Appropriations: omnibus; appropriations for multiple departments and branches for the fiscal year 2026-2027; provide for. Amends; adds & repeals (See bill). TIE BAR WITH: SB 0877'26

SB-878, As Passed Senate, April 29, 2026

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SUBSTITUTE FOR
SENATE BILL NO. 878
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
Sec. 101. There is appropriated for the department of
agriculture and rural development for the fiscal year ending
September 30, 2027, from the following funds:
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DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 545.0
GROSS APPROPRIATION $ 157,647,700
Total interdepartmental grants and
intradepartmental transfers 338,600
ADJUSTED GROSS APPROPRIATION $ 157,309,100
Federal revenues:
Total federal revenues 20,245,000
Special revenue funds:
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 60,163,700
State general fund/general purpose $ 76,900,400
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 31.0
Unclassified salaries--FTE positions 6.0 $ 1,096,200
Accounting service center 1,206,700
Commissions and boards 23,800
Emergency management--FTEs 8.0 2,799,700
Emerging contaminants in food and agriculture--
FTEs 6.0 1,368,700
Executive direction--FTEs 17.0 2,549,600
Property management 953,200
GROSS APPROPRIATION $ 9,997,900
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Appropriated from:
Federal revenues:
Deferred federal revenue funding 15,000
HHS, multiple grants 450,200
USDA, multiple grants 600,000
Special revenue funds:
Agriculture licensing and inspection fees 86,500
Dairy and food safety fund 321,100
Feed control fund 600
Freshwater protection fund 52,600
Gasoline inspection and testing fund 102,500
Industry support funds 58,300
Michigan craft beverage council fund 8,800
Private forestland enhancement fund 19,600
State general fund/general purpose $ 8,282,700
Sec. 103. INFORMATION TECHNOLOGY
Information technology services and projects $ 2,832,300
GROSS APPROPRIATION $ 2,832,300
Appropriated from:
Special revenue funds:
Agriculture licensing and inspection fees 84,600
Dairy and food safety fund 294,500
Feed control fund 20,200
Fertilizer control fund 200
Freshwater protection fund 40,100
Gasoline inspection and testing fund 119,700
Industrial hemp fund 15,000
Weights and measures regulation fees 100,000
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State general fund/general purpose $ 2,158,000
Sec. 104. FOOD SAFETY AND ANIMAL HEALTH
Full-time equated classified positions 212.0
Animal disease prevention and response--FTEs 63.0 $ 11,360,700
Animal feed safety--FTEs 10.0 2,165,200
Food safety and quality assurance--FTEs 103.0 18,656,600
Indemnification - livestock depredation 15,000
Milk safety and quality assurance--FTEs 36.0 6,160,700
GROSS APPROPRIATION $ 38,358,200
Appropriated from:
Federal revenues:
HHS, multiple grants 2,952,100
USDA, multiple grants 1,211,300
Special revenue funds:
Agriculture licensing and inspection fees 89,800
Animal welfare fund 150,000
Consumer and industry food safety education
fund 242,500
Dairy and food safety fund 9,186,500
Feed control fund 1,478,300
Industry food safety education fund 114,100
Marihuana regulatory fund 50,500
State general fund/general purpose $ 22,883,100
Sec. 105. ENVIRONMENT AND SUSTAINABILITY
Full-time equated classified positions 117.5
Environmental stewardship - MAEAP--FTEs 27.0 $ 11,175,800
Local conservation districts 3,000,000
Pesticide and plant pest management--FTEs 79.0 14,032,100
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Right-to-farm--FTEs 6.5 1,073,500
Soil health/regenerative agriculture--FTEs 5.0 2,066,000
GROSS APPROPRIATION $ 31,347,400
Appropriated from:
Interdepartmental grant revenues:
IDG from MDEGLE, biosolids 97,800
Federal revenues:
Department of interior 96,300
EPA, multiple grants 1,093,100
USDA, multiple grants 2,199,900
Special revenue funds:
Agriculture licensing and inspection fees 4,110,900
Fertilizer control fund 1,417,800
Freshwater protection fund 8,600,600
Horticulture fund 70,000
Industrial hemp fund 592,300
Industry support funds 228,100
State general fund/general purpose $ 12,840,600
Sec. 106. AGRICULTURE DEVELOPMENT
Full-time equated classified positions 71.0
Agricultural preservation easement grants $ 2,500,000
Agricultural support--FTEs 5.0 919,900
Agriculture development--FTEs 16.0 4,927,800
Farm to family--FTEs 6.0 3,021,100
Farmland and open space preservation--FTEs 10.0 1,639,800
Food and agriculture investment program 2,449,300
Food and agriculture supply chain--FTE 1.0 305,000
Fruit and vegetable inspections--FTEs 8.0 1,330,400
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Intercounty drain--FTEs 5.0 910,700
Michigan craft beverage council--FTE 1.0 1,353,000
Migrant labor housing--FTEs 9.0 1,433,500
Michigan local food, farm, and nutrition
programs 8,000,000
Producer security/grain dealers--FTEs 6.0 1,059,800
Qualified forest program--FTEs 4.0 8,147,600
GROSS APPROPRIATION $ 37,997,900
Appropriated from:
Federal revenues:
USDA, multiple grants 8,091,600
Special revenue funds:
Agricultural preservation fund 4,139,800
Agriculture licensing and inspection fees 5,100
Commodity inspection fees 708,900
Grain dealers fee fund 897,500
Industry support funds 227,400
Michigan craft beverage council fund 1,323,000
Migratory labor housing fund 147,800
Private forestland enhancement fund 1,380,100
State school aid revenue 4,000,000
State general fund/general purpose $ 17,076,700
Sec. 107. LABORATORY AND CONSUMER PROTECTION
Full-time equated classified positions 113.5
Consumer protection program--FTEs 39.0 $ 7,104,200
Integrated solutions--FTEs 25.0 3,925,400
Laboratory services--FTEs 40.5 8,545,900
USDA monitoring--FTEs 9.0 1,774,300
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GROSS APPROPRIATION $ 21,349,800
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing
fees 240,800
Federal revenues:
EPA, multiple grants 180,600
HHS, multiple grants 1,579,400
USDA, multiple grants 1,775,500
Special revenue funds:
Agriculture licensing and inspection fees 440,000
Agriculture preservation fund 44,600
Dairy and food safety fund 959,800
Feed control fund 157,000
Fertilizer control fund 23,500
Freshwater protection fund 133,800
Gasoline inspection and testing fund 2,281,500
Grain dealers fee fund 8,400
Industrial hemp fund 322,200
Migratory labor housing fund 29,900
Refined petroleum fund 3,620,400
Testing fees 365,000
Weights and measures regulation fees 778,100
State general fund/general purpose $ 8,409,300
Sec. 108. FAIRS AND EXPOSITIONS
County fairs, shows, and expositions $ 250,000
Fairs and racing 376,600
Horse racing advisory commission 125,000
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Purses and supplements - fairs/licensed tracks 3,017,600
Standardbred breeders' awards 503,900
Standardbred purses and supplements - licensed
tracks 1,441,100
Standardbred sire stakes 1,050,000
GROSS APPROPRIATION $ 6,764,200
Appropriated from:
Special revenue funds:
Agriculture equine industry development fund 6,514,200
State general fund/general purpose $ 250,000
Sec. 109. ONE-TIME APPROPRIATIONS
Farmer-owned meat processor grants $ 4,000,000
Michigan animal agriculture alliance 3,000,000
Michigan local food, farm, and nutrition
programs 2,000,000
GROSS APPROPRIATION $ 9,000,000
Appropriated from:
Special revenue funds:
Dairy and food safety fund 4,000,000
State general fund/general purpose $ 5,000,000

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
$137,064,100.00 and total state spending under part 1 from state
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sources to be paid to local units of government is $12,400,000.00.
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 $ 2,500,000
Environmental stewardship/MAEAP 4,100,000
Local conservation districts 3,000,000
Qualified forest program 1,400,000
Rural development fund grant program 1,400,000
TOTAL $ 12,400,000
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 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 house and senate
appropriations subcommittees on agriculture and rural development,
the house and senate fiscal agencies, the house and senate policy
offices, and the state budget office.
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(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.
(k) "USDA" means the United States Department of Agriculture.
Sec. 204. 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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the 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. The department
or agency shall also transmit all required reports for the current
fiscal year to the standard recipients and any other required
recipients by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
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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. 206. 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. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, each department and agency
receiving appropriations in part 1 shall prepare a report on out-
of-state travel expenses not later than January 1. The report must
list all travel by classified and unclassified employees outside
this state in the previous fiscal year that was funded in whole or
in part with funds appropriated in the department's or agency's
budget. The department shall submit the report to the standard
report recipients and to the house and senate appropriations
committees. 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 other revenues.
Sec. 208. 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. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall submit the report to the standard report
recipients and to the chairpersons of the house and senate
appropriations committees.
Sec. 210. (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 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 $100,000.00 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
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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. 211. The department shall cooperate with the department
of technology, management, and budget to maintain a searchable
website accessible by the public at no cost that includes, but is
not limited to, all of the following for the department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
Sec. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the house and
senate appropriations committees.
Sec. 213. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of the local health officer.
Sec. 214. To the extent permissible under the management and
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budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations in part 1, shall
take all reasonable steps to ensure geographically disadvantaged
business enterprises compete for and perform contracts to provide
services or supplies, or both. The director shall strongly
encourage firms with which the department contracts to subcontract
with certified geographically disadvantaged business enterprises
for services, supplies, or both. As used in this section,
"geographically disadvantaged business enterprises" means that term
as defined in Executive Directive No. 2023-1.
Sec. 215. On a quarterly basis, the department or agency
receiving appropriations in part 1, shall report on the number of
full-time equated positions in pay status by civil service
classification, including a comparison by line item of the number
of full-time equated positions authorized from funds appropriated
in part 1 to the actual number of full-time equated positions
employed by the department at the end of the reporting period. The
report must be submitted to the house and senate appropriations
committees and to the standard report recipients.
Sec. 216. (1) The department shall maximize utilization of its
in-person state workforce. The department shall prioritize
occupancy utilization of office space 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 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 in-person work is
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optimized and occupancy rates are 80% or higher, subject to market
conditions.
(3) The department shall adhere to civil service rules and
regulations that state the standard biweekly work period for a
full-time employee in the classified service of this state is the
equivalent of 80 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed-upon business hours.
Sec. 218. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
must do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department in the previous fiscal year.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose or
purposes.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the house
and senate appropriations committees, the house and senate fiscal
agencies, and the state budget office that details all of the
following:
(i) The type of funding received.
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(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
specified purpose or purposes.
(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) The type or types of funding anticipated.
(ii) The amount or amounts of funding anticipated.
(iii) The purpose or purposes of the funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
similar timeframe as would be reported under subsection (1),
subsection (1) does not apply.
Sec. 219. 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 may
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 221. 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. 222. Not later than 6 months after the state budget
office issues work project letters, a department or agency shall
submit an annual report that summarizes all work project accounts.
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The report 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. 224. 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
number. The department shall submit the report to the standard
report recipients, the house and senate appropriations committees,
and the joint committee on administrative rules.
Sec. 229. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
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(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 234. 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. 235. 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. 236. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
Sec. 237. Not later than November 15, the department shall
disclose on a publicly accessible website 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
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was expended, and the amount of any remaining funds. The report
must be submitted to the standard report recipients and to the
chairpersons of the house and senate appropriations committees.
Sec. 239. (1) Within 30 days of enactment of this act, the
house and senate shall provide to the state budget office a
jointly-agreed-upon list of legislatively directed spending items
funded in part 1 as defined in 2025 PA 32 and 2025 PA 33. The list
must include all information and documents pertaining to the funded
items as publicly disclosed in accordance with 2025 PA 32 and 2025
PA 33.
(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 post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and shall post an updated report not later than June 15 of
the current fiscal year and again not later than September 15 of
the current fiscal year. The department shall include in the report
the most comprehensive information the department has available at
the time of posting for grants awarded.
Sec. 240. The state budget director shall take steps to ensure
that all state fiscal recovery funds allocated to this state under
the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026
and any subsequent financial closeout period.
Sec. 241. (1) The state budget director shall take steps to
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ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of American rescue plan act of 2021, Public Law 117-2,
must be followed for state fiscal recovery funds reallocated and
reappropriated under subsection (1).
(3) The state budget director shall notify the senate and the
house appropriations committees not later than 1 business day after
making any reallocations under subsection (1). The notification
must include the authorized program under which funds were
originally appropriated, the amount of the reallocation, the
program, or programs, or purpose, and the department to which the
funds are being reallocated under subsection (1), and the amount
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reallocated to each program or purpose.

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
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 subcommittees, the fiscal
agencies, and the state budget office 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,
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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.
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.
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(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 $1,368,700.00.
(d) The tentative completion date for the work project is
September 30, 2031.

BUREAU OF FOOD SAFETY AND ANIMAL HEALTH
Sec. 401. (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 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.
(2) The report must include information on significant
foodborne outbreaks and emergencies, including any significant
enforcement actions taken related to food safety during the prior
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calendar year.
(3) The department shall include in the report all
indemnification payments for livestock depredation made in the
previous calendar year and shall include all of the following:
(a) The reason for the indemnification.
(b) The amount of the indemnification.
(c) The person for whom the indemnification was paid.
(4) The report must be transmitted on or before April 1 of
each year.
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 use its resources to
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
privately owned cervid facilities as follows:
(a) Required surveillance testing for chronic wasting disease.
(b) Infected herd bovine TB testing.
Sec. 405. (1) On or before October 15 of each year, the
department shall provide to the standard report recipients a report
on bovine TB status and department activities.
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(2) For each fiscal quarter following the report required in
subsection (1), the department shall provide an update. The
quarterly update reports must identify 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; implementation of a
movement certificate process; progress toward annual surveillance
test requirements; 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 to
continue 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
on or before April 1 of each year.
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
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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.
(vii) The increase of carbon sequestration capacity of soil.
(3) From the funds appropriated in part 1 for soil
health/regenerative agriculture, the department shall promote
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.
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(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. Program partners include, but are not
limited to, farmer-to-farmer networks, Michigan State University
Extension, Michigan State University AgBioResearch, the USDA
Natural Resources Conservation Service, local conservation
districts, and other nongovernmental organizations. 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) The department may use state employees or contract service
providers, or both, to achieve the purposes of the soil
health/regenerative agriculture programs.
(7) 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.
(8) 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,
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implement, and evaluate a soil health/regenerative agriculture
program. The partnership described in this subsection must be
focused on researching and assisting the agricultural industry in
implementing soil health/regenerative agricultural principles and
techniques.
Sec. 503. Not later than April 1, the department shall prepare
a final 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, $3,000,000.00 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 will be 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, 2029.
(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 5% 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 members of socially disadvantaged groups, 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. 603. (1) From the funds appropriated in part 1 for
Michigan local food, farm, and nutrition programs $5,000,000.00
must go to an organization that will assist and provide a financial
incentive to SNAP participants to provide a program to provide
access to fresh produce.
(2) The department shall work with the organization to ensure
that at least 80% of the funds allocated to the program are
directly used for the payments to participating vendors.
(3) The department shall work with the department of health
and human services to do all of the following:
(a) Notify recipients of food assistance program benefits that
food assistance program benefits can be accessed at many farmers
markets in this state with bridge cards.
(b) Notify recipients of food assistance program benefits
about the program and that it is administered by the organization.
Food assistance program recipients shall receive information about
the program.
(4) The department shall work with the organization to expand
access to the program in each of this state's counties with grocery
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stores or farmers markets that meet the program's eligibility
requirements.
(5) On or before June 1, the department shall submit a report
on activities and outcomes of the program. The report must contain
all of the following:
(a) The counties in this state with participating program
vendors, the number of vendors by county, and the name and location
of vendors, as of May 1, 2025.
(b) The counties in this state with participating program
vendors, the number of vendors by county, and the name of location
of vendors, as of May 1, 2026. The report must highlight counties
and vendors added to the program since May 1, 2025.
(c) The number of individuals participating in the program, by
county.
Sec. 604. (1) From the funds appropriated in part 1 for
Michigan local food, farm, and nutrition programs funds must be
allocated for a program to support districts and other nonschool
sponsors in the purchase of locally grown fruits, vegetables, and
legumes, as described in this section.
(2) Funding under this section retained by the department for
administration must not exceed 5%. Funding under this section
retained by project partners for data collection, outreach, and
training must not exceed 2% for each partner.
(3) The department, in collaboration with the Michigan
department of education, shall develop and implement a competitive
grant program for districts and other nonschool sponsors to assist
in paying for the costs incurred by the district or other nonschool
sponsor to purchase or increase purchases of whole or minimally
processed fruits, vegetables, and legumes grown in this state. The
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maximum amount that may be drawn down on a grant to a district or
other nonschool sponsor is based on the number of meals served by
the district during the previous school year under the Richard B.
Russell National School Lunch Act, 42 USC 1751 to 1769j, or meals
served by the other nonschool sponsor in the previous school year.
The department shall collaborate with the Michigan department of
education to provide training to newly participating schools and
other nonschool sponsors and electronic information on agriculture
in this state.
(4) The goals of the program under this section include
improving daily nutrition and eating habits for children through
the school and child care settings while investing in this state's
agricultural and related food business economy.
(5) A district or other nonschool sponsor that receives a
grant under this section shall use those funds for the costs
incurred by the district or the sponsor to do both of the
following:
(a) Purchase whole or minimally processed fruits, vegetables,
and legumes that meet both of the following requirements:
(i) For each fiscal year, were purchased for use in meals and
supportive activities as part of the United States Department of
Agriculture child nutrition programs provided between October 1 and
September 30 of that fiscal year.
(ii) Are grown in this state and, if minimally processed, are
also processed in this state.
(b) Pay for labor and food transportation of locally grown
fruits, vegetables, and legumes that directly support the
activities and goals of the program described in this section. The
amount paid under this subdivision must not exceed 25% of the grant
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award.
(6) For Michigan-grown fruits, vegetables, and legumes that
satisfy the requirements of subsection (5), the department shall
make matching reimbursements in an amount not to exceed 10 cents
for every school meal that is served as part of the United States
Department of Agriculture's child nutrition programs.
(7) In awarding grants under this section, the department, in
collaboration with the Michigan department of education, shall work
in consultation with Michigan-based farm to school resource
organizations to develop scoring criteria that assess an
applicant's ability to procure Michigan-grown products, prepare and
menu Michigan-grown products, promote and market Michigan-grown
products, and submit letters of intent from districts or other
nonschool sponsors on plans for educational activities that promote
the goals of the program.
(8) The department, in collaboration with the Michigan
department of education, shall give preference to districts or
other nonschool sponsors that propose educational activities that
meet 1 or more of the following: promote healthy food activities;
have clear educational objectives; involve parents or the
community; connect to a school's or child care center's farm to
school or farm to early child care procurement activities; and
market and promote the program, leading to increased pupil
knowledge and consumption of Michigan-grown products. The
department, in collaboration with the Michigan department of
education, shall give stronger weighting and consideration to
applications with robust marketing and promotional activities.
(9) In awarding grants, the department, in collaboration with
the Michigan department of education, shall also consider all of
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the following:
(a) The percentage of children who qualify for free or
reduced-price school meals under the Richard B. Russell National
School Lunch Act, 42 USC 1751 to 1769j.
(b) The variety of school or child care center sizes and
geographic locations within the identified prosperity regions.
(c) Existing or planned collaboration between child care
sponsors, between districts, or with agricultural businesses and
essential local food infrastructure, such as farms, farm
cooperatives, processors, distributors, and local food hubs.
(10) As a condition of receiving a grant under this section, a
district or other nonschool sponsor shall provide, or direct its
vendors to provide, to the department copies of monthly receipts
that show the quantity of different Michigan-grown fruits,
vegetables, and legumes purchased, the amount of money spent on
each of these products, the name and Michigan location of the farm
that grew the products, and the methods or plans to market and
promote the program. The district or other nonschool sponsor also
shall provide to the department and the Michigan department of
education monthly United States Department of Agriculture child
nutrition reimbursable meal numbers and must retain monthly menus
noting when and how Michigan-grown products were used in meals. The
district or other nonschool sponsor and school or nonschool sponsor
food service director or directors also shall agree to respond to
brief online surveys and to provide a report that shows the
percentage relationship of Michigan spending compared to total food
spending. By not later than 60 days after the end of the period in
which funds under this section were received, and in which federal
child nutrition programs require submission of claims, each
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district or each nonschool sponsor shall submit a report to the
department and the Michigan department of education on outcomes and
related measurements for economic development and children's
nutrition and readiness to learn. The report must include at least
both of the following:
(a) The extent to which farmers and related businesses,
including distributors and processors, saw an increase in market
opportunities and income generation through sales of Michigan or
local products to districts and other nonschool sponsors. All of
the following apply for purposes of this subdivision:
(i) The data used to determine the amount of this increase are
the total dollar amount of Michigan or local fruits, vegetables,
and legumes purchased by schools and other nonschool sponsors,
along with the number of different types of products purchased;
school and nonschool sponsor food purchasing trends identified
along with products that are of new and growing interest among food
service directors; the number of businesses impacted; and the
percentage of total food budget spent on Michigan-grown fruits,
vegetables, and legumes.
(ii) The district or other nonschool sponsor shall use
purchasing data collected for the program and surveys of school and
nonschool sponsor food service directors on the impact and success
of the program as the source for the data described in subparagraph
(i).
(b) The ability of pupils to access a variety of healthy
Michigan-grown foods through schools and other nonschool sponsor
centers and increase their consumption of those foods. All of the
following apply for purposes of this subdivision:
(i) The data used to determine whether this subdivision is met
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are the number of pupils exposed to Michigan-grown fruits,
vegetables, and legumes at schools and nonschool sponsor centers;
the variety of products served; new items taste-tested or placed on
menus; and the increase in pupil willingness to try new local
healthy foods.
(ii) The district or other nonschool sponsor shall use
purchasing data collected for the project, meal count and
enrollment numbers, school menu calendars, and surveys of school
and nonschool sponsor food service directors as the source for the
data described in subparagraph (i).
(11) The department, in collaboration with the Michigan
department of education, shall compile the reports provided by
districts and other nonschool sponsors under subsection (10) into 1
legislative report. The department, in collaboration with the
Michigan department of education, shall provide this report not
later than April 1 of each fiscal year following the fiscal year
for which funding is allocated under this section to the house and
senate subcommittees responsible for school aid, the house and
senate fiscal agencies, and the state budget director.
(l2) Notwithstanding any other requirement, the department
shall make payments under this section on a schedule determined by
the department.
Sec. 605. (1) From the funds appropriated in part 1 for
Michigan local food, farm, and nutrition programs funds must be
allocated to the scratch cooking pilot program.
(2) A local education agency providing locally-produced
agriculture products for schools may submit an application to the
department for a grant under the pilot program. The application
must include both of the following:
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(a) A needs assessment to evaluate equipment needs, equipment
utilization, procurement process, and workforce capabilities for
the pilot program.
(b) A strategic plan identifying all of the following:
(i) How the local education agency will use the grant funding.
(ii) How project activities will be monitored and evaluated.
(iii) All proposed costs with a clear explanation about how the
costs were determined.
(3) Grants shall be used by a local education agency to
promote scratch cooking, which may include any of the following:
(a) Implementing professional development and training related
to preparing, procuring, advertising, serving, and creating menus
of scratch-cooked meals that prioritize fresh, locally procured
items.
(b) Purchasing kitchen equipment or making infrastructure
modifications necessary for scratch cooking.
(c) Hiring of staff or third-party entities whose primary
focus is creating sustainable, actionable change within a school
food program to increase their scratch cooking that sustains beyond
the grant period.
(d) Providing technical assistance, pupil engagement, and
education related to scratch cooking, such as taste tests, recipe
development, and culinary education.
(e) Investing in K-12 software and technology systems for
procurement to support scratch cooking.
(f) Carrying out any additional activities to promote scratch
cooking that will help local education agencies meet or exceed
nutrition standards.
(4) In evaluating grant applications, the department shall
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give priority to local education agencies that serve the greatest
proportion of students eligible for free or reduced-price lunch.
(5) Not later than 180 days after the expiration of the pilot
program, each local education agency that received a grant shall
submit a report to the department that compares the change at the
end of the grant period to the school year immediately preceding
the beginning of the grant period, including all of the following:
(a) Recipes prepared.
(b) Nutrient analysis information.
(c) Invoices or bid lists identifying the cost of equipment
needed for scratch cooking.
(d) The number of staff, type of staff, and time required to
prepare each meal.
(e) Salary and benefit rates for each food service employee
involved in food preparation of selected meals.
(f) Production record and meal counts.
(g) Free and reduced-price meal eligibility and average daily
lunch participation.
(h) Pre- and post-program scratch cooked menu analysis.
(i) Pre- and post-program local procured item analysis.
(j) Program cost savings.
(k) Any other information required by the department.
(6) Not later than 1 year following the expiration of the
pilot program, the department shall submit a report to the
chairpersons and minority chairpersons of committees and
subcommittees with jurisdictions over education and agriculture in
the house and senate that that includes at least the following
information:
(a) The number of and amount of grants.
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(b) The names of and reports provided by participating local
education agencies.
(c) Recommendations on the continuation or expansion of the
pilot program.
(d) Any other information required by the department.
Sec. 606. (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
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.
(4) The report must identify grant recipients who are members
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of socially disadvantaged groups, women, veterans, and beginning
farmers and ranchers.
Sec. 607. 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. 608. (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. 609. 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.
(b) Timely and proactive communications to applicants on the
status of their application.
(c) The provision of a clear and understood timeline for the
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issuance of any tax credits.
Sec. 610. 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,
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
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with section 20 of the horse racing law of 1995, 1995 PA 279, MCL
431.320.
Sec. 803. From the funds appropriated in part 1 from purses
and supplements – fairs/licensed tracks, $720,000.00 may be spent
only if there is no standardbred race meeting in this state that is
licensed under the horse racing law of 1995, 1995 PA 279, MCL
431.301 to 431.336, by January 1.
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.
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(4) All fairs receiving grants under this section must provide
a report to the department on the financial impact resulting from
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 $250,000.00.
(e) The tentative completion date for the work project is
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September 30, 2028.
(8) The department shall provide a year-end report on the
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.

ONE-TIME APPROPRIATIONS
Sec. 901. (1) From the funds appropriated in part 1 for
farmer-owned meat processor grants, the department shall establish
and administer a farmer-owned meat processor grant program. The
objective of the program is to expand and develop farmer-owned or
farmer-cooperative meat processing.
(2) The department shall award grants on a competitive basis
to farmer-owned or farmer-cooperative meat processors for funds to
assist processors in the financing of equipment, facilities, or
other capital improvements that would result in improvement or
expansion of meat processing.
(3) The department shall identify criteria, evaluate
applications, and provide recommendations to the director for final
approval of grant awards.
(4) Grantees will be required to provide a 50% cash match with
grant awards and identify measurable project outcomes. A farmer-
owned or farmer-cooperative meat processor that received a grant
under this section must provide a report to the department on the
financial impact resulting from the receipt of a grant.
(5) The unexpended portion of the appropriation in part 1 for
farmer-owned or farmer-cooperative meat processors grants are
designated as a work project appropriation and any unencumbered or
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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.
(6) 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 enhancement at
farmer-owned or farmer-cooperative meat processors 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 estimated cost of the project is $4,000,000.00.
(d) The tentative completion date for the work project is
September 30, 2029.
(7) The department shall provide a year-end report on the
farmer-owned or farmer-cooperative meat processors grant program no
later than December 1, 2027 that includes a list 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
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
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Full-time equated classified positions 12,758.0
GROSS APPROPRIATION $ 2,184,138,100
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 2,184,138,100
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 30,559,800
State general fund/general purpose $ 2,148,080,700
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 16.0
Full-time equated classified positions 414.0
Unclassified salaries--FTEs 16.0 $ 2,433,800
Administrative hearings officers 4,229,600
Budget and operations administration--FTEs 317.0 46,106,500
Compensatory buyout and union leave bank 100
Corrections officer pensions 33,000,000
County jail reimbursement program 14,564,600
Employee wellness programming--FTEs 9.0 2,593,300
Equipment and special maintenance 1,559,700
Executive direction--FTEs 28.0 5,586,700
Judicial data warehouse user fees 50,600
New custody staff training 12,338,600
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Prison industries operations--FTEs 60.0 10,449,400
Property management 2,638,000
Prosecutorial and detainer expenses 2,551,000
Worker's compensation 8,584,100
GROSS APPROPRIATION $ 146,686,000
Appropriated from:
Federal revenues:
DOJ, prison rape elimination act grant 674,700
Special revenue funds:
Correctional industries revolving fund 10,449,400
Correctional industries revolving fund 110 721,600
Jail reimbursement program fund 5,900,000
State general fund/general purpose $ 128,940,300
Sec. 103. OFFENDER SUCCESS ADMINISTRATION
Full-time equated classified positions 330.9
Community corrections comprehensive plans and
services $ 15,198,100
County residential services 13,575,500
Criminal justice reinvestment 1,448,400
Education/skilled trades/career readiness
programs--FTEs 249.9 39,917,800
Enhanced food technology program--FTEs 11.0 1,614,700
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 16,074,500
GROSS APPROPRIATION $ 124,497,200
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Appropriated from:
Federal revenues:
DOJ, prisoner reintegration 751,000
Federal education revenues 1,643,800
State general fund/general purpose $ 122,102,400
Sec. 104. FIELD OPERATIONS ADMINISTRATION
Full-time equated classified positions 1,701.5
Field operations--FTEs 1,670.5 $ 233,379,000
Parole board operations--FTEs 31.0 3,999,100
Parole/probation services 940,000
GROSS APPROPRIATION $ 238,318,100
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 $ 230,462,600
Sec. 105. CORRECTIONAL FACILITIES ADMINISTRATION
Full-time equated classified positions 678.0
Body-worn cameras--FTEs 8.0 $ 3,848,700
Central records--FTEs 43.0 5,010,200
Contraband prevention 2,750,000
Correctional facilities administration--FTEs 37.0 7,089,300
Housing inmates in federal institutions 511,000
Inmate housing fund 100
Inmate legal services 290,900
Intelligence unit--FTEs 30.0 4,135,000
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Leased beds and alternatives to leased beds 100
Prison food service--FTEs 324.0 79,029,100
Prison store operations--FTEs 32.0 3,745,300
Transportation--FTEs 204.0 36,578,600
GROSS APPROPRIATION $ 142,988,300
Appropriated from:
Federal revenues:
DOJ-BOP, federal prisoner reimbursement 411,000
SSA-SSI, incentive payment 272,000
Special revenue funds:
Correctional industries revolving fund 110 901,900
Resident stores 3,745,300
State general fund/general purpose $ 137,658,100
Sec. 106. HEALTH CARE
Full-time equated classified positions 1,475.3
Clinical complexes--FTEs 1,000.8 $ 183,630,400
Health care administration--FTEs 18.0 3,805,400
Healthy Michigan plan administration--FTEs 12.0 1,085,000
Hepatitis C treatment 7,499,100
Interdepartmental grant to health and human
services, eligibility specialists 120,200
Mental health and substance use disorder
treatment services--FTEs 444.5 68,887,100
Prisoner health care services 117,540,700
Vaccination program 691,200
GROSS APPROPRIATION $ 383,259,100
Appropriated from:
Federal revenues:
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Federal revenues and reimbursements 435,300
Special revenue funds:
Prisoner health care co-payments 257,200
State general fund/general purpose $ 382,566,600
Sec. 107. CORRECTIONAL FACILITIES
Full-time equated classified positions 8,158.3
Alger Correctional Facility - Munising--FTEs 259.0 $ 30,467,400
Baraga Correctional Facility - Baraga--FTEs 279.8 34,745,500
Bellamy Creek Correctional Facility - Ionia--
FTEs 414.1 50,568,900
Carson City Correctional Facility - Carson
City--FTEs 422.4 51,327,000
Central Michigan Correctional Facility - St.
Louis--FTEs 385.0 49,694,100
Charles E. Egeler Correctional Facility -
Jackson--FTEs 374.6 49,037,100
Chippewa Correctional Facility - Kincheloe--
FTEs 443.6 54,491,800
Cooper Street Correctional Facility - Jackson--
FTEs 254.6 28,887,800
Earnest C. Brooks Correctional Facility -
Muskegon--FTEs 248.2 32,656,000
G. Robert Cotton Correctional Facility -
Jackson--FTEs 375.0 44,009,000
Gus Harrison Correctional Facility - Adrian--
FTEs 285.4 38,717,900
Ionia Correctional Facility - Ionia--FTEs 286.3 37,139,200
Kinross Correctional Facility - Kincheloe--FTEs 222.0 31,341,700
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Lakeland Correctional Facility - Coldwater--
FTEs 272.4 35,481,800
Macomb Correctional Facility - New Haven--FTEs 313.3 40,133,900
Marquette Branch Prison - Marquette--FTEs 319.7 36,806,400
Muskegon Correctional Facility - Muskegon--FTEs 217.3 29,537,700
Newberry Correctional Facility - Newberry--FTEs 200.1 26,318,600
Oaks Correctional Facility - Eastlake--FTEs 289.4 37,859,900
Parnall Correctional Facility - Jackson--FTEs 262.5 31,413,900
Richard A. Handlon Correctional Facility -
Ionia--FTEs 268.3 34,350,300
Saginaw Correctional Facility - Freeland--FTEs 268.6 35,728,600
Special Alternative Incarceration Program -
Jackson--FTEs 26.2 3,374,700
St. Louis Correctional Facility - St. Louis--
FTEs 302.9 40,697,800
Thumb Correctional Facility - Lapeer--FTEs 295.6 38,474,400
Women's Huron Valley Correctional Complex -
Ypsilanti--FTEs 494.8 62,143,000
Woodland Correctional Facility - Whitmore Lake-
-FTEs 287.2 39,518,800
Northern region administration and support--
FTEs 42.0 4,257,600
Southern region administration and support--
FTEs 48.0 17,115,200
GROSS APPROPRIATION $ 1,046,296,000
Appropriated from:
Federal revenues:
DOJ, state criminal assistance program 1,034,800
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Special revenue funds:
State restricted fees, revenues and
reimbursements 102,100
State general fund/general purpose $ 1,045,159,100
Sec. 108. INFORMATION TECHNOLOGY
Information technology services and projects $ 31,754,900
GROSS APPROPRIATION $ 31,754,900
Appropriated from:
Special revenue funds:
Correctional industries revolving fund 110 183,000
Supervision fees set-aside 718,800
State general fund/general purpose $ 30,853,100
Sec. 109. ONE-TIME APPROPRIATIONS
Correctional facilities $ 55,000,000
New custody staff training 12,338,500
Wrap-around services 3,000,000
GROSS APPROPRIATION $ 70,338,500
Appropriated from:
State general fund/general purpose $ 70,338,500

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2025-2026
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$2,178,640,500.00 and total state spending under part 1 from state
sources to be paid to local units of government is $122,497,200.00.
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The following itemized statement identifies appropriations from
which spending to local units of government will occur:
DEPARTMENT OF CORRECTIONS
Community corrections comprehensive plans and
services $ 15,198,100
Community residential services 13,575,500
County jail reimbursement program 14,564,600
Field operations 76,607,900
Leased beds and alternatives to leased beds 100
Prosecutorial and detainer expenses 2,551,000
TOTAL $ 122,497,200
Sec. 202. The appropriations under this part and part 1 are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this part and part 1:
(a) "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) "Goal" means the intended or projected result of a
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comprehensive corrections plan or community corrections program to
reduce repeat offending, criminogenic and high-risk behaviors,
prison commitment rates, the length of stay in a jail, or to
improve the utilization of a jail.
(i) "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.
(j) "OCC" means the office of community corrections.
(k) "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.
(l) "Recidivism" means that term as defined in section 1 of
2017 PA 5, MCL 798.31.
(m) "Serious emotional disturbance" means that term as defined
in section 100d(3) of the mental health code, 1974 PA 258, MCL
330.1100d.
(n) "Serious mental illness" means that term as defined in
section 100d(4) of the mental health code, 1974 PA 258, MCL
330.1100d.
(o) "SSA" means the United States Social Security
Administration.
(p) "SSA-SSI" means SSA supplemental security income.
(q) "Standard report recipients" means 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
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budget office.
Sec. 204. 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
or agency's Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department'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 archivable location. The department shall also transmit all
required reports for the current fiscal year to the standard report
recipients and any other required recipients by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 206. The department shall not take disciplinary action
against an employee of the department or a prisoner because the
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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. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses not later than January 1.
The report must list all travel by classified and unclassified
employees outside this state in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The department shall submit the report to the
standard report recipients and to the senate and house
appropriations committees. The report must include all of the
following information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, and other revenues.
Sec. 208. (1) The department shall maximize utilization of its
in-person state workforce. The department shall prioritize
occupancy utilization of office space 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 period to ensure all work hours reported on
timesheets 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 in-person work is
optimized and occupancy rates are 80% or higher, subject to market
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conditions.
(3) The department shall adhere to civil service rules and
regulations that state the standard biweekly work period for a
full-time employee in the classified service of this state is the
equivalent of 80 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed upon business hours.
Sec. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall submit the report to the standard report
recipients and to the chairpersons of the senate and house
appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $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.
(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. 211. The department shall cooperate with the department
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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.
Sec. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
and house appropriations committees.
Sec. 213. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of the local health officer.
Sec. 214. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director shall
take all reasonable steps to ensure geographically disadvantaged
business enterprises compete for and perform contracts to provide
services or supplies, or both. The director shall strongly
encourage firms with which the department contracts to subcontract
with certified geographically disadvantaged business enterprises
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for services, supplies, or both. As used in this section,
"geographically disadvantaged business enterprises" means that term
as defined in Executive Directive No. 2023-1.
Sec. 215. On a quarterly basis, the department shall report on
the number of full-time equated positions in pay status by civil
service classification, including a comparison by line item of the
number of full-time equated positions authorized from funds
appropriated in part 1 to the actual number of full-time equated
positions employed by the department at the end of the reporting
period. The report must be submitted to the standard report
recipients and to the senate and house appropriations committees.
Sec. 216. 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. 217. 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 may
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 217a. The state budget director shall take steps to
ensure that all fiscal state recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026,
are automatically reappropriated for the same purpose as originally
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authorized and available for expenditure through December 31, 2026,
and any subsequent financial close out period.
Sec. 217b. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of Public Law 117-2 must be followed for state fiscal
recovery funds reallocated and reappropriated under subsection (1).
(3) The state budget director shall notify the senate and the
house appropriations committees not later than 1 business day after
making any reallocations under subsection (1). The notification
must include the authorized program under which funds were
originally appropriated, the amount of the reallocation, the
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program, or programs, or purpose, and the department to which the
funds are being reallocated under subsection (1), and the amount
reallocated to each program or purpose.
Sec. 218. 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 and to the senate and
house appropriations committees, the joint committee on
administrative rules, the senate standing committee on civil
rights, judiciary, and public safety, and the house standing
committee on criminal justice.
Sec. 219. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 220. Not later than 6 months after the state budget
office issues work project letters, the department shall submit an
annual report that summarizes all work project accounts. The report
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. 222. A department or agency that receives an
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appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 223. 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
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. 224. Not later than April 1, the department shall provide
to the standard report recipients a copy of its annual strategic
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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. 226. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
Sec. 227. Not later than November 15, the department shall
disclose on a publicly accessible website 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. The report
must be submitted to the standard report recipients and to the
chairpersons of the senate and house appropriations committees.
Sec. 228. (1) Not later than 30 days after the enactment of
this act, the house and senate appropriations committees shall
provide to the state budget office a jointly agreed upon list of
legislatively directed spending items funded in part 1. The list
must include all information and documents pertaining to
legislatively directed spending items funded 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 legislatively directed spending items shall post
a report in a publicly accessible location on its website beginning
March 15 of the current fiscal year. The department or agency shall
update the report and shall post an updated report not later than
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June 15 of the current fiscal year and again not later than
September 15 of the current fiscal year. The department shall
include in the report the most comprehensive information the
department has available at the time of posting for legislatively
directed spending items that are awarded.
(3) As used in this section, "legislatively directed spending
items" means that term as defined in section 364 of the management
and budget act, 1984 PA 431, MCL 18.1364.
Sec. 229. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
shall, except as otherwise provided under subsection (2), do all of
the following:
(a) Not later than November 1, provide a report to the
chairpersons of the senate and house appropriations committees, the
senate and house fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of article 2 of 2025 PA 22.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the senate
and house appropriations committees, the senate and house fiscal
agencies, and the state budget office that details all of the
following:
(i) The type of funding received.
(ii) When the funding was received.
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(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and for what
purpose.
(c) Not later than February 15, provide a report to the
chairpersons of the senate and house appropriations committees, the
senate and house fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) Each type of funding anticipated.
(ii) The amount of each type of funding anticipated.
(iii) The purpose of each type of funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
similar time frame as required under subsection (1), subsection (1)
does not apply.

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
department shall submit a report not later than March 1 on the
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department's staff retention strategies. The report must include,
but not be limited to, all of the following:
(a) The department's strategies on how to improve employee
engagement, how to improve employee wellness, and how to offer
additional training and professional development for employees,
including metrics the department is using to measure success of
employee wellness programming.
(b) Mechanisms by which the department receives employee
feedback in areas under subdivision (a) and how the department
considers suggestions made by employees.
(c) Steps the department has taken, and future plans and goals
the department has for retention and improving employee wellness.
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
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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)
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 that includes
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. (1) The department must ensure that a prisoner
telephone system is maintained. The prisoner telephone system must
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meet ongoing operational needs of the department while maintaining
the lowest per-minute rate possible. The department must provide
notice to the public and standard report recipients at least 45
days in advance of any changes to telephone rates.
(2) To the extent that department intelligence operations are
funded in part 1 rather than funds received through the telephone
contract, any resulting savings to the state and the telephone
contract must be passed to telephone system users in the negotiated
phone call rate.
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 for 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
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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.
(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.
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(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
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
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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
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 on the department's website not later than
June 30. The statistical report must include, but not be 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
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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
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
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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
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
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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.
(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
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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.
(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
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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,
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. (1) The funds appropriated in part 1 for corrections
officer pensions must be remitted to the state employees'
retirement system for implementation costs.
(2) The funds appropriated in part 1 for corrections officer
pensions that are remitted to the state employees' retirement
system must be used to pay for costs associated with retirement
benefit changes provided to employees in the department that are
eligible.
(3) This section applies only if House Bill No. 4665, House
Bill No. 4666, and House Bill No. 4667 of the 102nd Legislature are
enacted into law.

