training
sessions to enhance safe response in the event of natural or
manmade incidents, emergencies, or disasters.
(14) In addition to the funds appropriated in part 1, there is
appropriated from the disaster and emergency contingency fund an
amount necessary to cover costs related to any disaster or
emergency as defined in the emergency management act, 1976 PA 390,
MCL 30.401 to 30.421. Funds must be expended as provided under
sections 18 and 19 of the emergency management act, 1976 PA 390,
MCL 30.418 and 30.419, and R 30.51 to R 30.61 of the Michigan
Administrative Code.
(15) If, in a particular month, expenditures are made from the
disaster and emergency contingency fund, the department shall
submit a report for that month to the senate and house fiscal
agencies detailing the purpose of the expenditures. The monthly
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report required under this subsection must be submitted within 30
days after the end of the month during which funds from the
disaster and emergency contingency fund were expended.
(16) The department shall track and report on a biannual
basis, as provided in section 250 of this part, the status of the
department's assessment of critical infrastructure vulnerabilities,
including the protection status of critical infrastructure items
identified by the assessment. The department is not required to
report any information that could compromise the security of any
critical infrastructure.
(17) Revenue collected by the department under this section
for the emergency management and homeland security training center
that is unexpended and unencumbered at the end of the fiscal year
must not lapse to the general fund, but must be carried forward
into the subsequent fiscal year.
(18) As used in this section:
(a) "Critical infrastructure" means a facility designated as
critical infrastructure by this state, or that is part of a
critical infrastructure sector identified by the federal
Cybersecurity and Infrastructure Security Agency.
(b) "Drone" means an unmanned aircraft flown by a remote pilot
via a ground control system, or autonomously through use of an
onboard computer, communication links, and any additional equipment
that is necessary for the unmanned aircraft to operate safely.
(c) "Drone-as-first-responder program" means a system that can
remotely deploy 1 or more drones from strategic locations to the
site of a public safety incident for the purpose of providing real-
time information to law enforcement officers.
(d) "Drone operations management system" means a centralized
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platform that is used by a drone operator to manage drone missions,
operations, assets, and data.
(e) "Drone readiness program" means a program designed to
prepare local units of government for the safe, compliant, and
efficient operation of drones.
(f) "Key facility" means that term as defined in section 552c
of the Michigan penal code, 1931 PA 328, MCL 750.552c.
(g) "Local unit of government" means a county, city, township,
or village.
(h) "Unmanned traffic management system" means a centralized
platform that is used to authorize, coordinate, and monitor low-
altitude drone operations conducted by multiple drone operators for
the purposes of ensuring airspace safety, deconfliction, and
regulatory compliance.
Sec. 605. The department shall provide for the planning,
administration, and implementation of highway traffic safety
programs to save lives and reduce injuries on roads in this state,
in partnership with other public and private organizations.
Sec. 606. (1) Funds appropriated in part 1 for the secondary
road patrol program must be used to provide grants to sheriffs
under the secondary road patrol program described under section 76
of 1846 RS 14, MCL 51.76.
(2) The sheriffs' duties under the secondary road patrol
program, as outlined in section 76(2) of 1846 RS 14, MCL 51.76, are
to do all of the following:
(a) Patrol and monitor traffic violations.
(b) Enforce the criminal laws of this state, violations of
which are observed by or brought to the attention of the sheriff's
department while patrolling and monitoring secondary roads.
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(c) Investigate accidents involving motor vehicles.
(d) Provide emergency assistance to persons on or near a
highway or road the sheriff is patrolling and monitoring.
Sec. 607. (1) The department shall serve as an active liaison
between the department of technology, management, and budget and
state, local, regional, and federal public safety agencies on
matters pertaining to the Michigan public safety communications
system and shall report user issues to the department of
technology, management, and budget.
(2) Not later than January 15, the department, in cooperation
with the department of technology, management, and budget, shall
submit a report to the standard report recipients on the status of
the Michigan public safety communications system that includes, but
is not limited to, all of the following information:
(a) Planned or anticipated upgrades or maintenance to the
Michigan public safety communications system.
(b) Upgrades or maintenance required to be in compliance with
applicable federal or state law, including the date by which the
upgrades or maintenance is expected to be completed or must be
completed under applicable federal or state law.
(c) The estimated cost of the upgrades or maintenance projects
included in the report under this subsection.

ONE-TIME APPROPRIATIONS
Sec. 701. (1) From the funds appropriated in part 1 for cold
case investigations, the department shall create and administer a
competitive grant program that provides grants not to exceed
$200,000.00 to Michigan universities that operate a cold case
program. As used in this section, "cold case program" means an
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academic program administered by a university that provides, but is
not limited to, workforce development training related to criminal
investigation tactics, forensic science and law, and review of cold
homicide and missing persons cases.
(2) The department shall not approve a grant application under
this section if a university does not satisfy either of the
following:
(a) The university has operated a cold case program with the
department for over a year as of October 1, 2024.
(b) The university will begin a cold case program with the
department not later than October 1, 2027.
(3) Funds disbursed under this section must be used only for
programmatic and operational expenses of the university's cold case
program.
Sec. 702. (1) From the funds appropriated in part 1 for law
enforcement training for communication with limited English
speaking communities and those deaf and hard of hearing, the
department grants and community services division shall create and
administer a block grant program to support training provided by an
entity holding an oral transliteration certificate. The oral
transliteration certificate must be held by an officer, board
member, or principal of the entity and must have been held for not
less than 1 year. Any training course provided for under this
section must be certified by the International Accreditors for
Continuing Education and Training. The certification required under
this section may be obtained and maintained through a developer who
has current status with the International Accreditors for
Continuing Education and Training. The purpose of the grant is to
train officers to better assist in their communication with members
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of the public who experience a language barrier or may be hard of
hearing or deaf.
(2) The unexpended funds appropriated in part 1 for law
enforcement training for communication with limited English
speaking communities and those deaf and hard of hearing are
designated as a work project appropriation, and any unencumbered or
unallotted funds must not lapse at the end of the fiscal year and
must be available for expenditures for projects under this section
until the projects have been completed. The following is in
compliance with section 451a(1) of the management and budget act,
1984 PA 431, MCL 18.145a:
(a) The purpose of the project is the training of law
enforcement officers.
(b) The project will be accomplished by utilizing contracts
with service providers.