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
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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
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
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strive to do the following:
(a) Develop workforce and training opportunities in
consultation with employers and state and local workforce agencies.
(b) Assist individuals leaving prison with securing employment
or training prior to or following release, or both.
(c) Work with faith-based and secular organizations to provide
reentry supports and voluntary programming opportunities that have
been demonstrated to reduce prison violence and recidivism.
(d) Provide information on accessing mental health care
following release and, if appropriate, coordinate referral to
community mental health services.
(e) Ensure that inmates have potential employer matches in the
communities to which the inmates will return prior to each inmate's
initial parole hearing.
Sec. 404. Funds awarded for community residential services in
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. 405. Allowable uses of community corrections
comprehensive plans and services funds must include reimbursing
counties for transportation, treatment costs, and housing drunk
drivers during a period of assessment for treatment and case
planning, in accordance with an approved comprehensive plan.
Reimbursements for housing during the assessment process must be at
the rate of $43.50 per day per offender, up to a maximum of 5 days
per offender.
Sec. 406. (1) From the funds appropriated in part 1, the
department shall submit the following information for each county
and counties consolidated for community corrections comprehensive
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plans:
(a) Approved technical assistance grants and community
corrections comprehensive plans including each program and level of
funding, the utilization level of each program, and profile
information of enrolled offenders.
(b) If federal funds are made available, the number of
participants funded, the number served, the number successfully
completing the program, and a summary of the program activity.
(c) Status of the community corrections information system and
the jail population information system.
(d) Data on residential services, including participant data,
participant sentencing guideline scores, program expenditures,
average length of stay, and bed utilization data.
(e) Offender disposition data by sentencing guideline range,
by disposition type, by prior record variable score, by number and
percent statewide and by county, current year, and comparisons to
the previous 3 years.
(f) Data on the use of funding made available under the drunk
driver jail reduction and community treatment program.
(2) The report required under subsection (1) must include the
total funding allocated, program expenditures, required program
data, and year-to-date totals.
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
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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 April 1 on all of the following,
by correctional facility, for the previous fiscal year:
(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
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.
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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, the number of
prisoners who do not complete 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.
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.
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(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 not less
than 30 days before program elimination. As used in this section,
"programming for prisoners" means a department core 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
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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
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
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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.
(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.
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(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
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
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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
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.
(e) The top 10 most common chronic care conditions.
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
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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.
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
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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
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.
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(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. (1) 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.
(c) Major sanitation violations.
(2) The department must ensure that not less than $0.25 of the
per-meal cost consists of products grown and produced in this
state.
Sec. 702. From the funds appropriated in part 1, the
department shall provide a report on the cost per prisoner per day
for each security custody level not later than January 15. This
cost 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
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accurately allocated to each custody level may be included in the
calculation on a per-prisoner basis for each facility. 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) Leased beds and alternatives to leased beds.
(l) Prison food service.
(m) Prison store operations.
(n) Transportation.
(o) Health care.
(p) Correctional facilities.
(q) Northern and southern region administration and support.
Sec. 703. Any local unit of government or private nonprofit
organization that contracts with the department for public works
services is responsible for financing the entire cost of such an
agreement.
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
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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.
(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 core programming interventions
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
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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 treatment programming, and core cognitive
programming. Nothing in this section makes parole denial appealable
in court.
(2) The department shall submit a quarterly report detailing
enrollment in sex abuse prevention programming, violence prevention
programming, substance use treatment programming, and core
cognitive programming. At a minimum, the report must include all of
the following:
(a) The current number of individuals who are required to
complete 1 or more of these types of 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) The number of individuals who have completed 1 or more of
these types of programming during their current term of
incarceration.
(d) 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 that 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
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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
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 submit a quarterly report on the number of
prisoners confined to specialized housing units or cells. The
report must include, but is not limited to, the number of
cumulative days each prisoner was confined to the following
locations by correctional facility, race, security classification,
security level, and earliest release date (ERD):
(a) Administrative segregation.
(b) Temporary segregation.
(c) Punitive segregation.
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(d) In-patient mental health, broken down by program.
(e) Close observation.
(f) Adaptive skills residential program.
(g) Protective custody.
(2) The department shall report the number of prisoners
assigned to a special housing unit or cell listed under subsection
(1)(a) to (g) who, at any time during the current or a prior prison
term, were diagnosed with serious mental illness or have a
developmental disorder.
(3) 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.
(4) 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
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.
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(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
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.
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(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
department. Intelligence operations must include, but not be
limited to, intelligence operations for prisoner phone services.
Sec. 715. (1) From the funds appropriated in part 1, the
department must submit a report on the department's plans to close,
consolidate, or relocate any correctional facility in the state,
upon the plan's approval. The 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
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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 6 months
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
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.
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(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
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 individuals,
including all department employees, and all items entering into
correctional facilities.
(3) From the funds appropriated in part 1 for contraband
prevention, the department must submit a report not later than
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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
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.
Sec. 721. It is the intent of the legislature that the
department shall adopt a policy where strip searches are based on
suspicion or are randomized so that it results in fewer and less
intrusive strip searches of prisoners to maintain the safety and
security of correctional facilities. If the department undertakes
any efforts to perform fewer and less invasive strip searches, it
must provide a report by April 1 on the efforts undertaken.
Sec. 723. From the funds appropriated in part 1, the
department must allow a prisoner at least 1 in-person visit per 6-
month period, regardless of the prisoner's violation status,
including a prisoner who is on restricted visitation due to
substance use. A prisoner is excluded from the 1 in-person visit
requirement if the prisoner is on restricted visitation for
violence against other prisoners or violence against any department
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staff. In addition, the department must do all of the following
regarding the visits required under this section:
(a) Prioritize providing staggered time frames for visitors to
sign up for open visiting slots.
(b) Review department protocol for restricting prisoner
visitation, including, but not limited to, Policy Directive 05-03-
140, with the intent of reforming the protocol so that fewer
prisoners with substance use misconducts have their visits
restricted.
(c) Ensure visitation areas are child-friendly by providing
toys, puzzles, and other child-friendly games and activities.
(d) Prioritize providing healthy food choices in vending
machines located in visitation areas of correctional facilities,
including fruits, vegetables, and food items made with whole
ingredients.
(e) Provide a report, by April 1, detailing the efforts taken
to meet the requirements of subdivisions (a) to (d) and the
outcomes of these changes and effects on visitation privileges for
prisoners.
Sec. 724. From the funds appropriated in part 1, the
department must provide a report by April 1 for the Women's Huron
Valley Correctional Complex that details the meals and medication
administration missed by prisoners at the complex due to lack of
wheelchair access. The report must include all of the following
information:
(a) The total number of meals missed by prisoners due to lack
of wheelchair access.
(b) The total number of prisoners who were not administered
prescribed medication according to their electronic medication
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administration record due to a lack of wheelchair access.
Sec. 725. From the funds appropriated in part 1, the
department must provide a report, by facility, by April 1 on the
prisoner benefit fund. The report must include, for each facility,
all of the following information:
(a) The balance of the fund as of September 30 of the previous
fiscal year.
(b) The total amount deposited into the fund in the previous
fiscal year, categorized by the source of deposit.
(c) The total amount spent from the fund in the previous
fiscal year.
(d) The general categories of the expenditure of the funds and
the amounts spent by category.
Sec. 726. It is the intent of the legislature that, in the
event corrections officers at a state correctional facility express
interest in transitioning to a 12-hour shift schedule, the
recognized collective bargaining representative shall conduct a
vote to determine such interest. If the majority of voting
corrections officers approve the proposed schedule, the department
shall implement a 12-hour shift schedule at that correctional
facility.

ONE-TIME APPROPRIATIONS
Sec. 801. From the funds appropriated in part 1 for 1-time
appropriations for correctional facilities of $55,000,000.00, the
department must pay each facility on a pro rata basis by the
applicable percentage amount of the 1-time reduction made in part 1
for each correctional facility.

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ARTICLE 3
DEPARTMENT OF EDUCATION
PART 1
LINE-ITEM APPROPRIATIONS
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 565.5
GROSS APPROPRIATION $ 163,193,300
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 163,193,300
Federal revenues:
Total federal revenues 84,339,300
Special revenue funds:
Total local revenues 5,937,300
Total private revenues 2,552,900
Total other state restricted revenues 10,293,000
State general fund/general purpose $ 60,070,800
Sec. 102. STATE BOARD OF EDUCATION/OFFICE OF THE
SUPERINTENDENT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 11.0
Unclassified salaries--FTE positions 6.0 $ 1,225,900
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Education commission of the states 120,800
State board of education, per diem payments 24,400
State board/superintendent operations--FTEs 11.0 2,549,100
GROSS APPROPRIATION $ 3,920,200
Appropriated from:
Federal revenues:
Federal revenues 317,800
Special revenue funds:
Private foundations 80,000
Certification fees 853,000
State general fund/general purpose $ 2,669,400
Sec. 103. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated classified positions 44.6
Central support operations--FTEs 41.6 $ 6,914,200
Federal and private grants 3,006,200
Grant and contract operations--FTEs 3.0 1,913,000
Property management 4,194,800
Terminal leave payments 353,300
Training and orientation workshops 150,000
Worker's compensation 10,000
GROSS APPROPRIATION $ 16,541,500
Appropriated from:
Federal revenues:
Federal indirect revenues 2,367,900
Federal revenues 5,490,500
Special revenue funds:
Private foundations 1,006,200
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Certification fees 638,900
Teacher testing fees 84,800
Training and orientation workshop fees 150,000
State general fund/general purpose $ 6,803,200
Sec. 104. INFORMATION TECHNOLOGY
Information technology services and projects $ 5,090,600
GROSS APPROPRIATION $ 5,090,600
Appropriated from:
Federal revenues:
Federal indirect revenues 2,580,400
Federal revenues 70,600
Special revenue funds:
Certification fees 1,040,600
State general fund/general purpose $ 1,399,000
Sec. 105. SPECIAL EDUCATION SERVICES
Full-time equated classified positions 47.0
Special education operations--FTEs 47.0 $ 9,941,100
GROSS APPROPRIATION $ 9,941,100
Appropriated from:
Federal revenues:
Federal revenues 9,125,600
Special revenue funds:
Private foundations 111,800
Certification fees 50,000
State general fund/general purpose $ 653,700
Sec. 106. MICHIGAN SCHOOLS FOR THE DEAF AND
BLIND
Full-time equated classified positions 82.0
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ASL literacy resource $ 500,000
Camp Tuhsmeheta--FTE 1.0 1,004,900
Low incidence outreach program 1,000,000
Michigan Schools for the Deaf and Blind
operations--FTEs 81.0 13,893,400
Private gifts - blind 200,000
Private gifts - deaf 150,000
GROSS APPROPRIATION $ 16,748,300
Appropriated from:
Federal revenues:
Federal revenues 7,750,000
Special revenue funds:
Local cost sharing (schools for deaf/blind) 5,937,300
Gifts, bequests, and donations 1,354,900
Low incidence outreach fund 1,000,000
Student insurance revenue 206,100
State general fund/general purpose $ 500,000
Sec. 107. EDUCATOR EXCELLENCE
Full-time equated classified positions 46.0
Educator excellence operations--FTEs 45.0 $ 10,611,800
Educator recruitment and preparation programs--
FTE 1.0 1,691,100
GROSS APPROPRIATION $ 12,302,900
Appropriated from:
Federal revenues:
Federal revenues 3,173,800
Special revenue funds:
Certification fees 4,251,100
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Teacher testing fees 204,300
State general fund/general purpose $ 4,673,700
Sec. 108. SYSTEMS, EVALUATION, AND TECHNOLOGY
Full-time equated classified positions 19.0
Office of systems, evaluation, and technology
operations--FTEs 19.0 $ 3,562,600
GROSS APPROPRIATION $ 3,562,600
Appropriated from:
Federal revenues:
Federal indirect revenues 151,700
Federal revenues 2,184,100
Special revenue funds:
Certification fees 11,500
State general fund/general purpose $ 1,215,300
Sec. 109. STRATEGIC PLANNING AND IMPLEMENTATION
Full-time equated classified positions 6.0
Strategic planning and implementation
operations--FTEs 6.0 $ 1,226,700
GROSS APPROPRIATION $ 1,226,700
Appropriated from:
Federal revenues:
Federal revenues 652,900
State general fund/general purpose $ 573,800
Sec. 110. ADMINISTRATIVE LAW SERVICES
Full-time equated classified positions 2.0
Administrative law operations--FTEs 2.0 $ 1,430,800
GROSS APPROPRIATION $ 1,430,800
Appropriated from:
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Federal revenues:
Federal revenues 573,200
Special revenue funds:
Certification fees 750,300
State general fund/general purpose $ 107,300
Sec. 111. ACCOUNTABILITY SERVICES
Full-time equated classified positions 56.6
Accountability services operations--FTEs 56.6 $ 15,159,100
GROSS APPROPRIATION $ 15,159,100
Appropriated from:
Federal revenues:
Federal revenues 13,179,900
State general fund/general purpose $ 1,979,200
Sec. 112. SCHOOL SUPPORT SERVICES
Full-time equated classified positions 92.6
Adolescent and school health $ 338,800
Office of health and safety--FTEs 23.0 3,052,100
School support services operation--FTEs 69.6 13,636,300
GROSS APPROPRIATION $ 17,027,200
Appropriated from:
Federal revenues:
Federal revenues 13,422,700
Special revenue funds:
Commodity distribution fees 150,000
State general fund/general purpose $ 3,454,500
Sec. 113. EDUCATIONAL SUPPORTS
Full-time equated classified positions 86.7
Educational supports operations--FTEs 86.7 $ 18,426,800
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School board member training 150,000
GROSS APPROPRIATION $ 18,576,800
Appropriated from:
Federal revenues:
Federal revenues 13,411,700
Special revenue funds:
Certification fees 602,400
State general fund/general purpose $ 4,562,700
Sec. 114. CAREER AND TECHNICAL EDUCATION
Full-time equated classified positions 23.0
Career and technical education operations--FTEs 23.0 $ 5,904,900
GROSS APPROPRIATION $ 5,904,900
Appropriated from:
Federal revenues:
Federal revenues 4,140,100
State general fund/general purpose $ 1,764,800
Sec. 115. LIBRARY OF MICHIGAN
Full-time equated classified positions 34.0
Library of Michigan operations--FTEs 32.0 $ 5,176,400
Library services and technology program--FTE 1.0 5,631,900
Michigan eLibrary--FTE 1.0 1,853,400
Renaissance zone reimbursements 1,830,000
State aid to libraries 16,567,700
GROSS APPROPRIATION $ 31,059,400
Appropriated from:
Federal revenues:
Federal revenues 5,631,900
Special revenue funds:
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Library fees 300,000
State general fund/general purpose $ 25,127,500
Sec. 116. PARTNERSHIP DISTRICT SUPPORT
Full-time equated classified positions 15.0
Partnership district support operations--FTEs 15.0 $ 3,701,100
GROSS APPROPRIATION $ 3,701,100
Appropriated from:
Federal revenues:
Federal revenues 114,500
State general fund/general purpose $ 3,586,600
Sec. 117. ONE-TIME APPROPRIATIONS
Education support services $ 1,000,000
Artificial intelligence tools placeholder 100
GROSS APPROPRIATION $ 1,000,100
Appropriated from:
State general fund/general purpose $ 1,000,100

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
$70,363,800.00 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:
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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
section 5 of the revised school code, 1976 PA 451, MCL 380.5.
(d) "FTE" means full-time equated.
(e) "HHS" means the United States Department of Health and
Human Services.
(f) "Standard report recipients" means 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.
Sec. 204. 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 michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
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website, the 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. The department
or agency shall also transmit all required reports for the current
fiscal year to the standard report recipients and any other
required recipients by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 206. The department shall not take disciplinary action
against an employee of the department for communicating with a
member of the legislature or legislative staff, unless the
communication is prohibited by law and the department is exercising
its authority as provided by law.
Sec. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses not later than January 1.
The report must list all travel by classified and unclassified
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employees outside this state in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The department shall submit the report to the
standard report recipients and to the senate and house of
representatives appropriations committees. The report must include
all of the following information:
(a) The dates of each travel occurrence.
(b) The total transportation and related expenses of each
travel occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, and other revenues.
Sec. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides for estimates of
the total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall submit the report to the standard report
recipients and the chairpersons of the senate and house
appropriations committees.
Sec. 210. (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 under
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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 $250,000.00 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 $1,500,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 211. A department or agency shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for each
department or agency:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
Sec. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
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projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
and house appropriations committees.
Sec. 214. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of the local health officer.
Sec. 215. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the state
superintendent of public instruction shall take all reasonable
steps to ensure that geographically disadvantaged business
enterprises compete for and perform contracts to provide services,
supplies, or both. The state superintendent of public instruction
shall strongly encourage firms with which the department contracts
to subcontract with certified geographically disadvantaged business
enterprises for services, supplies, or both.
Sec. 216. On a quarterly basis, the department shall report on
the number of full-time equated positions in pay status by civil
service classification, including a comparison by line item of the
number of full-time equated positions authorized from funds
appropriated in part 1 to the actual number of full-time equated
positions employed by the department at the end of the reporting
period. The report must be submitted to the senate and house
appropriations committees and to the standard report recipients.
Sec. 217. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
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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. 218. 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 may
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 219. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The 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 appropriations committees, and to the joint committee on
administrative rules.
Sec. 220. By April 1, the department shall provide to the
standard report recipients a copy of the department's annual
strategic plan prepared in compliance with section 363 of the
management and budget act, 1984 PA 431, MCL 18.1363. The strategic
plan must include the mission, vision, goals, strategies, and
performance measures of the department.
Sec. 221. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
Sec. 222. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
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work project funds available for the same purposes are exhausted.
Sec. 223. Not later than 6 months after the state budget
office issues work project letters, a department or agency shall
submit an annual report that summarizes all work project accounts.
The report 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. 224. 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
department appropriations for pension-related legacy costs are
estimated at $6,940,300.00. Total department appropriations for
retiree health care legacy costs are estimated at $0.00.
Sec. 226. (1) The department shall maximize utilization of its
in-person state workforce. The department shall prioritize
occupancy utilization of office space 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 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 in-person work is
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optimized and occupancy rates are 80% or higher, subject to market
conditions.
(3) The department shall adhere to the rules and regulations
of civil service, which state that the standard biweekly work
period for a full-time employee in the classified service is the
equivalent of 80 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed-upon business hours.
Sec. 227. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
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residents of this state.
Sec. 229. (1) Not later than 30 days after enactment of this
act, the legislature shall provide to the state budget office a
jointly-agreed-upon 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 post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and shall post an updated report not later than June 15 of
the current fiscal year and again not later than September 15 of
the current fiscal year. The department shall include in the report
the most comprehensive information the department has available at
the time of posting for grants awarded.
Sec. 230. Not later than November 15, the department shall
disclose on a publicly accessible website private and other third-
party funds received by the department in the previous fiscal year.
The report must include the amount and source of funding received,
the purpose for which funding was expended, and the amount of any
remaining funds. The report must be submitted to the standard
report recipients and to the chairpersons of the senate and house
appropriations committees.
Sec. 231. The state budget director shall take steps to ensure
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that all state fiscal recovery funds allocated to this state under
the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026
and any subsequent financial close out period.
Sec. 232. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of the American rescue plan of 2021, Public Law 117-2,
must be followed for state fiscal recovery funds reallocated and
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reappropriated under subsection (1).
(3) The state budget director shall notify the senate and
house appropriations committees not later than 10 business days
after making any reallocations under subsection (1). The
notification must include the authorized program under which funds
were originally appropriated, the amount of the reallocation, the
program, programs, or purpose for which the funds are being
reallocated, the department to which the funds are being
reallocated under subsection (1), and the amount reallocated to
each program or purpose.

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.
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(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
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
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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.

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 the following information:
(a) 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.
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(b) Any other information the department determines is
necessary to allow parents and legal guardians to provide
meaningful input in collaboration with districts to develop and
implement an individualized education program.

MICHIGAN SCHOOLS FOR THE DEAF AND BLIND
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).
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(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
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
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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
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. From the funds appropriated in part 1 for educator
recruitment and preparation programs, the department shall award
$1,000,000.00 to districts 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.
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.
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
topic areas:
(a) Conflicts of interest, including, but not limited to, the
application of section 1203 of the revised school code, 1976 PA
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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) Implicit bias training.
(g) Rater reliability training.
(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
provided under subsection (2).
(4) As used in this section:
(a) "Eligible training program" means a training program that
is approved under subsection (1).
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(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. 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 early childhood
literacy funded under section 35a of the state school aid act of
1979, 1979 PA 94, MCL 388.1635a.

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.
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(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.
(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.
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(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.

ONE-TIME APPROPRIATIONS
Sec. 1000. (1) From the appropriation in part 1 for education
support services, $500,000.00 shall be added to the state aid for
libraries line item in part 1 for fiscal year 2026-2027 and shall
be disbursed to Michigan public and cooperative libraries pursuant
to the state aid to public libraries act, 1977 PA 89, MCL 397.551
to 397.576. The remaining $500,000.00 shall be allocated to the
department's eLibrary services pursuant to subsection (2).
(2) The unexpended appropriations in part 1 for state aid to
libraries are designated as a work project appropriation. Any
unencumbered or unallotted funds shall not lapse at the end of the
fiscal year and shall be available for expenditure for the project
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 expand the Michigan
eLibrary's free online access to articles, books, and other
research information to the public.
(b) The project will be accomplished utilizing state resources
and contracts.
(c) The total estimated completion cost of the project is
$500,000.00.
(d) The tentative completion date for the project is September
30, 2030.
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Sec. 1001. From the funds appropriated for artificial
intelligence tools placeholder, there is allocated an amount not to
exceed $100.00 for fiscal year 2026-2027 only for the department to
develop state artificial intelligence model policies, guidelines,
and implementation tools and begin integrating artificial
intelligence into department teaching, learning, and assessment
services and supports for school districts.

ARTICLE 4
DEPARTMENT OF ENVIRONMENT, GREAT LAKES, AND ENERGY
PART 1
LINE-ITEM APPROPRIATIONS
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 1,631.0
GROSS APPROPRIATION $ 947,617,200
Appropriated from:
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 4,237,600
ADJUSTED GROSS APPROPRIATION $ 943,379,600
Federal revenues:
Total federal revenues 464,743,400
Special revenue funds:
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Total local revenues 0
Total private revenues 1,892,500
Total other state restricted revenues 362,305,500
State general fund/general purpose $ 114,438,200
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 106.0
Unclassified salaries--FTE positions 6.0 $ 1,022,500
Accounting service center 1,596,800
Administrative hearings officers 906,600
Environmental investigations--FTEs 12.0 2,507,700
Environmental support--FTEs 56.0 10,072,500
Executive direction--FTEs 20.0 4,506,400
Facilities management 1,200,000
Financial support--FTEs 18.0 12,928,600
Michigan geological survey 400,000
Property management 11,658,700
GROSS APPROPRIATION $ 46,799,800
Appropriated from:
Interdepartmental grant revenues:
IDG from Michigan department of state police 91,300
IDG from state transportation department 139,300
Federal revenues:
Federal funds 766,600
Special revenue funds:
Private funds 1,200,000
Air emissions fees 1,072,300
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Aquatic nuisance control fund 71,900
Campground fund 27,100
Cleanup and redevelopment fund 4,681,000
Coal ash care fund 19,200
Electronic waste recycling fund 24,200
Environmental education fund 239,900
Environmental pollution prevention fund 384,900
Fees and collections 18,000
Financial instruments 11,517,700
Great Lakes protection fund 550,500
Groundwater discharge permit fees 153,000
Infrastructure construction fund 3,800
Laboratory services fees 681,600
Land and water permit fees 217,700
Medical waste emergency response fund 32,800
Metallic mining surveillance fee revenue 5,300
Mineral well regulatory fee revenue 10,400
Nonferrous metallic mineral surveillance 15,500
NPDES fees 309,400
Oil and gas regulatory fund 449,100
Orphan well fund 16,100
Public swimming pool fund 54,200
Public utility assessments 212,500
Public water supply fees 391,300
Refined petroleum fund 2,824,000
Renew Michigan fund 5,868,100
Sand extraction fee revenue 5,300
Scrap tire regulatory fund 373,300
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Septage waste program fund 44,800
Settlement funds 2,000,400
Sewage sludge land application fees 66,500
Soil erosion and sedimentation control training
fund 10,400
Solid waste management fund - staff account 545,800
Stormwater permit fees 159,500
Technologically enhanced naturally occurring
radioactive material 54,800
Underground storage tank cleanup fund 268,200
Wastewater operator training fees 42,100
Water quality protection fund 7,100
Water use reporting fees 21,700
State general fund/general purpose $ 11,151,200
Sec. 103. WATER RESOURCES DIVISION
Full-time equated classified positions 403.0
Aquatic nuisance control program--FTEs 6.0 $ 1,009,600
Federal - Great Lakes remedial action plan
grants 583,800
Fish contaminant monitoring 316,100
Great Lakes restoration initiative--FTEs 9.0 11,319,500
Nonpoint source pollution prevention and
control project program 4,083,300
Technology advancements for water monitoring 500,000
Water quality programs--FTEs 223.0 37,069,000
Water quality protection grants 100,000
Water resource programs--FTEs 165.0 28,620,100
Watershed council grants 600,000
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GROSS APPROPRIATION $ 84,201,400
Appropriated from:
Interdepartmental grant revenues:
IDG from state transportation department 2,086,300
Federal revenues:
Federal funds 35,360,900
Special revenue funds:
Aquatic nuisance control fund 1,009,600
Environmental response fund 590,000
Groundwater discharge permit fees 2,276,700
Infrastructure construction fund 52,400
Land and water permit fees 4,399,500
NPDES fees 4,591,600
Refined petroleum fund 456,000
Sewage sludge land application fees 929,700
Soil erosion and sedimentation control training
fund 143,500
Stormwater permit fees 2,391,300
Wastewater operator training fees 317,800
Water pollution control revolving fund 152,500
Water quality protection fund 100,000
Water use reporting fees 0
State general fund/general purpose $ 29,343,600
Sec. 104. AIR QUALITY DIVISION
Full-time equated classified positions 225.0
Air quality programs--FTEs 225.0 $ 39,223,600
GROSS APPROPRIATION $ 39,223,600
Appropriated from:
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Federal revenues:
Federal funds 7,855,500
Special revenue funds:
Air emissions fees 11,417,800
Asbestos inspection fund 2,017,300
Fees and collections 214,300
Oil and gas regulatory fund 148,700
Public utility assessments 150,000
Refined petroleum fund 2,148,800
State general fund/general purpose $ 15,271,200
Sec. 105. REMEDIATION AND REDEVELOPMENT DIVISION
Full-time equated classified positions 329.0
Contaminated site remediation and redevelopment
programs--FTEs 329.0 $ 86,837,700
Emergency cleanup actions 2,000,000
Environmental cleanup and redevelopment program 44,800,000
Superfund cleanup 9,000,000
GROSS APPROPRIATION $ 142,637,700
Appropriated from:
Federal revenues:
Federal funds 16,769,200
Special revenue funds:
Cleanup and redevelopment fund 73,076,100
Environmental response fund 1,442,100
Laboratory services fees 14,486,300
Public water supply fees 334,000
Refined petroleum fund 34,135,400
State brownfield redevelopment fund 2,100,000
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State general fund/general purpose $ 294,600
Sec. 106. UNDERGROUND STORAGE TANK AUTHORITY
Full-time equated classified positions 12.0
Underground storage tank cleanup program--FTEs 12.0 $ 32,156,600
GROSS APPROPRIATION $ 32,156,600
Appropriated from:
Special revenue funds:
Underground storage tank cleanup fund 32,156,600
State general fund/general purpose $ 0
Sec. 107. RENEWING MICHIGAN'S ENVIRONMENT
Full-time equated classified positions 163.0
Information management--FTEs 22.0 $ 6,884,200
Renew Michigan program--FTEs 141.0 70,982,300
GROSS APPROPRIATION $ 77,866,500
Appropriated from:
Interdepartmental grant revenues:
IDG from Michigan 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 93,000
Aquatic nuisance control fund 7,000
Campground fund 2,600
Cleanup and redevelopment fund 244,900
Coal ash care fund 1,900
Electronic waste recycling fund 2,300
Environmental pollution prevention fund 28,900
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Fees and collections 1,800
Financial instruments 8,800
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
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
Refined petroleum fund 248,100
Renew Michigan fund 71,482,600
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 46,400
Stormwater permit fees 15,500
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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 $ 5,329,200
Sec. 108. INFORMATION TECHNOLOGY
Information technology services and projects $ 10,527,400
GROSS APPROPRIATION $ 10,527,400
Appropriated from:
Interdepartmental grant revenues:
IDG from Michigan department of state police 24,800
IDG from state transportation department 38,000
Federal revenues:
Federal funds 2,079,300
Special revenue funds:
Air emissions fees 254,900
Aquatic nuisance control fund 19,600
Campground fund 7,500
Cleanup and redevelopment fund 1,319,500
Coal ash care fund 5,200
Electronic waste recycling fund 6,600
Environmental pollution prevention fund 81,600
Fees and collections 4,900
Financial instruments 853,500
Great Lakes protection fund 10,000
Groundwater discharge permit fees 41,700
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Infrastructure construction fund 1,000
Laboratory services fees 155,000
Land and water permit fees 59,600
Medical waste emergency response fund 9,000
Metallic mining surveillance fee revenue 1,400
Mineral well regulatory fee revenue 2,800
Nonferrous metallic mineral surveillance 4,200
NPDES fees 83,300
Oil and gas regulatory fund 121,500
Orphan well fund 4,400
Public swimming pool fund 14,700
Public utility assessments 52,800
Public water supply fees 105,600
Refined petroleum fund 891,300
Renew Michigan fund 1,460,200
Sand extraction fee revenue 1,400
Scrap tire regulatory fund 102,000
Septage waste program fund 12,200
Sewage sludge land application fees 18,100
Soil erosion and sedimentation control training
fund 2,800
Solid waste management fund - staff account 124,900
Stormwater permit fees 43,700
Technologically enhanced naturally occurring
radioactive material 15,000
Underground storage tank cleanup fund 73,200
Wastewater operator training fees 11,500
Water pollution control revolving fund 33,300
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Water quality protection fund 2,000
Water use reporting fees 6,000
State general fund/general purpose $ 2,367,400
Sec. 109. DRINKING WATER AND ENVIRONMENTAL
HEALTH
Full-time equated classified positions 160.0
Drinking water and environmental health--FTEs 160.0 $ 42,393,900
GROSS APPROPRIATION $ 42,393,900
Appropriated from:
Federal revenues:
Federal funds 13,804,000
Special revenue funds:
Campground fund 388,800
Fees and collections 34,700
Public swimming pool fund 766,100
Public water supply fees 6,577,000
Refined petroleum fund 765,500
Septage waste program fund 838,500
Wastewater operator training fees 275,000
State general fund/general purpose $ 18,944,300
Sec. 110. MATERIALS MANAGEMENT DIVISION
Full-time equated classified positions 133.0
Energy programs-- FTEs 13.0 $ 6,316,300
Material management programs-- FTEs 120.0 29,782,300
GROSS APPROPRIATION $ 36,098,600
Appropriated from:
Interdepartmental grant revenues:
IDG from Michigan department of state police 1,611,700
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Federal revenues:
Federal funds 7,390,400
Special revenue funds:
Private funds 652,500
Cleanup and redevelopment fund 3,905,300
Coal ash care fund 268,500
Community pollution prevention fund 1,250,000
Electronic waste recycling fund 337,000
Energy efficiency and renewable energy
revolving loan fund 250,100
Environmental pollution prevention fund 4,237,700
Medical waste emergency response fund 460,800
Public utility assessments 1,815,400
Retired engineers technical assistance program
fund 491,200
Scrap tire regulatory fund 5,668,600
Small business pollution prevention revolving
loan fund 134,400
Solid waste management fund - staff account 6,307,500
Technologically enhanced naturally occurring
radioactive material 467,200
State general fund/general purpose $ 850,300
Sec. 111. GEOLOGIC RESOURCES MANAGEMENT DIVISION
Full-time equated classified positions 73.0
Geologic resources management--FTEs 73.0 $ 21,706,200
GROSS APPROPRIATION $ 21,706,200
Appropriated from:
Interdepartmental grant revenues:
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IDG from department of licensing and regulatory
affairs 223,800
Federal revenues:
Federal funds 155,200
Infrastructure investment and jobs act fund 5,155,400
Special revenue funds:
Private funds 40,000
Aquifer protection revolving fund 520,000
Metallic mining surveillance fee revenue 92,500
Mineral well regulatory fee revenue 219,200
Native copper mine fund 50,000
Nonferrous metallic mineral surveillance 389,600
Oil and gas regulatory fund 4,002,900
Orphan well fund 2,357,100
Sand extraction fee revenue 91,000
Water use reporting fees 353,200
State general fund/general purpose $ 8,056,300
Sec. 112. WATER INFRASTRUCTURE
Full-time equated classified positions 27.0
Municipal assistance--FTEs 27.0 $ 6,804,200
Lead service line replacement 9,601,300
Water state revolving funds 390,000,000
GROSS APPROPRIATION $ 406,405,500
Appropriated from:
Federal revenues:
Federal funds 105,401,100
Infrastructure investment and jobs act fund 270,000,000
Special revenue funds:
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Revolving loan revenue bonds 15,000,000
Water pollution control revolving fund 774,300
State general fund/general purpose $ 15,230,100
Sec. 113. ONE-TIME APPROPRIATIONS
Geothermal energy network revolving loan fund 3,000,000
Local infrastructure preparedness and
protection 2,000,000
Michigan geological survey 2,600,000
GROSS APPROPRIATION $ 7,600,000
Appropriated from:
State general fund/general purpose $ 7,600,000

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 resources is
$476,743,700.00 and state spending under part 1 from state sources
to be paid to local units of government is $20,433,300.00. 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 8,486,000
Emergency cleanup actions 116,000
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Energy programs 460,000
Lead service line replacement 9,601,300
Material management programs 1,270,000
Technology advancements for water monitoring 500,000
TOTAL $ 20,433,300
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
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
appropriations subcommittee on environment, Great Lakes, and
energy; the house appropriations subcommittee 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. The 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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the department or agency shall maintain on its website all
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reports placed on the website from previous fiscal years posted by
fiscal year in the same single archivable location. The department
or agency shall also transmit all required reports for the current
fiscal year to the standard recipients and any other required
recipients by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 206. The department shall not take disciplinary action
against an employee of the department for communicating with a
member of the legislature or legislative staff, unless the
communication is prohibited by law and the department is exercising
its authority as provided by law.
Sec. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, each department and agency
receiving appropriations in part 1 shall prepare a report on out-
of-state travel expenses not later than January 1. The report must
list travel by classified and unclassified employees outside of
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this state 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 department shall submit the report to the standard
report recipients and to the house and senate appropriations
committees. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related expenses of each
travel occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, and other revenues.
Sec. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall submit the report to the standard report
recipients and to the chairpersons of the senate and house
appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $100,000,000.00 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 $3,000,000.00 for state
restricted contingency authorization. Amounts appropriated under
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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 $10,000,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 211. (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. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
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and house appropriations committees.
Sec. 214. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of a local health officer.
Sec. 215. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations in part 1 shall
take all reasonable steps to ensure geographically-disadvantaged
business enterprises compete for and perform contracts to provide
services or supplies, or both. The director shall strongly
encourage firms with which the department contracts to subcontract
with certified geographically-disadvantaged business enterprises
for services, supplies, or both. As used in this section,
"geographically-disadvantaged business enterprises" means that term
as defined in Executive Directive 2023-1.
Sec. 216. On a quarterly basis, the department or agency
receiving appropriations in part 1 shall report on the number of
full-time equated positions in pay status by civil service
classification, including a comparison by line item of the number
of full-time equated positions authorized from funds appropriated
in part 1 to the actual number of full-time equated positions
employed by the department at the end of the reporting period. The
report must be submitted to the senate and house appropriations
committees and to the standard report recipients.
Sec. 217. (1) The department shall maximize utilization of its
in-person state workforce. The department shall prioritize
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occupancy utilization of office space 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 period to ensure all work hours reported on
the timesheet were actually worked.
(2) The department shall comply with requirements set by the
office of state employer to meet the in-person and vacancy rate
objectives outlined by the office of state employer.
(3) The department shall adhere to the rules and regulations
of civil service, which state that the standard biweekly work
period for a full-time employee in the classified service is the
equivalent of 80 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed-upon business hours.
Sec. 219. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state guidelines for short-term and long-
term retention of records. The department may electronically retain
copies of reports unless otherwise required by federal and state
law and guidelines.
Sec. 220. 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 appropriations committees, and to the joint committee on
administrative rules.
Sec. 221. 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, inter-transfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 222. 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. 223. The state budget director shall take steps to ensure
that all state fiscal recovery funds allocated to this state under
the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026,
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026,
and any subsequent financial close-out period.
Sec. 224. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
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(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of the American rescue plan act of 2021, Public Law 117-
2, must be followed for state fiscal recovery funds reallocated and
reappropriated under subsection (1).
(3) The state budget director shall notify the senate and
house appropriations committees not later than 1 business day after
making any reallocations under subsection (1). The notification
must include the authorized program under which funds were
originally appropriated, the amount of the reallocation, the
program, or programs, or purpose, and the department to which the
funds are being reallocated under subsection (1), and the amount
reallocated to each program or purpose.
Sec. 225. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
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(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 226. (1) Not later than 30 days after the effective date
of this act, the house and senate shall provide to the state budget
office a jointly agreed-upon list of legislatively directed
spending items funded in part 1 as defined in 2025 PA 32 and 2025
PA 33. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with 2025 PA 32 and 2025 PA 33.
(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 post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and post an updated report not later than June 15 of the
current fiscal year and again not later than September 15 of the
current fiscal year. The department shall include in the report the
most comprehensive information the department has available at the
time of posting for grants awarded.
Sec. 228. (1) The department may expend amounts remaining from
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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
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
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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
2022 PA 166, 2023 PA 119, 2024 PA 121, and 2025 PA 22 are
appropriated for expenditure.
Sec. 229. Revenues that remain in the settlements fund at the
end of the fiscal year carry forward into the succeeding fiscal
year.
Sec. 230. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
must do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department in the previous fiscal year.
(ii) When the funding was received.
(iii) The amount of funding received.
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(iv) How much of the funding was spent and for what purpose or
purposes.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the house
and senate appropriations committees, the house and senate fiscal
agencies, and the state budget office that details all of the
following:
(i) The type of funding received.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
specified purpose or purposes.
(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) The type or types of funding anticipated.
(ii) The amount or amounts of funding anticipated.
(iii) The purpose or purposes of the funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
similar time frame as would be reported under subsection (1),
subsection (1) does not apply.
Sec. 235. (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:
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(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
subcommittees on the environment, Great Lakes, and energy and the
state budget director.
Sec. 238. The department shall submit a report to the senate
and house 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.
(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
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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. 239. 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. 240. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
Sec. 242. 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
members whose district includes the site.
Sec. 246. Not later than 6 months after the state budget
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office issues work project letters, the department shall submit an
annual report that summarizes all work project accounts. The report
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. 247. 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
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. 248. Revenues remaining in the asbestos inspection fund
created in section 5519a of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.5519a, at the end of the
fiscal year carry forward into the succeeding fiscal year.

REMEDIATION AND REDEVELOPMENT DIVISION
Sec. 301. Revenues remaining in the laboratory services fees
fund at the end of the fiscal year carry forward into the
succeeding fiscal year.
Sec. 302. The unexpended funds appropriated in part 1 for
contaminated site remediation and redevelopment programs, emergency
cleanup actions, and environmental cleanup and redevelopment
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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, 2031.
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.

WATER RESOURCES DIVISION
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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, 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:
(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
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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, 2031.

RENEWING MICHIGAN'S ENVIRONMENT
Sec. 801. The unexpended funds appropriated in part 1 for the
renewing Michigan's environment 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 for environmental cleanup
and redevelopment, waste management, and recycling.
(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 $70,495,800.00.
(d) The tentative completion date is September 30, 2031.

MATERIALS MANAGEMENT DIVISION
Sec. 901. In addition to the money appropriated in part 1, the
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department may receive and expend money from the Volkswagen
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.

ONE-TIME APPROPRIATIONS
Sec. 1001. (1) Funds appropriated in part 1 for geothermal
energy network revolving loan fund must be allocated for the
creation and administration of a geothermal energy network
revolving loan fund to provide upfront financing for networked
geothermal energy projects undertaken by local units of government
and public institutions.
(2) The program must prioritize projects within low-income or
disadvantaged communities.
(3) No more than 10% of the funds allocated under this section
may be expended for program administration and related costs.
(4) The unexpended funds appropriated in part 1 for geothermal
energy network revolving loan fund are designated as work project
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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 low-interest
loans for developing networked geothermal projects.
(b) The projects will be accomplished by utilizing contracts
with service providers.
(c) The total estimated cost of all projects is $3,000,000.00.
(d) The tentative completion date is September 30, 2031.

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:
TOTAL GENERAL GOVERNMENT
APPROPRIATION SUMMARY
Full-time equated unclassified positions 44.0
Full-time equated classified positions 7,772.2
GROSS APPROPRIATION $ 5,241,889,200
Interdepartmental grant revenues:
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Total interdepartmental grants and
intradepartmental transfers 1,251,385,600
ADJUSTED GROSS APPROPRIATION $ 3,990,503,600
Federal revenues:
Total federal revenues 45,421,400
Special revenue funds:
Total local revenues 19,298,900
Total private revenues 1,903,600
Total other state restricted revenues 2,788,797,800
State general fund/general purpose $ 1,135,081,900
Sec. 102. DEPARTMENT OF ATTORNEY GENERAL
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 699.0
GROSS APPROPRIATION $ 139,581,300
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 39,899,600
ADJUSTED GROSS APPROPRIATION $ 99,681,700
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 36,118,100
State general fund/general purpose $ 51,891,700
(2) ATTORNEY GENERAL OPERATIONS
Full-time equated unclassified positions 6.0
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Full-time equated classified positions 699.0
Attorney general $ 112,500
Unclassified salaries--FTEs 5.0 1,022,900
Alcohol and gambling enforcement division--FTEs 17.0 2,926,300
Asssistance with convictions and expungements--
FTEs 30.0 4,734,600
Child elder family financial crimes division--
FTEs 20.5 5,154,400
Child support enforcement division--FTEs 25.0 4,141,300
Children and youth services division--FTEs 28.0 5,392,700
Civil rights and elections--FTEs 12.0 2,485,100
Collections--FTEs 15.5 2,818,800
Corporate oversight division--FTEs 68.0 10,273,300
Corrections--FTEs 40.0 7,809,500
Criminal appellate division--FTEs 17.0 2,421,600
Criminal investigations--FTEs 46.0 3,888,700
Criminal trials--FTEs 37.0 10,824,500
Detective sergeants-Attorney General special
investigators 1,300,000
Environment, natural resources, and agriculture
division--FTEs 34.0 7,699,300
Executive office--FTEs 7.0 1,313,100
Finance division--FTEs 11.0 2,414,400
Fiscal management--FTEs 9.0 1,284,500
Health care fraud division--FTEs 35.0 7,147,900
Health education and family services--FTEs 36.0 5,881,900
Human resources--FTEs 7.0 1,135,500
Labor division--FTEs 34.0 6,159,000
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Licensing and regulation division--FTEs 38.0 5,014,900
Office of communications--FTEs 9.0 1,193,200
Office of legislative affairs--FTEs 2.0 422,100
Operation survivor justice 1,000,000
Opinions review board--FTE 1.0 332,300
Public administration--FTEs 3.0 427,700
Public service division--FTEs 14.0 2,509,600
Revenue and tax--FTEs 27.0 5,690,100
Sexual assault law enforcement--FTEs 5.0 2,507,100
Solicitor general--FTEs 4.0 1,697,900
Special litigation--FTEs 5.0 2,126,100
State operations--FTEs 42.0 8,696,200
Transportation--FTEs 10.0 2,579,300
Victim rights/victim services--FTEs 10.0 1,368,600
GROSS APPROPRIATION $ 133,906,900
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
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IDG from LEO, workforce development 102,300
IDG from MDLARA, cannabis 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
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
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HHS-OS, state Medicaid fraud control units 6,289,100
Special revenue funds:
Unadjudicated criminal property seizures 961,400
Antitrust enforcement collections 869,600
Attorney general's operations fund 1,127,800
Attorney general support fund 8,112,200
Auto repair facilities fees 376,900
Franchise fees 434,900
Game and fish protection account 693,300
Human trafficking commission fund 170,000
Lawsuit settlement proceeds fund 8,225,100
Liquor purchase revolving fund 1,673,900
Michigan employment security act -
administrative fund 2,550,700
Michigan merit award trust fund 550,800
Michigan opioid healing and recovery fund 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
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25
26
27
28
Waterways account 156,300
Worker's compensation administrative revolving
fund 415,600
State general fund/general purpose $ 46,217,300
(3) INFORMATION TECHNOLOGY
Information technology services and projects $ 1,724,400
GROSS APPROPRIATION $ 1,724,400
Appropriated from:
State general fund/general purpose $ 1,724,400
(4) ONE-TIME APPROPRIATIONS
Legal aid and technical assistance program 1,950,000
Utility rate case oversight 2,000,000
GROSS APPROPRIATION $ 3,950,000
Appropriated from:
Interdepartmental grant revenues:
State general fund/general purpose $ 3,950,000
Sec. 103. DEPARTMENT OF CIVIL RIGHTS
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 168.0
GROSS APPROPRIATION $ 29,444,300
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 29,444,300
Federal revenues:
Total federal revenues 3,435,200
Special revenue funds:
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Total local revenues 0
Total private revenues 18,700
Total other state restricted revenues 58,500
State general fund/general purpose $ 25,931,900
(2) CIVIL RIGHTS OPERATIONS
Full-time equated unclassified positions 6.0
Full-time equated classified positions 168.0
Unclassified salaries--FTEs 6.0 $ 895,900
Complaint investigation and enforcement--FTEs 112.0 18,804,800
Disability rights and compliance--FTEs 11.0 1,729,000
Division on deaf, deaf/blind, and hard of
hearing--FTEs 6.0 773,100
Executive office--FTEs 25.0 3,330,300
Public affairs--FTEs 14.0 2,354,000
GROSS APPROPRIATION $ 27,887,100
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 $ 24,389,700
(3) INFORMATION TECHNOLOGY
Information technology services and projects $ 1,557,200
GROSS APPROPRIATION $ 1,557,200
Appropriated from:
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Federal revenues:
EEOC, state and local antidiscrimination agency
contracts 15,000
State general fund/general purpose $ 1,542,200
Sec. 104. EXECUTIVE OFFICE
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 10.0
Full-time equated classified positions 86.2
GROSS APPROPRIATION $ 9,609,200
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 9,609,200
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 $ 9,609,200
(2) EXECUTIVE OFFICE OPERATIONS
Full-time equated unclassified positions 10.0
Full-time equated classified positions 86.2
Unclassified salaries--FTEs 8.0 $ 1,670,500
Governor 159,300
Lieutenant governor 111,600
Executive office--FTEs 86.2 7,667,800
GROSS APPROPRIATION $ 9,609,200
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Appropriated from:
State general fund/general purpose $ 9,609,200
Sec. 105. LEGISLATURE
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION $ 235,324,800
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 7,668,300
ADJUSTED GROSS APPROPRIATION $ 227,656,500
Federal revenues:
Total federal revenues 0
Special revenue funds:
Total local revenues 0
Total private revenues 474,700
Total other state restricted revenues 8,092,300
State general fund/general purpose $ 219,089,500
(2) LEGISLATURE
Senate $ 51,298,900
Senate automated data processing 3,242,100
Senate fiscal agency 5,054,500
House of representatives 75,337,200
House automated data processing 3,242,100
House fiscal agency 5,054,500
GROSS APPROPRIATION $ 143,229,300
Appropriated from:
State general fund/general purpose $ 143,229,300
(3) LEGISLATIVE COUNCIL
Legislative corrections ombudsman $ 1,657,900
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Legislative council 17,221,200
Legislative service bureau automated data
processing 3,880,800
Michigan veterans facility ombudsman 385,300
National association dues 735,700
Office of tribal legislative liaison 522,700
Sentencing commission 100
Worker's compensation 185,200
GROSS APPROPRIATION $ 24,588,900
Appropriated from:
State general fund/general purpose $ 24,588,900
(4) LEGISLATIVE RETIREMENT SYSTEM
Actuarially determined contribution $ 100
General nonretirement expenses 6,521,000
GROSS APPROPRIATION $ 6,521,100
Appropriated from:
Special revenue funds:
Court fees 1,483,300
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 6,858,600
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Restoration, renewal, and maintenance 4,020,500
GROSS APPROPRIATION $ 10,879,200
Appropriated from:
Special revenue funds:
Private - gifts and bequests 474,700
Capitol historic site fund 4,020,500
State general fund/general purpose $ 6,384,000
(7) OFFICE OF THE AUDITOR GENERAL
Unclassified positions--FTEs $ 453,200
Field operations 32,204,500
GROSS APPROPRIATION $ 32,657,700
Appropriated from:
Interdepartmental grant revenues:
IDG, commercial mobile radio system emergency
telephone fund 47,000
IDG, contract audit administration fees 86,000
IDG, deferred compensation funds 118,500
IDG, emp ben div postemployment life insurance
benefit 24,100
IDG from LEO, self-insurers security fund 101,500
IDG from MDHHS, human services 39,900
IDG from MDLARA, liquor purchase revolving fund 137,700
IDG from MDMVA, Michigan veterans facility
authority 109,700
IDG from MDOT, comprehensive transportation
fund 49,200
IDG from MDOT, Michigan transportation fund 399,800
IDG from MDOT, state aeronautics fund 38,700
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IDG from MDOT, state trunkline fund 928,600
IDG, legislative retirement system 32,900
IDG, Michigan economic development corporation 159,700
IDG, Michigan education trust fund 76,700
IDG, Michigan finance authority 323,800
IDG, Michigan justice training commission fund 61,800
IDG, Michigan strategic fund 261,400
IDG, office of retirement services 938,200
IDG, other restricted funding sources 27,600
IDG, Pension schedules of employer allocations
funds 127,700
IDG, single audit act 3,489,200
IDG, state sponsored group insurance fund 88,600
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 2,100
Michigan veterans' trust fund income and
assessments 23,700
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
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Waterways account 14,300
State general fund/general purpose $ 22,400,900
Sec. 106. DEPARTMENT OF STATE
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 1,601.0
GROSS APPROPRIATION $ 299,487,300
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 20,000,000
ADJUSTED GROSS APPROPRIATION $ 279,487,300
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 266,798,000
State general fund/general purpose $ 11,179,200
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 126.0
Secretary of state $ 112,500
Unclassified salaries--FTEs 5.0 853,100
Executive direction--FTEs 28.0 5,246,600
Operations--FTEs 98.0 27,404,800
Property management 11,668,900
Worker's compensation 125,400
GROSS APPROPRIATION $ 45,411,300
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Appropriated from:
Special revenue funds:
Abandoned vehicle fees 239,800
Auto repair facilities fees 125,800
Children's protection registry fund 274,400
Driver fees 2,593,300
Enhanced driver license and enhanced official
state personal identification card fund 2,175,700
Personal identification card fees 101,900
Scrap tire fund 78,600
Transportation administration collection fund 38,537,400
State general fund/general purpose $ 1,284,400
(3) LEGAL SERVICES
Full-time equated classified positions 179.0
Operations--FTEs 179.0 $ 26,008,500
GROSS APPROPRIATION $ 26,008,500
Appropriated from:
Special revenue funds:
Auto repair facilities fees 3,305,800
Driver education provider and instructor fund 150,000
Driver fees 1,658,500
Enhanced driver license and enhanced official
state personal identification card fund 2,957,700
Reinstatement fees - operator licenses 598,500
Transportation administration collection fund 16,374,600
Vehicle theft prevention fees 757,600
State general fund/general purpose $ 205,800
(4) CUSTOMER DELIVERY SERVICES
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Full-time equated classified positions 1,216.0
Branch operations--FTEs 888.0 $ 102,019,600
Central operations--FTEs 326.0 54,862,100
Digital ID 100,000
Motorcycle safety education administration--
FTEs 2.0 657,600
Motorcycle safety education grants 2,100,000
Organ donor program 129,100
GROSS APPROPRIATION $ 159,868,400
Appropriated from:
Interdepartmental grant revenues:
IDG from MDOT, Michigan transportation fund 20,000,000
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
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 14,671,600
Expedient service fees 3,014,100
Marine safety fund 1,596,300
Michigan state police auto theft fund 123,000
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Mobile home commission fees 512,800
Motorcycle safety and education awareness fund 350,000
Motorcycle safety fund 2,107,600
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 83,606,600
Vehicle theft prevention fees 786,000
State general fund/general purpose $ 1,087,400
(5) ELECTION REGULATION
Full-time equated classified positions 80.0
County clerk education and training fund $ 100,000
Election administration and services--FTEs 80.0 28,820,800
Fees to local units 109,800
GROSS APPROPRIATION $ 29,030,600
Appropriated from:
Special revenue funds:
Election administration support fund 20,255,500
Notary education and training fund 100,000
Notary fee fund 200,000
State general fund/general purpose $ 8,475,100
(6) INFORMATION TECHNOLOGY
Information technology services and projects $ 39,168,500
GROSS APPROPRIATION $ 39,168,500
Appropriated from:
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Special revenue funds:
Administrative order processing fee 11,800
Auto repair facilities fees 129,800
Driver fees 789,600
Enhanced driver license and enhanced official
state personal identification card fund 2,066,300
Expedient service fees 803,300
Personal identification card fees 174,000
Transportation administration collection fund 34,885,500
Vehicle theft prevention fees 181,700
State general fund/general purpose $ 126,500
Sec. 107. DEPARTMENT OF TECHNOLOGY, MANAGEMENT,
AND BUDGET
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 6.0
Full-time equated classified positions 3,269.5
GROSS APPROPRIATION $ 1,785,374,200
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 1,171,532,000
ADJUSTED GROSS APPROPRIATION $ 613,842,200
Federal revenues:
Total federal revenues 4,493,300
Special revenue funds:
Total local revenues 3,094,600
Total private revenues 354,400
Total other state restricted revenues 149,227,200
State general fund/general purpose $ 456,672,700
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(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 930.0
Unclassified salaries--FTEs 6.0 $ 1,168,600
Administrative services--FTEs 155.0 24,811,800
Budget and financial management--FTEs 199.0 14,441,500
Building operation services--FTEs 275.0 117,038,000
Business support services--FTEs 108.0 18,053,600
Design and construction services--FTEs 54.0 10,011,600
Executive operations--FTEs 33.5 5,760,000
Michigan center for data and analytics--FTEs 42.0 8,970,700
Motor vehicle fleet--FTEs 39.0 107,598,800
Office of the state employer--FTEs 10.0 1,045,200
Property management 9,007,500
State archives--FTEs 14.5 2,339,800
Statewide integrated government management
application 12,032,100
GROSS APPROPRIATION $ 332,279,200
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, human services 759,100
IDG from MDLARA 100,000
IDG from motor transport fund 107,598,800
IDG from technology user fees 11,753,700
IDG from user fees 10,101,800
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Federal revenues:
Federal funds 4,493,200
Special revenue funds:
Local funds 35,000
Local - MPSCS subscriber and maintenance fees 22,800
Private funds 354,300
Health management funds 443,200
HR-1 costs fund 1,950,000
Other agency charges 1,329,600
SIGMA user fees 2,156,100
Special revenue, internal service, and pension
trust funds 25,785,900
State restricted indirect funds 3,684,300
State general fund/general purpose $ 35,191,100
(3) TECHNOLOGY SERVICES
Full-time equated classified positions 1,670.5
Enterprise user experience--FTEs 14.0 $ 4,292,600
Homeland security initiative/cyber security--
FTEs 58.0 29,136,500
Information technology services--FTEs 1,446.5 908,865,400
Michigan public safety communications system--
FTEs 152.0 51,907,400
GROSS APPROPRIATION $ 994,201,900
Appropriated from:
Interdepartmental grant revenues:
IDG from technology user fees 908,865,400
Special revenue funds:
Local - MPSCS subscriber and maintenance fees 3,036,700
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State general fund/general purpose $ 82,299,800
(4) STATEWIDE APPROPRIATIONS
Professional development fund - AFSCME $ 50,000
Professional development fund - MPE, SEIU,
scientific and engineering unit 100,000
Professional development fund - MPE, SEIU,
technical unit 50,000
Professional development fund - NEREs 200,000
Professional development fund - UAW 700,000
GROSS APPROPRIATION $ 1,100,000
Appropriated from:
Interdepartmental grant revenues:
IDG from employer contributions 1,100,000
State general fund/general purpose $ 0
(5) SPECIAL PROGRAMS
Full-time equated classified positions 199.0
Capital city services $ 1,000,000
Make it in Michigan 400
Office of the child advocate--FTEs 22.0 4,073,100
Property management executive/legislative 1,560,800
Retirement services--FTEs 177.0 30,700,700
GROSS APPROPRIATION $ 37,335,000
Appropriated from:
Federal revenues:
Federal funds 100
Special revenue funds:
Local funds 100
Private funds 100
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Deferred compensation 5,347,200
Make it in Michigan competitiveness fund 100
Pension trust funds 25,260,500
State general fund/general purpose $ 6,726,900
(6) STATE BUILDING AUTHORITY RENT
State building authority rent - community
colleges $ 40,398,900
State building authority rent - state agencies 82,133,900
State building authority rent - universities 153,218,900
GROSS APPROPRIATION $ 275,751,700
Appropriated from:
State general fund/general purpose $ 275,751,700
(7) CIVIL SERVICE COMMISSION
Full-time equated classified positions 470.0
Agency services--FTEs 113.0 $ 18,528,000
Employee benefits--FTEs 29.0 6,747,500
Executive direction--FTEs 35.0 10,022,200
Human resources operations--FTEs 293.0 40,345,800
Information technology services and projects 12,222,700
GROSS APPROPRIATION $ 87,866,200
Appropriated from:
Special revenue funds:
State restricted funds 1% 35,077,800
State restricted indirect funds 14,482,600
State sponsored group insurance 11,556,200
State general fund/general purpose $ 26,749,600
(8) CAPITAL OUTLAY
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Major special maintenance, remodeling, and
addition for state agencies 3,800,000
GROSS APPROPRIATION $ 3,800,000
Appropriated from:
Interdepartmental grant revenues:
IDG from building occupancy charges 3,800,000
State general fund/general purpose $ 0
(9) INFORMATION TECHNOLOGY
Information technology services and projects $ 53,040,200
GROSS APPROPRIATION $ 53,040,200
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 15,323,000
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 $ 29,953,600
Sec. 108. DEPARTMENT OF TREASURY
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions 10.0
Full-time equated classified positions 1,948.5
GROSS APPROPRIATION $ 2,743,068,100
Interdepartmental grant revenues:
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Total interdepartmental grants and
intradepartmental transfers 12,285,700
ADJUSTED GROSS APPROPRIATIONS $ 2,730,782,400
Federal revenues:
Total federal revenues 25,322,400
Special revenue funds:
Total local revenues 16,204,300
Total private revenues 44,300
Total other state restricted revenues 2,328,503,700
State general fund/general purpose $ 360,707,700
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions 10.0
Full-time equated classified positions 460.5
Unclassified salaries--FTEs 10.0 $ 1,350,400
Bureau of accounting and financial services--
FTEs 75.0 10,218,700
Bureau of operational excellence--FTEs 27.0 4,437,300
Collections services bureau--FTEs 189.0 29,595,500
Enterprise services--FTEs 77.0 10,020,500
Executive direction and operations--FTEs 33.5 4,648,200
Office of security and data risk management--
FTEs 27.0 4,114,400
Property management 6,307,100
Unclaimed property--FTEs 32.0 5,824,000
Worker's compensation 19,100
GROSS APPROPRIATION $ 76,535,200
Appropriated from:
Interdepartmental grant revenues:
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IDG, data/collection services fees 339,100
IDG, accounting service center user charges 424,900
IDG, MDHHS, title IV-D 846,500
IDG, levy/warrant cost assessment fees 3,774,400
IDG, state agency collection fees 2,574,100
Federal revenues:
DED-OPSE, federal lenders allowance 518,800
DED-OPSE, higher education act of 1995 insured
loans 555,600
Special revenue funds:
Delinquent tax collection revenue 41,975,500
Escheats revenue 5,824,000
Garnishment fees 2,915,500
Justice system fund 458,800
Marihuana regulation fund 1,314,300
Marihuana regulatory fund 197,300
MFA, bond and loan program revenue 690,700
State lottery fund 337,200
State restricted indirect funds 288,900
State services fee fund 384,500
Treasury fees 47,200
State general fund/general purpose $ 12,927,400
(3) LOCAL GOVERNMENT PROGRAMS
Full-time equated classified positions 102.0
Flint settlement payment $ 35,000,000
Local finance--FTEs 18.0 2,633,600
Michigan infrastructure council--FTEs 3.0 1,539,000
Property tax assessor training--FTE 1.0 802,900
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Supervision of the general property tax law--
FTEs 80.0 17,043,800
GROSS APPROPRIATION $ 57,019,300
Appropriated from:
IDG from MDOT, Michigan transportation fund 256,600
Special revenue funds:
Local - assessor training fees 802,900
Local - audit charges 631,600
Local - equalization study chargeback 40,000
Local - revenue from local government 100,000
Delinquent tax collection revenue 1,699,800
Land reutilization fund 2,075,500
Municipal finance fees 608,100
State general fund/general purpose $ 50,804,800
(4) TAX PROGRAMS
Full-time equated classified positions 735.0
Bottle act implementation $ 250,000
Home heating assistance 3,139,700
Insurance provider assessment program--FTEs 8.0 2,253,900
Living donor tax credit 750,000
Office of revenue and tax analysis--FTEs 25.0 4,433,600
Tax administration services--FTEs 351.0 45,689,800
Tax and economic policy--FTEs 74.0 13,851,000
Tax compliance--FTEs 266.0 41,424,200
Tobacco tax enforcement--FTEs 11.0 1,656,600
GROSS APPROPRIATION $ 113,448,800
Appropriated from:
Interdepartmental grant revenues:
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IDG from MDOT, Michigan transportation fund 2,947,900
IDG from MDOT, state aeronautics fund 72,200
Federal revenues:
HHS-SSA, low-income energy assistance 3,139,700
Special revenue funds:
Bottle deposit fund 250,000
Brownfield redevelopment fund 214,200
Comprehensive road funding fund 500,000
Delinquent tax collection revenue 77,925,200
Insurance provider fund 2,253,900
Marihuana regulation fund 2,704,300
Marihuana regulatory fund 119,300
Michigan state waterways fund 107,100
Qualified heavy equipment rental personal
property exemption reimbursement fund 425,500
Tobacco tax revenue 4,301,700
State general fund/general purpose $ 18,487,800
(5) FINANCIAL PROGRAMS
Full-time equated classified positions 134.0
Investments--FTEs 81.0 $ 23,031,900
Savings, access, and financial empowerment--
FTEs 34.0 20,518,100
State and authority finance--FTEs 19.0 4,816,100
GROSS APPROPRIATION $ 48,366,100
Appropriated from:
Interdepartmental grant revenues:
IDG, fiscal agent service fees 215,600
Federal revenues:
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DED-OPSE, federal lenders allowance 3,451,200
DED-OPSE, higher education act of 1995 insured
loans 17,066,900
Special revenue funds:
Defined contribution administrative fee revenue 300,000
Michigan finance authority bond and loan
program revenue 2,862,300
Retirement funds 17,832,200
School bond fees 954,100
Treasury fees 5,131,000
State general fund/general purpose $ 552,800
(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 $ 128,730,700
Election administrative support fund 20,255,500
Emergency 911 payments 49,147,300
Health and safety fund grants 1,220,900
Qualified heavy equipment rental personal
property exemption reimbursement distribution 27,000,000
Recreational marihuana grants 94,300,000
Senior citizen cooperative housing tax
exemption program 12,525,400
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GROSS APPROPRIATION $ 333,179,800
Appropriated from:
Special revenue funds:
Convention facility development fund 128,730,700
Emergency 911 fund 49,147,300
Health and safety fund 1,220,900
Marihuana regulation fund 94,300,000
Qualified heavy equipment rental personal
property exemption reimbursement fund 27,000,000
State general fund/general purpose $ 32,780,900
(8) BUREAU OF STATE LOTTERY
Full-time equated classified positions 210.0
Lottery information technology services and
projects $ 3,886,200
Lottery operations--FTEs 210.0 38,734,300
GROSS APPROPRIATION $ 42,620,500
Appropriated from:
Special revenue funds:
State lottery fund 42,620,500
State general fund/general purpose $ 0
(9) MICHIGAN GAMING CONTROL BOARD
Full-time equated classified positions 227.0
Casino gaming control operations--FTEs 201.0 $ 44,067,300
Gaming information technology services and
projects 6,015,900
Horse racing--FTEs 6.0 2,169,700
Michigan gaming control board 113,500
Millionaire party regulation--FTEs 20.0 3,302,100
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GROSS APPROPRIATION $ 55,668,500
Appropriated from:
Special revenue funds:
Casino gambling agreements 1,035,800
Equine development fund 2,290,500
Fantasy contest fund 1,101,100
Internet gaming fund 17,529,200
Internet sports betting fund 3,130,500
State services fee fund 30,581,400
State general fund/general purpose $ 0
(10) PAYMENTS IN LIEU OF TAXES
Commercial forest reserve $ 3,603,900
Purchased lands 14,201,700
Swamp and tax reverted lands 23,977,800
GROSS APPROPRIATION $ 41,783,400
Appropriated from:
Special revenue funds:
Private funds 44,300
Game and fish protection account 4,812,400
Michigan natural resources trust fund 3,618,700
Michigan state waterways fund 417,700
State general fund/general purpose $ 32,890,300
(11) REVENUE SHARING
City, village, and township revenue sharing $ 333,547,300
Constitutional state general revenue sharing
grants 1,045,337,700
County revenue sharing 291,111,400
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Financially distressed cities, villages, or
townships 2,500,000
Public safety revenue sharing grants 50,000,000
GROSS APPROPRIATION $ 1,722,496,400
Appropriated from:
Special revenue funds:
Revenue sharing trust fund 624,658,700
Sales tax 1,097,837,700
State general fund/general purpose $ 0
(12) STATE BUILDING AUTHORITY
Full-time equated classified positions 4.0
State building authority--FTEs 4.0 $ 1,034,800
GROSS APPROPRIATION $ 1,034,800
Appropriated from:
Special revenue funds:
State building authority revenue 1,034,800
State general fund/general purpose $ 0
(13) CITY INCOME TAX ADMINISTRATION PROGRAM
Full-time equated classified positions 76.0
City income tax administration program--FTEs 76.0 $ 12,214,800
GROSS APPROPRIATION $ 12,214,800
Appropriated from:
Special revenue funds:
Local - city income tax fund 12,214,800
State general fund/general purpose $ 0
(14) INFORMATION TECHNOLOGY
Treasury operations information technology
services and projects $ 47,170,600
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GROSS APPROPRIATION $ 47,170,600
Appropriated from:
Interdepartmental grant revenues:
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 18,495,600
Marihuana regulation fund 778,200
Retirement funds 829,700
Tobacco tax revenue 134,200
State general fund/general purpose $ 23,233,800
(15) ONE-TIME APPROPRIATIONS
Election equipment reserve fund $ 43,164,000
Gaming control information technology services
and projects 2,500,000
Local prosecutor support grants 20,047,000
Local prosecutor support adjustment grants 5,339,900
Municipal infrastructure grant program 8,000,000
Public safety academy assistance grant program 5,000,000
Wrongful imprisonment compensation fund 10,000,000
GROSS APPROPRIATION $ 94,050,900
Appropriated from:
Special revenue funds:
Internet gaming fund 2,125,000
Internet sports betting fund 125,000
State services fee fund 250,000
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State general fund/general purpose $ 91,550,900

PART 1A
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2025-2026
Sec. 151. There is appropriated for the executive and
legislature to supplement appropriations for the fiscal year ending
September 30, 2026, from the following funds:
Sec. 152. EXECUTIVE OFFICE
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION $ 2,000,000
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 2,000,000
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 $ 2,000,000
(2) EXECUTIVE OFFICE OPERATIONS
Executive office 2,000,000
GROSS APPROPRIATION $ 2,000,000
Appropriated from:
State general fund/general purpose $ 2,000,000
Sec. 153. LEGISLATURE
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(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION $ (2,000,000)
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ (2,000,000)
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 $ (2,000,000)
(2) LEGISLATURE
Senate $ (2,000,000)
House of representatives (2,000,000)
Senate $ 1,000,000
House of representatives 1,000,000
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. (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
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$3,923,879,700.00 and state spending under part 1 from state
sources to be paid to local units of government is
$2,212,171,400.00. The following itemized statement identifies
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 TECHNOLOGY, MANAGEMENT, AND BUDGET
Capital city services $ 1,000,000
Subtotal $ 1,000,000
DEPARTMENT OF TREASURY
Airport parking distribution pursuant to section
909 $ 46,000,000
City, village, and township revenue sharing 333,547,300
Commercial forest reserve 3,603,900
Constitutional state general revenue sharing
grants 1,045,337,700
Convention facility development fund
distribution 128,730,700
County revenue sharing 291,111,400
Election equipment reserve fund 43,164,000
Emergency 9-1-1 payments 49,147,300
Financially distressed cities, villages, or
townships 2,500,000
Health and safety fund grants 1,220,900
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Local prosecutor support grants 20,047,000
Local prosecutor support adjustment grants 5,339,900
Municipal infrastructure grant program 8,000,000
Public safety revenue sharing grants 50,000,000
Purchased lands 14,201,700
Qualified heavy equipment rental personal
property exemption reimbursement 27,000,000
Recreational marihuana grants 94,300,000
Senior citizen cooperative housing tax exemption 12,525,400
Swamp and tax reverted lands 23,977,800
Subtotal $ 2,199,755,000
TOTAL $ 2,212,171,400
(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 $50,204,395,300.00 and total state spending
from state sources to be paid to local units of government is
estimated at $27,222,946,200.00. The proportion of total state
spending from state sources to be paid to local units is estimated
at 54.22%.
(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,
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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) "AFSCME" means American Federation of State, County, and
Municipal Employees.
(b) "COBRA" means the consolidated omnibus budget
reconciliation act of 1985, Public Law 99-272.
(c) "DAG" means the United States Department of Agriculture.
(d) "DED" means the United States Department of Education.
(e) "DED-OPSE" means the DED Office of Postsecondary
Education.
(f) "EEOC" means the United States Equal Employment
Opportunity Commission.
(g) "FTE" means full-time equated.
(h) "Geographically disadvantaged business enterprise" means a
geographically-disadvantaged business enterprise as that term is
defined by Executive Directive No. 2023-1.
(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) "Legislatively directed spending item" means that term as
defined in section 364 of the management and budget act, 1984 PA
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431, MCL 18.1364.
(p) "MCL" means the Michigan Compiled Laws.
(q) "MDE" means the Michigan department of education.
(r) "MDHHS" means the Michigan department of health and human
services.
(s) "MDIFS" means the Michigan department of insurance and
financial services.
(t) "MDLARA" means the Michigan department of licensing and
regulatory affairs.
(u) "MDLEO" means the Michigan department of labor and
economic opportunity.
(v) "MDMVA" means the Michigan department of military and
veterans affairs.
(w) "MDOC" means the Michigan department of corrections.
(x) "MDOS" means the Michigan department of state.
(y) "MDOT" means the Michigan department of transportation.
(z) "MDSP" means the Michigan department of state police.
(aa) "MDTMB" means the Michigan department of technology,
management, and budget.
(bb) "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.
(cc) "MEGA" means the Michigan economic growth authority.
(dd) "MFA" means the Michigan finance authority.
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(ee) "MPE" means the Michigan public employees.
(ff) "MPSCS" means the Michigan public safety communications
system.
(gg) "MSF" means the Michigan strategic fund.
(hh) "NERE" means nonexclusively represented employees.
(ii) "PA" means public act.
(jj) "RFP" means a request for a proposal.
(kk) "SEIU" means Service Employees International Union.
(ll) "SIGMA" means statewide integrated governmental management
applications.
(mm) "Standard report recipients" means 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.
(nn) "WIC" means women, infants, and children.
(oo) "UAW" means the United Automobile, Aerospace, and
Agricultural implement Workers of America.
Sec. 204. A department or agency shall use the internet to
fulfill the reporting requirements of this part, 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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the department or agency shall maintain on its website all
reports posted on the website from previous fiscal years, listed by
fiscal year, in the same archivable location. The department or
agency shall transmit all required reports for the current fiscal
year to the standard recipients and any other required recipients
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by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 206. A department or agency shall not take disciplinary
action against an employee of a department or an agency within a
department for communicating 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. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, each department and agency
receiving appropriations in part 1 shall prepare a report on out‐of‐
state travel expenses not later than January 1. The report must
list all travel by classified and unclassified employees outside
this state in the previous fiscal year that was funded in whole or
in part with funds appropriated in the department's or agency's
budget. The department or agency shall submit the report to the
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standard report recipients and to the house and senate
appropriations committees. The report must include all of the
following information:
(a) The dates of each travel occurrence.
(b) The total transportation and related expenses of each
travel occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, and other revenues.
Sec. 208. 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. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides for estimates of
the total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall submit the report to the standard report
recipients and the chairpersons of the senate and house
appropriations committees.
Sec. 210. (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:
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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 0.0% 0.0%
Equals: calculated transfer to
countercyclical budget and

economic stabilization fund
for the fiscal year ending
September 30, 2027 (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 NO
(2) Notwithstanding subsection (1), there is appropriated for
the fiscal year ending September 30, 2027 from general fund/general
purpose revenue for deposit into the countercyclical budget and
economic stabilization fund the sum of $0.00.
Sec. 211. A department or agency shall cooperate with the
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 each department or agency:
(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.
Sec. 212. Not later than 14 days after the release of the
executive budget recommendation, a department or agency receiving
appropriations in part 1 shall cooperate with the state budget
office to provide an annual report on estimated state restricted
fund balances, state restricted fund projected revenues, and state
restricted fund expenditures for the previous 2 fiscal years. The
report must be submitted to the standard report recipients and the
chairpersons of the senate and house appropriations committees.
Sec. 214. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations in part 1 shall
take all reasonable steps to ensure geographically disadvantaged
business enterprises compete for and perform contracts to provide
services or supplies, or both. Each director shall strongly
encourage firms with which the department or agency contracts to
subcontract with certified geographically disadvantaged business
enterprises for services, supplies, or both.
Sec. 215. On a quarterly basis, a department or agency
receiving appropriations in part 1 and the office of the auditor
general shall report on the number of FTEs in pay status by type of
staff and civil service classification, including comparison by
line item of the number of FTEs authorized from funds appropriated
in part 1 to the actual number of FTE positions employed by the
department or agency or the office of the auditor general at the
end of the reporting period. The report must be submitted to the
senate and house appropriations committees and to the standard
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report recipients.
Sec. 216. (1) A department or agency shall maximize
utilization of its in-person state workforce. A department or
agency shall prioritize occupancy utilization of office space for
each division within the department or agency. Employees with job
responsibilities that require the employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on the timesheet were 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 in-
person work is optimized and occupancy rates are 80% or higher,
subject to market conditions.
(3) A department or agency shall adhere to civil service rules
and regulations that state the standard biweekly work period for a
full-time employee in the classified service of this state is the
equivalent of 80 hours of work. A department or agency shall
establish policies and processes to ensure all employees are
working their jobs during agreed-upon business hours.
Sec. 217. Not later than 6 months after the state budget
office issues work project letters, each department or agency and
the legislature shall submit an annual report that summarizes all
work project accounts. The report 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.
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(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. 218. A department or agency receiving appropriations in
part 1 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 may electronically
retain copies of reports unless otherwise required by federal and
state guidelines.
Sec. 219. Not later than April 1, a department or agency
receiving appropriations in part 1 shall report on each specific
policy change made to implement a PA 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
appropriations committees, and to the joint committee on
administrative rules.
Sec. 221. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of a local health officer.
Sec. 222. To the extent possible, a department or agency shall
not expend appropriations under part 1 until all existing
authorized work project funds available for the same purposes are
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exhausted.
Sec. 223. A department or agency that receives an
appropriation under this part or part 1 shall provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department or agency,
including reductions in federal revenue. For federal revenue
reductions, the annual report must detail the impact on the
department or agency and residents of this state, including, but
not limited to, all of the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services that the department or agency will have to
reduce or eliminate as a result of the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
that is regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 224. Not later than April 1, a department or agency 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.
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Sec. 226. A department or agency shall report on any court
settlement that may require further legislative review of state
statutory programs or regulations.
Sec. 227. Not later than November 15, a department or agency
shall disclose on a publicly accessible website 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.
The report must be submitted to the standard report recipients and
to the chairpersons of the senate and house appropriations
committees.
Sec. 228. (1) Not later than 30 days after the effective date
of this act, the house and senate shall provide to the state budget
office a jointly agreed-upon list of legislatively directed
spending items funded in part 1. The list must include all
information and documents pertaining to the legislatively directed
spending 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 of the management and
budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering a legislatively directed spending item shall post a
report in a publicly accessible location on its website beginning
March 15. The department or agency shall update the report and
shall post an updated report not later than June 15 and again not
later than September 15. The department or agency shall include in
the report the most comprehensive information for each
legislatively directed spending item that the department has
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available at the time of posting.
Sec. 229. The state budget director shall ensure that all
state fiscal recovery funds allocated to this state under the
American rescue plan act of 2021, Public Law 117-2, are expended by
December 31, 2026, as required by law. Any state fiscal recovery
funds that would otherwise lapse after September 30, 2026, are
automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026,
and any subsequent financial closeout period.
Sec. 230. (1) The state budget director shall ensure that all
state fiscal recovery funds allocated to this state under the
American rescue plan act of 2021, Public Law 117-2, are expended by
December 31, 2026, as required by law. The state budget director
may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
All funds reallocated are unappropriated under this subsection and
are immediately reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
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provisions of the American rescue plan act of 2021, Public Law 117-
2, must be followed for state fiscal recovery funds reallocated and
reappropriated under subsection (1).
(3) The state budget director shall notify the senate and
house appropriations committees not later than 1 business day after
making a reallocation under subsection (1). The notification must
include the authorized program under which funds were originally
appropriated, the amount of the reallocation, the program, or
programs, or purpose, and the department or agency to which the
funds are being reallocated, and the amount reallocated to each
program or purpose.
Sec. 231. (1) In addition to any other requirements under this
part, if a department or agency is authorized under this part to
expend funds in addition to those appropriated in part 1, the
department shall do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department or agency in the previous fiscal
year.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose.
(b) Not later than 60 days after receiving the funds
authorized under this part, provide a report to the chairpersons of
the house and senate appropriations committees, the house and
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senate fiscal agencies, and the state budget office that details
all of the following:
(i) The type of funding received.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
specified purpose or purposes.
(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
or agency anticipates it will receive in the subsequent fiscal year
that details all of the following:
(i) The type or types of funding anticipated.
(ii) The amount or amounts of funding anticipated.
(iii) The purpose or purposes of the funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
similar time frame as would be reported under subsection (1),
subsection (1) does not apply.
Sec. 232. Funds appropriated in part 1 must not be used by
this state or a department, agency, or authority of this state to
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.

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
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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
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.
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(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.
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 $5,000,000.00 in
antitrust revenues, securities fraud revenues, consumer protection
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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
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.
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Sec. 309. (1) From the prisoner reimbursement funds
appropriated in part 1, the department of attorney general may
expend not more than $790,600.00 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
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
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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.
(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
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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) From the funds appropriated in part 1 for sexual
assault law enforcement efforts, the department of attorney general
shall use the funds 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
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
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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. 319. From the funds appropriated in part 1, the attorney
general shall submit a quarterly report on the wrongful
imprisonment compensation fund that includes at least all of the
following:
(a) All payments made from the wrongful imprisonment
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:
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(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
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) Elder abuse task force.
(b) Conviction integrity unit.
(c) Opioid litigation.
(d) Hate crimes unit and domestic terrorism unit.
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(e) Payroll fraud enforcement unit.
(f) PFAS contamination. As used in this subdivision, "PFAS"
means perfluoroalkyl and polyfluoroalkyl substances.
(g) Human trafficking.
(h) Robocall enforcement.
(i) Job court.
(j) Organized retail crime unit.
(k) Reducing utility rate increases.
(l) Address confidentiality program.
(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
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or agency's findings to enable the department of attorney general
to comply with this section.
Sec. 325. (1) From the funds appropriated in part 1,
$2,450,000.00, of which $1,950,000.00 is a one-time appropriation,
must be used by a nonprofit entity or nonprofit entities to provide
legal and technical assistance to low-income individuals and to
pursue impact litigation that protects low-income and marginalized
populations.
(2) For the purposes of facilitating and administering this
program, the department of attorney general may contract with a
third-party nonprofit entity or foundation involved in promoting
improvements in the administration of justice.
(3) A third-party nonprofit entity or foundation contracted to
administer and facilitate this program shall subgrant all or part
of the distribution from part 1. The subgrant must be used to
provide legal and technical assistance to low-income individuals
and to pursue impact litigation that protects low-income and
marginalized populations. A grant or subgrant for purposes of this
section must not go to an entity receiving federal funding for the
purposes of providing legal aid. Not more than 10% of the money
appropriated in part 1 may be used for administering this grant
program.

ONE-TIME APPROPRIATIONS
Sec. 330. The unexpended funds appropriated in part 1 for
utility rate case oversight 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
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have been completed. The following is in compliance with section
451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to support legal activities
conducted by the department of attorney general pertaining to
utility rate cases.
(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, 2031.

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.
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(b) Publishing and selling civil rights related informational
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
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quarterly reports to the standard report recipients that include,
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. 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
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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
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
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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. 605. The unexpended funds appropriated in part 1 for the
legislative council 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 publication of the Michigan
manual.
(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 $3,000,000.00.
(d) The tentative completion date is September 30, 2031.
Sec. 606. The unexpended funds appropriated in part 1 for
property management 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
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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 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, 2031.
Sec. 607. The unexpended funds appropriated in part 1 for
automated data processing 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 purchase equipment,
software, and services to support and implement data processing
requirements and technology improvements.
(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 $3,000,000.00.
(d) The tentative completion date is September 30, 2031.
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
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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
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.

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. 621. (1) The auditor general shall take all reasonable
steps to ensure that certified minority- and women-owned and
operated accounting firms, accounting firms owned and operated by
persons with disabilities, and accounting firms that are
geographically disadvantaged business enterprises participate in
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the audits of the books, accounts, and financial affairs of each
principal executive department, branch, institution, agency, and
office of this state.
(2) If the auditor general contracts with a firm to perform
audits of the principal executive departments and state agencies,
the auditor general shall strongly encourage the firm to
subcontract with certified minority- and women-owned and operated
accounting firms, accounting firms owned and operated by persons
with disabilities, and accounting firms that are geographically
disadvantaged business enterprises.
(3) Not later than November 1, the auditor general shall
submit a report to the standard report recipients regarding the
number of contracts entered into with certified minority- and
women-owned and operated accounting firms, accounting firms owned
and operated by persons with disabilities, and accounting firms
that are geographically disadvantaged business enterprises.
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.
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Sec. 627. The unexpended funds appropriated in part 1 for
field operations 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 conduct the state of
Michigan annual comprehensive financial report.
(b) The project will be accomplished by utilizing state
employees and contract audits.
(c) The total estimated cost of the project is $3,000,000.00.
(d) The tentative completion date is September 30, 2031.
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 appropriations committees, and the senate
and house 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.
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(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 appropriations committees, and the senate
and house oversight committees that includes all of the following
information for each project in progress during the immediately
preceding quarter:
(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 appropriations committees, and the senate
and house 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
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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.

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
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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. 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. 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
257.1 to 257.923. The MDOS may charge and receive a fee for any
advertisement appearing in a departmental publication and shall
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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.
(b) A list of the expenditures made from the amounts received
by the MDOS as reported in subdivision (a).
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(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
appropriated in 1990 PA 196 and 1990 PA 208.
Sec. 709. From the funds appropriated in part 1, the MDOS may
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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
public funding source underwriting the public information campaign,
in whole or in substantial part, shall receive sponsorship credit
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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.
Sec. 714. (1) Except as otherwise provided under subsection
(2), not less than 180 days before closing a branch office or
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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
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
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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
expended for the departmental functions relating to licensing,
regulation, or safety.
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(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. 721. (1) Upon the conclusion of any security service
provided to a legislator outside of the state capitol complex, the
sergeant at arms shall submit a formal incident service report with
the secretary of state. This report must include all of the
following:
(a) The date, time, and specific location of the service.
(b) The name of the legislator receiving protection.
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(c) A description of the security necessity or specific threat
addressed.
(d) A detailed account of any coordination with local or state
law enforcement agencies.
(e) A listing of any significant security incidents or use-of-
force incidents occurring during the detail.
(2) A report described in subsection (1) must not include
information that would compromise the safety or security of a
legislator, including security plans, emergency operations, or
other sensitive details.
(3) Not fewer than 1 time each legislative session, the
sergeant at arms, or the designee of the sergeants at arms, shall
submit a written report to the house and senate committees on
government operations that details all security services provided
to legislators. While maintaining the confidentiality of sensitive
security protocols, the report must include all of the following:
(a) The total number of security details deployed.
(b) The general nature of threats addressed.
(c) A summary of operational expenditures.
(4) As soon as practicable, but not later than 5 business days
after the secretary of state receives a report submitted under
subsections (1) or (3), the secretary of state shall make the
report, or all of the contents of the report, available without
charge to the public on a separate webpage or the MDOS webpage.
(5) A legislator that violates this section shall reimburse
the legislative chamber of which the legislator is a member for any
expenses incurred by the chamber in the course of the violation and
shall additionally pay a penalty of not less than 10% of that
amount. The reimbursement and penalty must not be paid from funds
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obtained from state sources or from funds that are subject to the
Michigan campaign finance act, 1976 PA 388, MCL 169.201 to 169.282.
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
are estimated at $14,617,600.00. Total department of state
appropriations for retiree health care legacy costs are estimated
at $0.00.