(c) The estimated cost of this project is $500,000.00.
(d) The tentative completion date for the work project is
September 30, 2029.
(3) The department may use the funds appropriated in part 1
for law enforcement training for communicating with limited English
speaking communities and those deaf and hard of hearing for costs
associated with the administration and oversight of the block grant
program.

ARTICLE 15
STATE TRANSPORTATION DEPARTMENT
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
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Sec. 101. There is appropriated for the state transportation
department for the fiscal year ending September 30, 2027, from the
following funds:
DEPARTMENT OF TRANSPORTATION
APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 2,853.3
Full-time employees 2,668.0
Limited-term employees 58.8
Noncareer/per diem employees 81.0
Part-time employees 1.0
Permanent-intermittent employees 52.0
Seasonal employees 31.0
GROSS APPROPRIATION $ 8,594,461,900
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 4,424,000
ADJUSTED GROSS APPROPRIATION $ 8,590,037,900
Federal revenues:
Total federal revenues 2,384,442,300
Special revenue funds:
Total local revenues 87,448,500
Total private revenues 20,500,000
Total other state restricted revenues 5,997,647,100
State general fund/general purpose $ 100,000,000
Sec. 102. DEBT SERVICE
Airport safety and protection plan $ 3,618,300
Blue Water Bridge fund 3,318,400
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Economic development 234,300
Local bridge fund 77,300
State trunkline 333,554,100
GROSS APPROPRIATION $ 340,802,400
Appropriated from:
Special revenue funds:
Blue Water Bridge fund 3,318,400
Economic development fund 234,300
Local bridge fund 77,300
State aeronautics fund 3,618,300
State trunkline fund 333,554,100
State general fund/general purpose $ 0
Sec. 103. COLLECTION, ENFORCEMENT, AND OTHER
AGENCY SUPPORT SERVICES
CTF grant to civil service commission $ 225,300
CTF grant to department of attorney general 111,500
CTF grant to department of technology,
management, and budget 40,300
CTF grant to department of treasury 54,900
CTF grant to legislative auditor general 48,500
MTF grant to department of environment, Great
Lakes, and energy 2,202,200
MTF grant to department of treasury 3,761,300
MTF grant to legislative auditor general 393,900
SAF grant to civil service commission 140,000
SAF grant to department of attorney general 196,400
SAF grant to department of technology,
management, and budget 28,600
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SAF grant to department of treasury 72,200
SAF grant to legislative auditor general 38,100
STF grant to civil service commission 7,160,100
STF grant to department of attorney general 2,236,500
STF grant to department of state police 13,945,400
STF grant to department of technology,
management, and budget 1,235,100
STF grant to department of treasury 167,000
STF grant to legislative auditor general 914,900
GROSS APPROPRIATION $ 32,972,200
Appropriated from:
Special revenue funds:
Comprehensive transportation fund 480,500
Michigan transportation fund 6,357,400
State aeronautics fund 475,300
State trunkline fund 25,659,000
State general fund/general purpose $ 0
Sec. 104. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 272.0
Unclassified salaries--FTEs 6.0 $ 492,800
Asset management council 2,299,900
Business support services--FTEs 71.0 10,241,700
Commission audit and support services--FTEs 23.0 3,659,500
Economic development and enhancement programs--
FTEs 9.0 1,455,400
Finance, contracts, and support services--FTEs 169.0 24,551,000
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Property management 8,616,000
Worker's compensation 1,546,300
Departmentwide economic adjustments 6,470,800
GROSS APPROPRIATION $ 59,333,400
Appropriated from:
Interdepartmental grant revenues:
IDG for accounting service center user charges 4,424,000
Federal aid – transportation programs 163,200
Special revenue funds:
Blue Water Bridge fund 105,600
Comprehensive transportation fund 2,014,500
Economic development fund 415,200
Michigan transportation fund 5,645,100
State aeronautics fund 857,700
State trunkline fund 45,708,100
State general fund/general purpose $ 0
Sec. 105. INFORMATION TECHNOLOGY
Information technology services and projects $ 21,150,000
GROSS APPROPRIATION $ 21,150,000
Appropriated from:
Federal revenues:
Federal aid – transportation programs 520,500
Special revenue funds:
Blue Water Bridge fund 58,500
Comprehensive transportation fund 238,200
Economic development fund 39,400
Michigan transportation fund 311,200
State aeronautics fund 185,700
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State trunkline fund 19,796,500
State general fund/general purpose $ 0
Sec. 106. TRANSPORTATION PLANNING
Full-time equated classified positions 130.8
Planning services--FTEs 130.8 $ 31,992,900
Grants to regional planning councils 488,800
GROSS APPROPRIATION $ 32,481,700
Appropriated from:
Federal revenues:
Federal aid – transportation programs 20,752,800
Special revenue funds:
Comprehensive transportation fund 359,900
Michigan transportation fund 11,338,200
State aeronautics fund 30,800
State general fund/general purpose $ 0
Sec. 107. DESIGN AND ENGINEERING SERVICES
Full-time equated classified positions 1,486.0
Business services--FTEs 31.6 $ 8,636,600
Program development and delivery--FTEs 902.9 99,585,000
System operations management--FTEs 551.5 105,073,000
GROSS APPROPRIATION $ 213,294,600
Appropriated from:
Federal revenues:
Federal aid – transportation programs 23,529,800
Special revenue funds:
Comprehensive transportation fund 187,100
Michigan transportation fund 19,624,800
State trunkline fund 169,952,900
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State general fund/general purpose $ 0
Sec. 108. HIGHWAY MAINTENANCE
Full-time equated classified positions 804.9
State trunkline operations--FTEs 804.9 $ 481,176,400
GROSS APPROPRIATION $ 481,176,400
Appropriated from:
Special revenue funds:
State trunkline fund 481,176,400
State general fund/general purpose $ 0
Sec. 109. ROAD AND BRIDGE PROGRAM
Cities and villages $ 1,112,369,700
Cities and villages - MTF redistribution 4,360,000
Cities and villages - GF/GP 28,000,000
County road commissions 2,012,101,400
County road commissions - MTF redistribution 7,820,000
County road commissions - GF/GP 52,000,000
Grants to local programs 33,000,000
Local agency wetland mitigation bank fund 2,000,000
Local bridge program 126,550,900
Local federal aid and road and bridge
construction 428,999,800
Movable bridge 6,504,600
Rail grade crossing 3,000,000
Rail grade crossing - surface improvements 6,000,000
Rail grade separation grant program 40,000,000
State trunkline federal aid and road and bridge
construction 2,136,373,900
GROSS APPROPRIATION $ 5,999,080,300
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Appropriated from:
Federal revenues:
Federal aid – transportation programs 1,741,778,500
Special revenue funds:
Local funds 30,003,500
Private funds 10,000,000
Blue Water Bridge fund 29,026,400
Local bridge fund 26,550,900
Michigan transportation fund 2,423,955,700
Neighborhood roads fund 903,200,000
State trunkline fund 734,565,300
State general fund/general purpose $ 100,000,000
Sec. 110. BLUE WATER BRIDGE
Full-time equated classified positions 41.0
Blue Water Bridge operations--FTEs 41.0 $ 7,653,200
GROSS APPROPRIATION $ 7,653,200
Appropriated from:
Special revenue funds:
Blue Water Bridge fund 7,653,200
State general fund/general purpose $ 0
Sec. 111. TRANSPORTATION ECONOMIC DEVELOPMENT
Forest roads $ 5,000,000
Rural county primary 10,620,800
Rural county urban system 2,500,000
Target industries/economic redevelopment 24,741,600
Urban county congestion 10,620,800
GROSS APPROPRIATION $ 53,483,200
Appropriated from:
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Special revenue funds:
Economic development fund 53,483,200
State general fund/general purpose $ 0
Sec. 112. AERONAUTICS SERVICES
Full-time equated classified positions 43.3
Air service program $ 50,000
Air service - general aviation airports 5,294,700
Aviation services-FTEs 43.3 6,801,000
GROSS APPROPRIATION $ 12,145,700
Appropriated from:
Special revenue funds:
State aeronautics fund 12,145,700
State general fund/general purpose $ 0
Sec. 113. PUBLIC TRANSPORTATION SERVICES
Full-time equated classified positions 36.9
Passenger transportation services--FTEs 36.9 $ 5,672,600
GROSS APPROPRIATION $ 5,672,600
Appropriated from:
Federal revenues:
Federal aid – transportation programs 2,000,000
Special revenue funds:
Comprehensive transportation fund 3,672,600
State general fund/general purpose $ 0
Sec. 114. LOCAL BUS TRANSIT
Local bus operating $ 290,000,000
Nonurban operating/capital 41,935,500
GROSS APPROPRIATION $ 331,935,500
Appropriated from:
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Federal revenues:
Federal aid – transportation programs 39,935,500
Special revenue funds:
Local funds 2,000,000
Comprehensive transportation fund 290,000,000
State general fund/general purpose $ 0
Sec. 115. INTERCITY PASSENGER AND FREIGHT
Full-time equated classified positions 37.4
Detroit/Wayne County Port Authority $ 700,000
Freight property management 1,300,000
Intercity services 10,189,700
Marine passenger service 22,559,100
Office of rail--FTEs 37.4 5,370,500
Rail operations and infrastructure 219,388,500
GROSS APPROPRIATION $ 259,507,800
Appropriated from:
Federal revenues:
Federal aid – transportation programs 124,362,700
Special revenue funds:
Local funds 760,000
Private funds 4,500,000
Comprehensive transportation fund 121,329,000
Intercity bus equipment fund 45,400
Michigan transportation fund 1,674,800
Rail freight fund 6,000,000
State trunkline fund 835,900
State general fund/general purpose $ 0
Sec. 116. PUBLIC TRANSPORTATION DEVELOPMENT
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Full-time equated classified positions 1.0
Infrastructure projects authority fund $ 65,000,000
Maritime and port facility assistance grant
program--FTE 1.0 5,294,700
Municipal credit program 2,000,000
Service initiatives 6,300,000
Specialized services 30,342,700
Transit capital 247,793,500
Van pooling 195,000
GROSS APPROPRIATION $ 356,925,900
Appropriated from:
Federal revenues:
Federal aid – transportation programs 161,399,300
Special revenue funds:
Local funds 37,185,000
Private funds 4,000,000
Comprehensive transportation fund 84,046,900
Infrastructure projects authority fund 65,000,000
Maritime and port facility assistance fund 5,294,700
State general fund/general purpose $ 0
Sec. 117. CAPITAL OUTLAY
(1) BUILDINGS AND FACILITIES
Salt storage buildings and containment control $ 3,000,000
Special maintenance, remodeling, and additions 5,000,500
GROSS APPROPRIATION $ 8,000,500
Appropriated from:
Special revenue funds:
State trunkline fund 8,000,500
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State general fund/general purpose $ 0
(2) AIRPORT IMPROVEMENT PROGRAMS
Airport safety, protection, and improvement
program $ 189,045,000
Detroit Metropolitan Wayne County Airport 13,020,000
IIJA airport infrastructure grants 115,000,000
GROSS APPROPRIATION $ 317,065,000
Appropriated from:
Federal revenues:
Federal aid – transportation programs 270,000,000
Special revenue funds:
Local funds 17,500,000
Private funds 2,000,000
Qualified airport fund 13,020,000
State aeronautics fund 14,545,000
State general fund/general purpose $ 0
Sec. 118. ONE-TIME APPROPRIATIONS
Rail freight/rail economic development $ 23,000,000
Grants to commercial service airports 16,781,500
Maritime and port facility assistance grant
program 22,000,000
GROSS APPROPRIATION $ 61,781,500
Appropriated from:
Special revenue funds:
Comprehensive transportation fund 61,781,500
State general fund/general purpose $ 0

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
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FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$6,097,647,100.00 and state spending under part 1 from state
sources to be paid to local units of government is
$3,966,767,600.00. The following itemized statement identifies
appropriations from which spending to local units of government
will occur:
STATE TRANSPORTATION DEPARTMENT
Grants to regional planning councils $ 488,800
Cities and villages 1,112,369,700
Cities and villages – MTF redistribution 4,360,000
Cities and villages – GF/GP 28,000,000
County road commissions 2,012,101,400
County road commissions – MTF redistribution 7,820,000
County road commissions – GF/GP 52,000,000
Grants to local programs 33,000,000
Local agency wetland mitigation 2,000,000
Local bridge program 126,550,900
Local grade separation program 40,000,000
Movable bridge 6,504,600
Rail grade crossing 1,500,000
Rail grade surface crossing improvements 6,000,000
Forest roads 5,000,000
Rural county primary 10,620,800
Rural county urban system 2,500,000
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Target industries/economic redevelopment 24,741,600
Urban county congestion 10,620,800
Air service program 50,000
Local bus operating 290,000,000
Detroit/Wayne County Port Authority 700,000
Marine passenger service 4,000,000
Municipal credit program 2,000,000
Service initiatives 1,000,000
Specialized services 13,000,000
Transit capital 67,851,900
Airport safety, protection, and improvement
program 14,545,000
Detroit Metropolitan Wayne County Airport 13,020,000
Grants to commercial service airports 16,781,500
Total payments to local units of government $ 3,966,767,600
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "CTF" means comprehensive transportation fund.