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 $50,000,000.00 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 $200,000,000.00 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 $5,000,000.00 for local
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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 $5,000,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 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
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
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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
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
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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
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
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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
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) 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
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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.
(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,
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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.
Sec. 814. (1) From the funds appropriated in part 1 for motor
vehicle fleet, the MDTMB shall prioritize vehicle options that
minimize the total cost of ownership over the expected service life
of the vehicle when obtaining, leasing, or replacing state motor
vehicles. Criteria for assessing these options shall include, but
not be limited to, cost projections for all of the following:
(a) Vehicle acquisition costs.
(b) Fuel costs.
(c) Energy use and associated costs.
(d) Maintenance and repair costs.
(e) Operational reliability.
(f) Resale or disposal value.
(2) To the extent practicable and consistent with operational
needs, the MDTMB shall give preference to vehicle technologies that
demonstrate lower long-term operating and maintenance costs and
that reduce exposure to fuel price volatility.
Sec. 815. By November 1, the MDTMB shall submit a report to
the standard report recipients on expenditures of funds
appropriated in 2021 PA 87 for legal services funding and carried
forward under work project account number 17458, titled "legal
services". The report must itemize expenditures by case, purpose,
and department involved and must include expenditures related to
all previously appropriated funds including those expended in
fiscal year 2025-2026.
Sec. 816. From the funds appropriated in part 1, the office of
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the state employer shall work with all state departments and
agencies to set requirements on in-person work and utilization of
state buildings to ensure in-person work completed by state of
Michigan nonfield employees is optimized and the occupancy rate of
state-owned or occupied buildings, subject to market conditions, is
80% or higher.
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
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 2024-2025 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.
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(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
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.
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(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
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.
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(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
collected by the MDTMB from the authorization in subsection (1) and
the amount of revenue carried forward.
Sec. 822f. Not later than 30 business days after the budget
director notifies each member of the senate and house
appropriations committees and fiscal agencies of work projects that
the director has ordered to lapse for work projects W1101024,
W1609023, W6660022, W666023, W6695022, and TW5090022 in accordance
with section 451a(2) of the management and budget act, 1984 PA 431
MCL 18.1451a, $17,336,900 in general funds shall be appropriated to
budget and financial management or statewide integrated government
management application, as determined by the state budget director,
in addition to the funds appropriated in part 1.
Sec. 822g. From the funds appropriated in part 1 for business
support services, not more than an additional $200,000.00 may be
used to continue a comprehensive supplier risk and information
subscription used for the precontract risk assessment program.
Sec. 822h. (1) From the funds in part 1 for capital city
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services, the MDTMB shall provide reimbursements to the city of
Lansing to provide support for local infrastructure and municipal
services, including, but not limited to, maintenance or improvement
of local roads, sidewalks, public utility infrastructure, emergency
response, traffic management, or other public safety services that
support the state capitol and adjacent state facilities.
(2) The MDTMB shall reimburse the city described in subsection
(1) quarterly for eligible expenses if the city of Lansing provides
supporting documentation related to the eligible expenses to the
MDTMB and the eligible expenses are approved for reimbursement.
(3) The city of Lansing shall maintain and provide any
supporting documentation that is requested for auditing purposes.
Sec. 822j. (1) The make it in Michigan competitiveness fund is
created within the state treasury.
(2) Funds may be spent from the make it in Michigan
competitiveness fund only on appropriation or administrative
transfer pursuant to subsection (3).
(3) A transfer of funds from federal or state restricted
contingency funds into make it in Michigan may be made by the state
budget director not less than 30 days after notifying each member
of the senate and house appropriations committees. Those transfers
may be disapproved by either appropriations committee within the 30
days and, if disapproved within that time, are not effective.
(4) A transfer approved under this section constitutes
authorization to transfer the amount recommended and approved.
However, the amount must be reduced by the state budget director to
be within the current unobligated amount of the appropriation.
(5) Transfers must not be authorized under any of the
following circumstances:
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(a) To create a new line-item appropriation or to create a new
state program.
(b) To or from an operating appropriation line item that did
not appear in the fiscal year appropriation bills for which the
transfer is being made.
(c) To or from a work project as designated under section 451a
of the management and budget act, 1984 PA 431, MCL 18.1451a.
(d) Between state governmental funds.
(6) Interest and earnings from the investment of funds
deposited in the make it in Michigan competitiveness fund must be
deposited in the general fund.
(7) Funds in the make it in Michigan competitiveness fund at
the close of a fiscal year remain in the make it in Michigan
competitiveness fund and do not lapse to the general fund.
(8) Funds appropriated or transferred from the make it in
Michigan competitiveness fund are available to leverage federal
funding opportunities that include, but are not limited to,
infrastructure, health, public safety, mobility and
electrification, climate and the environment, economic development,
or other funding opportunities administered by the federal
government. Funding opportunities may be in the form of formula or
competitive-based grants, cooperative agreements, or contracts, and
may include funds contained in the infrastructure investment and
jobs act, Public Law 117-58, the CHIPS act of 2022, division A of
Public Law 117-167, the inflation reduction act of 2022, Public Law
117-169, or any other federal acts.
(9) The Michigan infrastructure office, in collaboration with
the state budget director, shall form an interagency evaluation
committee that includes the department of environment, Great Lakes,
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and energy, the MDLEO, the MDOT, the MSF, or other entities at the
discretion of the Michigan infrastructure office, to develop
program guidelines and selection criteria for the recommended
appropriation or transfer of funds. The interagency evaluation
committee shall make recommendations to the director of the MDTMB
and the state budget director on the disbursement of funds. Funding
must also be used to cover all costs related to the administration
of this section.
(10) The MDTMB shall inform the legislature not later than 30
days after any federal funds are received that would be used as the
basis for recommended appropriations or transfers from the make it
in Michigan competitiveness fund.
(11) Not later than 90 days after the close of each fiscal
year, the MDTMB shall report to the legislature on the projects
funded with make it in Michigan competitiveness fund money.

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,
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
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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.

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.
(2) State departments shall have access to all historical and
current data contained within SIGMA or its predecessor.
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
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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
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. (1) The funds appropriated in part 1 for statewide
integrated government management application must be used to
maintain all existing financial reporting attributes and features
of the statewide integrated government management application,
including, but not limited to, the business intelligence reporting
platform. All agency, department, and individual reports produced
or executed within business intelligence as a part of the statewide
integrated government management application as of September 30,
2026 must remain available and accessible to users.
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(2) A notification of planned changes to the vendor or data
structure of reports within the business intelligence reporting
platform must be provided by the state budget office electronically
to all statewide integrated government management application users
not later than 60 business days before the implementation of any
modifications. The notification must include the following:
(a) A brief description of the planned changes.
(b) A description of how the planned changes would improve
accuracy, functionality, or user experience.
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 60 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
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. 835. The MDTMB shall provide a report to the standard
report recipients on all new contracts for software development
services that have a value greater than $10,000,000.00 or that are
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effective for a period longer than 3 years. The report must be
submitted not later than January 15 and must cover the immediately
preceding 12 months.
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.

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
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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
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
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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
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
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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
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.

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.
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(e) "State building authority" means the authority created in
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.
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(3) Before the end of the fiscal year, the MDTMB shall submit
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
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leased facilities.
(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.
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(b) The sites identified as economic development sites.
(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
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MDTMB may enter into a memorandum of understanding to memorialize
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.
Sec. 867. In addition to the appropriations for special
maintenance, remodeling, and additions for state agencies in part
1, there is appropriated related federal and state restricted funds
up to the amounts that will be earned based upon the initiatives
undertaken with the funds in part 1. The state budget director
shall determine and authorize the appropriate manner for
implementing this section.

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
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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
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
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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.
(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.

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
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
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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
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
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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
part 1, not later than 30 days after the state of Michigan
comprehensive annual 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
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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 for services to support
collection of 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 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
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treasury may contract for services 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 entity 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
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
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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
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
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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.
(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.
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(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
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.
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(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
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
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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.
(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
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otherwise lapse to the general fund.
(2) Not later than 30 days after the annual comprehensive
financial report is published, 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
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).
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(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.
(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,
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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
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
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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,
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
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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.
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
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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
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.
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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
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.
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(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
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
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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.
(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
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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.
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
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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
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
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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 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,
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).
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(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
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
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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. 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,
any 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.
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.
Sec. 949o. From the funds appropriated in part 1, the
department shall report the taxable value and local tax effort for
each city, village, township, and county used to calculate the
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revenue sharing payments made under sections 952 and 955 to the
house and senate fiscal agencies, not later than 1 business day
after payments are made under section 954(1) for sections 952 and
955.
Sec. 949p. In addition to the amounts appropriated in part 1,
any amount collected from maintenance or user fees paid by the plan
participants to the plan vendor or to the plan is authorized to be
spent by the program. The Michigan achieving a better life
experience program fees must be used to develop and conduct a
marketing campaign to promote awareness to residents of this state.
Eligible expenses include, but are not limited to, program
administration, program awareness campaigns, planning and hosting
events, or to reduce or offset plan participant fees.
Sec. 949q. From the funds appropriated in part 1, the
department shall report the taxable value and local tax effort for
each city, village, township, and county used to calculate the
revenue sharing payments made under section 952 and section 955 to
the house and senate fiscal agencies not later than 1 business day
after payments are made under section 954(1) for sections 952 and
955.
Sec. 949r. From the funds appropriated in part 1, the
department shall not use funds to initiate or pursue the
garnishment of wages or take any other collections measures for
individuals who received unemployment insurance agency overpayments
during the years of 2020 to 2022.
Sec. 949s. (1) The Medicaid caseload reserve fund is created
within the state treasury. The purpose of the fund is to support
Medicaid caseload costs that occur at levels above appropriated
amounts.
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(2) Funds may be spent from the Medicaid caseload reserve fund
only upon appropriation.
(3) Interest and earnings from the investment of funds
deposited in the Medicaid caseload reserve fund shall remain in the
fund.
(4) Funds in the Medicaid caseload reserve fund at the close
of a fiscal year shall remain in the fund and shall not lapse to
the general fund.
Sec. 949t. (1) The HR-1 costs fund is created within the state
treasury. The purpose of the fund is to support costs that occur as
a result of administering or implementing HR-1, Public Law 119-21.
(2) Funds may be spent from the HR-1 costs fund only upon
appropriation.
(3) Interest and earnings from the investment of funds
deposited in the HR-1 costs fund shall remain in the fund.
(4) Funds in the HR-1 costs fund at the close of a fiscal year
shall remain in the fund and shall not lapse to the general fund.

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. The funds appropriated in part 1 for city, village,
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and township revenue sharing and collected in the revenue sharing
trust fund created in section 11a of the Michigan trust fund act,
2000 PA 489, MCL 12.261, is appropriated and must be distributed in
accordance with section 11b of the Michigan trust fund act, 2000 PA
489, MCL 12.261.
Sec. 954. (1) Cities, villages, and townships receiving a
payment under section 952 and counties receiving a payment under
section 955 must receive distributions on the dates in accordance
with section 11b of the Michigan trust fund act, 2000 PA 489, MCL
12.261.
(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 2024 PA 121, 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
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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 2024 PA 121,
rounded to the nearest dollar. A county 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.
Sec. 955. The funds appropriated in part 1 for county revenue
sharing and collected in the revenue sharing trust fund created in
section 11a of the Michigan trust fund act, 2000 PA 489, MCL
12.261, is appropriated and must be distributed in accordance with
section 11b of the Michigan trust fund act, 2000 PA 489, MCL
12.261.
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:
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(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
$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.
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(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, 2030.
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
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) $35,062,500.00 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).
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(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
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
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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
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
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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
data.
(9) $11,687,500.00 must be used for public safety assistance
payments to counties. The payment to each county must be calculated
as determined under section 955. 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
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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 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
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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
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) It is the intent of the legislature that $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
McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL
432.1 to 432.47, and activities under the Traxler-McCauley-Law-
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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
act, 2019 PA 149, MCL 432.416.
Sec. 971. (1) From the revenue collected by the Michigan
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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
Indian gaming regulatory act, Public Law 100-497.
(2) A local revenue sharing board described in subsection (1)
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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
local revenue sharing boards.
Sec. 974. If revenues collected in the state services fee fund
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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
1995, 1995 PA 279, MCL 431.320, except for the racing commission
appropriations, must be reduced proportionately if revenues to the
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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
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
due to them.
(c) A description of the progress on promulgating rules to
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ensure compliance with the Traxler-McCauley-Law-Bowman bingo act,
1972 PA 382, MCL 432.101 to 432.152.
(d) Any enforcement actions taken.

ONE-TIME APPROPRIATIONS
Sec. 991. (1) From the funds appropriated in part 1 for
election equipment reserve fund, the MDTMB shall provide assistance
that may include centralized procurement and information technology
support in the state's implementation of a uniform voting system
and replacement of voting systems in local jurisdictions in
accordance with the Michigan election law, 1954 PA 116, MCL 168.1
to 168.992.
(2) All principal, interest, and earnings deposited into the
election administration support fund created under section 21-940
of article 21, and funds received under the help America vote act
of 2002, 42 USC 15301 to 15545, including any interest and
earnings, in accordance with 52 USC 20901 to 21145, are
appropriated for purposes described in this section. The MDTMB
shall collaborate with other state departments, as appropriate, on
the implementation of a uniform voting system. The state budget
director may make the budgetary or accounting transactions
necessary to authorize the utilization of these funds in the MDTMB
or any collaborating department.
(3) The unexpended funds appropriated in part 1 for election
equipment reserve fund and this section 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
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451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to support the purchase of
election equipment for local units of government.
(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 $43,164,000.00.
(d) The tentative completion date is September 30, 2031.
Sec. 992. (1) From the funds appropriated in part 1 for local
prosecutor support grants, the department of treasury shall issue
grants to county prosecutors that received a grant under section
991 of article 5 of 2023 PA 119, section 805 of article 16 of 2025
PA 22, or section 991(1) of article 5 of 2025 PA 22. The grant
amount must be the greatest amount received under section 991 of
article 5 of 2023 PA 119, section 805 of article 16 of 2025 PA 22,
or section 991(1) of article 5 of 2025 PA 22.
(2) County prosecutors must show that the total amount
appropriated to the county prosecutor in the current fiscal year is
equal to or greater than the amount received in the previous fiscal
year.
(3) The department of treasury shall issue grants to county
prosecutors not later than 5 business days after receiving
documentation that the total amount appropriated to the county
prosecutors is equal to or greater than the amount received in the
previous fiscal year.
Sec. 993. (1) For the funds appropriated in part 1 for local
prosecutor support adjustment grants, the department of treasury
shall issue adjustment grants to county prosecutors that qualify
under subsection (2) in the amount calculated under subsection (3)
not later than 1 business day after the effective date of this act.
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(2) County prosecutors are eligible to receive an adjustment
grant under this section if both of the following conditions are
met:
(a) The county prosecutors received a grant under section 991
of article 5 of 2023 PA 119 or section 805 of article 16 of 2025 PA
22.
(b) One of the following conditions is met:
(i) The county prosecutors did not receive an amount under
section 805 of article 16 of 2025 PA 22 or section 991(1) of
article 5 of 2025 PA 22.
(ii) The amount that the county prosecutors received under
section 991 of article 5 of 2023 PA 119 or section 805 of article
16 of 2025 PA 22 was less than the amount that the county
prosecutors received under section 805 of article 16 of 2025 PA 22
or section 991(1) of article 5 of 2025 PA 22.
(3) The amount of adjustment grants to each county that is
qualified under subsection (2) must be calculated in the following
manner:
(a) For county prosecutors that received an amount under
section 991 of article 5 of 2023 PA 119 that was greater than the
amount received in section 805 of article 16 of 2025 PA 22 and
section 991(1) of article 5 of 2025 PA 22, the amount must be the
sum of the amount received in section 991 of article 5 of 2023 PA
119 minus the amount received under section 805 of article 16 of
2025 PA 22, plus the amount received in section 991 of article 5 of
2023 PA 119 minus the amount received under section 991(1) of
article 5 of 2025 PA 22.
(b) For county prosecutors that received an amount under
section 805 of article 16 of 2025 PA 22 that was greater than the
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amount received under section 991(1) of article 5 of 2025 PA 22,
the amount calculated must be the amount received in section 805 of
article 16 of 2025 PA 22 minus the amount received under section
991(1) of article 5 of 2025 PA 22.
Sec. 994. (1) From the funds appropriated in part 1 for
municipal infrastructure grants, the department of treasury shall
create and operate a grant program to award competitive grants to
cities, villages, townships, and counties to upgrade municipal
facilities that are at least 50 years old.
(2) The department of treasury shall prioritize cities,
villages, townships, or counties that have 1 or more conditions
that indicate probable financial distress as determined by the
department of treasury under section 956.
(3) The department of treasury shall award not more than
$1,000,000.00 to any city, village, township, or county and shall
require that the grant recipient commit at least 25% of the amount
received to the project.
(4) 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.
Sec. 995. (1) For a public safety academy assistance grant
program, the funds appropriated under this subsection must be used
by the Michigan commission on law enforcement standards to do all
of the following:
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(a) Administer a competitive public safety academy assistance
scholarship program that provides police academy scholarships of
not more than $20,000.00 per recruit on a first-come, first-served
basis to an individual who meets the requirements of subsection (2)
and any necessary requirements to enroll in a police academy
program.
(b) Pay the salaries of training academy recruits from local
public safety agencies or to pay the salaries of police cadets who
are receiving tuition assistance under subsection (2) and academy
tuition and eligible related costs as determined by the Michigan
commission on law enforcement standards.
(2) In order to receive a scholarship under subsection (1)(a),
an individual must have applied to at least 1 law enforcement basic
training academy approved by the Michigan commission on law
enforcement standards, have completed an interview, and have
received approval for the scholarship from the public safety agency
that the individual intends to serve.
(3) For the purposes of subsection (1)(a), not more than 25
scholarships may be approved for a particular public safety agency.
(4) The Michigan commission on law enforcement standards may
use not more than $140,000.00 for administration of the scholarship
program established and administered by the Michigan commission on
law enforcement standards under subsection (1).
(5) The Michigan commission on law enforcement standards may
set any necessary additional requirements for the distribution of
the funds disbursed under subsection (1).

STATE BUILDING AUTHORITY
Sec. 1100. (1) Subject to section 242 of the management and
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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
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
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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
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
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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
(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
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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

PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2025-2026

GENERAL SECTIONS
Sec. 2201. Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state sources under
part 1A for fiscal year 2025-2026 is $4,000,000.00 and state
spending from state sources to be paid to local units of government
for fiscal year 2025-2026 is $0.00.
Sec. 2202. The appropriations made and expenditures authorized
under this part and the departments, commissions, boards, offices,
and programs for which appropriations are made under this part and
part 1A are subject to the management and budget act, 1984 PA 431,
MCL 18.1101 to 18.1594.
Sec. 2203. If the state administrative board, acting under
section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount
appropriated under this act, the legislature may, by a concurrent
resolution adopted by a majority of the members elected to and
serving in each house, intertransfer funds within this act for the
particular department, board, commission, office, or institution.

EXECUTIVE OFFICE
Sec. 2301. From the funds appropriated in part 1A for
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executive office, not less than $2,000,000.00 must be used to
support the implementation of Senate Bill No. 1 and Senate Bill No.
2 of the 103rd Legislature.

LEGISLATURE
Sec. 2401. From the funds appropriated in part 1A for senate,
not less than $1,000,000.00 must be used to support the
implementation of Senate Bill No. 1 and Senate Bill No. 2 of the
103rd Legislature.
Sec. 2402. From the funds appropriated in part 1A for house of
representatives, not less than $1,000,000.00 must be used to
support the implementation of Senate Bill No. 1 and Senate Bill No.
2 of the 103rd Legislature.

ARTICLE 6
DEPARTMENT OF HEALTH AND HUMAN SERVICES
PART 1
LINE-ITEM APPROPRIATIONS
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 15,742.2
Average population 852.0
GROSS APPROPRIATION $ 40,546,087,300
Interdepartmental grant revenues:
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Total interdepartmental grants and
intradepartmental transfers 15,318,800
ADJUSTED GROSS APPROPRIATION $ 40,530,768,500
Federal revenues:
Capped federal revenues 524,885,300
Social security act, temporary assistance for
needy families 556,702,200
Total other federal revenues 27,210,631,000
Special revenue funds:
Total local revenues 186,827,000
Total private revenues 218,112,100
Michigan merit award trust fund 190,768,700
Total other state restricted revenues 4,303,601,000
State general fund/general purpose $ 7,339,241,200
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 996.5
Unclassified salaries--FTEs 6.0 $ 1,474,500
Administrative hearings officers 9,123,400
Child welfare institute--FTEs 59.0 10,278,600
Coordinated children's healthcare policy and
supports--FTEs 74.0 22,820,800
Demonstration projects--FTEs 7.0 6,779,000
Departmental administration and management--
FTEs 613.4 106,252,100
Legal services 100,000
Office of inspector general--FTEs 219.1 31,979,500
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Property management 35,894,900
Terminal leave payments 6,639,100
Training and program support--FTEs 24.0 3,729,000
Worker's compensation 8,494,200
GROSS APPROPRIATION $ 243,565,100
Appropriated from:
Interdepartmental grant revenues:
IDG from department of lifelong education,
advancement, and potential 1,635,100
IDG from department of technology, management,
and budget - office of retirement services 600
Federal revenues:
Social security act, temporary assistance for
needy families 17,645,300
Capped federal revenues 16,924,400
Total other federal revenues 72,719,700
Special revenue funds:
Total local revenues 86,000
Total private revenues 4,052,300
Total other state restricted revenues 16,062,600
State general fund/general purpose $ 114,439,100
Sec. 103. CHILD SUPPORT ENFORCEMENT
Full-time equated classified positions 187.0
Child support enforcement operations--FTEs 181.0 $ 30,774,000
Child support incentive payments 24,409,600
Legal support contracts 129,023,300
State disbursement unit--FTEs 6.0 7,402,200
GROSS APPROPRIATION $ 191,609,100
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Appropriated from:
Federal revenues:
Capped federal revenues 16,273,100
Total other federal revenues 153,463,700
State general fund/general purpose $ 21,872,300
Sec. 104. COMMUNITY SERVICES AND OUTREACH
Full-time equated classified positions 56.0
Bureau of community services and outreach--FTEs 24.0 $ 3,691,000
Community services and outreach administration-
-FTEs 17.0 6,907,000
Community services block grant 37,170,600
Diaper assistance grant 6,404,400
Homeless programs--FTEs 4.0 34,884,000
Housing and support services 13,031,000
Kids' food basket 525,000
Runaway and homeless youth grants 12,533,800
Senior university 400,000
Weatherization assistance 22,633,700
Weatherization assistance IIJA--FTEs 11.0 40,024,000
GROSS APPROPRIATION $ 178,204,500
Appropriated from:
Federal revenues:
Social security act, temporary assistance for
needy families 29,033,100
Capped federal revenues 110,696,500
Total other federal revenues 14,050,700
HR-1 costs fund 315,400
State general fund/general purpose $ 24,108,800
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Sec. 105. CHILDREN'S SERVICES AGENCY - CHILD
WELFARE
Full-time equated classified positions 3,813.7
Adoption subsidies $ 228,000,000
Adoption support services--FTEs 10.0 38,935,800
Attorney general contract 5,191,100
Child abuse and neglect - children's justice
act--FTE 1.0 631,500
Child care fund 339,928,700
Child care fund - indirect cost allotment 3,500,000
Child protection 2,050,300
Child welfare administration travel 390,000
Child welfare licensing--FTEs 53.0 7,826,600
Child welfare local office staff - noncaseload
compliance--FTEs 353.0 43,983,900
Child welfare medical/psychiatric evaluations 7,118,300
Children's protective services - caseload
staff--FTEs 1,461.0 179,594,900
Children's protective services supervisors--
FTEs 387.0 51,197,700
Children's services administration--FTEs 206.2 29,873,800
Children trust Michigan--FTEs 12.0 5,200,900
Contractual services, supplies, and materials 9,852,000
Court-appointed special advocates 2,250,000
Education planners--FTEs 15.0 2,030,300
Family preservation and prevention services
administration--FTEs 9.0 1,466,800
Family preservation programs--FTEs 34.0 59,859,300
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Foster care payments 365,706,300
Foster care services - caseload staff--FTEs 838.0 103,282,100
Foster care services supervisors--FTEs 227.0 32,955,600
Guardianship assistance program 12,800,000
Interstate compact 179,600
Peer coaches--FTEs 45.5 6,738,700
Permanency resource managers--FTEs 28.0 3,743,200
Prosecuting attorney contracts 8,142,800
Second line supervisors and technical staff--
FTEs 126.0 20,990,800
Settlement monitor 2,261,700
Strong families/safe children 10,075,400
Title IV-E compliance and accountability
office--FTEs 4.0 484,800
Youth in transition--FTEs 4.0 7,390,400
GROSS APPROPRIATION $ 1,593,633,300
Appropriated from:
Interdepartmental grant revenues:
IDG from department of lifelong education,
advancement, and potential 244,400
Federal revenues:
Social security act, temporary assistance for
needy families 291,416,300
Capped federal revenues 104,646,500
Total other federal revenues 272,617,800
Special revenue funds:
Local funds - county chargeback 48,503,000
Private - collections 1,500,000
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HR-1 costs fund 1,999,200
Children's trust fund 2,895,300
Total other state restricted revenues 3,600,000
State general fund/general purpose $ 866,210,800
Sec. 106. CHILDREN'S SERVICES AGENCY - JUVENILE
JUSTICE
Full-time equated classified positions 189.5
Bay Pines Center--FTEs 53.0 $ 7,845,000
Committee on juvenile justice administration--
FTEs 2.5 376,600
Committee on juvenile justice grants 3,000,000
Community support services--FTEs 2.0 1,856,800
County juvenile officers 3,977,600
Juvenile justice, administration and
maintenance--FTEs 21.0 5,605,500
Michigan youth treatment center--FTEs 111.0 16,567,300
GROSS APPROPRIATION $ 39,228,800
Appropriated from:
Federal revenues:
Capped federal revenues 7,754,800
Total other federal revenues 268,200
Special revenue funds:
Local funds - state share education funds 1,527,500
Local funds - county chargeback 10,493,300
State general fund/general purpose $ 19,185,000
Sec. 107. PUBLIC ASSISTANCE
Full-time equated classified positions 1.0
Family independence program 82,485,000
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Family independence program - clothing
allowance 10,000,000
Family independence program - child
supplemental payment 23,240,100
Food assistance program benefits 3,446,187,200
Indigent burial 2,384,700
Low-income home energy assistance program 174,951,600
Michigan energy assistance program--FTE 1.0 100,000,000
Prenatal and infant support program 20,000,000
Refugee assistance program 7,954,200
State disability assistance payments 4,543,800
State supplementation 58,085,000
GROSS APPROPRIATION $ 3,929,831,600
Appropriated from:
Federal revenues:
Social security act, temporary assistance for
needy families 107,019,200
Capped federal revenues 182,905,800
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 $ 81,912,500
Sec. 108. LOCAL OFFICE OPERATIONS AND SUPPORT
SERVICES
Full-time equated classified positions 5,959.2
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Administrative support workers--FTEs 127.0 $ 15,415,500
Adult services local office staff--FTEs 550.0 71,524,000
Contractual services, supplies, and materials 33,567,000
Donated funds positions--FTEs 159.0 28,001,600
Elder Law of Michigan MiCAFE contract 450,000
Electronic benefit transfer (EBT) 7,198,000
Employment and training support services 3,869,100
Food assistance reinvestment--FTEs 16.0 3,841,100
Local office policy and administration--FTEs 122.0 22,319,600
Medical/psychiatric evaluations 166,200
Public assistance local office staff--FTEs 4,985.2 596,101,300
SSI advocacy legal services grant 975,000
GROSS APPROPRIATION $ 783,428,400
Appropriated from:
Interdepartmental grant revenues:
IDG from department of corrections 120,200
IDG from department of lifelong education,
advancement, and potential 8,303,900
Federal revenues:
Social security act, temporary assistance for
needy families 66,586,000
Capped federal revenues 54,067,800
Total other federal revenues 214,841,600
Special revenue funds:
Local funds - donated funds 4,473,100
Private funds - donated funds 10,262,500
Private revenues 250,000
HR-1 costs fund 98,792,600
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State general fund/general purpose $ 325,730,700
Sec. 109. DISABILITY DETERMINATION SERVICES
Full-time equated classified positions 628.4
Disability determination operations--FTEs 624.3 $ 126,213,900
Retirement disability determination--FTEs 4.1 662,000
GROSS APPROPRIATION $ 126,875,900
Appropriated from:
Interdepartmental grant revenues:
IDG from department of technology, management,
and budget - office of retirement services 838,600
Federal revenues:
Total other federal revenues 123,235,300
State general fund/general purpose $ 2,802,000
Sec. 110. BEHAVIORAL HEALTH PROGRAM
ADMINISTRATION AND SPECIAL PROJECTS
Full-time equated classified positions 98.6
Behavioral health program administration--FTEs 59.0 $ 50,171,200
Community substance use disorder prevention,
education, and treatment--FTEs 6.6 78,186,700
Family support subsidy 17,173,100
Federal and other special projects 2,535,600
Gambling addiction--FTEs 4.0 9,534,000
Mental health diversion council 3,850,000
Office of recipient rights--FTEs 25.0 3,629,500
Opioid response activities--FTEs 4.0 122,165,100
Protection and advocacy services support 194,400
GROSS APPROPRIATION $ 287,439,600
Appropriated from:
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Federal revenues:
Social security act, temporary assistance for
needy families 17,173,100
Total other federal revenues 160,072,500
Special revenue funds:
Total private revenues 2,704,700
Total other state restricted revenues 67,389,500
State general fund/general purpose $ 40,099,800
Sec. 111. BEHAVIORAL HEALTH SERVICES
Full-time equated classified positions 16.0
Autism services $ 560,716,600
Behavioral health community supports and
services--FTEs 12.0 45,628,700
Certified community behavioral health clinic
demonstration 916,062,700
Civil service charges 297,500
Community mental health non-Medicaid services 125,578,200
Federal mental health block grant--FTEs 4.0 27,491,100
Health homes 50,239,800
Healthy Michigan plan - behavioral health 518,153,900
Medicaid mental health services 3,663,869,500
Medicaid substance use disorder services 84,902,600
Multicultural integration funding 17,284,900
Nursing home PAS/ARR-OBRA 18,813,600
State disability assistance program substance
use disorder services 2,018,800
GROSS APPROPRIATION $ 6,031,057,900
Appropriated from:
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Federal revenues:
Social security act, temporary assistance for
needy families 421,000
Capped federal revenues 184,500
Total other federal revenues 4,119,475,400
Special revenue funds:
Total local revenues 9,943,600
Total other state restricted revenues 142,088,900
State general fund/general purpose $ 1,758,944,500
Sec. 112. STATE PSYCHIATRIC HOSPITALS AND
FORENSIC MENTAL HEALTH SERVICES
Full-time equated classified positions 2,320.6
Average population 852.0
Caro Regional Mental Health Center -
psychiatric hospital - adult--FTEs 432.7 $ 71,981,700
Average population 145.0
Center for forensic psychiatry--FTEs 624.5 129,037,800
Average population 240.0
Developmental disabilities council and
projects--FTEs 10.0 3,244,200
Gifts and bequests for patient living and
treatment environment 1,000,000
IDEA, federal special education 120,000
Kalamazoo Psychiatric Hospital - adult--FTEs 473.2 74,708,100
Average population 170.0
Purchase of medical services for residents of
hospitals and centers 445,600
Revenue recapture 750,100
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Southeast Michigan state psychiatric hospital--
FTEs 746.2 136,384,200
Average population 297.0
Special maintenance 924,600
State hospital administration--FTEs 34.0 5,879,400
GROSS APPROPRIATION $ 424,475,700
Appropriated from:
Federal revenues:
Total other federal revenues 38,993,800
Special revenue funds:
Total local revenues 24,110,800
Total private revenues 1,000,000
Total other state restricted revenues 19,189,200
State general fund/general purpose $ 341,181,900
Sec. 113. HEALTH AND HUMAN SERVICES POLICY AND
INITIATIVES
Full-time equated classified positions 77.3
Certificate of need program administration--
FTEs 11.3 $ 2,783,000
Child advocacy centers 1,407,000
Child advocacy centers - supplemental grants 2,000,000
Crime victim grants administration services--
FTEs 15.0 3,161,700
Crime victim justice assistance grants 78,579,300
Crime victim rights services grants 19,869,900
Crime victim rights sustaining grants--FTEs 2.0 30,000,000
Domestic violence prevention and treatment--
FTEs 15.6 20,507,300
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Human trafficking intervention services--FTE 1.0 200,000
Michigan essential health provider 3,519,600
Minority health grants and contracts--FTEs 3.0 1,169,300
Nurse education and research program--FTEs 3.0 828,300
Policy and planning administration--FTEs 19.9 2,836,900
Primary care services--FTEs 3.0 3,813,300
Rape prevention and services--FTEs 0.5 7,216,600
Rural health services 175,000
Rural health transformation program--FTEs 3.0 250,000,000
Uniform statewide sexual assault evidence kit
tracking system 369,500
GROSS APPROPRIATION $ 428,436,700
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:
Social security act, temporary assistance for
needy families 6,575,900
Capped federal revenues 11,912,900
Total other federal revenues 336,240,500
Special revenue funds:
Total private revenues 855,000
Child advocacy centers fund 1,407,000
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Compulsive gaming prevention fund 1,040,500
Crime victims rights fund 18,798,200
Sexual assault victims' prevention and
treatment fund 3,000,000
Total other state restricted revenues 3,444,300
State general fund/general purpose $ 44,214,000
Sec. 114. EPIDEMIOLOGY, EMERGENCY MEDICAL
SERVICES, AND LABORATORY
Full-time equated classified positions 448.9
Bioterrorism preparedness--FTEs 53.0 $ 31,265,300
Childhood lead program--FTEs 4.5 2,358,300
Emergency medical services program--FTEs 27.0 7,276,700
Epidemiology administration--FTEs 73.5 27,115,500
Healthy homes program--FTEs 62.0 51,885,600
Laboratory services--FTEs 102.0 32,065,500
Newborn screening follow-up and treatment
services--FTEs 10.5 10,370,600
PFAS and environmental contamination response--
FTEs 46.0 18,583,900
Vital records and health statistics--FTEs 70.4 11,886,400
GROSS APPROPRIATION $ 192,807,800
Appropriated from:
Interdepartmental grant revenues:
IDG from department of environment, Great
Lakes, and energy 2,525,000
Federal revenues:
Total other federal revenues 79,336,700
Special revenue funds:
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Total private revenues 1,342,600
Total other state restricted revenues 34,295,700
State general fund/general purpose $ 75,307,800
Sec. 115. LOCAL HEALTH AND ADMINISTRATIVE
SERVICES
Full-time equated classified positions 197.6
AIDS prevention, testing, and care programs--
FTEs 79.0 $ 111,041,200
Cancer prevention and control program--FTEs 18.0 15,915,500
Chronic disease control and health promotion
administration--FTEs 28.4 10,570,700
Community health programs--FTEs 5.0 16,273,300
Diabetes and kidney program--FTEs 8.0 4,233,100
Essential local public health services 81,419,300
Local health services--FTEs 4.3 9,610,400
Medicaid outreach cost reimbursement to local
health departments 12,500,000
Public health administration--FTEs 8.0 2,196,900
Sexually transmitted disease control program--
FTEs 20.0 8,655,500
Smoking prevention program--FTEs 15.0 6,495,700
Violence prevention--FTEs 11.9 17,366,000
GROSS APPROPRIATION $ 296,277,600
Appropriated from:
Federal revenues:
Social security act, temporary assistance for
needy families 2,300
Total other federal revenues 91,667,800
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Special revenue funds:
Total local revenues 10,150,000
Total private revenues 74,556,600
Total other state restricted revenues 15,292,600
State general fund/general purpose $ 104,608,300
Sec. 116. FAMILY HEALTH SERVICES
Full-time equated classified positions 135.9
Child and adolescent health care and centers $ 41,242,700
Dental programs--FTEs 3.6 7,028,700
Drinking water declaration of emergency 3,971,000
Family, maternal, and child health
administration--FTEs 50.0 10,683,200
Family planning local agreements 15,810,700
Immunization program--FTEs 20.8 19,229,300
Local MCH services 7,018,100
Pregnancy prevention program 1,297,900
Prenatal care outreach and service delivery
support--FTEs 19.5 45,944,400
Special projects 6,789,100
Sudden and unexpected infant death and
suffocation prevention program 321,300
Women, infants, and children program
administration and special projects--FTEs 42.0 19,880,200
Women, infants, and children program local
agreements and food costs 251,285,000
GROSS APPROPRIATION $ 430,501,600
Appropriated from:
Federal revenues:
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Social security act, temporary assistance for
needy families 500,000
Total other federal revenues 272,269,600
Special revenue funds:
Total local revenues 42,817,700
Total private revenues 64,785,700
Total other state restricted revenues 3,270,500
State general fund/general purpose $ 46,858,100
Sec. 117. CHILDREN'S SPECIAL HEALTH CARE
SERVICES
Full-time equated classified positions 51.8
Bequests for care and services--FTEs 9.8 $ 2,415,300
Children's special health care services
administration--FTEs 42.0 9,377,900
Medical care and treatment 443,164,400
Outreach and advocacy 6,722,200
GROSS APPROPRIATION $ 461,679,800
Appropriated from:
Federal revenues:
Total other federal revenues 252,754,900
Special revenue funds:
Total private revenues 1,037,200
Total other state restricted revenues 4,582,400
State general fund/general purpose $ 203,305,300
Sec. 118. AGING SERVICES
Community services $ 58,901,900
Employment assistance 3,500,000
Nutrition services 50,004,200
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Respite care program 7,268,700
Senior volunteer service programs 4,765,300
GROSS APPROPRIATION $ 124,440,100
Appropriated from:
Federal revenues:
Total other federal revenues 67,787,400
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 $ 49,484,000
Sec. 119. HEALTH AND AGING SERVICES
ADMINISTRATION
Full-time equated classified positions 561.2
Aging services administration--FTEs 43.0 $ 9,819,200
Health services administration--FTEs 518.2 146,649,500
GROSS APPROPRIATION $ 156,468,700
Appropriated from:
Federal revenues:
Total other federal revenues 100,050,600
Special revenue funds:
Total local revenues 187,700
Total private revenues 1,721,300
Total other state restricted revenues 3,994,400
State general fund/general purpose $ 50,514,700
Sec. 120. HEALTH SERVICES
Adult home help services $ 800,184,800
Ambulance services 25,335,200
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Auxiliary medical services 5,126,300
Dental clinic program 1,000,000
Dental services 336,287,500
Federal Medicare pharmaceutical program 410,467,600
Federally qualified health centers 157,182,600
Health plan services 8,609,060,500
Healthy Michigan plan 6,195,577,200
Home health services 18,690,200
Hospice services 258,260,400
Hospital services and therapy 688,595,200
Integrated care organizations 676,213,300
Long-term care services 2,586,950,000
Maternal and child health 37,267,500
Medicaid home- and community-based services
waiver 603,442,900
Medicare premium payments 1,049,501,000
Personal care services 5,035,500
Pharmaceutical services 405,935,200
Physician services 138,041,600
Program of all-inclusive care for the elderly 326,992,100
School-based services 196,691,300
Special Medicaid reimbursement 370,654,700
Transportation 26,057,200
GROSS APPROPRIATION $ 23,928,549,800
Appropriated from:
Federal revenues:
Total other federal revenues 17,109,327,300
Special revenue funds:
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Total local revenues 34,530,400
Total private revenues 28,551,500
Michigan merit award trust fund 186,700,000
Total other state restricted revenues 3,626,823,100
State general fund/general purpose $ 2,942,617,500
Sec. 121. INFORMATION TECHNOLOGY
Bridges information system $ 121,783,300
Child support automation 45,186,700
Comprehensive child welfare information system 8,761,900
Information technology services and projects 173,071,200
Michigan Medicaid information system 104,265,300
GROSS APPROPRIATION $ 453,068,400
Appropriated from:
Interdepartmental grant revenues:
IDG from department of lifelong education,
advancement, and potential 609,700
Federal revenues:
Social security act, temporary assistance for
needy families 12,295,000
Capped federal revenues 17,359,400
Total other federal revenues 282,148,900
Special revenue funds:
Total local revenues 3,900
Total private revenues 5,187,500
Total other state restricted revenues 14,573,000
State general fund/general purpose $ 120,891,000
Sec. 122. ONE-TIME APPROPRIATIONS
Full-time equated classified positions 3.0
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Competitive community health infrastructure
grants $ 14,000,000
Emergency services local office allocations 7,553,900
Health and human services grants 12,000,000
Health services administration--FTEs 3.0 4,000,000
Housing and community development grants 3,000,000
Local office staff travel 8,327,400
Michigan agricultural surplus system 12,045,000
Michigan clinical consultation and care 5,789,000
Nursing facility staffing initiative 10,000,000
Opioid response activities 75,500,000
Permanent supportive housing 5,000,000
Property management 8,718,700
State hospital administration 3,600,000
State psychiatric DSH disallowance 54,722,900
Uterine fibroid study 250,000
Water affordability 10,000,000
Weatherization assistance 10,000,000
GROSS APPROPRIATION $ 244,506,900
Appropriated from:
IDG from department of lifelong education,
advancement, and potential 92,900
Federal revenues:
Social security act, temporary assistance for
needy families 8,035,000
Capped federal revenues 2,159,600
Total other federal revenues 7,831,400
Special revenue funds:
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Total private revenues 20,005,200
Certificate of need fees 2,822,000
Child care home and center licenses fund 2,499,700
Fees and collections 10,000,000
HR-1 costs fund 39,200
Laboratory services fees 500,000
Michigan opioid healing and recovery fund 75,500,000
Newborn screening fees 10,000,000
Total other state restricted revenues 68,800
State general fund/general purpose $ 104,953,100