(b) "Department" means the state transportation department.
(c) "DOT-FHWA" means DOT, Federal Highway Administration.
(d) "FTE" means full-time equated.
(e) "IDG" means interdepartmental grant.
(f) "IIJA" means the infrastructure investment and jobs act,
2021, Public Law 117-58.
(g) "MTF" means Michigan transportation fund.
(h) "SAF" means state aeronautics fund.
(i) "Standard report recipients" means the senate and house
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appropriations committees, the senate and house appropriations
subcommittees on transportation, the senate and house fiscal
agencies, the senate and house policy offices, and the state budget
office.
(j) "STF" means state trunkline fund.
Sec. 204. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under part 1, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 205. (1) The department shall use the internet to fulfill
the reporting requirements of this part and shall make each report
readily accessible to the public and conspicuously post each
required report in a single archivable location on the department's
website not later than the due date required for each report.
(2) In addition to placing all reports required in the current
fiscal year on the department's website, the department shall
maintain on its website all reports placed on the website from
previous fiscal years posted by fiscal year in the same single
archivable location.
(3) The department shall transmit all required reports for the
current fiscal year to the standard report recipients and any other
required recipients by email. The email shall include a copy of the
report and a link to access the report online.
Sec. 206. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department shall
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electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 207. (1) The department shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(2) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas.
Sec. 209. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years.
Sec. 210. Not later than November 15, the department shall
report on private and other third-party funds received by the
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department in the previous fiscal year. The report must include the
amount of funding received, the specific source of funding
received, the purpose for which funding was expended, and the
amount of any remaining funds.
Sec. 211. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses by not later than January
1. The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
(c) The destination of each travel occurrence.
(d) The specific purpose and description of each travel
occurrence, including the specific name of the event or meeting.
Sec. 212. On a quarterly basis, the department shall report on
all of the following:
(a) The number of full-time equated positions in pay status by
civil service classification.
(b) A comparison by line item of the number of full-time
equated positions authorized from funds appropriated in part 1 to
the actual number of full-time equated positions employed by the
department at the end of the reporting period.
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(c) The number of active employees in each of the following
statuses:
(i) Full-time salary.
(ii) Full-time hourly.
(iii) Part-time.
(iv) Permanent-intermittent.
(v) Limited-term.
(vi) Seasonal.
(vii) Worker's compensation.
(viii) Noncareer/per diem.
(ix) Job share.
(x) Special personal services/contractual.
(d) The number of overtime hours worked by employees, by
classifications.
Sec. 213. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the policy change. The department shall submit
the report to the standard report recipients, to the senate and
house standing committees responsible for addressing issues
affected by the public acts, and to the joint committee on
administrative rules.
Sec. 214. (1) Not later than April 1, the department shall
maintain, on a publicly accessible website, a department scorecard
that identifies, tracks, and updates on a quarterly basis key
metrics that are used to monitor and improve the department's
performance.
(2) The department shall notify the standard report recipients
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when the quarterly updates to the department scorecard are
available on a publicly accessible website.
Sec. 215. (1) Unless specifically authorized elsewhere in this
part or part 1, funds appropriated in part 1 must not be used to
pay for a state obligation that exceeds $200,000.00 for a court-
approved judgment, settlement, award, or claim without prior
legislative approval.
(2) If a state obligation for a court-approved judgment,
settlement, award, or claim results in a change from current
statute, the department shall notify the legislature.
(3) This section does not apply to compensation and other
relief to individuals wrongfully imprisoned as required under the
wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751
to 691.1757.
Sec. 216. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $40,000,000.00 for
federal contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $5,000,000.00 for state
restricted contingency authorization. Amounts appropriated are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $1,000,000.00 for local
contingency authorization. Amounts appropriated are not available
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for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $1,000,000.00 for private
contingency authorization. Amounts appropriated are not available
for expenditure until they have been transferred to another line
item in part 1 under section 393(2) of the management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 217. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $34,726,300.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $34,726,300.00. Total appropriations for retiree
health care legacy costs for the department are estimated at $0.00.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The department shall submit reports that summarize
all work project accounts not later than December 31, March 30,
June 30, and September 30. The reports must include all of the
following:
(a) A list of all work project accounts.
(b) The status of all work project accounts, including amounts
expended, amounts encumbered, and available balances for each
account.
(c) The amount of funds that lapsed from any previously
designated work project accounts, the name and description of the
work project account, and the funds that received the lapsed
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amounts.
Sec. 220. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 221. The department shall not take disciplinary action
against an employee of the department because the employee
communicates with a member of the legislature or legislative staff
unless the communication is prohibited by law and the department is
exercising its authority as provided by law.
Sec. 222. (1) The department shall maximize the efficiency of
the state workforce and utilization and occupancy of office space,
leased or owned, for each division within the department. Employees
with job responsibilities that require employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on timesheets are actually
worked.
(2) The department shall comply with requirements set forth by
the office of the state employer on in-person work and utilization
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and occupancy rates of state buildings to ensure at least 80% of
employees are in person and building occupancy and utilization
rates are at least 80% or higher.
(3) The department shall submit reports not later than January
15 and April 15 on all of the following:
(a) Remote work policy by division.
(b) Building occupancy by address.
(c) Whether the building is state-owned or leased.
(d) Aggregate badge scanning information by employee.
(4) As used in this section, "occupancy" means the actual
number of employees physically present in a workplace.
Sec. 223. (1) The department shall require as a condition of
each contract or subcontract that the prequalified contractor or
prequalified subcontractor agree to use the E-Verify system to
verify that all persons hired during the contract term by the
contractor or subcontractor are legally present and authorized to
work in the United States.
(2) The department may verify this information directly or may
require contractors and subcontractors to verify the information
and submit a certification to the department. The department shall
submit a report not later than March 1 that describes the processes
it has developed and implemented under this section.
(3) The department shall not contract with any foreign
entities that are known or suspected to be enemies of the United
States or known foreign adversaries. Foreign adversaries include
all of the following:
(a) The People's Republic of China.
(b) The Russian Federation.
(c) The Islamic Republic of Iran.
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(d) The Democratic People's Republic of Korea.
(e) The Republic of Cuba.
(f) The Venezuelan regime of Nicolás Maduro.
(g) The Syrian Arab Republic.
(h) An agency or other entity under significant control of a
country described in subdivisions (a) to (g).
(4) As used in this section, "E-Verify" means an internet-
based system operated by the Department of Homeland Security,
United States Citizenship and Immigration Services in partnership
with the Social Security Administration.
Sec. 224. (1) Within 30 days of enactment of this act, the
state budget office shall post a list of legislatively directed
spending items funded in part 1 as defined in sections 364 and 364a
of the management and budget act, 1984 PA 431, MCL 18.1364 and
18.1364a. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with sections 364 and 364a of the management and budget act, 1984
PA 431, MCL 18.1364 and 18.1364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall submit a report not later than
November 1. The department or agency shall update the report and
shall submit updated reports not later than March 15 and September
15 of the current fiscal year. The department or agency shall
include in the report the most comprehensive information the
department or agency has available at the time of posting for
grants awarded, including, but not limited to, project milestones,
percent completed, funding expended, and funding encumbered.
(3) Before executing a grant agreement, all grant recipients
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must provide a spending plan that specifies the scope of service,
the program goals, the measurement for meeting program goals, and
how all grant funds will be used, and must indicate if any grant
funds will be provided to a third party or subrecipient.
(4) Each department or agency responsible for awarding or
disbursing grant funds must annually audit the entity's use of the
grant funds for each fiscal year in which the grant is active. Each
entity must submit information requested by the department or
agency to confirm compliance.
(5) Each department or agency shall work with the office of
the auditor general to conduct an audit of the grant according to
generally accepted accounting practices and audit standards. The
office of the auditor general must be given access to all internal
and external records. All contracts or agreements between a
department or agency and a grant recipient or between a grant
recipient and a third party must include a clause granting the
office of the auditor general access to all internal and external
records.
(6) Grant recipients and their immediate family members are
prohibited from being employed by the executive branch or
legislative branch of this state. In addition, grant recipients are
prohibited from serving on any state board that has direct or
indirect responsibility for approving or auditing grant funds
awarded or disbursed by any department or agency.
(7) Full and complete audits of grant funds issued by the
department or an agency of this state, without redaction unless
required by law, must be posted to the department's or agency's
website in a conspicuous place for public review.
(8) On a quarterly basis, the department or agency shall
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submit a report on legislatively sponsored grant funds that
includes, but is not limited to, all of the following:
(a) The name of each grant recipient and the status of each
grant.
(b) The amount distributed to each grant recipient.
(c) Any changes to scope or costs of program.
(9) The report under subsection (8) must include the following
statements made by the department or agency:
(a) A statement that confirms the department or agency
reviewed and affirmed compliance by each grant recipient with
program scope and expenditure of grant funding.
(b) A statement that confirms the department or agency
reviewed applicable program reports and requests for reimbursement.
Sec. 225. (1) From the funds appropriated in part 1, the
department shall do the following:
(a) Report on any amounts of severance pay for a department
director, deputy director, or other high-ranking department
official not later than 14 days after a severance agreement with
the director, deputy director, or official is signed. The name of
the director, deputy director, or official and the amount of
severance pay must be included in the report required by this
subdivision.
(b) Not later than February 1, report on the total amount of
severance pay remitted to former department employees during the
previous fiscal year and the total number of former department
employees that were remitted severance pay during the previous
fiscal year.
(2) As used in this section, "severance pay" means
compensation to which both of the following apply:
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(a) The compensation is payable or paid upon the termination
of employment.
(b) The compensation is paid in addition to wages or benefits
earned during the course of employment or generally applicable
retirement benefits.
Sec. 226. Funds appropriated in part 1 from state or federal
sources are prohibited from being used to provide services, grants,
or programming to an individual who is not a citizen of the United
States unless the individual is a qualified alien as that term is
defined in 8 USC 1641. This section does not prohibit the
department, political subdivision, state university, or other state
agency from expending funds for the purpose of detaining
individuals who are not citizens of the United States, including
any costs associated with housing such individuals in county jails
or state correctional facilities.
Sec. 227. State funds must not be used for diversity, equity,
and inclusion, or diversity, equity, and inclusion initiatives or
programs, as outlined in federal Executive Order No. 14151, 90 Fed.
Reg. 8339 (January 29, 2025) "Ending Radical and Wasteful
Government DEI Programs and Preferencing", federal Executive Order
No. 14168, 90 Fed. Reg. 8615 (January 30, 2025) "Defending Women
from Gender Ideology Extremism and Restoring Biological Truth to
the Federal Government", or federal Executive Order No. 14173, 90
Fed. Reg. 8633 (January 31, 2025) "Ending Illegal Discrimination
and Restoring Merit-Based Opportunity".
Sec. 228. The department shall use the same precontract risk
assessment program utilized by the department of technology,
management, and budget to evaluate financial compliance, security
risks, and insurance requirements prior to contract execution.
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DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. The department may establish a fee schedule and
collect fees sufficient to cover the costs to issue the permits
that the department is authorized by law to issue on request,
unless otherwise stipulated by law. All permit fees are
nonrefundable application fees and must be credited to the
appropriate fund to recover the direct and indirect costs of
receiving, reviewing, and processing the requests.
Sec. 304. If, as a requirement of bidding on a highway
project, the department requires a contractor to submit financial
or proprietary documentation as to how the bid was calculated, the
department shall keep that bid documentation confidential and shall
not disclose that bid documentation other than to a department
representative without the contractor's written consent. The
department may disclose the bid documentation if necessary to
address or defend a claim by a contractor.