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
$11,833,610,900.00 and state spending under part 1 from state
sources to be paid to local units of government is
$2,397,961,800.00. 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 10,000
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 15,100
Children trust Michigan 35,100
Contractual services, supplies, and materials 50,700
Family preservation programs 100
Foster care payments 2,117,400
Prosecuting attorney contracts 1,235,600
Strong families/safe children 35,000
Youth-in-transition 700
CHILDREN'S SERVICES AGENCY – JUVENILE JUSTICE
Bay Pines Center 40,700
Community support services 118,400
County juvenile officers 67,900
PUBLIC ASSISTANCE
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 82,800
Employment and training support services 5,400
DISABILITY DETERMINATION SERVICES
Disability determination operations 3,300
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BEHAVIORAL HEALTH PROGRAM ADMINISTRATION AND
SPECIAL PROJECTS
Behavioral health program administration 42,600
Community substance use disorder prevention,
education, and treatment 8,688,500
Gambling addiction 1,065,000
Mental health diversion council 113,900
Opioid response activities 927,800
BEHAVIORAL HEALTH SERVICES
Autism services 189,487,300
Behavioral health community supports and
services 407,300
Certified community behavioral health clinic
demonstration 183,500,000
Community mental health non-Medicaid services 125,578,200
Health homes 3,163,900
Healthy Michigan plan - behavioral health 48,553,300
Medicaid mental health services 1,264,786,600
Medicaid substance use disorder services 29,231,400
Multicultural integration funding 519,000
Nursing home PAS/ARR-OBRA 3,834,900
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
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Kalamazoo Psychiatric Hospital - adult 84,200
Southeast Michigan state psychiatric hospital 21,600
HEALTH AND HUMAN SERVICES POLICY AND
INITIATIVES
Crime victim rights services grants 4,454,800
Crime victims 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 1,233,400
Laboratory services 94,600
PFAS and environmental contamination response 500
LOCAL HEALTH AND ADMINISTRATIVE SERVICES
AIDS prevention, testing, and care programs 2,663,100
Cancer prevention and control program 15,000
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 242,900
FAMILY HEALTH SERVICES
Dental programs 2,000,000
Drinking water declaration of emergency 70,700
Family planning local agreements 4,165,000
Immunization program 1,000,000
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Pregnancy prevention program 65,000
Prenatal care outreach and service delivery
support 7,464,100
CHILDREN'S SPECIAL HEALTH CARE SERVICES
Medical care and treatment 943,000
Outreach and advocacy 3,176,000
AGING SERVICES
Community services 32,428,100
Nutrition services 14,513,000
Respite care program 5,664,000
Senior volunteer service programs 1,217,000
HEALTH AND AGING SERVICES ADMINISTRATION
Aging services administration 123,800
Health services administration 303,000
HEALTH SERVICES
Adult home help services 86,000
Ambulance services 1,216,000
Dental services 717,400
Federally qualified health centers 800,100
Healthy Michigan plan 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
ONE-TIME APPROPRIATIONS
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Emergency services local office allocations 2,045,000
TOTAL OF PAYMENTS TO LOCAL UNITS OF GOVERNMENT $ 2,397,961,800
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) "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
of representatives appropriations subcommittees on the department
budget, the senate and house fiscal agencies, the senate and house
of representatives 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.
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(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. A department or agency shall use the internet to
fulfill the reporting requirements of this part, 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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the 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. The department
or agency shall also transmit all required reports for the current
fiscal year to the standard report recipients and any other
required recipients by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
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(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. 206. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations in part 1 shall
take all reasonable steps to ensure geographically disadvantaged
business enterprises compete for and perform contracts to provide
services or supplies, or both. The director shall strongly
encourage firms with which the department or agency contracts to
subcontract with certified geographically disadvantaged business
enterprises for services, supplies, or both. As used in this
section, "geographically disadvantaged business enterprises" means
that term as defined in Executive Directive No. 2023-1.
Sec. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, each department and agency
receiving appropriations in part 1 shall prepare a report on out of
state travel expenses not later than January 1. The report must
list all travel by classified and unclassified employees outside
this state in the previous fiscal year that was funded in whole or
in part with funds appropriated in the department's or agency's
budget. The department or agency shall submit the report to the
standard report recipients and to the house and senate
appropriations committees. 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 expenses of each
travel occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, and other revenues.
Sec. 208. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
must do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department in the previous fiscal year.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose or
purposes.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the house
and senate appropriations committees, the house and senate fiscal
agencies, and the state budget office that details all of the
following:
(i) The type of funding received.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
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specified purpose or purposes.
(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) The type or types of funding anticipated.
(ii) The amount or amounts of funding anticipated.
(iii) The purpose or purposes of the funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
similar timeframe as would be reported under subsection (1),
subsection (1) does not apply.
Sec. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides for estimates of
the total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall submit the report to the standard report
recipients and the chairpersons of the senate and house
appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $100,000,000.00 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. Federal
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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 $50,000,000.00 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 $30,000,000.00 for local
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $45,000,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(5) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000,000.00 for state
restricted Medicaid caseload reserve fund 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. It is the intent of the
legislature that this authorization must only be used to address
caseload costs in the traditional Medicaid program and the Healthy
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Michigan plan.
Sec. 211. A department or agency shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for each
department or agency:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
Sec. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
and house of representatives appropriations committees.
Sec. 214. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
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the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 215. 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. 216. (1) In addition to funds appropriated in part 1 for
all programs and services, there is appropriated, for write-offs of
accounts receivable, deferrals, and for prior year obligations in
excess of applicable prior year appropriations, an amount equal to
total write-offs and prior year obligations, but not to exceed
amounts available in prior year revenues.
(2) The department's ability to satisfy appropriation fund
sources in part 1 is not limited to collections and accruals
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pertaining to services provided in the current fiscal year and
includes reimbursements, refunds, adjustments, and settlements from
prior years.
Sec. 217. 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. 218. 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.
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Sec. 219. (1) The department may contract with the Michigan
Public Health Institute for the design and implementation of
projects and for other public health-related activities prescribed
in section 2611 of the public health code, 1978 PA 368, MCL
333.2611. The department may develop a master agreement with the
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. 220. 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
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organizations or the guiding principles or statements of faith for
the organizations.
Sec. 221. 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. 222. (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 248.
Sec. 223. 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. 224. 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
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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. 226. 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. 227. 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. 228. 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
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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. 229. The state budget director shall take steps to ensure
that all state fiscal recovery funds allocated to this state under
the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026,
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026,
and any subsequent financial close out period.
Sec. 230. (1) Not later than March 1 and June 1 of the current
fiscal year, 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 process under subsection (1), the department
shall submit, to the standard report recipients, a status update
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not later than June 1 of the current fiscal year.
Sec. 231. (1) The department shall not expend the funds
appropriated in part 1 to enter into any contract with a Medicaid
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) Continue the direct care wage increase funded at $3.40 per
hour for the services noted in the department's Medicaid provider
letter L 21-76 under the Medicaid managed care organization's
relevant program.
(b) 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.
(c) Permit a direct care worker to elect, in writing or
electronically, to not receive the wage increase provided in this
section.
(2) Not later than March 1 of the current fiscal year, the
department shall submit a report to the standard report recipients
that includes the following information by program and provider
type for the previous fiscal year:
(a) Hours of service that qualified for the direct care worker
wage increase.
(b) The aggregate increase in wages attributable to the
funding appropriated in part 1.
(c) A comparison of the projected increase included in the
capitation rates and the reported amount expended on the wage
increase.
Sec. 232. The department shall provide the approved spending
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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
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. 233. 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. 234. 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 may
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 235. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of the local health officer.
Sec. 236. (1) The department shall maximize the utilization of
its in-person state workforce. The department shall prioritize
occupancy utilization of office space 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 period to ensure all work hours reported on
the timesheet were actually worked.
(2) The department shall comply with requirements set by the
office of state employer on in-person work and utilization and
occupancy rates of state buildings to ensure in-person work is
optimized and occupancy rates are 80 percent or higher, subject to
market conditions.
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(3) The department shall adhere to the rules and regulations
of civil service, which state that the standard biweekly work
period for a full-time employee in the classified services is the
equivalent of 80 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed-upon business hours.
Sec. 238. Not later than 6 months after the state budget
office issues work project letters, a department and an agency
shall submit an annual report that summarizes all work project
accounts. The report 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. 239. 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
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. 240. 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. 241. Not later than March 1 of the current fiscal year,
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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. 242. 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. 243. 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
department appropriations for pension-related legacy costs are
estimated at $174,401,600.00. Total department appropriations for
retiree health care legacy costs are estimated at $0.00.
Sec. 244. 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 and 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. 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. 245. 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. 246. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations in this state.
Sec. 247. Not later than November 15, the department shall
disclose on a publicly accessible website 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. The report
must be submitted to the standard report recipients and to the
chairpersons of the senate and house appropriations committees.
Sec. 248. 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 a reference to the public
act that necessitates the policy change. The department shall
submit the report to the standard report recipients, the senate and
house appropriations committees, and the joint committee on
administrative rules.
Sec. 249. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
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director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds that were not fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions under the American rescue plan act of 2021, Public Law
117-2 must be followed for state fiscal recovery funds reallocated
and reappropriated under subsection (1).
(3) The state budget director shall notify the senate and
house appropriations committees in writing not later than 1
business day after making any reallocations under subsection (1).
The notice required under this subsection must include all of the
following:
(a) The authorized program under which funds were originally
appropriated.
(b) The amount of the reallocation.
(c) The program or the purpose of the funds that were
reallocated.
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(d) The department to which the funds were reallocated under
subsection (1).
(e) The amount reallocated to each program or purpose.
Sec. 250. (1) Within 30 days after the enactment of this act,
the house and senate shall provide to the state budget office a
jointly agreed upon list of legislatively directed spending items
as that term is defined in section 1364 of the management and
budget act, 1984 PA 431, MCL 18.1364, funded in part 1 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 post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and shall post an updated report not later than June 15 of
the current fiscal year and again not later than September 15 of
the current fiscal year. The department shall include in the report
the most comprehensive information the department has available at
the time of posting for grants awarded.
Sec. 253. (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,
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26 USC 501, and to local units of government.
Sec. 263. (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. 264. The department shall not take disciplinary action
against an employee of the department for communicating with a
member of the senate or house of representatives or a member's
staff, unless the communication is prohibited by law and the
department is exercising its authority as provided by law.
Sec. 270. 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:
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(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. 274. 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. 275. (1) On a quarterly basis, the department, with the
approval of the state budget director, is authorized to realign
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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. 290. Any public advertisement for public assistance must
inform the public of the welfare fraud hotline operated by the
department.
Sec. 291. (1) The department shall not release funds to
agencies providing physical and behavioral health services that are
used to increase the hourly wage rate for direct care workers until
the contractors, subcontractors, or providers receiving funding to
support the direct care wage increases have provided documentation
that demonstrates the distribution of payments to eligible staff of
the wage increases provided under sections 231, 1644, and 1645 of
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article 6 of 2025 PA 22, as required in the contract between each
individual PIHP and the department.
(2) The department shall require each contractor,
subcontractor, or provider described in subsection (1) that receive
funds to provide a wage increase for direct care workers to comply
with performance-related metrics to maintain their eligibility for
funding. The performance-related metrics must include, but are not
limited to, all of the following:
(a) Efforts to improve data collection to quantify the number
of direct care workers, including by type, employer, compensation
and benefits, job classification, region of the state, and other
relevant information.
(b) Accounting of the total hours worked under which a wage
increase was applied under sections 231, 1644, and 1645 of article
6 of 2025 PA 22 by county in which the worker was employed.
(3) The department shall require each contractor,
subcontractor, or provider described in subsection (1) to ensure
that the funds appropriated in this section are only used to
provide the direct care worker wage increase, except for costs
incurred by the employer, including payroll taxes.
(4) The department shall require an annual report from the
contractors, subcontractors, and providers described in subsection
(2). Not later than February 1 of the current fiscal year, the
department must submit the annual reports to the standard report
recipients. The report required under this subsection must be
submitted to the department not later than 60 days after the end of
the contract period and must include the following information:
(a) The amount of funding used to maintain the direct care
worker wage increase.
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(b) A comparison of the amount of funding appropriated and the
amount of funding expended for the direct care worker wage
increase.
(c) An explanation for any difference in amount appropriated
and amount expended for the direct care worker wage increase.
(d) Confirmation that any unexpended or unencumbered funds
appropriated for the direct care worker wage increase were returned
to the department.
Sec. 295. 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. 297. On a quarterly basis, the department or agency
receiving appropriations in part 1 shall report on the number of
full-time equated positions in pay status by civil service
classification, including a comparison by line item of the number
of full-time equated positions authorized from funds appropriated
in part 1 to the actual number of full-time equated positions
employed by the department at the end of the reporting period. The
report must be submitted to the senate and house appropriations
committees and to the standard report recipients.

DEPARTMENTAL ADMINISTRATION AND SUPPORT
Sec. 301. From the funds appropriated in part 1 for child
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welfare institute, the department shall train private child placing
agency staff in the pre-service training requirements for child
welfare caseworkers and supervisors. The department shall allocate
$1,000,000.00 to provide private child placing agency staff 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 department may utilize the
$1,000,000.00 allocated under this section to make that training
format available to the private child placing agency staff.
Sec. 302. From the funds appropriated in part 1 for property
management, $44,613,600.00 is appropriated for facilities or
materials, equipment, other contracts, and all other costs. From
the funds appropriated in this section, the department shall employ
market analyses, office space utilization data, contract
negotiations or renegotiations, and any other appropriate
mechanisms to assess and determine the minimum required square
footage of leased or owned office space essential for departmental
operations. The number and geographic placement of local county
offices active as of September 30, 2026, must be preserved,
regardless of any alterations in physical addresses or
modifications to leased or owned office space resulting from
contract negotiations or property management efficiency efforts by
the department.

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
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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
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
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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.
(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
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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
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
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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
may include, but are not limited to, hotels, motels, dormitories,
recuperative care facilities, and other facilities that offer
noncongregate shelter.
Sec. 460. From the funds appropriated in part 1 for kids' food
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basket, the department shall allocate $525,000.00 to fund a project
with a nonprofit, community-based 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,
and is located in a city with a population between 185,000 and
200,000 and in a county with a population between 600,000 and
700,000, according to the most recent federal decennial census. The
nonprofit organization recipient must have an existing network of
food delivery to low-income children 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
organization to support its mission and goals.
Sec. 462. From the funds appropriated in part 1 for senior
university, the department shall allocate $400,000.00 to a
community action alliance located in a city with a population over
500,000 according to the most recent federal decennial census to
improve connectivity and computer skills to seniors.
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
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to purchase diapering supplies and to cover related administrative
costs. 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 to each entity.
(3) Funds appropriated for diaper assistance grant are
considered work project 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 of the management and budget
act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the work project is to provide funding for
grants for eligible entities to distribute diapers free of charge.
(b) The work project will be accomplished through partnerships
with diaper assistance programs, maternity homes, and other
nonprofit agencies.
(c) The total estimated cost of the work project is
$6,404,000.00.
(d) The tentative completion date for the work project is
September 30, 2030.
Sec. 465. (1) From the funds appropriated in part 1 for
community services and outreach administration, $2,950,000.00 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.
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(2) Funds distributed under subsection (1) must be distributed
to Michigan 2-1-1, a nonprofit corporation 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, and
whose mission is to coordinate and support a statewide 2-1-1
system. 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
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
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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 who meet any of
the following requirements:
(i) Had paid Medicaid behavioral health claims or encounters
within the last year.
(ii) Were living in a relative placement, a child caring
institution, or a licensed foster home.
(iii) Were within the ages of 0-5, 6-11, or 12-17 years of age.
(c) The total number of children in foster care as of October
1 of the current fiscal 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
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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.
(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
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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 722.601, 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
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
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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 awaiting placement in a residential
setting by child caring institution.
(b) The reasons for the denial of placements that were
referred within the month, including, but not limited to, facility
bed shortages, placement process delays, facility hold, 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
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
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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:
(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
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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
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.
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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
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,
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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, the type of service provided, and the
number of youth receiving care.
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-
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.
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.
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(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
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. 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.
Sec. 526. From the funds appropriated in part 1 for court-
appointed special advocates, the department shall allocate
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$2,250,000.00 to fund a project with a nonprofit, community-based
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, located in a charter township
with a population between 18,000 and 19,000 that is located in a
county with a population between 600,000 and 700,000, according to
the most recent federal decennial census. The nonprofit
organization recipient must have an existing network of affiliate
programs operating in not less than 25 counties in this state. The
recipient nonprofit organization shall use the funds to recruit,
screen, train, and supervise volunteers who provide advocacy
services on behalf of abused and neglected children.
Sec. 528. From the funds appropriated in part 1 for child care
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
combined funding levels of the MI Family Together program at an
amount not less than the amount provided as of September 30, 2025.
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.
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(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
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.
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(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
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 at a rate of $252.30
and host-home housing at a rate of $119.95. The independent living
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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.
(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.
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(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
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 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; operates on a 100%
volunteer basis with a board of directors consisting of not more
than 15 members; is a dedicated community of individuals that give
their time, talent, and resources to provide the best quality
shopping environment that they can to local children in need; and
provides 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. 557. If a vehicle that is owned by the state is available
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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
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. If the foster parent is unable to
transport a foster child to parent-child visitation, the private
child placing agency may provide transportation and shall receive
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reimbursement from the department not later than 60 days after the
private child placing agency submits a request for eligible
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.
(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.
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(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.
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
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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
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 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
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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,
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:
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(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 the foster parents'
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.
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
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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
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
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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
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
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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 assistance 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
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.
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(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
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
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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
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
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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
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
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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.
(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
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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 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.
(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.
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,
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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
assistance and food assistance 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
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redeterminations. 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
advocacy legal services grant, the department shall allocate
$975,000.00 as a grant to the Michigan State Bar Foundation. The
purpose of the grant is 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 Michigan
State Bar Foundation shall provide a list of newly eligible SSI
recipients to the department to verify that services are provided
to department referrals.
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
assistance 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
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limit on receiving food assistance 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
assistance 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
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. 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
assistance program trafficking. The department shall provide
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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
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
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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 assistance trafficking" means the buying and selling
of food assistance 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
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.
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(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
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.
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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
assistance 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,
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 assistance 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.
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(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.
(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.
Sec. 689. (1) From the funds appropriated in part 1 for
prenatal and infant support program, the department shall allocate
$20,000,000.00 of TANF revenue for programs that are intended to
improve the economic stability of households with very young
children.
(2) In allocating the funds referenced in subsection (1), the
department shall give preference to programs that demonstrate the
following:
(a) Effectiveness in improving the economic stability of
households with pregnant women at a minimum of 20 weeks gestation,
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and with young children.
(b) Partnerships with local health care providers and
nonprofit human service agencies that provide for improved maternal
and infant health outcomes.
(c) Compliance with TANF requirements established by the
Administration for Children and Families within the United States
Department of Health and Human Services.
(3) By September 30 of the current fiscal year, the
department, through agreements with contracted implementing
agencies, shall report to the standard report recipients
information for the previous fiscal year on the aggregated
demographic data of all program recipients regardless of underlying
funding source. The report must include, but not be limited to,
aggregated recipient data from contracted implementing agencies
with each contracted implementing agency providing the age, race,
ethnicity, Hispanic or Latino origin, federal poverty level,
funding source, and zip codes of all program recipients.

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 10 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 youth residing at
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state-run juvenile justice facilities.
(b) The total number of beds at each facility, separated by
those that are 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 information in subsection (1) must be itemized by each
facility.
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
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
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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
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
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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 has regularly scheduled treatment sessions
with a licensed clinician, regularly scheduled reviews with a
licensed psychiatrist for medication management, and has access to,
or regular sessions with a licensed psychologist or a psychiatrist,
as clinically indicated.

LOCAL OFFICE OPERATIONS AND SUPPORT SERVICES
Sec. 801. The department shall submit a quarterly report that
contains monthly data to the standard report recipients on the most
recent food assistance 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. 807. From the funds appropriated in part 1 for Elder Law
of Michigan MiCAFE contract, the department shall allocate not less
than $450,000.00 to the Elder Law of Michigan MiCAFE to assist this
state's elderly population in participating in the food assistance
program. Of the $450,000.00 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
$225,000.00 in funding from the United States Department of
Agriculture to provide outreach program activities as part of a
statewide food assistance 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
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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 the Prosecuting
Attorneys Association of Michigan to provide the support and
services necessary to increase the capability of this state's
prosecutors, adult protective service system, and criminal justice
system to effectively identify, investigate, and prosecute elder
abuse and financial exploitation.
(2) Not later than March 1 of the current fiscal year, the
Prosecuting Attorneys Association of Michigan 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 department receives the report from the
Prosecuting Attorneys Association of Michigan.
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
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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.
(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 field staff, the department shall improve staffing ratios
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in adult protective services programs with the goal of reducing the
number of older adults who are victims of crime and fraud. The
purpose of the staffing enhancement is to increase the standard of
promptness in every county, as measured by commencing an
investigation within 24 hours, establishing face-to-face contact
with the client within 72 hours, and completing the investigation
within 30 days.

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.

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
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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.
(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.
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(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.
(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
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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
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
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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
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
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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
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
Salvation Army Harbor Light program, 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 Salvation
Army Harbor Light 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. 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
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entities that provide substance use disorder services and to 1
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
$100,000.00 as a grant to a nonprofit mental health clinic located
in a county with a population between 290,000 and 300,000 according
to the most recent federal decennial census that provides
counseling services, accepts clients regardless of their ability to
pay for services through sliding scale copayments and volunteer
services, and uses fundraising to support their 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 must be allocated as follows:
(a) $8,500,000.00 for the following youth and young adult
prevention programs:
(i) $3,000,000.00 for school-based prevention programs.
(ii) $5,500,000.00 for out-of-school youth programming that
prevents substance use.
(b) $6,000,000.00 to support families impacted by the opioid
epidemic.
(c) $10,000,000.00 for Naloxone distribution.
(d) $5,000,000.00 for mobile treatment programs.
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(e) $5,500,000.00 for peer recovery support services programs.
(f) $5,000,000.00 for competitive grants to substance use
disorder short-term recovery housing organizations.
(g) $10,000,000.00 for competitive grants to sober living
organizations.
(h) $5,000,000.00 to invest in tribal communities.
(2) If any allocations remain after the completion of the
projects listed in subsection (1)(a) to (h), the department may
expend remaining funds for additional opioid response activities
that are consistent with the purposes outlined in this section.
(3) 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
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
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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. 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 minimum fee schedule of not less than $66.00 per
hour for behavioral technicians providing autism services that are
reimbursed under CPT code 97153.
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 administered by a 9-1-1 service
district in conjunction with a substance use and case management
provider. The project must be located at a hospital within a 9-1-1
service district with at least 600,000 residents and 15 member
communities and that is located within a county with a population
of at least 1,500,000 according to the most recent federal
decennial census.
(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
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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
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.
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(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.
(2) To restrain cost increases in the autism services line
item, the department shall do all of the following:
(a) Require consultation with the client's evaluation
diagnostician and PIHP to approve the client's ongoing therapy for
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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.
(b) Limit the authority to perform a diagnostic evaluation for
Medicaid autism services to qualified licensed practitioners as
determined by the department.
(c) Allow and expand the utilization of telemedicine and
telepsychiatry to increase access to diagnostic evaluation
services.
(d) 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.
(e) Require that Medicaid eligibility be confirmed through
prior evaluations conducted by qualified licensed practitioners as
determined by the department.
(f) 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.
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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.
(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
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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
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
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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
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.
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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
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
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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 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 the number of
individuals being served and expenditures incurred by each PIHP
region by site.
Sec. 1006. (1) From the funds appropriated in part 1 for
certified community behavioral health clinics, not later than May 1
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.
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(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.
(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,
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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
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 June 30 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
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allocate $30,450,000.00 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
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) 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 2024 PA 121 are satisfied.
(2) The department shall require each contractor described in
subsection (1) that receives greater than $1,000,000.00 in state
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grant 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
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department must submit the annual reports to the standard report
recipients.
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 not less than
the applicable reimbursement rates or fees required in sections 924
and 231 of this part. 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 less than the applicable reimbursement rates or fees
required in sections 924 and 231 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 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
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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
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
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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.
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.
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(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
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
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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
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
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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
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. 1063. (1) From the funds appropriated in part 1 for
southeast Michigan state psychiatric hospital, 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
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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.

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
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the facilities described in this section receive the maximum amount
allowable under federal law for Medicaid services.
Sec. 1146. 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 to provide technical assistance,
training, and support to victim service organizations and must be
allocated to 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. To be
eligible for funding under this subsection, the nonprofit
organization must be a statewide tribal domestic violence and
sexual assault coalition serving the tribes located in this state
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 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, recognized as the Domestic and Sexual Violence
Coalition in this state by the Office on Violence Against Women
within the United States Department of Justice.
Sec. 1153. From the funds appropriated in part 1 for crime
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 a hospital that is
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located in a city with a population between 21,600 and 21,700 in a
county with a population between 64,300 and 64,400, according to
the most recent federal decennial census. 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 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 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
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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 $2,000,000.00 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
$29,897,400.00 to supplement the loss of federal victims of crime
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
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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 amount allocated to nonprofit agencies for
crime victim services listed by agency and the amount of funding
that the department 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 shall 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
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
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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.
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
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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
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
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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.
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.
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(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
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.
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(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 pursuant to 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
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
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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
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
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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. 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
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
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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,
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
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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.
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:
(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, or drug use.
(e) Tracking birth outcomes to study improvements in
prevalence of neonatal substance 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
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programs, $200,000.00 is allocated to the Michigan Dental
Association 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. 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
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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. 1348. 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 prenatal health care providers
operating in this state to provide services for existing group-
based prenatal care programs that include 1 or more health care
professionals leading small groups of expectant mothers in the same
phase of pregnancy in discussions and for other health services
that promote the well-being and health of mothers and babies.
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.
(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.

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:
(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.
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(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.

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. 1403. (1) From the funds appropriated in part 1, the
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department may implement a palliative care advisory task force. The
palliative care advisory task force shall do all of the following:
(a) Provide the legislature with a recommended definition for
palliative care in this state.
(b) Conduct research on palliative care.
(c) Make recommendations that will expand the provision of
palliative care.
(d) Identify palliative care services that are offered and
measures for reimbursement of the services.
(e) Develop key program metrics for palliative care services
and make recommendations to the department and the legislature.
(f) Collaborate with individuals who are able to improve and
expand high-quality palliative care services.
(g) Develop engagement strategies to educate the public on
access to palliative care and to improve an individual's ability to
make informed decisions on preferred care.
(h) Identify the capacity of palliative care providers to
provide palliative care services.
(2) If the department implements the task force described in
subsection (1), then not later than January 1 of the current fiscal
year, the palliative care advisory task force shall submit to the
standard report recipients a report that identifies the palliative
care services available in this state and any palliative care
services that are not offered in this state but would provide a
benefit.
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,
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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.
(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.

HEALTH AND AGING SERVICES ADMINISTRATION
Sec. 1505. Not later than March 1 of the current fiscal year,
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
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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, to the house and senate appropriations
subcommittees on the department of licensing and regulatory affairs
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.

HEALTH SERVICES
Sec. 1605. The protected income level for Medicaid coverage
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
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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
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.
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(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. 1611. (1) For care provided to Medicaid recipients with
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
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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
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. 1621. From the funds appropriated in part 1 for health
plan services, Healthy Michigan plan, and pharmaceutical services,
the department shall utilize generic and biosimilar pharmaceuticals
on this state's preferred drug list for both Medicaid managed care
and fee-for-service.
Sec. 1622. From the funds appropriated in part 1 for health
plan services, Healthy Michigan plan, and pharmaceutical services
the department shall incorporate any applicable aspects of federal
Executive Order No. 14297, 90 Fed. Reg. 20749 (May 12, 2025)
"Delivering Most-Favored-Nation Prescription Drug Pricing to
American Patients", for both Medicaid managed care and fee-for-
service pharmaceutical products specifically seeking most-favored-
nation pricing for high-cost pharmaceuticals on this state's
preferred drug list.
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
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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.
(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
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services and therapy and Healthy Michigan plan, 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,
the department shall submit a report to the standard report
recipients on the dental service benefit. The 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.
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(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.
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
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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. 1633. (1) The department shall provide adequate guidance
to insurance providers to ensure compliance with section 71117 of
Public Law 119-21.
(2) For the first quarterly insurance provider assessment
payment due after the end of the transition period provided on
November 14, 2025 in CMS correspondence regarding a revised
insurance provider assessment tax structure, the department and the
department of treasury shall work with insurance providers to
establish a reasonable time period for submission of that payment.
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,
payroll taxes, due to the wage increase. As used in this
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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.
(h) Other social services.
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(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. By February 1 of the current fiscal year, the
department shall submit a comprehensive report to the standard
report recipients detailing the use of all home and community-based
services funds received under section 9817 of Public Law 117-2. The
report must include, but is not limited to, all of the following:
(a) Total funds received and total expenditures by fiscal
year.
(b) Expenditures by category and by vendor or grantee.
(c) Program accomplishments and progress.
(d) Any unspent balances and projected future spending.
(e) A list of active contracts and grants associated with home
and community-based services funding.
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
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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
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
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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.
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.
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(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
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, and to
the house and senate appropriations subcommittees on the department
of licensing and regulatory affairs budget, 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
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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
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:
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(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
rates in place in the previous fiscal year for private duty nursing
services for Medicaid beneficiaries under the age of 21. These
additional funds must be used to attract and retain highly
qualified registered nurses and licensed practical nurses to
provide private duty nursing services so that medically fragile
individuals can be cared for in the most homelike setting possible.
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. 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
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impact on capitation rates are reviewed by the contracted actuaries
and considered for future rate amendments.
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, 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
department shall provide Medicaid reimbursement rates, including
Medicaid reimbursements from the ambulance provider quality
assurance assessment, for ground ambulance services at not less
than 100% of the Medicare base rates for Locality 01 for ground
ambulance services in effect on January 1, 2023.
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
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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. By April 30 of the current fiscal year, 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. By May 30
of the current fiscal year, the department shall report the
evaluation results to the standard report recipients and the
Medicaid health plans.
Sec. 1793. (1) The department shall follow the guidance of the
CMS regarding the medical loss ratio, capitation rate development,
community reinvestment, and other financial reporting.
(2) The department shall not require Medicaid health plans to
use investment income as part of its medical loss ratio, capitation
rate development, community reinvestment, and other financial
reporting.
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:
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(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. As used in this section, "primary care provider"
means a physician, or a practitioner working in 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
proportional to Medicaid deliveries performed during the fiscal
year before the previous fiscal year. 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
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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
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. 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.
Sec. 1809. (1) From the funds appropriated in part 1 for
health plan services and physician services, the department shall
allocate not less than $565,200.00 of general fund/general purpose
revenue and any associated federal matching funds to provide
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perinatal and gynecological services if perinatal and gynecological
services are provided by a perinatal or gynecological professional
who is licensed, registered, or otherwise authorized to practice in
this state, including, but not limited to, a licensed midwife
acting within the scope of the licensed midwife's license. Medicaid
reimbursement must be paid when gynecological or perinatal care
service is provided in a medical care facility, hospital or
freestanding birth center licensed under article 17 of the public
health code, 1978 PA 368, MCL 333.20101 to 333.22260, midwifery
care facility, or home setting. The rates paid to perinatal or
gynecological professionals described in this section must be the
same as those paid to other perinatal or gynecological
professionals, regardless of the location of those services.
(2) The perinatal or gynecological care services described in
subsection (1) must meet all of the following:
(a) Promote high-quality, cost-effective, and evidence-based
care.
(b) Promote high-value, evidence-based payment models.
(c) Prevent risk in subsequent pregnancies.
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
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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. From the funds appropriated in part 1 for hospital
services and therapy and prenatal care outreach and service
delivery support, the department shall allocate $10,000,000.00 to
continue to support hospitals in this state to improve maternal
safety and outcomes by administering and expanding 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.
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
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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
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. 1854. The funds appropriated in part 1 for PACE must
support a current fiscal year enrollment cap that is not less than
9,590.
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-
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
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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.
(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
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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.
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.
(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
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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.
(b) Education and clinical quality data.
(c) Roster of trainees, including areas of specialty and
locations of training.
(d) Medicaid revenue by training site.
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(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 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 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 until
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.
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(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
$20,200,000.00.
(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
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
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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.
(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. The department shall align all pharmacy-related
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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.
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.

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
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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
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. (1) Not later than November 1 of the current fiscal
year, the department shall submit a report to the standard report
recipients that describes the status of an implementation plan
regarding the appropriation in part 1 to modernize the MiSACWIS.
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The report must include, but is not limited to, an update on the
status of the settlement and efforts to bring the system in
compliance with the settlement and other federal guidelines set
forth by the United States Department of Health and Human Services
Administration for Children and Families.
(2) Not later than July 1 of the current fiscal year, the
department shall submit to the standard report recipients a report
on the department's efforts and recommendations to develop and
implement a simpler and more streamlined process for the annual
renewal of the licenses for family foster care homes, and the
development of a simpler and more efficient version of the
application form for renewal of the licenses for family foster care
homes.
(3) 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
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
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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
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
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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. 1930. (1) From the funds appropriated in part 1 for
opioid response activities, the department shall allocate
$75,500,000.00 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,
distribution, dispensing, or sale of opioids. The funds must be
allocated as follows:
(a) $4,000,000.00 for public health awareness and education
campaigns.
(b) $8,000,000.00 for evidence-based treatment programming, as
follows:
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(i) $6,000,000.00 for workforce development programming.
(ii) $2,000,000.00 for access to treatment in jails.
(c) $41,000,000.00 for recovery investments, as follows:
(i) $10,000,000.00 as competitive grants for recovery community
organizations.
(ii) $17,000,000.00 for recovery and permanent housing
developments.
(iii) $4,000,000.00 to support transportation for individuals in
recovery.
(iv) $10,000,000.00 for job training.
(d) $5,000,000.00 for wraparound services to address social
determinants impacting health, education, and economic stability.
(e) $4,500,000.00 to support families impacted by the opioid
epidemic, as follows:
(i) $1,500,000.00 for prenatal and perinatal care coordination
and social supports.
(ii) $1,500,000.00 for family-based treatment and recovery
programs.
(iii) $1,500,000.00 for evidence-based home visiting programs.
(f) $1,000,000.00 to support local governments.
(g) $2,000,000.00 for law enforcement training.
(h) $10,000,000.00 for diversion programs.
(2) If any allocations remain after the completion of the
projects listed in subsection (1)(a) to (h), the department may
expend remaining funds for additional opioid response activities
that are consistent with the purposes outlined in this section.
Sec. 1931. Unexpended and unencumbered funds appropriated in
part 1 for nursing facility staffing initiative are designated as
work project appropriations. Any unencumbered or unallotted funds
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do not lapse at the end of the fiscal year and are 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 chronic
workforce shortages in nursing homes.
(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
$10,000,000.00.
(d) The tentative completion date for the work project is
September 30, 2031.
Sec. 1932. Unexpended and unencumbered funds appropriated as
one-time in part 1 for health services administration are
designated as work project appropriations. Any unencumbered or
unallotted funds do not lapse at the end of the fiscal year and are
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 support the home
help caregiver council and related activities, fulfilling the
requirements of the home help caregiver council act, 2024 PA 144,
MCL 400.801 to 400.805.
(b) The work project will be accomplished using state
resources or contracts with service providers or other entities.
(c) The total estimated completion cost of the work project is
$4,000,000.00.
(d) The tentative completion date for the work project is
September 30, 2031.
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Sec. 1934. From the funds appropriated in part 1 for uterine
fibroid study, the department shall allocate $250,000.00 to
commission a study to evaluate options to expand services for the
detection and treatment of uterine fibroids, increase awareness of
services for the detection and treatment of uterine fibroids, and
increase access to services for the detection and treatment of
uterine fibroids. The department shall provide the study
commissioned under this section to the standard report recipients
not later than 30 days after the department receives the study.
Sec. 1936. 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. 1938. 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. 1940. From the funds appropriated in part 1 for Michigan
clinical consultation and care, the department shall allocate at
least $325,000.00 to address needs in a city in which a declaration
of emergency was issued because of drinking water contamination.
Sec. 1942. From the funds appropriated in part 1 for local
office staff travel, the department shall allocate up to
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$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. 1956. (1) From the funds appropriated in part 1 for
permanent supportive housing, the department shall allocate
$5,000,000.00 to expand supportive housing services. Organizations
that received funding under section 1983 of article 6 of 2023 PA
166, section 701 of article 16 of 2024 PA 121, or section 1956 of
article 6 of 2025 PA 22 are eligible to apply for and receive
funding under this section. The funds must be used for services to
households living in supportive housing who need additional
services to maintain stability and currently homeless households
moving into supportive housing.
(2) From the funds appropriated in this section, no more than
8% may be allocated as grants to organizations providing permanent
supportive housing for capacity building necessary to develop and
sustain high-quality service delivery and to build administrative
capacity to seek Medicaid reimbursement for eligible services.
(3) From the funds appropriated in this section, at least 1%
must be allocated for technical assistance and capacity building to
support organizations providing permanent supportive housing
services.
(4) Funds appropriated in part 1 for permanent supportive
housing are considered work project funds, do not lapse at the
close of the fiscal year, and are available for expenditures for
projects under this section until the projects have been completed.
The following are in compliance with section 451a of the management
and budget act, 1984 PA 431, MCL 18.1451a:
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(a) The purpose of the work project is to provide funding for
grants to eligible entities to provide permanent supportive housing
services for eligible households.
(b) The work project will be accomplished through partnerships
with community-based agencies that provide supportive housing
services, the Michigan state housing development authority, and
local governments.
(c) The total estimated cost of the work project is
$5,000,000.00.
(d) The tentative completion date for the work project is
September 30, 2031.
Sec. 1965. (1) From the funds appropriated in part 1 for water
affordability, the department shall allocate $10,000,000.00 as
grants to qualified providers to assist eligible residents who have
a financial burden, have accumulated a balance on their water
utility bill, have had their water service shut off, and/or are at
risk of having their water service shut off. Eligible expenditures
from these funds must be income-based and must include all of the
following:
(a) Restoring residential water service.
(b) Paying down water bills currently in arrears.
(c) Supporting reasonable water affordability plans that are
based on an individual's ability to pay, including capped payments
based on household income to prevent accumulating a balance on
future water bills and funding to qualified providers to cover the
remaining cost of service.
(d) Protecting participating residents from water shutoffs.
(2) To be considered a qualified provider under this section,
the provider must be 1 of the following:
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(a) A community water system.
(b) A community action agency.
(c) A nonprofit, community-based 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,
with a history of doing utility assistance work.
(3) Qualified providers receiving grants under this section
may spend not more than 3% of the total grant award for
administrative services related to the implementation of this
section.
(4) Qualified providers receiving grants under this section
shall report to the department by September 30 of the current
fiscal year on outcomes and performance measures for the program,
including, but not limited to, all of the following:
(a) The total grant award received by the qualified provider.
(b) The percentage of the grant award that was used for
administrative costs.
(c) The total dollars spent broken down by type of assistance
provided.
(d) The number of individuals helped broken down by type of
assistance provided.
(e) The number of individual applicants denied assistance.
(5) Upon receipt of the information required under subsection
(4), the department shall compile and forward the report to the
standard report recipients.
(6) The unexpended funds appropriated in part 1 for water
affordability 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
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projects under this section until the projects have been completed.
The following is in compliance with section 451a of the management
and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to provide grants to
qualified providers that assist eligible residents who have a
financial burden, have accumulated a balance on their water utility
bill, have had their water service shut off, and/or are at risk of
having their water service shut off.
(b) The project will be accomplished through competitive
grants to qualified providers.
(c) The total estimated cost of the project is $10,000,000.00.
(d) The tentative completion date is September 30, 2031.

ARTICLE 7
DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES
PART 1
LINE-ITEM APPROPRIATIONS
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 393.5
GROSS APPROPRIATION $ 82,833,800
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 791,600
ADJUSTED GROSS APPROPRIATION $ 82,042,200
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Federal revenues:
Total federal revenues 250,000
Special revenue funds:
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 81,792,200
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 $ 1,013,800
Administrative hearings 173,700
Department services--FTEs 16.0 8,684,900
Executive director programs--FTEs 5.5 1,527,100
Property management 1,318,700
Worker's compensation 1,200
GROSS APPROPRIATION $ 12,719,400
Appropriated from:
Interdepartmental grant revenues:
Special revenue funds:
Bank fees 959,200
Captive insurance regulatory and supervision
fund 82,700
Consumer finance fees 651,400
Credit union fees 1,488,200
Deferred presentment service transaction fees 282,400
Insurance bureau fund 5,746,500
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Insurance continuing education fees 55,000
Insurance licensing and regulation fees 2,105,100
MBLSLA fund 1,348,900
State general fund/general purpose $ 0
Sec. 103. INSURANCE AND FINANCIAL SERVICES
REGULATION
Full-time equated classified positions 372.0
Consumer services and protection--FTEs 108.0 $ 18,604,400
Financial institutions evaluation--FTEs 132.0 24,966,000
Insurance evaluation--FTEs 132.0 22,413,300
GROSS APPROPRIATION $ 65,983,700
Appropriated from:
Interdepartmental grant revenues:
IDG from MDLARA, for debt management 791,600
Federal revenues:
Federal revenues 250,000
Special revenue funds:
Bank fees 6,734,300
Captive insurance regulatory and supervision
fund 656,500
Consumer finance fees 2,514,400
Credit union fees 8,696,100
Deferred presentment service transaction fees 3,786,900
Insurance bureau fund 27,495,000
Insurance continuing education fees 555,400
Insurance licensing and regulation fees 8,286,400
MBLSLA fund 6,181,600
Multiple employer welfare arrangement 35,500
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State general fund/general purpose $ 0
Sec. 104. INFORMATION TECHNOLOGY
Information technology services and projects $ 3,630,700
GROSS APPROPRIATION $ 3,630,700
Appropriated from:
Interdepartmental grant revenues:
Special revenue funds:
Bank fees 289,400
Captive insurance regulatory and supervision
fund 23,300
Consumer finance fees 187,600
Credit union fees 438,200
Deferred presentment service transaction fees 80,900
Insurance bureau fund 1,717,800
Insurance continuing education fees 15,800
Insurance licensing and regulation fees 485,400
MBLSLA fund 392,300
State general fund/general purpose $ 0
Sec. 105. ONE-TIME APPROPRIATIONS
Non-drivers factors study $ 250,000
IVF actuarial study 250,000
GROSS APPROPRIATION $ 500,000
Appropriated from:
Special revenue funds:
Insurance bureau fund 500,000
Total other state restricted revenues 500,000
State general fund/general purpose $ 0

PART 2
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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, 2026, total state spending under part 1 from state sources is
$81,792,200.00 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 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. The department shall use the internet to fulfill the
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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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the department or agency shall maintain on its website all
reports placed on the website from previous years posted by fiscal
year in the same archivable location. The department or agency
shall also transmit all required reports for the current fiscal
year to the standard recipients and any other required recipients
by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 206. The department shall not take disciplinary action
against an employee of the department for communicating with a
member of the legislature or legislative staff unless the
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communication is prohibited by law and the department is exercising
its authority as provided by law.
Sec. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out-of-state travel expenses not later than January 1.
The report must list all travel by classified and unclassified
employees outside this state in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's budget. The department shall submit the report to the
standard report recipients and to the senate and house
appropriations committees. The report must include 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, private revenues, and other revenues.
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 area. The state
budget office shall submit the report to the standard report
recipients and to the chairpersons of the senate and house
appropriations committees.
Sec. 209. (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 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 $1,000,000.00 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.
Sec. 210. 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.
Sec. 211. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
and house appropriations committees.
Sec. 212. On a quarterly basis, the department shall report on
the number of full-time equated positions in pay status by civil
service classification, including a comparison by line item of the
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number of full-time equated positions authorized from funds
appropriated in part 1 to the actual number of full-time equated
positions employed by the department at the end of the reporting
period. The report must be submitted to the standard report
recipients and to the senate and house appropriations committees.
Sec. 213. 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. 214. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director shall
take all reasonable steps to ensure geographically disadvantaged
business enterprises compete for and perform contracts to provide
services or supplies, or both. The director shall strongly
encourage firms with which the department contracts to subcontract
with certified geographically disadvantaged business enterprises
for services, supplies, or both. As used in this section,
"geographically disadvantaged business enterprises" means that term
as defined in Executive Directive No. 2023-1.
Sec. 215. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of the local health officer.
Sec. 216. 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 may
electronically retain copies of reports unless otherwise required
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by federal and state guidelines.
Sec. 217. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The 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 appropriations committees, and to the joint committee on
administrative rules.
Sec. 218. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
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(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 219. 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. 220. (1) The department shall maximize the utilization of
its in-person state workforce. The department shall prioritize
occupancy utilization of office space 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 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 in-person work is
optimized and occupancy rates are 80% or higher, subject to market
conditions.
(3) The department shall adhere to civil service rules and
regulations that state the standard biweekly work period for a
full-time employee in the classified service of this state is the
equivalent of 80 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed-upon business hours.
Sec. 222. Not later than 6 months after the state budget
office issues work project letters, a department or agency shall
submit an annual report that summarizes all work project accounts.
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The report 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. 223. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2026 are estimated at $6,514,000.00. From this amount, total
appropriations for pension-related legacy costs for the department
are estimated at $5,875,200.00. Total appropriations for retiree
health care legacy costs for the department are estimated at
$638,800.00.
Sec. 224. 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. 225. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
Sec. 226. Not later than November 15, the department shall
disclose on a publicly accessible website 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
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specific source of funding received, the purpose for which funding
was expended, and the amount of any remaining funds. The report
must be submitted to the standard report recipients and to the
chairpersons of the senate and house appropriations committees.
Sec. 228. (1) Not later than 30 days after the enactment of
this act, the house of representatives and senate shall provide to
the state budget office a jointly agreed-upon list of legislatively
directed spending items funded in part 1 as defined in section 364
of the management and budget act, 1984 PA 431, MCL 18.364. 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 18.364 and
18.364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.364, the department or agency
administering the grant shall post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and shall post an updated report not later than June 15 of
the current fiscal year and again not later than September 15 of
the current fiscal year. The department shall include in the report
the most comprehensive information the department has available at
the time of posting for grants awarded.
Sec. 229. The state budget director shall take steps to ensure
that all state fiscal recovery funds allocated to this state under
the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026
are automatically reappropriated for the same purpose as originally
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authorized and available for expenditure through December 31, 2026
and any subsequent financial close out period.
Sec. 230. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of the American rescue plan act of 2021, Public Law 117-
2, must be followed for state fiscal recovery funds reallocated and
reappropriated under subsection (1).
(3) The state budget director shall notify the senate and the
house appropriations committees not later than 1 business day after
making any reallocations under subsection (1). The notification
must include the authorized program under which funds were
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originally appropriated, the amount of the reallocation, the
program, or programs, or purpose, and the department to which the
funds are being reallocated under subsection (1), and the amount
reallocated to each program or purpose.
Sec. 231. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
must do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department in the previous fiscal year.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose or
purposes.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the house
and senate appropriations committees, the house and senate fiscal
agencies, and the state budget office that details all of the
following:
(i) The type of funding received.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
specified purpose or purposes.
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(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) The type or types of funding anticipated.
(ii) The amount or amounts of funding anticipated.
(iii) The purpose or purposes of the funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
similar time frame as would be reported under subsection (1),
subsection (1) does not apply.
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. From the funds appropriated in part 1 from the
insurance bureau fund, funds may be expended to support legislative
participation in insurance activities coordinated by insurance and
legislative associations, in accordance with section 225 of the
insurance code of 1956, 1956 PA 218, MCL 500.225. Not later than
February 1, the department shall report on funds expended to
support legislative participation in insurance activities
coordinated by insurance and legislative associations.