Sec. 306. (1) The amounts appropriated in part 1 to support
tax and fee collection, law enforcement, and other program services
provided to the department and to transportation funds by other
state departments must be expended from transportation funds
pursuant to annual contracts between the department and those other
state departments. The contracts must be executed before the
expenditure or obligation of those funds. The contracts must
provide, but are not limited to, the following data applicable to
each state department:
(a) Estimated costs to be recovered from transportation funds.
(b) Description of services provided to the department and/or
transportation funds and financed with transportation funds.
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(c) Detailed cost allocation methods appropriate to the type
of services being provided and the activities financed with
transportation funds.
(2) Not later than 2 months after publication of the state of
Michigan annual comprehensive financial report, each state
department receiving funding pursuant to an interdepartment
contract with the department shall submit a written report to the
department, the state budget director, the senate and house fiscal
agencies, and the auditor general stating by spending authorization
account the amount of estimated funds contracted with the
department, the amount of funds expended, the amount of funds
returned to the transportation funds, and any unreimbursed
transportation-related costs incurred but not billed to
transportation funds.
Sec. 307. Before March 1, the department shall provide to the
standard report recipients its rolling 5-year plan listing by
county or by county road commission all highway construction
projects for the fiscal year and all expected projects for the
ensuing fiscal years.
Sec. 309(1). The department shall conduct a study of the
performance of United States manufactured yellow water-based
pavement marking paint. The study must be conducted using a
sufficient number of pavement marking projects, totaling not less
than 150 miles, to represent multiple road surface types. The
department shall report on the results of the study to standard
report recipients on or before September 30, 2027. The study must
include a detailed description and analysis of the outcome of the
testing including recommendations, an evaluation of product
effectiveness, the basis for the conclusions, and testing protocols
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used.
(2) It is the intent of the legislature to use cement
manufactured in the United States according to the rules of origin
under the United States-Mexico-Canada agreement, Public Law 116-
113.
Sec. 310. The department shall post in a timely manner copies
of the agenda, approved minutes, and audio recording of state
transportation commission meetings.
Sec. 311. (1) The department shall prepare a report on all of
the following:
(a) CRRSAA – highway infrastructure – local bridge bundling
initiative established in section 113(2) of article 14 of 2021 PA
87.
(b) Local bridge bundling initiative established in section
118 of article 15 of 2023 PA 119.
(2) The report must identify the status of bridge projects
selected, funds expended under the program, and funds remaining.
(3) The report shall be submitted to the standard report
recipients on or before March 30, 2027.
Sec. 312. By March 31, the department shall report to the
senate and house appropriations subcommittees on transportation,
the senate and house fiscal agencies, and the state budget office
on the utilization of department properties, including, but not
limited to, salt storage facilities, garages, and regional offices.
Sec. 313. (1) From funds appropriated in part 1, the
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department may increase a state infrastructure bank program and
grant or loan funds in accordance with regulations of the state
infrastructure bank program of the United States Department of
Transportation. The department shall administer the state
infrastructure bank for the purpose of providing a revolving, self-
sustaining resource for financing transportation infrastructure
projects.
(2) In addition to funds provided in subsection (1), money
received by this state as federal grants, repayment of state
infrastructure bank loans, or other reimbursement or revenue
received by this state as a result of projects funded by the
program and interest earned on that money must be deposited in the
revolving state infrastructure bank fund and must be available for
transportation infrastructure projects. At the close of the fiscal
year, any unencumbered funds remaining in the state infrastructure
bank fund remain in the fund and carry forward into the succeeding
fiscal year.
(3) The department shall prepare a report on the status of the
state infrastructure bank and submit the report to the standard
report recipients on or before December 31, 2026. The report must
include all of the following:
(a) The balance in the state infrastructure bank on September
30, 2026, including a breakdown of the balance by cash and cash
equivalents, outstanding loans, and balance available for loan to
local agencies.
(b) A breakdown of the state infrastructure loan balance by
amounts originating from federal sources and the amounts
originating from nonfederal sources.
(c) A list of outstanding loans by agency, original loan
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amount, project description, loan term, and amount outstanding.
Sec. 314. (1) The MI contracting opportunity loan fund is
created within the state treasury.
(2) Funds deposited into the MI contracting opportunity loan
fund originally created in section 1003 of article 15 of 2024 PA
121 or money received by the state as repayment of loans or
interest earned on loan funds is appropriated and shall be
available for future loans.
(3) At the close of the fiscal year, any unencumbered funds
remaining in the fund shall be carried forward into the succeeding
fiscal year.
Sec. 315. The department shall use any additional funds in the
moveable bridge fund to cover other costs for any required local
federal bridge load analysis, inspection, or other local federal
mandate.
Sec. 383. (1) The department shall prepare a report on the use
of department-owned aircraft during the fiscal year ending
September 30, 2026. With respect to each department-owned aircraft,
the report must include all of the following:
(a) Total hours of usage.
(b) Description of specific flights, including dates of
travel, names of passengers, including state agency, university, or
local government affiliation, travel origin and destination, and
total estimated costs associated with the air travel.
(2) The department shall submit the report as required under
section 205 no later than February 1, 2027.
(3) The department shall maintain a system for recovering the
cost of operating department-owned aircraft through charges to
aircraft users.
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Sec. 384. (1) Except as otherwise provided in subsection (2),
the department shall not obligate this state to expend any state
transportation revenue for construction planning or construction of
the Gordie Howe International Crossing or a renamed successor. In
addition, except as provided in subsection (2), the department
shall not commit this state to any new contract related to the
construction planning or construction of the Gordie Howe
International Crossing or a renamed successor that would obligate
this state to expend any state transportation revenue. An
expenditure for staff resources used in connection with project
activities that is subject to full and prompt reimbursement from
Canada is not considered an expenditure of state transportation
revenue.
(2) If the legislature enacts specific enabling legislation
for the construction of the Gordie Howe International Crossing or a
renamed successor, subsection (1) does not apply once the enabling
legislation goes into effect.
Sec. 385. (1) The department shall submit monthly reports to
the standard report recipients, the speaker of the house of
representatives, the house of representatives minority leader, the
senate majority leader, and the senate minority leader on all of
the following:
(a) All expenditures made by this state related to the Gordie
Howe Bridge.
(b) All reimbursements made by Canada under section 384(1) of
this part to this state for expenditures for staff resources used
in connection with project activities.
(c) All eminent domain and condemnation powers used, the
related real estate involved in any governmental taking, the price
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paid for those properties, and the beneficiary's name or associated
corporation.
(2) The department shall submit the initial report required
under subsection (1) on or before December 1. The initial report
must cover the prior fiscal year.
Sec. 388. From the funds appropriated in part 1, the
department shall not expend any state funds or other resources in
support of federal United States Department of Transportation grant
693JJ22440000Y430MI24A0815.
Sec. 389. (1) Within 30 days after entering into a long-term
agreement with a private contractor, a public agency, or a
partnership between 1 or more private contractors or public
agencies, the department shall notify the state budget director,
the senate and house appropriations subcommittees on
transportation, and the senate and house fiscal agencies of the
agreement, including the subject of the agreement, the term of the
agreement, and financial obligations under the agreement.
(2) As used in this section, "long-term agreement" means an
agreement that obligates the department for a period of 5 years or
more and that actually or contingently obligates the department to
make payments over the contract period of $10,000,000.00 or more.
Sec. 394. The department and local road agencies shall make
the preservation of their existing road networks a funding
priority.
Sec. 395. From the funds appropriated in part 1 for state
trunkline federal aid road and bridge construction, the department
may expend up to $10,000,000.00 on highway maintenance activities
to support safety-related, high-priority, and other deferred
routine maintenance needs on the state trunkline network.
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Sec. 398. The department shall continue to work to eliminate
fatalities and serious injuries on the state trunkline network and
shall maintain the Toward Zero Deaths statewide safety campaign.
Sec. 399. In developing its state trunkline road and bridge
construction program, the department shall prioritize spending on
capital preventative maintenance.

MICHIGAN TRANSPORTATION FUND
Sec. 501. The money received under the motor carrier act, 1933
PA 254, MCL 475.1 to 479.42, and not appropriated to the department
of licensing and regulatory affairs or the department of state
police is deposited in the Michigan transportation fund.
Sec. 503. (1) At the close of the fiscal year, funds
appropriated in part 1 for the transportation economic development
program shall lapse to the transportation economic development
fund.
(2) At the close of the fiscal year, funds appropriated in
part 1 for the local bridge program shall carry forward and are
appropriated for the purposes defined in section 10(5) of 1951 PA
51, MCL 247.660.
(3) Interest earned in the transportation economic development
fund and local bridge fund shall remain in the respective funds and
shall be allocated to the respective programs based on actual
interest earned at the end of each fiscal year.
(4) In addition to the funds appropriated in part 1, the
transportation economic development fund and local bridge fund may
receive federal, local, or private funds or restricted source funds
such as interest earnings. These funds are appropriated for
projects that are consistent with the purposes of the respective
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funds.
(5) None of the funds statutorily dedicated to the
transportation economic development fund and local bridge fund
shall be diverted to other projects.
Sec. 504. Funds from the Michigan transportation fund must be
distributed to the comprehensive transportation fund, the economic
development fund, the recreation improvement fund, and the state
trunkline fund, in accordance with this part and part 1 and part
711 of the natural resources and environmental protection act, 1994
PA 451, MCL 324.71101 to 324.71108, and may only be used as
specified in this part and part 1, 1951 PA 51, MCL 247.651 to
247.675, and part 711 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.71101 to 324.71108.
Sec. 505. At the close of the fiscal year, any unencumbered
and unexpended balance in the movable bridge fund remains in the
movable bridge fund and carries forward and is appropriated for the
purposes described in section 11g(3)(b) of 1951 PA 51, MCL
247.661g.

STATE TRUNKLINE FUND
Sec. 604. At the close of the fiscal year, any unencumbered
and unexpended balance in the state trunkline fund remains in the
state trunkline fund and carries forward and is appropriated for
federal aid road and bridge programs for projects contained in the
annual state transportation program.
Sec. 651. Funds from the neighborhood roads fund must be
distributed and are appropriated to the local grade separation
fund, comprehensive transportation fund, infrastructure projects
authority fund, and the state trunkline fund, in accordance with
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this part and part 1, and section 13c of 1951 PA 51, MCL 247.663c.
Sec. 652. At the close of the fiscal year, any unencumbered
and unexpended balance in the neighborhood roads fund not
previously allocated under sections (a) through (e) of section
13c(5) of 1951 PA 51, MCL 247.663c, remains in the neighborhood
roads fund and carries forward and is appropriated to local road
agencies and the state trunkline fund according to section 13c(5)
of 1951 PA 51, MCL 247.663c.

TRANSIT AND RAIL RELATED FUNDS
Sec. 701. The department shall establish an intercity bus
equipment and facility fund as a subsidiary fund within the
comprehensive transportation fund created under section 10b of 1951
PA 51, MCL 247.660b. Proceeds received by this state from the sale
of state-owned intercity bus equipment must be credited to the
intercity bus equipment and facility fund for the purchase and
repair of intercity bus equipment, as appropriated. Security
deposits not returned to a lessee of state-owned intercity bus
equipment under terms of the lease agreement must be credited to
the intercity bus equipment and facility fund for the repair of
intercity bus equipment, as appropriated. Money received by the
department from lease payments for state-owned intercity bus
equipment, and facility maintenance charges under terms of leases
of state-owned intercity facilities, must be credited to the
intercity bus equipment and facility fund for the purchase and
repair of intercity bus equipment or for the maintenance and
rehabilitation of state-owned intercity facilities, as
appropriated. At the close of the fiscal year, any funds remaining
in the intercity bus equipment and facility fund remain in the fund
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and are carried forward into the succeeding fiscal year.
Sec. 702. Money that is received by this state as repayment
for loans made for rail or water freight capital projects, and as a
result of the sale of property or equipment used or projected to be
used for rail or water freight projects must be deposited in the
rail freight fund created by section 17 of the state transportation
preservation act of 1976, 1976 PA 295, MCL 474.67. At the close of
the fiscal year, any funds remaining in the rail freight fund
remain in the fund and are carried forward into the succeeding
fiscal year.
Sec. 704. From the funds appropriated in part 1, the
department shall prepare and transmit a report that provides detail
regarding the department's obligations for programs funded under
the appropriation in part 1 for rail operations and infrastructure.