INSURANCE AND FINANCIAL SERVICES REGULATION
Sec. 301. The annual health insurance rate change report
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prepared pursuant to 45 CFR 154.301(b) shall be transmitted
electronically to the standard report recipients and must include
the following:
(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
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appropriate restricted fund. The total amount appropriated under
this section and section 302 must not exceed $600,000.00.
Sec. 306. (1) Not later than March 30, the department shall
provide a report to the standard report recipients and the
chairpersons of the senate and house standing committees that
address financial and insurance issues based on filings received
from insurers for automobile insurance, as that term is defined in
section 2102 of the insurance code of 1956, 1956 PA 218, MCL
500.2102, in the previous calendar year that includes all of the
following:
(a) The number of automobile insurance rate filings received
by the department.
(b) The number of objections issued by the department for
automobile insurance rate filings.
(c) The average number of calendar days to process rate
filings.
(d) Pursuant to section 2111f of the insurance code of 1956,
1956 PA 218, MCL 500.2111f, the weighted average aggregated
personal protection insurance rate change for policies subject to
the coverage limits under section 3107c(1)(a) to (d) of the
insurance code of 1956, 1956 PA 218, MCL 500.3107c.
(e) Personal automobile insurance rating territories used in
Michigan.
(f) Number of rating territories used statewide and their
geographic boundaries.
(g) A map of the rating territories used statewide marking
their geographic boundaries.
(h) The range of base rates charged across each territory for
a standard coverage package, expressed as a ratio of highest to
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lowest territory.
(i) For each territory, the following from publicly available
consensus data:
(i) The median household income.
(ii) The percentage of residents below the poverty line.
(iii) The racial and ethnic makeup of the territory.
(2) The department is not required to make any determination
regarding actuarial justification or legal compliance of territory
boundaries or rates.
Sec. 307. (1) From the funds appropriated in part 1 for
consumer services and protection, at least 1.0 FTE must provide
direct assistance in understanding automobile insurance coverage
and identifying available coverage options. Assistance must be
provided to households 300% of the federal poverty level or below.
The FTE must develop referral partnerships with not fewer than 10
community-based organizations serving low-income households.
(2) Not later than September 30, the department shall submit a
report to the standard report recipients and the chairpersons of
the senate and house standing committees that provides all of the
following:
(a) The number of consumers assisted.
(b) The barriers encountered to obtaining coverage,
maintaining coverage, or both.
(c) The geographic distribution of need.
(d) The partner community organization.
(e) The legislative or departmental, or both, recommendations
based on barrier patterns identified.
(f) Average income level of those assisted.
Sec. 401. (1) From the funds appropriated in part 1 for non-
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driving factors study, by April 30, 2028, the department must
contract with a university or research institute that has a
specialty in automobile insurance research to conduct a study of
non-driving factors used in calculations or formulas in personal
automobile insurance rate setting. The contract must be established
through a competitive bidding process and the contract with a
university or research institute must not have any current or
previous relationship with automobile insurance companies. The
study must include the following:
(a) A model of the impact of non-driving factors on personal
automobile insurance rate setting, including the use of these
embedded into rate or premium setting calculations and formulas.
(b) A model if each individual factor was removed as well as
if all factors were removed.
(c) The relationship of non-driving factors to uninsured
motorist numbers in the state.
(d) The relationship of uninsured motorists on statewide
rates.
(e) A comparison with other states and the impact on their
rates that have eliminated non-driving factors.
(f) A clear outline of methods and assumptions made in the
report.
(2) Non-driving factors that the report must study include,
but are not limited to, the following:
(a) Credit scores or insurance scores.
(b) Gender or sex.
(c) Occupation.
(d) Income level.
(e) Geographic location.
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(f) Age.
(g) Education level attained.
(h) Homeownership.
(i) Territories more impacted by the use of non-driving
factors.
Sec. 402. From the funds appropriated in part 1 for IVF
actuarial study, the department must create an actuarial study on
the defrayal cost of small group and individual insurance coverage
for fertility treatments such as in vitro fertilization.

ARTICLE 8
JUDICIARY
PART 1
LINE-ITEM APPROPRIATIONS
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 687.5
GROSS APPROPRIATION $ 393,258,400
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 1,902,300
ADJUSTED GROSS APPROPRIATION $ 391,356,100
Federal revenues:
Total federal revenues 7,323,000
Special revenue funds:
Total private revenues 1,912,900
Total other state restricted revenues 100,887,200
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State general fund/general purpose $ 281,233,000
Sec. 102. SUPREME COURT
Full-time equated exempted positions 329.0
Community dispute resolution--FTEs 4.0 $ 4,352,900
Foster care review board--FTEs 10.0 1,482,600
Jail reform advisory support--FTE 1.0 163,400
Judicial information systems--FTEs 113.0 23,410,100
Judicial institute--FTEs 17.0 2,968,600
Justice for all--FTEs 2.0 1,547,000
Michigan legal help 1,000,000
Next generation Michigan court system 4,116,000
Other federal grants 275,100
Problem-solving courts--FTEs 3.0 21,137,200
State court administrative office--FTEs 83.0 15,994,000
Supreme court administration--FTEs 96.0 17,059,100
GROSS APPROPRIATION $ 93,506,000
Appropriated from:
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
Total interdepartmental grants and
intradepartmental transfers 1,652,300
Federal revenues:
DOJ, drug court training and evaluation 300,000
DOT, National Highway Traffic Safety
Administration 2,358,700
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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 2,620,000
Court fee fund 2,007,600
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
State court fund 422,800
State general fund/general purpose $ 73,533,900
Sec. 103. COURT OF APPEALS
Full-time equated exempted positions 180.0
Court of appeals operations--FTEs 180.0 $ 28,391,900
GROSS APPROPRIATION $ 28,391,900
Appropriated from:
State general fund/general purpose $ 28,391,900
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Sec. 104. BRANCHWIDE APPROPRIATIONS
Full-time equated exempted positions 6.0
Branchwide appropriations--FTEs 6.0 $ 10,398,400
GROSS APPROPRIATION $ 10,398,400
Appropriated from:
State general fund/general purpose $ 10,398,400
Sec. 105. JUSTICES' AND JUDGES' COMPENSATION
Judges' 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
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 17.0
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Judicial tenure commission--FTEs 17.0 $ 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 129.5
Appellate public defender program--FTEs 97.0 $ 18,224,900
Juvenile life resentencing--FTEs 32.5 5,621,200
Michigan appellate assigned counsel system
roster attorney compensation grants 4,408,100
GROSS APPROPRIATION $ 28,254,200
Appropriated from:
IDG from department of state police 250,000
Total interdepartmental grants and
intradepartmental transfers 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
State general fund/general purpose $ 26,779,600
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
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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
Accelerated resentencing hearings $ 2,000,000
GROSS APPROPRIATION $ 2,000,000
Appropriated from:
Juror compensation fund 2,000,000
Total other state restricted revenues 2,000,000
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
$382,120,200.00 and total state spending under part 1 from state
sources to be paid to local units of government is $169,486,400.00.
The following itemized statement identifies appropriations from
which spending to local units of government will occur:
JUDICIARY
SUPREME COURT
Judicial information services $ 17,319,100
Next generation Michigan court system 4,116,000
Problem-solving courts 17,856,000
State court administrative office 200,000
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
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
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TOTAL $ 169,486,400
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) "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) "Restorative justice" means a process that is guided by
neutral, trained, and experienced facilitators to provide a safe
space for individuals to address wrongdoing or harm with each
other, repair relationships, and offer a positive path moving
forward.
(h) "Standard report recipients" means 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.
(i) "Title IV-D" means the part of the federal social security
act, 42 USC 301 to 1397mm, pertaining to the child support
enforcement program.
(j) "Title IV-E" means the part of the federal social security
act, 42 USC 301 to 1397mm, pertaining to the foster care program.
Sec. 204. The judicial branch shall use the internet to
fulfill the reporting requirements of this part and shall make each
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report readily accessible to the public and conspicuously post each
required report on the judicial branch's website not later than the
applicable due date. In addition, the judicial branch shall
maintain on its website reports posted in previous fiscal years.
The judicial branch shall also transmit all required reports under
this part to the standard report recipients and any other required
recipients by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 206. The state court administrative office shall prepare
a report on travel expenses not later than January 1. The report
must list all travel by judicial branch employees outside this
state in the previous fiscal year that was funded in whole or in
part with funds appropriated in the judicial branch's budget. The
state court administrative office shall submit the report to the
standard report recipients and to the senate and house
appropriations committees. The report must include all of the
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following information:
(a) The dates of each travel occurrence.
(b) The total transportation and related expenses of each
travel occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, and other revenues.
Sec. 207. 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. The state budget office shall submit the report
to the standard report recipients and to the chairpersons of the
senate and house appropriations committees.
Sec. 208. 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 for
the expenditure. The judicial branch shall not provide financial
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. 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. The report must be submitted to the
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standard report recipients and to the chairpersons of the senate
and house appropriations committees.
Sec. 210. 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. 211. 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. 212. 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 may
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 213. 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. 214. Not later than 6 months after the state budget
office issues work project letters, the judicial branch shall
submit an annual report that summarizes all work project accounts.
The report 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. 215. (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
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.
Sec. 217. Not later than November 15, the judicial branch
shall disclose on a publicly accessible website 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.
The report must be submitted to the standard report recipients and
to the chairpersons of the senate and house appropriations
committees.
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Sec. 218. The chief justice shall take steps to ensure that
all state fiscal recovery funds received under the American rescue
plan act of 2021, Public Law 117-2, by the judicial branch are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026
and any subsequent financial close out period.

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. (1) 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
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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.
(2) Of the amount appropriated for community dispute
resolution, $768,800.00 may be used for restorative justice
purposes.
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 to the standard report recipients and the
senate and house appropriations committees.
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 problem-
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solving courts must be administered by the state court
administrative office to operate problem-solving court programs. A
problem-solving 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
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 problem-solving 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 problem-solving court costs consistent with
Byrne grant program criteria.
(5) Of the amount appropriated in part 1 for problem-solving
courts, $768,800.00 may be used for restorative justice purposes.
(6) A problem-solving court may include, but is not limited
to, any of the following:
(a) Drug treatment courts under chapter 10A of the revised
judicature act of 1961, 1961 PA 236, MCL 600.1060 to 600.1088.
(b) Mental health courts under chapter 10B of the revised
judicature act of 1961, 1961 PA 236, MCL 600.1090 to 600.1099a.
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(c) Juvenile mental health courts under chapter 10C of the
revised judicature act of 1961, 1961 PA 236, MCL 600.1099b to
600.1099m.
(d) Family treatment courts under chapter 10D of the revised
judicature act of 1961, 1961 PA 236, MCL 600.1099aa to 600.1099ll.
(e) Veterans treatment courts under chapter 12 of the revised
judicature act of 1961, 1961 PA 236, MCL 600.1200 to 600.1212.
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. 310. The state court administrative office shall not
impose local user fees or collect local user fees from trial courts
that are using the statewide judicial case management system.
Sec. 311. (1) If Byrne formula grant funding is awarded to the
state appellate defender office in excess of the amount
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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. 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, 349 Mich App 594 (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 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
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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 for
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
Sec. 401. (1) From the funds appropriated in part 1 for
accelerated resentencing hearings, the state appellate defender
office may hire up to 4.0 limited-term employees to support and
accelerate the agency's juvenile lifer resentencing program, as
described in section 313.
(2) The unexpended appropriations in part 1 for accelerated
resentencing hearings are designated as a work project
appropriation. Any unencumbered or unallotted funds shall not lapse
at the end of the fiscal year and shall be available for
expenditure for the project under this section until the project
has been completed. The following is in compliance with section
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451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to supplement and accelerate
juvenile lifer resentencing hearings as required by law.
(b) The project will be accomplished by utilizing state
resources and contracts.
(c) The total estimated completion cost of the project is
$2,000,000.00.
(d) The tentative completion date for the work project is
September 30, 2030.

ARTICLE 9
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of labor
and economic opportunity for the fiscal year ending September 30,
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 2,606.0
GROSS APPROPRIATION $ 1,667,344,800
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATIONS $ 1,667,344,800
Federal revenues:
Total federal revenues 1,190,870,600
Special revenue funds:
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Total local revenues 10,700,000
Total private revenues 12,597,200
Total other state restricted revenues 237,782,100
State general fund/general purpose $ 215,394,900
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 34.5
Full-time equated classified positions 75.0
Unclassified salaries--FTEs 34.5 $ 5,015,500
Executive direction and operations--FTEs 75.0 10,975,600
Property management 7,458,000
GROSS APPROPRIATION $ 23,449,100
Appropriated from:
Federal revenues:
DED, vocational rehabilitation and independent
living 3,654,500
DOL, federal funds 3,272,900
DOL-ETA, unemployment insurance 2,705,800
DOL, occupational safety and health 586,700
Federal funds 2,584,700
Special revenue funds:
Asbestos abatement fund 52,800
Corporation fees 2,277,900
Michigan state housing development authority
fees and charges 681,200
Private occupational school license fees 56,200
Radiological health fees 299,600
Safety education and training fund 1,100,000
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Second injury fund 281,000
Securities fees 2,256,200
Self-insurers security fund 152,700
Silicosis and dust disease fund 116,100
Worker's compensation administrative revolving
fund 93,700
State general fund/general purpose $ 3,277,100
Sec. 103. WORKFORCE DEVELOPMENT
Full-time equated classified positions 239.0
23+ high school diploma program $ 2,000,000
At-risk youth grants 5,184,500
Community and worker economic transition
office--FTEs 10.0 2,252,600
High school equivalency-to-school program 250,000
Michigan office of rural prosperity--FTE 1.0 2,302,100
MiSTEM advisory council--FTEs 3.0 674,600
Office of future mobility and electrification--
FTEs 5.0 1,500,000
Workforce development--FTEs 220.0 450,078,800
GROSS APPROPRIATION $ 464,242,600
Appropriated from:
Federal revenues:
DAG, employment and training 4,560,400
DED-OESE, GEAR-UP 5,500,000
DED-OVAE, adult education 20,000,000
DED-OVAE, basic grants to states 19,000,000
DOL-ETA, workforce investment act 173,488,600
DOL, federal funds 106,329,800
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Federal funds 23,225,100
Social security act, temporary assistance to
needy families 63,698,800
Special revenue funds:
Local revenues 300,000
Private funds 5,001,300
Contingent fund, penalty and interest 5,017,500
Defaulted loan collection 168,600
HR-1 costs fund 15,000,000
State general fund/general purpose $ 22,952,500
Sec. 104. REHABILITATION SERVICES
Full-time equated classified positions 669.0
Bureau of services for blind persons--FTEs 116.0 $ 30,597,200
Centers for independent living 18,718,600
Michigan rehabilitation services--FTEs 553.0 155,220,500
Subregional libraries state aid 451,800
GROSS APPROPRIATION $ 204,988,100
Appropriated from:
Federal revenues:
Federal funds 884,000
DED, vocational rehabilitation and independent
living 147,733,800
Supplemental security income 8,588,600
Special revenue funds:
Local - blind services 100,000
Local - vocational rehabilitation match 5,300,000
Private - blind services, private 111,800
Private - gifts, bequests, and donations 531,500
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Michigan business enterprise program fund 350,000
Rehabilitation service fees 116,200
State general fund/general purpose $ 41,272,200
Sec. 105. EMPLOYMENT SERVICES
Full-time equated classified positions 405.0
Bureau of employment relations--FTEs 22.0 $ 4,718,200
Compensation supplement fund 820,000
First responder presumed coverage claims 6,500,000
Insurance funds administration--FTEs 21.0 4,525,300
Michigan occupational safety and health
administration--FTEs 217.0 41,384,700
Office of global Michigan--FTEs 15.0 42,980,700
Private and occupational distance learning--
FTEs 3.0 989,700
Radiation safety section--FTEs 26.0 4,206,100
Wage and hour program--FTEs 33.0 4,781,500
Worker's compensation board of magistrates--
FTEs 10.0 2,341,500
Worker's disability compensation agency--FTEs 56.0 10,255,300
Worker's disability compensation appeals
commission--FTEs 2.0 363,700
GROSS APPROPRIATION $ 123,866,700
Appropriated from:
Federal revenues:
DOL, occupational safety and health 16,746,800
HHS, mammography quality standards 513,300
HHS, refugee assistance program fund 38,419,100
Special revenue funds:
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Asbestos abatement fund 888,800
Corporation fees 12,593,300
Distance education fund 486,400
First responder presumed coverage fund 6,500,000
Private occupational school license fees 503,300
Radiological health fees 3,692,800
Safety education and training fund 13,578,700
Second injury fund 2,511,400
Securities fees 11,400,800
Self-insurers security fund 1,448,700
Silicosis and dust disease fund 565,200
Worker's compensation administrative revolving
fund 3,400,400
State general fund/general purpose $ 10,617,700
Sec. 106. UNEMPLOYMENT INSURANCE AGENCY
Full-time equated classified positions 738.0
Unemployment insurance agency--FTEs 720.0 $ 294,287,000
Unemployment insurance agency - advocacy
assistance--FTEs 4.0 1,500,000
Unemployment insurance appeals commission--FTEs 14.0 4,430,600
GROSS APPROPRIATION $ 300,217,600
Appropriated from:
Federal revenues:
DOL-ETA, unemployment insurance 280,270,300
Special revenue funds:
Contingent fund, penalty and interest 19,947,300
State general fund/general purpose $ 0
Sec. 107. COMMISSIONS
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Full-time equated classified positions 23.0
Asian Pacific American affairs commission--FTE 1.0 $ 225,900
Commission on Middle Eastern American affairs--
FTE 1.0 216,700
Hispanic/Latino commission of Michigan--FTE 1.0 300,000
Michigan community service commission--FTEs 14.0 19,620,800
Michigan women's commission--FTEs 3.0 1,548,900
Prosperity bureau--FTEs 3.0 922,000
GROSS APPROPRIATION $ 22,834,300
Appropriated from:
Federal revenues:
Federal funds 18,184,400
Special revenue funds:
Private funds 1,552,600
State general fund/general purpose $ 3,097,300
Sec. 108. INFORMATION TECHNOLOGY
Information technology services and projects $ 31,082,100
GROSS APPROPRIATION $ 31,082,100
Appropriated from:
Federal revenues:
DED, vocational rehabilitation and independent
living 3,371,400
DOL-ETA, unemployment insurance 23,003,200
DOL, occupational safety and health 372,300
Federal funds 592,800
Special revenue funds:
Asbestos abatement fund 35,300
Corporation fees 517,500
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Distance education fund 20,700
Private occupational school license fees 82,400
Radiological health fees 155,900
Safety education and training fund 403,300
Second injury fund 180,700
Securities fees 1,277,800
Self-insurers security fund 125,600
Silicosis and dust disease fund 45,000
State general fund/general purpose $ 898,200
Sec. 109. MICHIGAN STRATEGIC FUND
Full-time equated classified positions 130.0
Arts and cultural program $ 3,708,800
Job creation services--FTEs 130.0 36,193,700
Lighthouse preservation program 250,000
Michigan office of defense and aerospace
innovation 3,000,000
Pure Michigan 10,000,000
GROSS APPROPRIATION $ 53,152,500
Appropriated from:
Federal revenues:
Federal funds 3,000,000
NFAH-NEA, promotion of the arts, partnership
agreement 1,050,000
State historic preservation, national park
service grants 1,900,000
Special revenue funds:
Local promotion fund 5,000,000
Private - Michigan council for the arts fund 200,000
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Private - special project advances 200,000
Private promotion fund 5,000,000
Michigan lighthouse preservation fund 250,000
Michigan state housing development authority
fees and charges 4,831,100
State brownfield redevelopment fund 10,007,700
State historic preservation office fees and
charges 511,200
State general fund/general purpose $ 21,202,500
Sec. 110. MICHIGAN STATE HOUSING DEVELOPMENT
AUTHORITY
Full-time equated classified positions 318.0
Community development block grants $ 47,000,000
Housing and rental assistance--FTEs 318.0 52,875,700
Michigan housing and community development 50,000,000
MSHDA technology services and projects 3,772,600
Payments on behalf of tenants 166,860,000
Property management 3,506,100
GROSS APPROPRIATION $ 324,014,400
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 57,381,100
State general fund/general purpose $ 0
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Sec. 111. STATE LAND BANK AUTHORITY
Full-time equated classified positions 9.0
State land bank authority--FTEs 9.0 $ 6,429,900
GROSS APPROPRIATION $ 6,429,900
Appropriated from:
Federal revenues:
Federal revenues 1,000,000
Special revenue funds:
Land bank fast track fund 3,402,500
State general fund/general purpose $ 2,027,400
Sec. 112. ONE-TIME APPROPRIATIONS
Arts and cultural program $ 10,000,000
Business attraction, community revitalization,
entrepreneurial ecosystem 60,000,000
Community college skilled trades equipment
program 3,017,500
Competitive community infrastrcture grants 10,000,000
Facility for rare isotope beams 7,300,000
Michigan housing and community development 10,000,000
Museum support 1,500,000
Public radio 250,000
Special events and national convention
attraction 6,000,000
Talent partnership 5,000,000
GROSS APPROPRIATION $ 113,067,500
Appropriated from:
Contingent fund, penalty and interest account 3,017,500
State general fund/general purpose $ 110,050,000

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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
$453,177,000.00 and state spending under part 1 from state sources
to be paid to local units of government is $36,399,500.00. The
following itemized statement identifies appropriations from which
spending to local units of government will occur:
DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
Arts and cultural program $ 2,940,000
At-risk youth grants 5,184,500
Michigan rehabilitation services 275,000
Workforce development programs 28,000,000
TOTAL $ 36,399,500
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
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
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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 subcommittees on labor and economic opportunity, the
senate and house fiscal agencies, the senate and house policy
offices, and the state budget office.
(k) "STEM" means science, technology, engineering, and
mathematics.
(l) "USDOL" means the United States Department of Labor.
Sec. 204. The department shall use the internet to fulfill the
reporting requirements of this part 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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the department or agency shall maintain on its website all
reports placed on the website from previous fiscal years posted by
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fiscal year in the same single archivable location. The department
or agency shall also transmit all required reports for the current
fiscal year to the standard report recipients and any other
required recipients by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 206. The department shall not take disciplinary action
against an employee of the department for communicating with a
member of the legislature or legislative staff, unless the
communication is prohibited by law and the department is exercising
its authority as provided by law.
Sec. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department shall prepare
a report on out‐of‐state travel expenses not later than January 1.
The report must list all travel outside this state by classified
and unclassified employees in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
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department's budget. The department shall submit the report to the
standard report recipients and to the senate and house of
representatives appropriations committees. The report must include
all of the following information:
(a) The dates of each travel occurrence.
(b) The total transportation and related expenses of each
travel occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, and other revenues.
Sec. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall submit the report to the standard report
recipients and the chairpersons of the senate and house of
representatives appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $30,000,000.00 for
federal contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $560,000,000.00 for state
restricted contingency authorization. Amounts appropriated under
this subsection are not available for expenditure until they have
been transferred to another line item in part 1 under section
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393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $2,000,000.00 for local
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $11,000,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 211. The department shall cooperate with the department
of technology, management, and budget to maintain a searchable
website accessible by the public at no cost that includes, but is
not limited to, all of the following for the department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
Sec. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
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and house appropriations committees.
Sec. 213. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of a local health officer.
Sec. 214. To the extent permissible under the management and
budget act, 1984 PA 451, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations in part 1 shall
take all reasonable steps to ensure geographically disadvantaged
business enterprises compete for and perform contracts to provide
services or supplies, or both. The director shall strongly
encourage firms with which the department contracts to subcontract
with certified geographically disadvantaged business enterprises
for services, supplies, or both. As used in this section,
"geographically disadvantaged business enterprises" means that term
as defined in Executive Directive No. 2023-1.
Sec. 215. On a quarterly basis, the department or agency
receiving appropriations in part 1 shall report on the number of
full-time equated positions in pay status by civil service
classification, including a comparison by line item of the number
of full-time equated positions authorized from funds appropriated
in part 1 to the actual number of full-time equated positions
employed by the department at the end of the reporting period. The
report must be submitted to the standard report recipients and the
senate and house of representatives appropriations committees.
Sec. 216. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
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shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department may
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 217. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The 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 appropriations committees, and to the joint committee on
administrative rules.
Sec. 218. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 219. The state budget director shall take steps to ensure
that all state fiscal recovery funds and capital projects funds
allocated to this state under the American rescue plan act of 2021,
Public Law 117-2, are expended by December 31, 2026, as required by
law. Any state fiscal recovery funds and capital projects funds
that would otherwise lapse after September 30, 2026 are
automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026
and any subsequent financial close out period.
Sec. 220. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
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utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of the American rescue plan act of 2021, Public Law 117-
2, must be followed for state fiscal recovery funds reallocated and
reappropriated under subsection (1).
(3) The state budget director shall notify the senate and
house appropriations committees not later than 1 business day after
making any reallocations under subsection (1). The notification
must include the authorized program under which funds were
originally appropriated, the amount of the reallocation, the
program, or programs, or purpose, the department to which the funds
are being reallocated under subsection (1), and the amount
reallocated to each program or purpose.
Sec. 221. 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
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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. 222. (1) Within 30 days of enactment of this act, the
house of representatives and senate shall provide to the state
budget office a jointly agreed-upon 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 post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and post an updated report not later than June 15 of the
current fiscal year and again not later than September 15 of the
current fiscal year. The department shall include in the report the
most comprehensive information the department has available at the
time of posting for grants awarded.
Sec. 223. (1) The department shall maximize utilization of its
in-person state workforce. The department shall prioritize
occupancy utilization of office space for each division within the
department. Employees with job responsibilities that require the
employees to serve in their capacities outside of an office must be
monitored each pay period to ensure all work hours reported on the
timesheet were actually worked.
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(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 in-person work is
optimized and occupancy rates are 80% or higher, subject to market
conditions.
(3) The department shall adhere to the rules and regulations
of civil service, which state that the standard biweekly work
period for a full-time employee in the classified service is the
equivalent of 80 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed-upon business hours.
Sec. 224. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
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public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 227. Not later than 6 months after the state budget
office issues work project letters, the department, agency, and
legislature shall submit an annual report that summarizes all work
project accounts. The report 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. 228. 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. 229. 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. 230. The department shall report on any court settlement
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that may require further legislative review of state statutory
programs or regulations.
Sec. 231. Not later than November 15, the department shall
disclose on a publicly accessible website 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. The report
must be submitted to the standard report recipients and to the
chairpersons of the senate and house appropriations committees.
Sec. 232. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
must do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department in the previous fiscal year.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose or
purposes.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the house
and senate appropriations committees, the house and senate fiscal
agencies, and the state budget office that details all of the
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following:
(i) The type of funding received.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
specified purpose or purposes.
(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) The type or types of funding anticipated.
(ii) The amount or amounts of funding anticipated.
(iii) The purpose or purposes of the funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
similar time frame as would be reported under subsection (1),
subsection (1) does not apply.
Sec. 233. (1) The department shall list all organizations that
receive a grant or funding from the funds appropriated in this
article by October 10, 2026, and certify that no organization
identified has been convicted of violating MCL 750.543k.
(2) Funds or grants must be withheld from organizations that
have been convicted of violating MCL 750.543k.

DEPARTMENT OF LABOR AND ECONOMIC OPPORTUNITY
Sec. 302. Federal pass-through funds to local institutions and
governments that are received in amounts in addition to those
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included in part 1 and that do not require additional state
matching funds are appropriated for the purposes intended. The
department may carry forward into the succeeding fiscal year
unexpended federal pass-through funds to local institutions and
governments that do not require additional state matching funds.
The department shall report the amount and source of the funds to
the standard report recipients not later than 10 business days
after receiving any additional pass-through funds.
Sec. 303. 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 senate and house chairpersons of the subcommittees, the senate
and house fiscal agencies, and the state budget director of the
receipt of the grant, including the fund source, purpose, and
amount of the grant.
(3) The amount appropriated under subsection (1) must not
exceed $3,000,000.00.
(4) Not later than March 15, the department shall report to
the standard report recipients 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
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sponsored by the department and related to activities that are
under the department's purview.
(2) The fees under subsection (1) must reflect the costs for
the department to sponsor the informational, training, or special
events.
(3) Revenue generated by the registration fees under
subsection (1) is appropriated upon receipt and available for
expenditure to cover the department's costs of sponsoring
informational, training, or special events.
(4) Revenue generated by registration fees under this section
in excess of the department's costs of sponsoring informational,
training, or special events must carry forward to the subsequent
fiscal year and not lapse to the general fund.
(5) The amount appropriated under subsection (3) must not
exceed $500,000.00.
(6) Not later than March 15, the department shall report to
the standard report recipients on the amount of registration fees
generated in the previous fiscal year and the amount 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
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the first source of funds in the subsequent fiscal year.
(3) Not later than March 15, the department shall report to
the standard report recipients 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 to
the standard report recipients 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.
Sec. 308. Funds appropriated in part 1 must not be used by a
department, authority, or agency to purchase an ownership interest
in a casino.
Sec. 309. From the funds appropriated in part 1, the
department shall development recommendations for employers on best
practices to support, attract, and retain women in the workforce.
The department may partner with any additional stakeholders the
department deems necessary for completing the recommendations,
including the department of civil rights, the department of health
and human services, and the Michigan women's commission. The
recommendations must be published on the department's website not
later than January 1, 2027. The recommendations must include, but
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are not limited to, guidance on all of the following:
(a) Postpartum care, including, but not limited to, flexible
scheduling, reasonable accommodations, lactation policies, and
mental health resources.
(b) Menstruation and menopause support, including, but not
limited to, counseling or medical resources, symptoms training, and
insurance coverage.
(c) Fair and transparent pay practices, including, but not
limited to, salary disclosures, clear criteria for raises, and
employer tools to assess compensation and address wage disparities.

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY
Sec. 401. (1) Not later than March 15, MSHDA shall submit a
report to the standard report recipients on the status of the
authority's housing production goals under all financing programs
established or administered by the authority. The report must
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.
(d) MSHDA's status in obtaining its multifamily and single-
family housing production goals.
(e) Information on efforts to support the unhoused goals by
regions as determined by MSHDA.
(f) Information on efforts to lower rent and housing purchase
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costs goals by each Opportunity Zone Prosperity Region.
(g) A list of all programs that have interdepartmental
coordination with DHHS, which must include a summary of the
coordination efforts between the departments on those programs.
(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 Michigan
housing and community development must be expended for projects
allowable under section 58c of the state housing development
authority act of 1966, 1966 PA 346, MCL 125.1458c, and allocated as
follows:
(a) The department shall allocate not less than $9,000,000.00
towards the rehabilitation of housing for low income, very low
income, and extremely low income senior citizens, and eligible
senior citizen facilities. Funding must be allocated as grants. The
department may work with eligible municipalities to administer this
funding. The maximum grant to each eligible municipality must be
not more than $50,000.00 for a single house and $750,000.00 for a
multifamily unit. Before rehabilitation activities occur,
agreements must be signed between the grantee and contactors that
include provisions to compensate, or to provide no-cost housing
options to, inhabitants who are required to be out of their homes
during any duration of construction. Agreements must require a
certificate of compliance or, based on the review by the
department, be able to attain a certificate of compliance that
eligible upgrades have been completed. The total amount allocated
under this subdivision must be distributed in the following manner:
(i) 80% as preservation grants for interior and exterior
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improvements to improve structural foundations of housing stock,
interior or exterior facade improvements, accessibility upgrades,
energy efficiency upgrades, plumbing and septic improvements,
elevator replacement or modernization, generator capacity
improvements, and essential appliance upgrades in areas with the
highest density of very low income and extremely low income senior
citizens.
(ii) 20% as gap financing for the construction of senior
citizen facilities for very low income and extremely low income
senior citizens in rural or disconnected areas.
(b) The department shall allocate not less than $6,000,000.00
for activities related to preventing homelessness by providing
legal services to support eviction defense for individuals around
this state. Funding allocated under this subdivision must be
awarded as follows:
(i) 75% of funding must be awarded to municipalities that had a
tenant right to counsel program in the prior fiscal year or that
establish a tenant right to counsel program during the fiscal year.
(ii) 25% of the funding must be awarded to municipalities to
support housing navigators or social workers in counties with the
highest need.
(c) The department shall allocate not less than $18,000,000.00
for providing down payment assistance and other support for very
low income and extremely low income households that are first-
generation or first-time home buyers. Priority for these funds must
be dedicated towards individuals who are buying homes in
historically underserved and disadvantaged areas of this state. The
funds allocated under this subdivision must be distributed in the
following manner:
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(i) 85% for first-generation home buyers.
(ii) 15% for first-time home buyers.
(d) The department shall allocate not less than $3,000,000.00
for foreclosure prevention and assistance by providing grants to
nonprofit entities that assist very low income and extremely low
income households in buying out a land contract that individuals
have already entered into, homeownership counseling, and legal
assistance at land contract forfeiture hearings.
(e) The department shall allocate not less than $24,000,000.00
for the preservation of existing housing that includes providing
grants for home repairs and preweatherization to very low income
and extremely low income households. Priority must be given to
communities with the greatest housing and density of those
households.
(2) As used in this section:
(a) "Eligible senior citizen facility" means a facility that
houses over 80% senior citizens with the senior citizens who reside
in the facility being low income, very low income, and extremely
low income.
(b) "Essential appliance" means a water heater, air
conditioning unit, furnace, or other appliance necessary to
regulate temperature in the home.
(c) "Eligible municipality" means a municipality that has both
of the following:
(i) A municipal landbank.
(ii) An average median household income of less than $48,000.00
per year.
(d) "Extremely low income household" means a person, a family,
or unrelated persons living together whose adjusted household
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income is not more than 30% of the area median income, as
determined by the authority.
(e) "Low income household" means a person, a family, or
unrelated persons living together whose adjusted household income
is more than 50%, but not more than 60%, of the area median income,
as determined by the authority.
(f) "Very low income household" means a person, a family, or
unrelated persons living together whose adjusted household income
is not more than 50% of the area median income, as determined by
the authority.
Sec. 405. If the state budget director lapses work project
number TW3235023, the amount of lapsed funds shall be appropriated
in addition to the funds appropriated in part 1 for grants to local
land banks for blight removal or redevelopment projects. Priority
must be given to municipalities that are located in a county that
has a county land bank, have an average median income of not more
than $60,000.00 per year, and have the highest number of blighted
or dilapidated properties. Blight elimination within the local land
bank must be prioritized to projects with the greatest projected
economic impact. The department shall notify the standard report
recipients if funds are appropriated under this subsection.
Sec. 406. (1) From the funds appropriated in part 1 for
community development block grants, MSHDA shall allocate no less
than $30,000,000.00 for eviction prevention efforts, permanent
supportive housing, rapid re-housing, and other housing-first
projects, to homeless persons for eligible public service
activities outlined under chapter 7 of the federal guidelines for
the community development block grant program, 24 CFR 570.201(e).
(2) Unexpended funds appropriated for community development
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block grants are designated as a work project appropriation.
Unencumbered or unallotted funds must not lapse at the end of the
fiscal year and must be available for grant awards or other
expenditures until the project has been completed. The following is
in compliance with section 451a of the management and budget act,
1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is for eviction prevention,
permanent supportive housing, rapid re-housing, and other housing-
first projects under this section.
(b) The project will be accomplished by utilizing state
employees to contract directly with HUD-recognized Continuums of
Care.
(c) The total estimated cost of the project is $30,000,000.00.
(d) The tentative completion date for the work project is
September 30, 2031.

STATE LAND BANK AUTHORITY
Sec. 451. (1) In addition to the amounts appropriated in part
1, the state land bank authority may expend revenues received under
the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774,
for the purposes authorized by the act, including, but not limited
to, the acquisition, lease, management, demolition, maintenance, or
rehabilitation of real or personal property, payment of debt
service for notes or bonds issued by the authority, and other
expenses to clear or quiet title property held by the authority.
The state land bank authority may establish partnerships with local
land bank authorities.
(2) Not later than March 15, the state land bank authority
shall submit a report to the standard report recipients that
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includes all of the following:
(a) 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.
(b) A list of any properties sold by or otherwise transferred
from the state land bank authority in the previous fiscal year.
(c) A summary of efforts to reduce the inventory of state and
local land banks.