The report shall include a breakdown of the appropriation by
program, year-to-date obligations under each program itemized by
project, and an estimate of future obligations under each program
itemized by project for the remainder of the fiscal year. The
report shall also include a listing of all active rail related
federal grants. The initial report shall be submitted to the
standard report recipients on or before March 1. The department
also shall update and resubmit a final report on or before
September 30.
Sec. 705. After receiving notification from a railroad company
pursuant to section 8 of the state transportation preservation act
of 1976, 1976 PA 295, MCL 474.58, the department shall immediately
notify the senate and house appropriations subcommittees on
transportation and the state budget office that the railroad
company has filed with the appropriate governmental agencies for
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abandonment of a line.
Sec. 706. The Detroit/Wayne County Port Authority shall issue
a complete operations assessment and a financial disclosure
statement. The operations assessment shall include operational
goals for the next 5 years and recommendations to improve land
acquisition and development efficiency. The report shall be
completed and submitted to the house of representatives and senate
appropriations subcommittees on transportation, the state budget
director, and the house and senate fiscal agencies by June 30 of
each fiscal year for the prior fiscal year.
Sec. 707. (1) Before March 1, 2027, the department shall
provide to the legislature, the state budget office, and the senate
and house fiscal agencies its rail strategic plan. The strategic
plan must include, but is not limited to, a rolling 5-year rail
plan and a summary of the department's obligations for programs
funded under the appropriation in part 1 for rail operations and
infrastructure.
(2) The rolling 5-year rail plan must include, but is not
limited to, all of the following:
(a) A listing by county of all rail infrastructure projects on
rail lines within this state utilizing state funds, and the
estimated cost of each project.
(b) The actual or projected state expenditures for operation
of passenger rail service.
(c) The actual or projected state expenditures for maintenance
of passenger service rail lines.
(3) The period of the rolling 5-year rail plan must include
the fiscal year ending September 30, 2027 and the immediately
following 4 fiscal years.
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(4) The summary of the department's obligations for programs
funded under the appropriation in part 1 for rail operations and
infrastructure must include a breakdown of the appropriation by
program, year-to-year obligations under each program itemized by
project, and an estimate of future obligations under each program
itemized by project for the remainder of the fiscal year.
(5) From the funds appropriated in part 1 for rail operation
and infrastructure, not less than $20,000,000.00 must be allocated
for the support of rail-related economic development projects and
rail freight system preservation projects.
Sec. 719. The department must allow access to department-owned
park and ride facilities by public transit agency-owned vehicles
for the purposes of passenger boarding and disembarking from public
transportation vehicles.
Sec. 721. The part 1 appropriation for maritime and port
facility program must be used for grants as provided under section
7 of the maritime and port facility assistance grant program act,
2022 PA 159, MCL 120.157. Priority must be given to projects
meeting the allowable uses of section 5(1)(c), (d), and (e) of the
maritime and port facility assistance grant program act, 2022 PA
159, MCL 120.155.
Sec. 722. In addition to the appropriations in part 1, for the
fiscal year ending September 30, 2027, there is appropriated the
following:
(a) From the comprehensive transportation fund created in
section 10b of 1951 PA 51, MCL 247.660b, $7,735,200.00 for credit
to the state aeronautics fund created in the aeronautics code of
the state of Michigan, 1945 PA 327, MCL 259.1 to 259.208.
(b) From the comprehensive transportation fund created in
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section 10b of 1951 PA 51, MCL 247.660b, $6,585,000.00 for credit
to the qualified airport fund created in section 34 of the
aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.34.
Sec. 724. The part 1 appropriation for air service program –
general aviation airports must be used for capital improvement
grants and air service improvements at general aviation airports in
this state.
Sec. 735. For the fiscal year ending September 30, 2027, the
appropriation to a street railway pursuant to section 10e(22) of
1951 PA 51, MCL 247.660e, is $0.00.

AERONAUTICS FUND
Sec. 801. Except as otherwise provided in section 903 of this
part for capital outlay, at the close of the fiscal year, any
unobligated and unexpended balance in the state aeronautics fund
created in the aeronautics code of the state of Michigan, 1945 PA
327, MCL 259.1 to 259.208, lapses to the state aeronautics fund and
may be appropriated by the legislature in the immediately
succeeding fiscal year.
Sec. 802. From the funds appropriated in part 1 for aviation
services, the department shall retain and maintain air service
between Marquette and Lansing with priority service as follows:
(a) Emergencies.
(b) Routine travel for elected state officials.
(c) Other uses.

CAPITAL OUTLAY
Sec. 901. (1) From federal-state-local project appropriations
contained in part 1 for the purpose of assisting political entities
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and subdivisions of this state in the construction and improvement
of publicly used airports and landing fields within this state, the
state transportation department may permit the award of contracts
on behalf of units of local government for the authorized locations
not to exceed the indicated amounts, of which the state allocated
portion must not exceed the amount appropriated in part 1.
(2) Political entities and subdivisions shall provide not less
than 5% of the cost of any project under this section, unless a
total nonfederal share less than 10% is otherwise specified in
federal law. State money must not be allocated until local money is
allocated. State money for any 1 project must not exceed 1/3 of the
total appropriation in part 1 from state funds for airport
improvement programs.
(3) The Michigan aeronautics commission may take those steps
necessary to match federal money available for airport construction
and improvement within this state and to meet the matching
requirements of the federal government. Whether acting alone or
jointly with another political subdivision or public agency or with
this state, a political subdivision or public agency of this state
shall not submit to any agency of the federal government a project
application for airport planning or development unless it is
authorized in this part and part 1 and the project application is
approved by the governing body of each political subdivision or
public agency making the application and by the Michigan
aeronautics commission.
Sec. 903. The appropriations in part 1 for capital outlay are
carried forward at the end of the fiscal year consistent with the
provisions of section 248 of the management and budget act, 1984 PA
431, MCL 18.1248.
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ONE-TIME APPROPRIATIONS
Sec. 1001. The part 1 appropriation for rail freight economic
development must be used for grants in support of rail freight and
rail freight economic development programs in this state.
Sec. 1002. The part 1 appropriation for grants to commercial
service airports must be used for grants for capital improvements
at commercial service airports in this state with fewer than
5,000,000 enplanements each year.