MICHIGAN STRATEGIC FUND
Sec. 501. The report required under section 9 of the Michigan
strategic fund act, 1984 PA 270, MCL 125.2009, must be transmitted
not later than March 15.
Sec. 502. In addition to the appropriations in part 1, Travel
Michigan may receive and expend private revenue related to the use
of "Pure Michigan" and all other copyrighted slogans and images.
This revenue may come from the direct licensing of the name and
image or from the royalty payments from various merchandise sales.
Revenue collected is appropriated for the marketing of this state
as a travel destination. The funds are available for expenditure
when they are received by the department of treasury. If the fund
receives revenues from the use of "Pure Michigan", the fund shall
provide a report that lists the revenues by source received from
the use of "Pure Michigan" and all other copyrighted slogans and
images. The report must provide a detailed list of expenditures of
revenues received under this section. The report must be provided
to the standard report recipients not later than March 15.
Sec. 503. (1) Funds appropriated in part 1 for Pure Michigan
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must be used for the following purposes:
(a) Conduction of market research regionally, nationally, and
internationally for use in market campaigns.
(b) Production of advertisements for the promotion of Michigan
as a place to live, learn, build, work, play, and succeed.
(c) Placement of advertisements that have a diverse
representation in regional, national, and international market
campaigns to promote Michigan as a state that welcomes all
individuals and families.
(d) Not more than 2.0% of the appropriation for administration
of the program.
(e) Matching marketing campaigns funded from the local
promotion fund or private promotion fund.
(2) With the goal of increasing the population and workforce
of this state, the fund must work in cooperation with local ethnic
chambers and nonprofits that are designed to increase the
population in this state and the international talent in this
state.
(3) The fund may work in cooperation with local units of
government, nonprofit entities, and private entities on Pure
Michigan promotion campaigns. The fund shall include agreements
prior to undertaking cooperative marketing campaigns.
(4) The department shall provide an annual report to the
standard report recipients not later than March 15 on the
utilization of funds for eligible activities in subsection (1),
including a breakdown by eligible use, efforts taken to broaden the
scope of marketing activities to diverse populations, a breakdown
of funds spent within this state and outside of this state,
targeted marketing to encourage residents from other states to move
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to 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
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) Each local visitor bureau can only receive dollars
appropriated to Pure Michigan once per fiscal year.
Sec. 504. (1) A local promotion fund is created in the
department. The fund may receive funds from local units of
government and nonprofit entities and deposit these funds into the
local promotion fund. Funds received are available for expenditure
for use in Pure Michigan promotion campaigns. The fund may maintain
individual accounts for local units of government and nonprofit
entities that deposit funds into the local promotion fund upon
request from a local unit of government. As used in this
subsection, "local unit of government" includes cities, villages,
townships, counties, and regional councils of government.
(2) Local promotion funds appropriated in part 1 may be used
for media production and placements, national and international
marketing campaigns, and for other activities that promote Michigan
as a place to live, work, and play.
(3) Any unexpended or unencumbered balance must be disposed of
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in accordance with the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594, unless carryforward authorization has been
otherwise provided for.
(4) The department shall provide a report to the standard
report recipients not later than March 15 on any funds that have
been generated by local units of government and how those funds
have been expended.
Sec. 505. (1) A private promotion fund is created in the
department. The fund may receive funds from private entities and
deposit these funds into the private promotion fund. Funds received
are available for expenditure for use in Pure Michigan promotion
campaigns. The fund may maintain individual accounts for private
entities that deposit funds into the private promotion fund upon
request from a private entity.
(2) Private promotion funds appropriated in part 1 may be used
for media production and placements, national and international
marketing campaigns, and for other activities that promote Michigan
as a place to live, work, and play.
(3) Any unexpended or unencumbered balance shall be disposed
of in accordance with the management and budget act, 1984 PA 431,
MCL 18.1101 to 18.1594, unless carryforward authorization has been
otherwise provided for.
Sec. 506. (1) As a condition of receiving funds appropriated
in part 1, the fund must provide a report of all approved
amendments to projects for the immediately preceding year under
sections 88r and 90b of the Michigan strategic fund act, 1984 PA
270, MCL 125.2088r and 125.2090b. The report must provide a
description of each amendment, by award, that includes, but is not
limited to, the following:
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(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.
(2) In addition to being posted online, the report must be
distributed to the standard report recipients not later than March
15.
Sec. 507. (1) As a condition of receiving funds appropriated
in part 1, the fund must request the following information from the
MEDC:
(a) Approved budget from the MEDC executive committee for the
current fiscal year and actual budget expenditures for the previous
fiscal years.
(b) Expenditures and revenues as part of the current and
previous year budgets, including the available fund balance for the
current and previous fiscal years.
(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 business
attraction and community revitalization line item.
(2) Information received by the fund under this section must
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be posted online and distributed to the standard report recipients
not later than March 15.
Sec. 508. As a condition of receiving funds under part 1, any
interlocal agreement entered into by the fund must include language
that states that if a local unit of government has a contract or
memorandum of understanding with a private economic development
agency, the MEDC will work cooperatively with that private
organization in that local area.
Sec. 509. (1) From the funds appropriated in part 1, the
department shall notify the standard report recipients no later
than 45 days after the purchase of land or options on land and
include in the notification the location of the land, information
on the entity that sold the land, and the purchase price of the
land or option on land.
(2) If land or options on land are purchased under subsection
(1), the fund shall provide a report that provides a list of all
properties purchased, all options on land purchased, the location
of the land purchased, and the purchase price if the fund purchases
options on land or land. The report must be submitted to the
standard report recipients not later than March 15.
Sec. 510. As a condition for receiving funds in part 1, not
later than March 15, the fund shall provide a report for the
previous fiscal year on the jobs for Michigan investment fund,
created in section 88h of the Michigan strategic fund act, 1984 PA
270, MCL 125.2088h. The report must include, but is not limited to,
all of the following:
(a) A detailed listing of revenues, by fund source, to the
jobs for Michigan investment fund. The listing must include the
manner and reason for which the funds were appropriated to the jobs
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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
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.
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(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. 515. (1) The fund shall report to the standard report
recipients on the status of the film incentives at the same time as
it submits the annual report required under section 455 of the
Michigan business tax act, 2007 PA 36, MCL 208.1455. The department
of treasury shall provide the fund with the data necessary to
prepare the report. Incentives included in the report shall include
all of the following:
(a) The tax credit provided under section 455 of the Michigan
business tax act, 2007 PA 36, MCL 208.1455.
(b) The tax credit provided under section 457 of the Michigan
business tax act, 2007 PA 36, MCL 208.1457.
(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
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125.2088d.
(2) The report must include all of the following information:
(a) For each tax credit, the number of contracts signed, the
projected expenditures qualifying for the credit, and the estimated
value of the credits. For loans, the number of loans made under
each section, the interest rate of those loans, the loan amount,
the percent of the projected budget of each production financed by
those loans, and the estimated interest earnings from the loan.
(b) For credits authorized under section 455 of the Michigan
business tax act, 2007 PA 36, MCL 208.1455, for productions
completed by December 31, the expenditures of each production
eligible for the credit that has filed a request for certificate of
completion with the film office, broken down into expenditures for
goods, services, or salaries and wages and showing separately
expenditures in each local unit of government, including
expenditures for personnel, whether or not they were made to a
Michigan entity, and whether or not they were taxable under the
laws of this state.
(c) For loans, the report must include the number of loans
that have been fully repaid, with principal and interest shown
separately, and the number of loans that are delinquent or in
default, and the amount of principal that is delinquent or is in
default.
(d) For each of the tax credit incentives and loan incentives
listed in subsection (1), a breakdown for each project or
production showing each of the following:
(i) The number of temporary jobs created.
(ii) The number of permanent jobs created.
(iii) The number of persons employed in Michigan as a result of
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the incentive, on a full-time equated basis.
(3) For any information not included in the report due to the
provisions of section 455(6), 457(6), or 459(6) of the Michigan
business tax act, 2007 PA 36, MCL 208.1455, 208.1457, and 208.1459,
the report shall do all of the following:
(a) Indicate how the information would describe the commercial
and financial operations or intellectual property of the company.
(b) Attest that the information has not been publicly
disseminated at any time.
(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 to the standard report recipients. The report must include,
but is not limited to, a listing of all projects the Michigan film
and digital media office provided assistance on, a listing of the
services provided for each project, and an estimate of investment
leveraged.
Sec. 516. As a condition of receiving an award from the fund,
each business incubator or accelerator that received an award from
the fund must maintain and update a dashboard of indicators to
measure the effectiveness of the business incubator and accelerator
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programs. Indicators must include the direct jobs created, new
companies launched as a direct result of business incubator or
accelerator involvement, businesses expanded as a direct result of
business incubator or accelerator involvement, direct investment in
client companies, private equity financing obtained by client
companies, grant funding obtained by client companies, and other
measures developed by the recipient business incubators and
accelerators in conjunction with the MEDC. Dashboard indicators
must be reported for the previous fiscal year and cumulatively, if
available. Each recipient shall submit a copy of their dashboard
indicators to the fund by March 1. The fund shall transmit the
local reports not later than March 15.
Sec. 517. (1) From the appropriations in part 1, the Michigan
arts and culture council shall administer an arts and cultural
grant program that maintains an equitable geographic distribution
of funding and utilizes past arts and cultural grant programs as a
guideline for administering this program. The council shall do all
of the following:
(a) Not later than October 1, publish proposed application
criteria, instructions, and forms for use by eligible applicants.
The council shall provide at least a 2-week period for public
comment before finalizing the application criteria, instructions,
and forms.
(b) Assess a nonrefundable application fee that may be applied
for each application. Application fees must be deposited in the
council for the arts fund and are appropriated for expenses
necessary to administer the programs. These funds are available for
expenditure when they are received and may be carried forward to
the subsequent fiscal year.
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(c) Issue grants to public and private arts and cultural
entities.
(d) Not later than 1 business day after the award
announcements, provide to each member of the legislature and the
fiscal agencies a list of all grant recipients and the total award
given to each recipient, sorted by county.
(e) In addition to the information in subdivision (d), report
on the number of applications received, number of grants awarded,
total amount requested from applications received, total amount of
grants awarded, and amount of application fees collected in the
previous fiscal year.
(2) Up to 3.0% of the funds appropriated in part 1 for arts
and cultural program may be expended for the administration of the
grant program.
Sec. 518. (1) The general fund/general purpose funds
appropriated in part 1 to the fund for business attraction and
community revitalization must be transferred to the 21st century
jobs trust fund per section 90b(3) of the Michigan strategic fund
act, 1984 PA 270, MCL 125.2090b.
(2) Funds transferred to the 21st century jobs trust fund
under subsection (1) are appropriated and available for allocation
as authorized in the Michigan strategic fund act, 1984 PA 270, MCL
125.2001 to 125.2094.
Sec. 519. For the funds appropriated in part 1 for business
attraction and community revitalization, the fund shall report
quarterly to the standard report recipients on the amount of funds
considered appropriated, pre-encumbered, encumbered, and expended
by current fiscal year appropriation and each work project for any
previous fiscal years. The report must also include a listing of
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all previous appropriations for business attraction and community
revitalization, or a predecessor, that were considered
appropriated, pre-encumbered, encumbered, or expended that have
lapsed back to the fund for any purpose. The report must be
submitted to the standard report recipients. The report must also
include how much of business attraction and community
revitalization was spent on business development, community
revitalization, small business supports, or community development
financial institutions.
Sec. 520. (1) The fund, in conjunction with the department of
treasury, shall report not later than November 1 on the annual cost
of the MEGA tax credits. The report must include for each year the
board-approved credit amount, adjusted for credit amendments where
applicable, and the actual and projected value of tax credits for
each year from 1995 to the expiration of the credit program. For
years for which credit claims are complete, the report must include
the total of actual certificated credit amounts. For years that
claims are still pending or not yet submitted, the report must
include a combination of actual credits where available and
projected credits. Credit projections must be based on updated
estimates of employees, wages, and benefits for eligible companies.
(2) In addition to the report under subsection (1), the fund,
in conjunction with the department of treasury, shall report to the
standard report recipients not later than November 1 on the annual
cost of all other certificated credits by program, for each year
until the credits expire or can no longer be collected. The report
must include estimates on the brownfield redevelopment credit, film
credits, MEGA photovoltaic technology credit, MEGA polycrystalline
silicon manufacturing credit, MEGA vehicle battery credit, and
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other certificated credits.
Sec. 521. As a condition of receiving appropriations in part
1, prior to authorizing the transfer of any previously authorized
tax credit that would increase the liability to this state, the
fund, on behalf of the fund's board, must notify the standard
report recipients of the transfer of any previously authorized tax
credit that would increase the liability to this state not fewer
than 30 days prior to the authorization of the tax credit transfer.
Sec. 522. (1) From the funds appropriated in part 1 for
business attraction and community revitalization, the fund shall
identify specific outcomes and performance measures, including, but
not limited to, the following:
(a) Total verified jobs created by the business attraction
program during the previous fiscal year.
(b) Total private investment obtained through the business
attraction and community revitalization programs during the
previous fiscal year.
(c) Amount of private and public square footage created and
reactivated through the community revitalization program during the
previous fiscal year.
(d) A summary of any metrics used to evaluate the outcomes and
performance of the programs.
(e) A list of grants to small business and community support
hubs and any local nonprofits. The list must include partnership
between those recipients.
(f) The amount of interest generated on loans paid back by
entities and the entities that have paid back a loan.
(g) A list of community development financial institutions
that received grants, the projected economic effect of each
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project, loans that have been paid back, the default rate, the
average interest charged, and interest generated.
(2) The fund shall submit a report to the standard report
recipients not later than March 15. The report must describe the
specific outcomes and measures required in subsection (1) and
provide the results and data related to these outcomes and measures
for the previous fiscal year if related information is available
for the previous fiscal year. The report must also contain a
summary of any metrics used to evaluate the outcomes and
performance of any programs.
Sec. 523. In addition to the funds appropriated in part 1, the
funds collected by state historic preservation programs for
document reproduction and services and application fees are
appropriated for all expenses necessary to provide the required
services. These funds are available for expenditure when they are
received and may be carried forward into the succeeding fiscal
year.
Sec. 524. Tax capture revenues collected in accordance with
written agreements under the good jobs for Michigan program and
transferred from the general fund for deposit into the good jobs
for Michigan fund, and for both calculated payments from the good
jobs for Michigan fund to authorized businesses and distributions
to the fund for administrative expenses, are appropriated under the
provisions of chapter 8D of the Michigan strategic fund act, 1984
PA 270, MCL 125.2090g to 125.2090j.
Sec. 525. The department shall provide a report to the
standard report recipients on March 15 that includes, but is not
limited to, fiscal year-to-date expenditures by division and
program unit within the job creation services line item. The report
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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.
(d) Not less than 25.0% must be dedicated to improving
workforce development initiatives for individuals who are less than
25 years old. The Michigan office of defense and aerospace
innovation may work with the MiSTEM advisory council on developing
youth pipelines to defense, homeland security, and aerospace
industries.
(2) Not later than March 15, the Michigan office of defense
and aerospace innovation shall provide an annual report to the
standard report recipients. The report must include, but is not
limited to, all of the following:
(a) A strategic plan for the organization.
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(b) An overview of the defense industry in this state,
including identification of recent accomplishments and services
provided to businesses in this state in the most recent year.
(c) A list of expenditures used to fund memberships in
organizations and costs associated with attending conferences and
expositions in the 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. (1) From the funds appropriated in part 1 for the
Michigan strategic fund, the fund shall reserve $10,000,000.00 in
the jobs for Michigan investment fund for the purposes described in
this section as a separate Michigan community impact revolving loan
fund within the jobs for Michigan investment fund. All loans and
interest repaid must be deposited into the Michigan community
impact revolving loan fund and be available for additional grants
and loans described under this section.
(2) The fund shall create the Michigan community impact fund
program to provide grants to qualified nonprofits for eligible
activities. The Michigan community impact fund program must be
operated and administered by authorized officers, employees, or
agents of the fund, including by the MEDC and its employees.
(3) By November 1, 2026, the fund shall develop a grant
application in accordance with the requirements of this section.
The fund shall accept applications for 45 days after the
application process is published. A grant application must include
all of the following information:
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(a) The name of the applicant.
(b) The location of the principal office of the applicant.
(c) Documentation indicating whether the applicant is a
qualified nonprofit.
(d) A list of the applicant's board of directors.
(e) A description of the proposed use of the grant award by
the applicant for eligible activities.
(f) A list and description of any partners affiliated with the
qualified revolving loan fund.
(g) A timeline for implementation of eligible activities.
(4) The fund shall approve or deny a grant application within
45 days of receiving a grant application. If the application
complies with the requirements of this section, the fund shall
approve the award of the grant in the amount requested by the
applicant. The fund may deny grant applications submitted under
this section for the following reasons:
(a) The applicant does not satisfy all of the requirements
described in this section.
(b) Subject to this section, there is insufficient money in
the jobs for Michigan investment fund to pay the grant amount
requested.
(5) On approval of an application, the fund and the applicant
shall sign a written grant agreement providing the terms of the
grant agreement. A grant agreement must include all of the
following:
(a) A requirement that the grant awarded be committed under a
fund agreement for eligible activities by the recipient within 1
year of the date that the recipient receives the grant award.
(b) A requirement that the entire amount of the grant awarded
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from the Michigan community impact revolving loan fund be expended
within this state.
(c) A requirement that the grant award recipient is certified
as a community development financial institution under 12 CFR
1805.201 while the grant agreement is in effect.
(d) A requirement that the grant award recipient comply with
all requirements applicable under the community development banking
and financial institutions act of 1994 while the agreement is in
effect.
(e) Provisions authorizing the fund to enforce the terms of
the grant agreement, including a requirement that a noncompliant
recipient of a grant award may be required to repay the portion of
the award not committed by the recipient pursuant to a permitted
loan, program, or agreement. Money repaid under this subdivision
must be deposited into the Michigan community impact revolving loan
fund.
(f) A requirement for the grant award recipient to report on
activities consistent with the requirements of subsection (6).
(6) The fund shall require a recipient of a grant awarded
under this section to report annually to the fund regarding the
activities under this section by March 1, regarding information
from the previous fiscal year. The fund shall submit a report to
the standard report recipients by March 15 that includes, but is
not limited to, all of the following:
(a) A list of community development financial institutions
receiving grants from the Michigan community impact revolving loan
fund.
(b) A list of loan transactions made by the community
development financial institutions that received grants from the
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qualified revolving loan fund during the prior fiscal year that
includes all of the following:
(i) The name of each transaction.
(ii) A transition tracking number for each transaction.
(iii) The date of each transaction.
(iv) The amount of each transaction.
(v) The total project cost for each transaction if other
funding was involved.
(vi) The physical address of the borrower or customer for each
transaction.
(vii) The census tract of the borrower or customer for each
transaction.
(viii) An indication of whether the census tract in which the
transaction is located is an eligible investment area.
(ix) A description of the projected economic impact of the
transaction.
(x) A description of any loan type, financial products, or
financial services provided.
(7) The fund shall not include information in the report
required under subsection (6) if the information is either of the
following:
(a) Exempt from disclosure or confidential as proprietary
business or financial information under the community development
banking and financial institutions act of 1994.
(b) Exempt from disclosure under the freedom of information
act, 1976 PA 442, MCL 15.231 to 15.246.
(8) The legislature finds and declares that activities under
this section are for community economic revitalization and
community development through community development financial
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institutions and will increase lending capacity to support economic
recovery, including support for small businesses, housing and
redevelopment projects, and consumer loans to promote financial
capability, and is for a public purpose. It is the intent of the
legislature that the economic benefits resulting from this section
occur substantially within this state.
(9) As used in this section:
(a) "Community development banking and financial institutions
act of 1994" means subtitle A of the Riegle community development
and regulatory improvement act of 1994, 12 USC 4701 to 4719.
(b) "Community development financial institution" means that
term as defined in section 103 of the community development banking
and financial institutions act of 1994, 12 USC 4702.
(c) "Depository institution" means any of the following:
(i) A bank as that term is defined in section 3(a) of the
federal deposit insurance act, 12 USC 1813.
(ii) A savings association as that term is defined in section
3(b) of the federal deposit insurance act, 12 USC 1813.
(iii) A credit union as that term is defined in section 102 of
the credit union act, 2003 PA 215, MCL 490.102.
(iv) A depository institution holding company as that term is
defined in 12 CFR 1805.104.
(d) "Eligible activities" means the creation of a qualified
revolving loan fund by a qualified nonprofit.
(e) "Federal fund" means the community development financial
institutions fund established under section 104 of the community
development banking and financial institutions act of 1994, 12 USC
4703, and moved within the United States Department of Treasury by
the emergency supplemental appropriations for additional disaster
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assistance, for anti-terrorism initiatives, for assistance in the
recovery from the tragedy that occurred at Oklahoma City, and
rescissions act, 1995, Public Law 104-19, and by Public Law 104-
134.
(f) "Qualified nonprofit" means a Michigan nonprofit
corporation that is incorporated with the primary goal of building
the capacity of community development financial institutions.
(g) "Qualified revolving loan fund" means a loan fund operated
by a qualified nonprofit that provides low-interest loans to
community development financial institutions for the purposes of
providing loans to residents of the state as allowed by the federal
fund.
Sec. 528. (1) The funds appropriated in part 1 for job
creation services shall support the office of small business growth
within the Michigan economic development corporation to lead,
coordinate, and administer statewide programs, services, and
investments that support the launch, resilience, and growth of
small businesses in this state, including a focus on and support
for microbusinesses.
(2) The office shall serve as this state's primary point of
coordination for small business development, technical assistance,
access to capital, and cross-agency small business initiatives.
(3) The office shall perform duties under this section that
include all of the following:
(a) Develop and enhance a statewide, collaborative, public-
private partner network to accelerate small business formation,
resilience, and scale.
(b) Administer grants, loans, and investments to
organizations, intermediaries, and subject-matter experts that
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provide technical assistance, coaching, consulting, training, or
other services that support small business success.
(c) Administer grants, loans, and investments directly to
Michigan-headquartered small businesses to advance strategic
company or industry growth objectives, including supply chain
resiliency, clean energy integration, technology adoption, and
global competitiveness.
(d) Coordinate with lenders, financial institutions, industry
partners, and other key stakeholders to strengthen and expand
access to capital for small businesses, including addressing
industry, regional, and demographic gaps in lending, enhancing
capital readiness, and supporting innovative financing models that
improve small business growth and resilience.
(e) Lead cross-agency coordination with relevant state
departments to improve small business navigation of state
resources, regulatory processes, and programs connected to business
launch, resilience, and expansion.
(f) Align small business services with this state's broader
entrepreneurship, innovation, and economic development strategies,
including leveraging state and federal funding, data, evaluation,
and ecosystem-building efforts.
(g) Collect and analyze data to monitor program effectiveness,
vendor and partner impact, and small business outcomes, and ensure
transparency and accountability through public reporting.
(h) Create, implement, and update a statewide strategic plan
for creation and distribution of economic growth services focused
on economic gardening. This plan must be developed and maintained
with ongoing engagement with regionally representative
stakeholders.
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(4) The office may enter into agreements, contracts, or
partnerships with public, private, nonprofit, philanthropic, and
academic partners necessary to carry out the responsibilities under
this section and to implement programs and initiatives supporting
small business development statewide.
(5) The office may establish eligibility criteria, application
processes, compliance requirements, and reporting standards for
recipients of funds administered under this section.
(6) The office shall submit an annual report to the standard
report recipients that includes, but is not limited to, all of the
following information:
(a) Expenditures made under this section.
(b) Partner and program performances.
(c) Measurable small business outcomes in this state.
(d) Regional and demographic distribution of services and
investments.
(7) As used in this section:
(a) "Microbusiness" means a business headquartered in this
state with fewer than 25 employees.
(b) "Small business" means a business headquartered in this
state with fewer than 200 employees.

EMPLOYMENT SERVICES
Sec. 601. From the funds appropriated in part 1 for wage and
hour program, the department shall continue to engage with
employers and employees to enhance education and outreach, in
accordance with the youth employment standards act, 1978 PA 90, MCL
409.101 to 409.124, 1978 PA 390, MCL 408.471 to 408.490, the
improved workforce opportunity wage act, 2018 PA 337, MCL 408.931
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to 408.945, the earned sick time act, 2018 PA 338, MCL 408.961 to
408.974, the human trafficking notification act, 2016 PA 62, MCL
752.1031 to 752.1040, and 2023 PA 10, MCL 408.1101 to 408.1126, and
private right of action. In addition to the funds appropriated in
part 1, all funds received in the prevailing wage fund created in
section 25a of 2023 PA 10, MCL 408.1125a, are appropriated for the
purposes allowable under section 25a of 2023 PA 10, MCL 408.1125a.
Sec. 602. (1) In addition to the funds appropriated in part 1,
all funds necessary to pay approved claims and administrative costs
incurred during this fiscal year, as allowed in the Christopher R.
Slezak first responder presumed coverage fund created in section
405 of the worker's disability compensation act of 1969, 1969 PA
317, MCL 418.405, are appropriated for the purposes authorized
under section 405 of the worker's disability compensation act of
1969, 1969 PA 317, MCL 418.405.
(2) The department shall provide a year-end report to the
Michigan gaming control board, the department of treasury, and the
state budget office that includes, but is not limited to, the total
of all approved claims and administrative costs incurred as of
September 30 of the current fiscal year.

WORKFORCE DEVELOPMENT
Sec. 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
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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:
(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
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years are appropriated for the purposes originally intended.
(2) The department shall report to the standard report
recipients 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
March 15 and September 15 on the department website concerning the
status of Going pro funded in part 1. The report must include the
following:
(a) The number of awardees participating in the program and
the names of those awardees organized by major industry group.
(b) The amount of funding received by each awardee under the
program.
(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
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reemployment services to better connect workers to in-demand jobs
and identify specific outcomes with performance metrics for this
initiative, including, but not limited to, new apprenticeships,
individuals to be hired and trained, current employees trained,
training completed, employment retention rate at 6 months, and
hourly wage at 6 months.
Sec. 706. To the extent consistent with sections 7 and 9 of
the Going pro talent fund act, 2018 PA 260, MCL 408.157 and
408.159, the department shall administer the program as follows:
(a) The department shall work cooperatively with grantees to
maximize the amount of funds from part 1 that are available for
direct training.
(b) The department, workforce development partners, including
regional Michigan works agencies, and employers shall collaborate
and work cooperatively to prioritize and streamline the expenditure
of the funds appropriated in part 1. The department shall ensure
that Going pro provides a collaborative statewide network of
workforce and employee skill development partners that addresses
the employee talent needs throughout this state.
(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
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employer and employee needs.
(v) Add scoring criteria that incentivize awards to new and
diverse 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.
Sec. 707. The funds appropriated in part 1 for MiSTEM advisory
council must be used to support the staff for the MiSTEM network,
and for administrative, training, and travel costs related to the
MiSTEM council. The staff for the MiSTEM network shall do all of
the following:
(a) Serve as a liaison among and between the department, the
department of lifelong education, advancement, and potential, the
department of education, the MiSTEM council, the governor's
workforce development board, the MiSTEM regions, and any other
relevant organization or entity in a manner that creates a robust
statewide STEM culture, empowers STEM teachers, integrates business
and education into the STEM network, and ensures high-quality STEM
experiences for pupils.
(b) Coordinate the implementation of a marketing campaign,
including, but not limited to, a website that includes dashboards
of outcomes, to build STEM awareness and communicate STEM needs and
opportunities to pupils, parents, educators, and the business
community.
(c) Work with the department of education and the MiSTEM
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council to coordinate, award, and monitor MiSTEM state and federal
grants to the MiSTEM network regions and conduct reviews of grant
recipients, including, but not limited to, pupil experience and
feedback.
(d) Report to the governor, the legislature, and the MiSTEM
council annually on the activities and performance of the MiSTEM
network regions.
(e) Coordinate recurring discussions and work with regional
staff to ensure that a network or loop of feedback and best
practices are shared, including funding, programming, professional
learning opportunities, discussion of MiSTEM strategic vision, and
regional objectives.
(f) Coordinate major grant application efforts with the MiSTEM
council to assist regional staff with grant applications on a local
level. The MiSTEM council shall leverage private and nonprofit
relationships to coordinate and align private funds in addition to
funds appropriated under this section.
(g) Train state and regional staff in the STEMworks rating
system, in collaboration with the MiSTEM council and the Michigan
department of education.
(h) Hire MiSTEM network region staff in collaboration with the
network region fiscal agent.
Sec. 708. (1) From the funds appropriated in part 1 for
workforce development, the department shall provide a report on the
status of workforce development not later than March 15 to the
standard report recipients. The report must include the following:
(a) The amount of funding allocated to each Michigan works
agency and the total funding allocated to the workforce training
programs statewide by fund source.
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(b) The number of participants enrolled in education or
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
and 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, participants at proprietary
schools, and participants at technical training programs.
(m) The number of applicants to an apprenticeship program, the
number of participants in an apprenticeship program, and the number
of participants who completed an apprenticeship program.
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(2) Data collection for the report must be for the previous
state fiscal year.
Sec. 710. (1) The funds appropriated in part 1 for 23+ high
school diploma program must be awarded for a grant program to
assist Michigan residents 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, which includes WorkKeys
preparation.
(h) Industry recognized credentials.
(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
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program providers must start providing programming by February 1 of
the current fiscal year. The department may prioritize funding for
previously qualified program providers based on the highest number
of students previously served, highest number of graduates, and
previous ability to offer statewide access.
(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
implement this section.
Sec. 711. The funds for at-risk youth grants in part 1 must be
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provided to a Michigan-based nonprofit organization with
demonstrated experience delivering statewide youth career
development programming. The organization must operate a career
development-focused, multi-tiered system of supports, align
programming with the Michigan career development model, and provide
services to both in-school and out-of-school youth across multiple
regions of this state. The organization must maintain established
partnerships with local education agencies and workforce
development boards and possess the organizational capacity to
distribute funds statewide. In conjunction with the department, the
organization shall utilize a formula-based methodology to allocate
funds across all 10 prosperity regions based on regional program
performance, capacity, and the concentration of youth facing
barriers to employment or postsecondary success.
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.
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(ii) Prior to taking the high school equivalency test, the
individual completed the official high school equivalency practice
test and the individual's score indicated that the individual is
likely to pass.
(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
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developed under subparagraph (a), and contact information for
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 to
the standard report recipients, including numbers of high school
equivalency certifications issued by location, year-to-date
expenditures, and numbers of participants qualifying under
subsection (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
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requirement through other job readiness programming.
(iii) Average TANF spending per client.
(iv) The number and percentage of clients who were referred to
Michigan Works! but did not receive a job or job readiness
placement and the reasons why.
(2) Not later than March 15 of the current fiscal year, the
department shall provide to the senate and house appropriations
subcommittees on health and human services and the standard report
recipients an annual report on the following matters itemized by
Michigan works agency:
(a) The number of referrals to Michigan works job readiness
programs.
(b) The number of referrals to Michigan works job readiness
programs who became a participant in the Michigan works job
readiness programs.
(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. 714. (1) The office of rural prosperity shall encourage
and enable appropriate community advancements and improvements,
including, but not limited to, all of the following:
(a) Housing.
(b) Infrastructure.
(c) Education.
(d) Workforce development.
(e) Other activities that address needs uniquely present in
rural areas of this state and assist in expansion of rural
development.
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(2) Not later than March 15, the office of rural prosperity
shall submit a report to the standard report recipients that
outlines the office's activities, programs, and accomplishments in
the previous fiscal year. To the extent possible, the report must
also include information regarding the amount of subsequent grant
funding that entities are able to secure after receiving assistance
from the office of rural prosperity or an office of rural
prosperity grant.
Sec. 715. (1) From the funds appropriated in part 1 for
community and worker economic transition office, the department may
hire employees and deploy capabilities to evaluate and address the
impacts of economic transitions on workers, communities, and
employers in sectors that include, but are not limited to, the
auto, utility, manufacturing, and building trades sectors.
Activities of the office may include developing transition
mitigation strategies, conducting data analysis, coordinating
across state and federal agencies, engaging stakeholders, and
providing resource navigation support. No later than March 15, the
department shall also submit an annual report on office activities
and progress made on the transition plan to the standard report
recipients and to the legislature, as required under section 7(5)
of the community and worker economic transition act, 2023 PA 232,
MCL 408.917.
(2) In the annual report submitted under subsection (1), the
department shall include information on the mission statement,
goals, metrics, and recommendations of the community and worker
economic transition office. The report must also include a list of
impacts on workers, communities, and employers in each economic
sector experiencing economic transition in addition to the auto,
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utility, manufacturing, and building trades sectors.
(3) From the funds appropriated in part 1 for community and
worker economic transition office, $250,000.00 must be used to
recruit and assist veterans to transition into apprenticeship
programs in this state for quality career opportunities in the
construction industry. These activities may be contracted to a
national nonprofit program that connects National Guard, reserve,
retired, and transitioning active-duty military service members
with skilled training and quality career opportunities in the
construction industry.
Sec. 717. The department's office of rural prosperity shall
collaborate with the department of agriculture and rural
development on the rural development fund grant program as part of
this state's coordinated strategy for achieving rural prosperity
across this state.
Sec. 719. From the funds appropriated in part 1 for workforce
development, $1,000,000.00 must be allocated toward reentry
employment services grants that provide funding to nonprofit
organizations that operate a program that satisfies all of the
following conditions:
(a) The program provides services to parolees and probationers
assessed by the department of corrections as moderate or high risk
to recidivate.
(b) The program provides job readiness training, transitional
employment, job coaching and placement, and postplacement retention
services. As part of the transitional employment program phase, the
nonprofit program must provide low-skill, crew-based services to
other state agencies.
(c) The program has been independently and rigorously
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evaluated and shown to reduce recidivism.
(d) The program demonstrates an ability to serve multiple
jurisdictions across this state.
Sec. 720. (1) From the funds appropriated in part 1 for
workforce development, the department must maintain an online form
that allows individuals interested in receiving information on
registered apprenticeships to share their interest with the
department. The department must share the information of those who
enter their information in that form with any entity who receives
funding under part 1 for registered apprenticeships, if the
registered apprenticeship recipient offers programs within 50 miles
of their geographic area. An entity that receives funding under
part 1 and receives information from interested parties must
attempt to contact the interested party with information on their
registered apprenticeship program not more than 10 business days
after receiving information from the department.
(2) From the funds appropriated in part 1 for workforce
development, the department shall prioritize funding to registered
apprenticeship programs that produce the highest job placement and
starting wage rates after the individual completes the registered
apprenticeship program.

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
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department, on behalf of the unemployment insurance agency, shall
provide a quarterly report to the standard report recipients not
later than 60 days after the end of each quarter that includes, but
is not limited to, the following:
(a) The average number of unique claimants for the quarter.
(b) The average number of eligible claimants with
certification for the quarter.
(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
webpage.
Sec. 803. From the funds appropriated in part 1, the
department shall provide a quarterly report not later than 60 days
after the end of each quarter that includes, but is not limited to,
the following:
(a) The number of new fraudulent and noncompliant cases that
have been identified or issued by the unemployment insurance
agency, classified by employer or claimant, during the quarter.
(b) The total amount of penalties and interest issued on
fraudulent and noncompliant cases during the quarter.
(c) The total amount of penalties and interest dollars
received during the quarter by employer or claimant.
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(d) The total amount of collectible penalties and interest
still owed to this state by employer or claimant.
(e) The number of fraudulent and noncompliant cases that have
been appealed by an employer or claimant during the quarter.
Sec. 804. (1) The funds appropriated in part 1 for
unemployment insurance agency must be used to staff unemployment
insurance agency branch offices for in-person appointments for
unemployment insurance agency claimant services.
(2) The department shall provide a biannual report to the
standard report recipients not later than March 15 and September 30
that includes all of the following:
(a) The number and location of in-person offices.
(b) The average number of staff at each location over the
previous 6 months.
(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.
(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. 805. (1) Funds appropriated in part 1 for the
unemployment insurance agency may be used by the unemployment
insurance agency to increase capacity by an estimated 250 limited-
term employees only if the unemployment insurance agency provides
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full-time, in-person services at existing unemployment insurance
local offices.
(2) In addition to the 250 limited-term employees described in
subsection (1), the unemployment insurance agency may increase
capacity by up to 250 additional limited-term employees if all of
the following occur:
(a) The unemployment insurance agency provides full-time, in-
person services at existing unemployment insurance local offices.
(b) The number of claims received by the unemployment
insurance agency increased by 20% or more in a month.
(c) The unemployment insurance agency determines there is a
need for additional limited-term employees.
Sec. 806. (1) From the funds appropriated in part 1 for the
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.
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REHABILITATION SERVICES
Sec. 901. The Michigan rehabilitation services and bureau of
services for blind persons shall work collaboratively with service
organizations and government entities to identify allowable match
dollars to secure available federal vocational rehabilitation
funds.
Sec. 902. From the funds appropriated in part 1, the
department shall provide an annual report on efforts taken to
improve the Michigan rehabilitation services not later than March
15 to the standard report recipients. The report must include all
of the following items:
(a) Changes in administrative costs and staffing.
(b) Number of individuals with disabilities served each fiscal
year and number of students with disabilities served each fiscal
year.
(c) 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 of each district in achieving the program
goals by geographic region, determined 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
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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 to
the standard report recipients on the total number of clients
served and the total amount of federal matching funds obtained
throughout the duration of the program.
Sec. 904. If the department is at risk of entering into an
order of selection for services, the department shall notify the
standard report recipients within 2 weeks of receiving
notification.
Sec. 905. (1) Funds appropriated in part 1 for independent
living must be used to support the general operations of centers
for independent living in delivering mandated independent living
services in compliance with federal rules and regulations,
including 2 CFR 200, for the centers, by existing centers for
independent living to serve underserved areas, and for projects to
build the capacity of centers for independent living to deliver
independent living services. Applications for the funds must be
reviewed in accordance with criteria and procedures established by
the department. Funds must be used in a manner consistent with the
state plan for independent living. Services provided should assist
people with disabilities to move toward self-sufficiency,
including, but not limited to, support for accessing transportation
and health care, obtaining employment, community living, nursing
home transition, information and referral services, education,
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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 to the standard
report recipients 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
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
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department facilities. The department may charge fees for these
services that are reasonably related to the cost of providing the
services. In addition to the funds appropriated in part 1, funds
collected by the department for these services are appropriated for
all expenses necessary. The funds appropriated under this section
are allotted for expenditure when they are received by the
department of treasury.
Sec. 909. (1) The funds appropriated in part 1 for a regional
or subregional library must not be released until a budget for that
regional or subregional library has been approved by the department
for expenditures for library services directly serving the blind
and persons with disabilities.
(2) To receive subregional state aid appropriated in part 1, a
regional or subregional library's fiscal agency must agree to
maintain local funding support at the same level in the current
fiscal year as in the fiscal agency's preceding fiscal year. If a
reduction in expenditures equally affects all agencies in a local
unit of government that includes the regional or subregional
library's fiscal agency, the reduction must not be interpreted as a
reduction in local support and must not disqualify a regional or
subregional library from receiving state aid under part 1. If a
reduction in income affects a library cooperative or district
library that includes a regional or subregional library's fiscal
agency or a reduction in expenditures for the regional or
subregional library's fiscal agency, a reduction in expenditures
for the regional or subregional library must not be interpreted as
a reduction in local support and must not disqualify a regional or
subregional library from receiving state aid under part 1.

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COMMISSIONS
Sec. 951. From the funds appropriated in part 1, the office of
global Michigan is to coordinate with any affiliated commissions
established in statute or by executive order to produce a report by
January 31. The report must be submitted to the standard report
recipients and must include, but is not limited to, all of the
following:
(a) A description of the activities that the commissions
initiated to promote cooperation between the commissions to promote
the commissions' purpose.
(b) A list of all grant recipients.
(c) The amount each grant recipient received.
(d) Any grants awarded that relate to the mission statement
and the goals of those grants.
Sec. 953. The office of global Michigan must submit a report
to the standard report recipients not later than January 31. The
report must include all of the following information:
(a) A list of major programs and activities.
(b) The number of refugee arrivals, the job placement rate of
those refugees actively receiving services under global Michigan
grants, and the average wages and initial job placements for those
refugees.
(c) A list and description of the activities that the office
has conducted to attract and retain international, advanced degree,
and entrepreneurial talent.
(d) A list of goals for the office and the metrics used to
determine whether each goal is achieved.
(e) A list of all grant recipients.
(f) The amount each grant recipient received.
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(g) Any grants awarded that relate to the mission statement
and the goals of those grants.

ONE-TIME APPROPRIATIONS
Sec. 1000. (1) From the funds appropriated in part 1 for
business attraction, community revitalization, and entrepreneurial
ecosystem, not less than 25% must be used to award grants to small
business support hubs and community incubators with the goal of
increasing local economic development and community development.
Grants may be used for the establishment, expansion, or operation
of small business support hubs or community incubators that promote
innovation and entrepreneurship, foster local growth, increase
access to economic resources, or provide mentorship, training,
integrated supports, technical assistance, or networking
opportunities. Grantees must be selected with preference to hubs
located in geographically diverse areas that promote innovation and
entrepreneurship in this state. Of the total amount allocated in
this subsection, 15% must be awarded to hubs that connect global
markets to Michigan entrepreneurs or small businesses.
(2) From the funds appropriated in part 1 for business
attraction, community revitalization, and entrepreneurial
ecosystem, not less than 5% must be used for community development
financial institutions fund grants in accordance with section 1001.
(3) From the funds appropriated in part 1 for business
attraction, community revitalization, and entrepreneurial
ecosystem, not less than 40% must be used for business attraction
and community revitalization. Funds allocated under this subsection
may be used to support programs and administration as outlined in
the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to
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125.2094. Priority must be given to low-income communities, low-
employment communities, or communities with higher needs.
(4) From the funds appropriated in part 1 for business
attraction, community revitalization, and entrepreneurial
ecosystem, not less than 30% must be used to provide support for
small businesses and may include the following activities:
(a) Small business support hubs and community incubators.
(b) Business development grants or loans to small businesses.
(c) Support to community development financial institutions.
(d) The public spaces, community places program.
(e) Grants and loans to small business service providers.
(f) Grants or other funding for technical assistance for small
businesses.
(g) Matching funds for federal grants and programming that
benefit small businesses.
Sec. 1001. (1) The funds appropriated in part 1 for business
attraction, community revitalization, and entrepreneurial ecosystem
and distributed to community development financial institutions
fund grants are transferred to the Michigan community development
financial institutions fund created under this section. The
Michigan community development financial institutions fund is
created in the state treasury. All funds in the Michigan community
development financial institutions fund, including funds
unallocated from prior years, are appropriated for grants to
eligible community development financial institutions under this
section and related expenditures permitted under this section. The
legislature finds and declares that the appropriation described in
this section is for a public purpose, including promoting community
economic revitalization and community development through community
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development financial institutions.
(2) The Michigan strategic fund shall develop a grant
application consistent with this section that is published and
available on its publicly accessible website. The plan must include
prioritization of community development financial institutions that
are majority owned by, or serving a majority of, underserved or
underrepresented populations.
(3) The application required under subsection (2) must include
all of the following:
(a) The name of the community development financial
institution applying for a grant from the CDFI fund.
(b) The location of the principal office of the applicant.
(c) Documentation indicating whether the applicant is a
Michigan CDFI or a multistate CDFI.
(d) An indication of whether the applicant is or is not a
depository institution.
(e) The amount of the grant sought, not exceeding the maximum
eligible amount of the grant under subsections (4) to (6).
(f) If the community development financial institution is a
depository institution, the net assets of the depository
institution.
(g) If the community development financial institution is not
a depository institution, the amount of qualifying commitments made
by the community development financial institution during the 3
applicant fiscal years preceding the fiscal year in which the
application is submitted.
(h) A description of the amount an applicant is eligible to
apply for under subsections (4) to (6).
(i) A description of the proposed use of the grant award by
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the applicant for eligible activities consistent with the
requirements of this section, the community development banking and
financial institutions act of 1994, and any other requirements
applicable under federal law.
(j) Documentation of the applicant's certification as a
community development financial institution that meets the
eligibility requirements under 12 CFR 1805.201 by the federal fund.
The documentation required by this subdivision may include the list
of community development financial institutions in good standing
maintained and published by the federal fund.
(k) A statement that the applicant is in compliance with all
requirements applicable to the applicant under the community
development banking and financial institutions act of 1994.
(4) Except as provided in subsection (9), a community
development financial institution that is a depository institution
is eligible for 1 or more grant awards in the following amount for
each grant:
(a) Up to $1,000,000.00 if the depository institution has
total net assets of less than $500,000,000.00.
(b) Up to $1,500,000.00 if the depository institution has
total net assets of $500,000,000.00 to $999,999,999.99.
(c) Up to $2,000,000.00 if the depository institution has
total net assets of $1,000,000,000.00 to $1,999,999,999.99.
(d) Up to $2,500,000.00 if the depository institution has
total net assets of $2,000,000,000.00 or more.
(5) Except as otherwise provided in subsections (6) and (9), a
community development financial institution that is not a
depository institution is eligible for 1 or more grant awards in
the following amount for each grant:
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(a) Up to $500,000.00 if the community development financial
institution made qualifying commitments in an amount that averaged
less than $1,000,000.00 per applicant fiscal year during the 3
fiscal years preceding the fiscal year in which an application for
a grant is submitted.
(b) Up to $1,500,000.00 if the community development financial
institution made qualifying commitments in an amount that averaged
from $1,000,000.00 to $3,999,999.99 per applicant fiscal year
during the 3 fiscal years preceding the fiscal year in which an
application for a grant is submitted.
(c) Up to $2,500,000.00 if the community development financial
institution made qualifying commitments in an amount that averaged
from $4,000,000.00 to $5,999,999.99 per applicant fiscal year
during the 3 fiscal years preceding the fiscal year in which an
application for a grant is submitted.
(d) Up to $3,500,000.00 if the community development financial
institution made qualifying commitments in an amount that averaged
from $6,000,000.00 to $9,999,999.99 per applicant fiscal year
during the 3 fiscal years preceding the fiscal year in which an
application for a grant is submitted.
(e) Up to $4,000,000.00 if the community development financial
institution made qualifying commitments in an amount that averaged
at least $10,000,000.00 per applicant fiscal year during the 3
fiscal years preceding the fiscal year in which an application for
a grant is submitted.
(6) A single grant awarded to a multistate CDFI that is not a
depository institution under subsection (5) must not exceed
$2,500,000.00.
(7) The Michigan strategic fund shall accept initial
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applications for a grant under this section until November 30,
2026, and applications for a second round of grants under this
section by June 1, 2027. The MSF also may accept applications for
additional rounds of grants after June 1, 2027. The Michigan
strategic fund shall approve or deny a grant application within 49
days after the receipt of an administratively complete application
as determined by the Michigan strategic fund. If the application
complies with the requirements of this section, the Michigan
strategic fund shall approve the award of the grant in the amount
requested by the applicant. The Michigan strategic fund may deny a
grant application submitted under this section only for the
following reasons:
(a) The applicant does not satisfy all of the requirements
under this section.
(b) Subject to subsection (9), there is insufficient money in
the CDFI fund to pay the grant amount requested.
(c) The applicant is not in compliance with applicable
requirements under the community development banking and financial
institutions act of 1994.
(8) If the Michigan strategic fund denies an application under
subsection (7), the applicant may provide additional information to
the Michigan strategic fund within 7 days after the notice of
denial. The Michigan strategic fund shall review and reconsider the
application and additional information within 28 days after the
applicant provides additional information.
(9) If there is an insufficient amount of money in the CDFI
fund to pay the grants approved for a round of grant applications,
the amount of each grant for that round shall be reduced
proportionately by the Michigan strategic fund based upon the
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amount of money available in the CDFI fund. If the amount of money
available to pay grants approved for a round of grant applications
exceeds the amount needed to pay the grant awards, the Michigan
strategic fund may increase each grant awarded in that round in an
amount proportionate to the total of all grant awards for that
round or make the excess money available in a subsequent round of
grant applications and awards.
(10) On approval of an application, the Michigan strategic
fund and the applicant shall sign a written grant agreement
providing the terms of the grant agreement. A grant agreement must
include all of the following:
(a) A requirement that at least 80% of the grant award be used
for financial products and financial services or expenditures of
money or commitments to expend money to reduce the interest rate
otherwise applicable under a loan agreement or funding agreement.
(b) A restriction that no more than 10% of the grant award be
used for technical assistance activities described in 12 CFR
1805.303.
(c) A restriction that no more than 10% of the grant award be
used for administration and operations.
(d) A requirement that a grant award be committed under a loan
agreement or funding agreement or disbursed by the recipient within
3 years after the date that the recipient receives the grant award.
(e) A requirement that the entire amount of the grant award be
expended within this state.
(f) A requirement that the grant award recipient comply with
all requirements applicable under the community development banking
and financial institutions act of 1994 while the agreement is in
effect.
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(g) Provisions authorizing the Michigan strategic fund to
enforce the terms of the grant agreement, including a requirement
that a noncompliant recipient of a grant award may be required to
repay the portion of the award not committed by the recipient
pursuant to a permitted loan, program, or agreement. Money repaid
under this subdivision must be deposited in the CDFI fund.
(h) A requirement for the grant award recipient to report on
activities consistent with the requirements of subsection (14).
(i) If the grant agreement includes a grant of federal money,
the grant agreement must require the recipient to comply with any
requirements applicable to the use of the federal money.
(11) A grant agreement may provide for the community
development financial institution that is the recipient of a grant
award to serve as an intermediary lender to another community
development financial institution consistent with the purposes of
this section if not prohibited by federal law applicable to the
expenditure of any federal grant money.
(12) If not prohibited by federal law applicable to the
expenditure of any federal grant money, a grant agreement must
permit a grant award recipient to assign the award to an affiliate
and for the affiliate to assume the obligations of the grant award
recipient if the affiliate satisfies all of the following:
(a) Is a community development financial institution.
(b) Is organized in the same manner as the grant award
recipient.
(c) Is controlled by the grant award recipient in 1 or both of
the following ways:
(i) The grant award recipient owns a majority of the stock of
the affiliate.
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(ii) A majority of the members of the board of the affiliate
also are members of the board of the grant award recipient.
(13) Except as otherwise provided in subsection (14), the
Michigan strategic fund shall require the recipient of a grant
award under this section to report annually to the Michigan
strategic fund regarding its activities under this section
beginning on the May 1 following the applicant fiscal year in which
the grant award was received by the recipient. The Michigan
strategic fund shall publish on its website a standard form for the
report. Except as otherwise provided in subsection (14), the report
must include all of the following information:
(a) A copy of the recipient's most recent confirmation of
recertification as a community development financial institution
issued by the community development financial institutions fund
under 12 CFR 1805.201, which may include the list of community
development financial institutions in good standing maintained and
published by the federal fund.
(b) A list of financial products and services provided during
the prior applicant fiscal year that includes all of the following:
(i) The name of each transaction.
(ii) A transition tracking number for each transaction.
(iii) The date of each transaction.
(iv) The amount of each transaction.
(v) The total project cost for each transaction if other
funding was involved.
(vi) The physical address of the borrower or customer for each
transaction.
(vii) The census tract of the borrower or customer for each
transaction.
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(viii) An indication of whether the census tract in which the
transaction is located is an eligible investment area.
(ix) A description of the projected economic impact of the
transaction.
(x) A description of any financial products or financial
services provided.
(c) A description of technical assistance provided during the
prior applicant fiscal year.
(d) A summary of expenditures for administration and
operations provided during the prior applicant fiscal year that
includes all of the following:
(i) A description of administration and operations costs
incurred.
(ii) Professional fees and expenses incurred.
(iii) A summary of any other eligible expenses for
administration and operation.
(14) A grant award recipient is not required to provide a
report under this section for any applicant fiscal year in which it
did not loan or otherwise commit or disburse grant award money. The
Michigan strategic fund shall not include information in the report
required under subsection (13) if information that otherwise would
be included in a report under subsection (13) is either of the
following:
(a) Exempt from disclosure or confidential as proprietary
business or financial information under the community development
banking and financial institutions act of 1994.
(b) Exempt from disclosure under the freedom of information
act, 1976 PA 442, MCL 15.231 to 15.246.
(15) Except as otherwise provided in subsection (3), the
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Michigan strategic fund may expend up to 4% of the appropriation
provided from the CDFI fund for the costs it incurs in
administering the programs and activities in this section.
(16) Unexpended funds appropriated for community development
financial institutions fund grants are designated as a work project
appropriation. Unencumbered or unallotted funds must not lapse at
the end of the fiscal year and must be available for grant awards
or other expenditures until the project has been completed. The
following is in compliance with section 451a of the management and
budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to provide grants to
eligible community development financial institutions under this
section.
(b) All grants will be distributed in accordance with this
section and the grant guidelines as part of the application process
and grant agreements between the Michigan strategic fund and grant
recipients.
(c) The total estimated cost of the project is $10,000,000.00.
(d) The tentative completion date for the work project is
September 30, 2028.
(17) As used in this section:
(a) "CDFI fund" means the Michigan community development
financial institutions fund created in subsection (1).
(b) "Community development banking and financial institutions
act of 1994" means subtitle A of the Riegle community development
and regulatory improvement act of 1994, 12 USC 4701 to 4719.
(c) "Community development financial institution" means that
term as defined in section 103 of the community development banking
and financial institutions act of 1994, 12 USC 4702, but is limited
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to a community development financial institution that satisfies all
of the following:
(i) Is an entity that meets the eligibility requirements
described in 12 CFR 1805.200.
(ii) Is certified as a community development financial
institution that meets the eligibility requirements under 12 CFR
1805.201, by the federal fund.
(iii) Maintains 1 or more physical offices within this state.
(iv) Employs 2 or more individuals at a physical office within
this state, including employees of an affiliate of the community
development financial institution that provides services to the
community development financial institution.
(v) Is a Michigan CDFI or a multistate CDFI.
(d) "Depository institution" means any of the following:
(i) A bank as that term is defined in section 3(a) of the
federal deposit insurance act, 12 USC 1813.
(ii) A savings association as that term is defined in section
3(b) of the federal deposit insurance act, 12 USC 1813.
(iii) A credit union as that term is defined in section 102 of
the credit union act, 2003 PA 215, MCL 490.102.
(iv) A depository institution holding company as that term is
defined in 12 CFR 1805.104.
(e) "Eligible activities" means activities described in 12 CFR
1805.301, and includes credit enhancements, loan loss reserves,
equity investments, expenditures of money or commitments to expend
money to reduce the interest rate otherwise applicable under a loan
agreement or funding agreement, and grants related to these
activities.
(f) "Federal fund" means the community development financial
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institutions fund established under section 104 of the community
development banking and financial institutions act of 1994, 12 USC
4703, and moved within the United States Department of Treasury by
the emergency supplemental appropriations for additional disaster
assistance, for anti-terrorism initiatives, for assistance in the
recovery from the tragedy that occurred at Oklahoma City, and
rescissions act, 1995, Public Law 104-19, and by Public Law 104-
134.
(g) "Financial products" means that term as defined in 12 CFR
1805.104.
(h) "Financial services" means that term as defined in 12 CFR
1805.104.
(i) "Michigan CDFI" means a community development financial
institution that satisfies all of the following:
(i) Is certified as a community development financial
institution that meets the eligibility requirements under 12 CFR
1805.201, by the federal fund.
(ii) Is headquartered at an address in this state, as
recognized by the federal fund.
(iii) Has a target market that includes this state, as
recognized by the federal fund.
(iv) Serves 1 or more targeted populations located within this
state.
(j) "Multistate CDFI" means a community development financial
institution that is not a Michigan CDFI but is a community
development financial institution that committed under a loan
agreement or other funding agreement at least $10,000,000.00 in
financial products and financial services to a target market within
this state under the community development banking and financial
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institutions act of 1994 during the 5 applicant fiscal years
preceding the applicant in the current fiscal year in which an
application for a grant is submitted.
(k) "Qualifying commitment" means funding committed by a
community development financial institution under a loan agreement
or other funding agreement in target markets or targeted
populations in this state that is either of the following:
(i) Financial products or financial services committed under
the community development banking and financial institutions act of
1994.
(ii) An additional credit enhancement, loan loss reserve, or
equity investment committed by the community development financial
institution or an affiliate of the community development financial
institution.
(l) "Target market" means that term as defined in 12 CFR
1805.104.
(m) "Targeted population" means that term as defined in 12 CFR
1805.104.
Sec. 1002. (1) From the funds appropriated in part 1 for
museums support, $500,000.00 must directly be awarded to support
the Arab American National Museum.
(2) From the funds appropriated in part 1 for museums support,
$500,000.00 must directly be awarded to the Charles H. Wright
Museum of African American History.
(3) From the funds appropriated in part 1 for museums support,
$500,000.00 must directly be awarded to support the Zekelman
Holocaust Center.
Sec. 1003. The department shall operate a grant program to
provide money to public broadcast stations. To apply for a grant, a
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public broadcast station must submit an application the department,
on a form and in a manner as prescribed by the director.
Eligibility must be determined using the following requirements:
(a) The public broadcast station provides programming that
serves educational, cultural, civic, or informational needs of
communities in this state.
(b) The public broadcast station demonstrates a commitment to
broad public access, noncommercial operation, editorial
independence, and a mission aligned with public interest
broadcasting.
(c) The public broadcast station's proposed use of the grant
money is reasonably related to sustaining or expanding services
that meet public media needs, including, but not limited to,
programming, staffing, technical infrastructure, or advertising and
outreach.
Sec. 1004. (1) Funds appropriated in part 1 for special events
and national convention attraction must be used by the Michigan
strategic fund to promote this state as a destination for special
events, including, but not limited to, national conventions,
national conferences, major sporting events, or other significant
events that would feature Michigan to a national audience.
(2) The Michigan strategic fund must develop program
guidelines for the use of these funds. Funds may be used to help
attract eligible special events and to support costs associated
with hosting eligible events. Eligible events must have a regular
attendance of more than 500 people and meet other eligibility
criteria as determined by the Michigan strategic fund.
(3) Unexpended funds appropriated in part 1 for special events
and national convention attraction are designated as a work project
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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 promote this state as a
destination for special events and support costs related to hosting
eligible events.
(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 $6,000,000.00.
(d) The tentative completion date is September 30, 2031.
Sec. 1005. (1) The funds appropriated in part 1 for talent
partnership must be used to administer a grant program to support
implementation of transformational community development
initiatives.
(2) Talent partnership grant funding must be used to implement
transformational public space development projects in central city
neighborhoods or concentrated districts and leverage
interdepartmental and cross-sector coordination through local
talent plans that are designed to increase this state's population
of young talent by creating high-density, high-amenity, walkable,
vibrant-street-life neighborhoods or districts and to create
business ownership opportunities for local residents. Qualified
plan proposals must include all of the following:
(a) The transition of roadway usage from cars to alternative
transportation spaces, including, but not limited to, walking,
biking, and transit.
(b) Commercial corridor activation, including innovations to
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fill vacant retail space with locally owned businesses.
(c) Mixed-use development that contributes to dense, walkable
areas.
(d) A plan to do all of the following:
(i) Support greater density.
(ii) Increase access to affordable or middle-income housing.
(iii) Improve direct access to multimodal transportation.
(iv) Improve quality of life through increased parks, green
spaces, outdoor recreation, and arts and cultural amenities.
(3) The legislature finds and declares that the appropriation
described in this section is for a public purpose and serves the
health, safety, and general welfare of the residents of this state.
(4) The department may do any of the following to implement
the grant program:
(a) Develop guidelines to accept and review local talent plans
from eligible applicants and award funding for approved local
talent plans to increase this state's population of young talent by
creating high-density, high-amenity, walkable, vibrant-street-life
neighborhoods or districts and to create business ownership
opportunities for local residents.
(b) Consult with local stakeholders, provide education and
consultation to the public during the application process, and
regularly monitor implementation progress of approved local talent
plans.
(c) Review existing best practices for similar programs and
consult with third-party experts, including academic and research
institutions based in this state.
(d) Lead a multiagency coordination effort to leverage all
available resources that will maximize the effectiveness of the
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initiative. As necessary, the department may establish memoranda of
understanding with other state agencies or establish a committee of
state agency representatives to support the initiative.
(5) The department shall allocate funding for the grant
program through the development and submission of local talent
plans from eligible applicants that use a blend of layered,
multifaceted activities described in subsection (7) to meet the
goals of this section.
(6) Eligible applicants for a grant must be a consortium of
entities that may include local governments, local economic
development organizations, the nonprofit community, and the
business community. Consortium applicants must appoint a lead
applicant, which may be 1 of the consortium's entities or a
nonprofit organization, to serve as fiduciary and project manager
for the consortium. An eligible applicant may partner with other
government agencies, consortiums, authorities, and community
anchors or nonprofit entities to submit a local talent plan to the
department and implement an approved local talent plan.
Notwithstanding local talent plan revisions or subsequent funding
rounds, an eligible applicant shall not submit more than 1 local
talent plan. Only grant applicants that provide a minimum of 50%
local or private match funds may be considered for a grant under
this section.
(7) Approved local talent plans must include at least 1 of the
following eligible activities to meet the objectives of the grant
program:
(a) Planning, engineering, permitting review, and other local
assessments to support implementation of a local talent plan.
(b) Demonstrated community engagement, stakeholder support, or
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commitment to the local talent plan. As applicable, stakeholders
may include, but are not limited to, any of the following:
(i) Neighborhood associations.
(ii) City councils, planning committees, or other local
government agencies, including public safety agencies.
(iii) Economic development organizations or local businesses or
business organizations.
(iv) Local anchor institutions.
(v) Local nonprofits, foundations, or community organizations.
(vi) Regional planning organizations or consortiums.
(vii) Public transit organizations.
(viii) Faith-based organizations.
(ix) Tribal governments.
(c) Plans for the redevelopment of existing housing stock.
(d) Plans to improve utilization of mixed-use and commercial
property, including, but not limited to, the conversion of
commercial space for affordable housing.
(e) Road repairs and other surface improvements that will
increase walkability, access to green space, dedicated nonmotorized
transportation, and access to rapid transit or high-speed rail.
(f) Supports for small businesses and emerging entrepreneurs,
including access to credit and professional development.
(g) Plans to enhance parks, green space, community recreation,
promotion of local artists or art installations, and outdoor social
spaces.
(h) Activities to pursue other sources of funding to directly
support a local talent plan, including other governmental funds or
private resources.
(8) In addition to the eligible activities under subsection
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(7), approved local talent plans must include all of the following:
(a) A defined area, such as a neighborhood, district, or
corridor, in which a local talent plan will be implemented. Unless
identified as a supporting part of an approved talent plan, funds
allocated to approved plans must be used only within the plan's
defined area.
(b) A description of how local talent plan activities directly
support the objectives under subsection (2).
(c) A description of how funds appropriated under part 1 for
talent partnership will be used and any other funds or resources
that will be provided to ensure a plan meets all the objectives
under subsection (2).
(d) Identification of stakeholders that were engaged in the
development and are committed to the implementation of a local
talent plan.
(e) In addition to any state or federal resources,
identification of local or private match funds or resources that
will be committed.
(f) A proposed implementation timeline and demonstration of a
local talent plan's sustainability after any state or federal funds
are exhausted.
(g) Identifiable goals and measurable outcomes to be used to
monitor progress.
(9) To leverage existing programs and resources to support
talent concentration, the department may establish a state agency
workgroup to support the implementation of this section, including
from agencies that oversee any programs related to housing, home
repairs, blight elimination, business supports, community
development, transportation or mobility, arts, and outdoor
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recreation.
(10) The department may retain up to 3% of funds under this
section for implementation costs. In addition, the department may
retain up to an additional 2% of funds under this section to
reimburse other state agencies' activities that are in support of a
talent partnership project. The department may contract with at
least 1 consultant that is a nonprofit research organization or
public education institution based in this state with experience in
at least placemaking research to support this section.
(11) The department shall post online the guidelines for local
talent plans and identify available research or resources that may
be used to support the development of a local talent plan.
(12) In evaluating each application, subject to subsection
(13), the department shall use objective criteria, including, but
not limited to, the comprehensive nature of the local talent plan,
the local support identified, long-term sustainability, and the
likelihood to achieve the goals of the talent partnership program.
The department must consider, but is not limited to, all of the
following when selecting grant recipients:
(a) The extent to which a proposed local talent plan will
support the creation and ongoing success of locally owned
businesses.
(b) The extent to which a proposed local talent plan will
create dense, walkable, vibrant spaces.
(c) The extent to which zoning and code restrictions have
been, or will need to be, modified to support high-density
residential development.
(d) The extent to which the proposed local talent plan
supports facilities and walkways that house or present cultural
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arts programs, performances, and exhibitions.
(e) The extent to which the proposed local talent plan
provides mixed-income housing.
(f) The likelihood of successful implementation of a proposed
plan and its sustainability.
(13) The department shall award funds consistent with the
following:
(a) Grants must be awarded in a geographically diverse manner.
(b) Subject to the department's approval, the grant program
permits grant awards to continue implementation of existing talent
plans.
(14) The department shall publish approved local talent plans
and funding allocations under this section on the department's
website. The department may approve subsequent rounds of funding
for local talent plans if either additional funds become available
or there are remaining funds from the appropriation under part 1
for talent partnerships. Remaining funds must be awarded in
accordance with this section and, as necessary, prorated based on
availability of funds.
(15) The department shall ensure grant agreements with
applicants include regular progress reports and clawback provisions
to verify that all expenditures are made in accordance with an
approved local talent plan. Applicants receiving funds under this
section shall respond to all reasonable information requests from
the department related to the funds received under this section.
(16) The department shall provide an annual report by
September 30 to the standard report recipients on the
implementation of this program, including, but not limited to, all
of the following:
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(a) The utilization of funds allocated under this section,
including the amount and status of any funds allocated for approved
local talent plans and the amount retained by the department or
state agencies to support implementation of this section.
(b) As applicable, identification of activities undertaken by
agency workgroup participants to communicate the implementation of
local talent plans to each of their respective agencies and
identification of any existing programs or resources that may be
used to support the implementation of a local talent plan.
(17) The unexpended portion of grants under this section is
designated as a work project appropriation in accordance with
section 451a of the management and budget act, 1984 PA 431, MCL
18.1451a. Unencumbered or unallotted funds must not lapse at the
end of the fiscal year and must be available for grant awards or
other expenditures under this section until the project has been
completed. The following is in compliance with section 451a of the
management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to support transformational
placemaking investments and leverage intergovernmental coordination
to increase this state's population of young talent by creating
high-density, high-amenity, walkable, and vibrant-street-life
neighborhoods or districts and to create business ownership
opportunities for local residents.
(b) All grants must be distributed in accordance with this
section and the grant guidelines as part of the application process
and grant agreements between the department and grant recipients.
(c) The estimated cost of the work project is $5,000,000.00.
(d) The tentative completion date for the work project is
September 30, 2030.
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ARTICLE 10
DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of
licensing and regulatory affairs for the fiscal year ending
September 30, 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 1,796.0
GROSS APPROPRIATION $ 634,378,600
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 30,303,000
ADJUSTED GROSS APPROPRIATION $ 604,075,600
Federal revenues:
Total federal revenues 30,661,000
Special revenue funds:
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 295,025,800
State general fund/general purpose $ 278,388,800
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 20.0
Full-time equated classified positions 103.0
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Unclassified salaries--FTEs 20.0 $ 3,176,100
Administrative services--FTEs 69.0 8,212,400
Executive director programs--FTEs 23.0 3,496,200
Property management 6,887,200
Worker's compensation 42,200
Regulatory effectiveness office--FTEs 11.0 1,716,500
GROSS APPROPRIATION $ 23,530,600
Appropriated from:
Interdepartmental grant revenues:
IDG from MDIFS, accounting services 150,000
Federal revenues:
EPA, underground storage tanks 30,800
HHS-Medicaid, certification of health care
providers and suppliers 382,900
HHS-Medicare, certification of health care
providers and suppliers 636,700
Special revenue funds:
Aboveground storage tank fees 95,900
Accountancy enforcement fund 35,600
Boiler inspection fund 287,800
Builder enforcement fund 106,000
Construction code fund 828,800
Corporation fees 5,193,500
Elevator fees 318,900
Fire alarm fees 7,900
Fire safety standard and enforcement fund 2,300
Fire service fees 354,900
Fireworks safety fund 60,400
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Health professions regulatory fund 1,906,300
Health systems fees 216,500
Licensing and regulation fund 854,700
Liquor license revenue 292,400
Liquor purchase revolving fund 3,206,700
Marihuana regulation fund 1,739,800
Marihuana regulatory fund 660,800
Michigan unarmed combat fund 5,800
Mobile home code fund 263,200
Nurse professional fund 42,400
PMECSEMA fund 50,100
Property development fees 7,800
Public utility assessments 3,394,100
Real estate appraiser education fund 2,900
Real estate education fund 12,100
Real estate enforcement fund 12,400
Refined petroleum fund 155,300
Securities fees 1,528,500
Securities investor education and training fund 9,800
Security business fund 7,100
Survey and remonumentation fund 98,500
Tax tribunal fund 242,700
Utility consumer representation fund 55,200
State general fund/general purpose $ 273,100
Sec. 103. PUBLIC SERVICE COMMISSION
Full-time equated classified positions 222.0
Public service commission--FTEs 222.0 $ 42,926,700
GROSS APPROPRIATION $ 42,926,700
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Appropriated from:
Federal revenues:
DOT, gas pipeline safety 2,704,600
Special revenue funds:
Public utility assessments 39,722,100
Civil fines, excavation and blasting 500,000
State general fund/general purpose $ 0
Sec. 104. LIQUOR CONTROL COMMISSION
Full-time equated classified positions 148.0
Liquor licensing and enforcement--FTEs 148.0 $ 23,558,300
GROSS APPROPRIATION $ 23,558,300
Appropriated from:
Special revenue funds:
Direct shipper enforcement revolving fund 321,500
Liquor control enforcement and license
investigation revolving fund 175,000
Liquor license fee enhancement fund 76,400
Liquor license revenue 8,661,000
Liquor purchase revolving fund 14,324,400
State general fund/general purpose $ 0
Sec. 105. OCCUPATIONAL REGULATION
Full-time equated classified positions 928.0
Bureau of community and health systems--FTEs 162.0 $ 27,808,400
Bureau of construction codes--FTEs 197.0 33,626,700
Bureau of fire services--FTEs 89.0 14,870,700
Bureau of professional licensing--FTEs 198.0 41,270,800
Bureau of survey and certification--FTEs 173.0 30,047,600
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Corporations, securities, and commercial
licensing bureau--FTEs 109.0 17,799,000
GROSS APPROPRIATION $ 165,423,200
Appropriated from:
Interdepartmental grant revenues:
Federal revenues:
DHS, fire training systems 528,000
DOT, hazardous materials training and planning 20,000
EPA, underground storage tanks 830,400
HHS-Medicaid, certification of health care
providers and suppliers 9,297,600
HHS-Medicare, certification of health care
providers and suppliers 14,941,500
Federal funds 109,000
Special revenue funds:
Aboveground storage tank fees 352,200
Accountancy enforcement fund 1,227,900
Adult foster care facilities licenses fund 382,400
Boiler inspection fund 3,109,500
Builder enforcement fund 644,000
Construction code fund 14,009,000
Corporation fees 10,713,600
Division on deafness fund 73,400
Elevator fees 8,622,600
Fire alarm fees 137,900
Fire safety standard and enforcement fund 32,600
Fire service fees 3,218,300
Fireworks safety fund 1,269,800
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Health professions regulatory fund 27,021,100
Health systems fees 4,237,500
Licensing and regulation fund 11,819,800
Liquor purchase revolving fund 225,000
Marihuana regulatory fund 500,000
Mobile home code fund 2,179,600
Nurse aide registration fund 1,712,100
Nurse professional fund 1,968,400
PMECSEMA fund 1,611,100
Property development fees 192,600
Real estate appraiser education fund 6,200
Real estate education fund 607,500
Real estate enforcement fund 758,900
Refined petroleum fund 2,609,500
Securities fees 5,483,200
Securities investor education and training fund 504,200
Security business fund 184,700
Survey and remonumentation fund 916,200
State general fund/general purpose $ 33,365,900
Sec. 106. CANNABIS REGULATORY AGENCY
Full-time equated classified positions 182.0
Cannabis regulatory agency--FTEs 182.0 $ 31,609,900
GROSS APPROPRIATION $ 31,609,900
Appropriated from:
Special revenue funds:
Industrial hemp licensing and registration fund 296,500
Marihuana registry fund 1,770,300
Marihuana regulation fund 22,078,600
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Marihuana regulatory fund 7,464,500
State general fund/general purpose $ 0
Sec. 107. MICHIGAN OFFICE OF ADMINISTRATIVE
HEARINGS AND RULES
Full-time equated classified positions 172.0
Michigan office of administrative hearings and
rules--FTEs 172.0 $ 37,214,400
GROSS APPROPRIATION $ 37,214,400
Appropriated from:
Interdepartmental grant revenues:
IDG revenues, administrative hearings and rules 28,704,400
Special revenue funds:
Construction code fund 28,000
Corporation fees 1,013,500
Health professions regulatory fund 886,700
Health systems fees 165,700
Licensing and regulation fund 914,300
Liquor purchase revolving fund 494,400
Marihuana regulation fund 254,200
Marihuana regulatory fund 100,200
Public utility assessments 2,997,400
Securities fees 1,057,200
State general fund/general purpose $ 598,400
Sec. 108. COMMISSIONS
Full-time equated classified positions 41.0
Michigan indigent defense commission--FTEs 21.0 $ 3,424,100
Michigan unarmed combat commission 126,200
Michigan Tax Tribunal--FTEs 20.0 4,611,200
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GROSS APPROPRIATION $ 8,161,500
Appropriated from:
Special revenue funds:
Michigan unarmed combat fund 126,200
Tax tribunal fund 822,100
Corporation fees 3,789,100
State general fund/general purpose $ 3,424,100
Sec. 109. DEPARTMENT GRANTS
Firefighter training grants $ 2,300,000
Liquor law enforcement grants 9,900,000
Marihuana operation and oversight grants 3,000,000
Michigan indigent defense commission grants 236,016,800
Remonumentation grants 6,800,000
Utility consumer representation 3,100,000
GROSS APPROPRIATION $ 261,116,800
Appropriated from:
Special revenue funds:
Fireworks safety fund 2,300,000
Liquor license revenue 9,900,000
Local indigent defense reimbursement 300,000
Marihuana regulation fund 3,000,000
Survey and remonumentation fund 6,800,000
Utility consumer representation fund 3,100,000
State general fund/general purpose $ 235,716,800
Sec. 110. INFORMATION TECHNOLOGY
Information technology services and projects $ 33,282,100
GROSS APPROPRIATION $ 33,282,100
Appropriated from:
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IDG revenues, administrative hearings and rules 1,448,600
Federal revenues:
DOT, gas pipeline safety 152,600
HHS-Medicaid, certification of health care
providers and suppliers 385,100
HHS-Medicare, certification of health care
providers and suppliers 641,800
Special revenue funds:
Aboveground storage tank fees 34,500
Accountancy enforcement fund 15,600
Boiler inspection fund 387,500
Construction code fund 1,384,900
Corporation fees 5,518,700
Elevator fees 593,400
Fire safety standard and enforcement fund 4,500
Fire service fees 547,700
Fireworks safety fund 149,800
Health professions regulatory fund 4,330,200
Health systems fees 366,200
Industrial hemp licensing and registration fund 4,000
Licensing and regulation fund 805,400
Licensing license revenue 303,000
Liquor purchase revolving fund 5,311,200
Marihuana regulation fund 3,168,700
Marihuana regulatory fund 1,355,500
Mobile home code fund 253,000
Nurse aide registration fund 80,000
PMECSEMA fund 1,055,000
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Public utility assessments 2,165,400
Real estate appraiser education fund 1,000
Real estate education fund 4,800
Real estate enforcement fund 7,700
Refined petroleum fund 235,200
Securities fees 470,600
Securities investor education and training fund 6,100
Survey and remonumentation fund 75,400
Tax tribunal fund 208,500
State general fund/general purpose $ 1,810,500
Sec. 111. ONE-TIME APPROPRIATIONS
Bureau of fire services - smoke detectors $ 1,000,000
Cannabis regulatory agency social equity
program 1,000,000
Michigan saves 1,500,000
Urban search and rescue 1,000,000
Real estate continuing education 400,000
Prosecuting attorneys coordinating council 2,655,100
GROSS APPROPRIATION $ 7,555,100
Appropriated from:
Special revenue funds:
Corporation fees 2,500,000
Marihuana regulation fund 1,000,000
Real estate education fund 400,000
Prosecuting attorneys training fees 455,100
State general fund/general purpose $ 3,200,000

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 from state sources under part 1 is
$573,414,600.00 and state spending from state sources to be paid to
local units of government is $261,116,800.00. The itemized
statement below identifies appropriations from which spending to
local units of government will occur:
DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
Firefighter training grants $ 2,300,000
Liquor law enforcement grants 9,900,000
Marihuana operation and oversight grants 3,000,000
Michigan indigent defense commission grants 236,016,800
Remonumentation grants 6,800,000
Utility consumer representation 3,100,000
TOTAL $ 261,116,800
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
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Agency.
(f) "FOIA" means the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246.
(g) "FTE" means full-time equated.
(h) "HHS" means the United States Department of Health and
Human Services.
(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 of
representatives subcommittees on the department, the senate and
house fiscal agencies, the senate and house policy offices, and the
state budget office.
(m) "Subcommittees" means the senate and house appropriations
subcommittees with jurisdiction over the budget for the department.
Sec. 204. 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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the 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. The department
or agency shall also 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.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 206. The department shall not take disciplinary action
against an employee of the department for communicating with a
member of the legislature or legislative staff, unless the
communication is prohibited by law and the department is exercising
its authority as provided by law.
Sec. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, each department and agency
receiving appropriations in part 1 shall prepare a report on out-
of-state travel expenses not later than January 1. The report must
list all travel by classified and unclassified employees outside
this state in the previous fiscal year that was funded in whole or
in part with funds appropriated in the department's or agency's
budget. The department or agency shall submit the report to the
standard report recipients and to the house of representatives and
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senate appropriations committees. 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, private revenues, and other revenues.
Sec. 208. Not later than December 15, the state budget office
shall prepare and submit a report that provides for estimates of
the total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall submit the report to the standard report
recipients and the chairpersons of the senate and house of
representatives appropriations committees.
Sec. 209. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $1,000,000.00 for
federal contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this part under section 393(2) of the management and budget act,
1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $25,000,000.00 for state
restricted contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this part under section 393(2) of the management and budget act,
1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
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appropriated an amount not to exceed $200,000.00 for local
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this part
under section 393(2) of the management and budget act, 1984 PA 431,
MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 for private
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this part
under section 393(2) of the management and budget act, 1984 PA 431,
MCL 18.1393.
Sec. 210. A department or agency shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for each
department or agency:
(a) Fiscal-year-to-date expenditures by category.
(b) Fiscal-year-to-date expenditures by appropriation unit.
(c) Fiscal-year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
Sec. 211. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
and house appropriations committees.
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Sec. 212. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations under part 1
shall take all reasonable steps to ensure geographically
disadvantaged business enterprises compete for and perform
contracts to provide services or supplies, or both. Each director
shall strongly encourage firms with which the department or agency
contracts to subcontract with certified geographically
disadvantaged business enterprises for services, supplies, or both.
As used in this section, "geographically disadvantaged business
enterprises" means that term as defined in Executive Directive No.
2023-1.
Sec. 213. On a quarterly basis, the department shall report on
the number of full-time equated positions in pay status by civil
service classification, including a comparison by line item of the
number of full-time equated positions authorized from funds
appropriated in part 1 to the actual number of full-time equated
positions employed by the department at the end of the reporting
period. The report must be submitted to the standard report
recipients and the senate and house appropriations committees.
Sec. 214. 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. 215. (1) The department shall maximize utilization of its
in-person state workforce. The department shall prioritize
occupancy utilization of office space for each division within the
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department. Employees with job responsibilities that require the
employees to serve in their capacities outside of an office shall
be monitored each pay period to ensure all work hours reported on
the timesheet were actually worked.
(2) The department shall comply with requirements set by the
office of the state employer on in-person work and utilization and
occupancy rates of state buildings to ensure in-person work is
optimized and occupancy rates are 80% or higher, subject to market
conditions.
(3) The department shall adhere to the rules and regulations
of civil service, which state that the standard biweekly work
period for a full-time employee in the classified service is the
equivalent of 80 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed-upon business hours.
Sec. 216. The department shall receive and retain copies of
all reports funded from appropriations in part 1. The department
shall follow federal and state law and guidelines for short-term
and long-term retention of records. The department may
electronically retain copies of reports unless otherwise required
by federal or state guidelines.
Sec. 217. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include reference to the public act
that necessitates the change. The department shall submit the
report to the standard report recipients, the senate and house
appropriations committees, and the joint committee on
administrative rules.
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Sec. 218. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 219. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of a local health officer.
Sec. 220. 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. 221. Not later than 6 months after a state budget office
issues work project letters, the department, or agency shall submit
an annual report that summarizes all work project accounts. The
report 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. 222. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2026 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.
Sec. 223. 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. 224. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
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Sec. 225. Not later than November 15, the department shall
disclose on a publicly accessible website 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. The report
must be submitted to the standard report recipients and to the
chairpersons of the senate and house appropriations committees.
Sec. 227. (1) Not later than 30 days after enactment of this
act, the house of representatives and senate shall provide to the
state budget office a jointly agreed-upon list of legislatively
directed spending items funded in part 1 as defined in section 364
of the management and budget act, 1984 PA 431, MCL 18.364. 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 18.364 and
18.364a.
(2) In accordance with section 364(4) of the management and
budget act, 1984 PA 431, MCL 18.364, the department or agency
administering the grant shall post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and shall post an updated report not later than June 15 of
the current fiscal year and again not later than September 15 of
the current fiscal year. The department shall include in the report
the most comprehensive information the department has available at
the time of posting for grants awarded.
Sec. 228. The state budget director shall take steps to ensure
that all state fiscal recovery funds allocated to this state under
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the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026
and any subsequent financial close out period.
Sec. 229. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of the American rescue plan act of 2021, Public Law 117-
2, must be followed for state fiscal recovery funds reallocated and
reappropriated under subsection (1).
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(3) The state budget director shall notify the senate and the
house appropriations committees not later than 1 business day after
making any reallocations under subsection (1). The notification
must include the authorized program under which funds were
originally appropriated, the amount of the reallocation, the
program, or programs, or purpose, and the department to which the
funds are being reallocated under subsection (1), and the amount
reallocated to each program or purpose.
Sec. 230. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
must do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department in the previous fiscal year.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose or
purposes.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the house
and senate appropriations committees, the house and senate fiscal
agencies, and the state budget office that details all of the
following:
(i) The type of funding received.
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(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
specified purpose or purposes.
(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) The type or types of funding anticipated.
(ii) The amount or amounts of funding anticipated.
(iii) The purpose or purposes of the funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
similar time frame as would be reported under subsection (1),
subsection (1) does not apply.
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
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
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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
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,
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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
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.
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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 fund.
(b) The renewal cycle and amount of each fee charged.
(c) Number of initial applications.
(d) Number of initial applications denied.
(e) Number of license renewals.
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(f) Average amount of time to approve or deny completed
applications.
(g) Number of examinations proctored for initial applications.
(h) A description of the types of complaints received.
(i) A description of the process used to resolve complaints.
(j) Number of complaints received.
(k) Number of complaints investigated.
(l) Number of complaints closed with no action.
(m) Number of complaints resulting in administrative actions
or citations.
(n) Average amount of time to complete investigations.
(o) Number of enforcement actions, including license
revocations, suspensions, and fines.
(p) A description of the types of enforcement actions taken
against licensees.
(q) Number of administrative hearing adjudications.
(3) An agency listed in subsection (1)(a) or (b) shall report
by regulated activity and an agency listed in subsection (1)(c) or
(d) shall report by regulatory product or regulated activity, or
both.
(4) As used in this section:
(a) "Regulated activity" means the particular activities,
entities, facilities, and industries regulated by the agencies
specified in subsection (1).
(b) "Regulatory product" means each occupation, profession,
trade, or program, which includes licensure, certification,
registration, inspection, review, permitting, approval, or any
other regulatory service provided by the agencies specified in
subsection (1) for each regulated activity.
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Sec. 260. Not later than March 30, the regulatory
effectiveness office shall submit a report to the standard report
recipients that includes the following information:
(a) Legislative recommendations for actions to take to improve
the effectiveness of licensing and regulation, including ideas that
make the licensing environment accessible to more consumers while
maintaining consumer protection.
(b) A plan from the department detailing actions needed to
improve licensing and regulatory effectiveness for consumers and
departmental actions, as well as detailed actions they have already
taken.
(c) The number of new licenses issued by category and number
of those applied in those categories.
(d) The average turnaround time, in days, for licenses by
category.
(e) A plan from the department detailing actions needed to
improve internal compliance, risk management, and departmental
actions, as well as detailed actions they have already taken.
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
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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
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 upon 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.
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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
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
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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.

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
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,
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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
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.
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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
$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
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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
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
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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.
(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
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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.
Sec. 507. (1) From the funds appropriated in part 1 for bureau
of construction codes, not less than $900,000.00 must be allocated
for additional inspections and enforcement activities related to
the carnival-amusement safety act of 1966, 1966 PA 225, MCL 408.651
to 408.670, and the ski area safety act of 1962, 1962 PA 199, MCL
408.321 to 408.344.
(2) Not later than March 30, the department shall submit a
report to the standard report recipients that details the
allocation of funds under this section. The report must include an
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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
investigations of nursing homes, hospitals, and acute continuing
care providers to the standard report recipients and the
chairpersons of the senate and house subcommittees with
jurisdiction over the budget for the department of health and human
services not later than March 30.

CANNABIS REGULATORY AGENCY
Sec. 601. Not later than January 31, the department shall
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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
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
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act, by license category, if applicable.
(j) The total amount collected from application fees or
established regulatory assessment and the specific fund the amount
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:
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(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
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.
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(ii) Description of the allegation.
(iii) Complaint type.
(iv) Process used to resolve the allegation.
(v) Name of the law enforcement agency the allegation was
referred to, including the date of the referral.
(vi) Current license status on the day of the report 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
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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 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.

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
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commission shall place particular emphasis on the costs that may be
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 is 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.

GRANTS
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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
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
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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,
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
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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.

ONE-TIME APPROPRIATIONS
Sec. 1001. (1) From the funds appropriated in part 1 for
bureau of fire services – smoke detectors, the bureau of fire
services shall purchase and distribute sealed-battery smoke
detectors to the residents of this state. The bureau of fire
services may purchase smoke detectors with additional capabilities
for individuals with physical or psychological conditions that
require an accommodative technology.
(2) Not later than September 30, the department shall submit a
report to the standard report recipients that contains all of the
following information:
(a) The number of smoke detectors that the bureau of fire
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services purchased.
(b) The per-unit price that the bureau paid for the smoke
detectors.
(c) An itemized list of all cities, villages, or townships
that received smoke detectors and the number of smoke detectors
distributed to each city, village, or township.
Sec. 1002. (1) From the funds appropriated in part 1 for
Michigan Saves, the Michigan public service commission may award a
$500,000.00 grant to Michigan Saves to conduct a grant program for
clean energy improvement and on-site wastewater system replacement
or repair. Michigan Saves should grant funds to individuals within
the state who have a history of having difficulty obtaining
traditional capital or households with a combined income not
exceeding 300% of the federal poverty level and where businesses
indicate a state of financial need or vulnerability. The amount
granted to a single individual or business cannot exceed
$25,000.00.
(2) From the funds appropriated in part 1 for Michigan Saves,
the Michigan public service commission may award a $1,000,000.00
grant to a nonprofit green bank with experience in leveraging
energy-efficiency and renewable energy improvements, for the
purpose of making such loans more affordable for Michigan families,
businesses, and public entities. Grant funds may be used to support
a loan loss reserve fund or other comparable financial instrument
to further leverage private investment in clean energy
improvements.
Sec. 1003. From the funds appropriated in part 1 for real
estate continuing education, the bureau of professional licensing
must expend the funds for grants to the Michigan Realtors
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Association to approve and track real estate continuing education
in this state.
Sec. 1005. Funds appropriated in part 1 for urban search and
rescue must be distributed by the bureau of fire services to
support activities by the Michigan Task Force 1 in response to
emergencies and other situations that require technical rescue
expertise and equipment.
Sec. 1006. From the funds appropriated in part 1 for the
cannabis regulatory agency social equity program, the cannabis
regulatory agency shall further develop the program established
under section 8(1)(j) of the Michigan Regulation and Taxation of
Marihuana Act, 2018 IL 1, MCL 333.27958, with all of the following
goals:
(a) To encourage and increase participation in the social
equity program, with particular focus to promote and encourage
participation in the marihuana industry by people from communities
that have been disproportionately impacted by marihuana prohibition
and enforcement.
(b) To establish a minimum number of licensees that are
participating in the social equity program.
(c) To consider the area median income of a community in
designating communities that have been disproportionately impacted
by marihuana prohibition and enforcement.

ARTICLE 11
DEPARTMENT OF LIFELONG EDUCATION, ADVANCEMENT, AND POTENTIAL
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the department of lifelong
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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 342.0
GROSS APPROPRIATION $ 657,672,900
Interdepartmental grant revenues: 0
Total interdepartmental grants and
intradepartmental transfers 0
ADJUSTED GROSS APPROPRIATION $ 657,672,900
Federal revenues:
Total federal revenues: 418,323,900
Total private revenues 1,000,000
Total other state restricted revenues 1,897,300
State general fund/general purpose $ 236,451,700
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 $ 1,029,500
Executive direction and operations--FTEs 37.0 7,458,100
Property management 165,500
Worker's compensation 3,700
GROSS APPROPRIATION $ 8,656,800
Appropriated from:
Federal revenues:
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Federal funds 1,174,400
Total federal revenues 1,174,400
State general fund/general purpose $ 7,482,400
Sec. 103. INFORMATION TECHNOLOGY
Information technology services and projects $ 1,021,700
GROSS APPROPRIATION $ 1,021,700
Appropriated from:
Federal revenues:
Federal funds 227,600
Total federal revenues 227,600
State general fund/general purpose $ 794,100
Sec. 104. OFFICE OF EARLY CHILDHOOD EDUCATION
Full-time equated classified positions 233.0
Child care licensing and regulation--FTEs 167.0 $ 30,457,600
Child development and care contracted services 22,900,000
Child development and care external support 11,074,100
Child development and care public assistance 503,312,000
Head start collaboration office--FTE 1.0 427,700
Office of great start operations--FTEs 65.0 17,984,700
Tri-share child care program 3,400,000
GROSS APPROPRIATION $ 589,556,100
Appropriated from:
Federal revenues:
Federal funds 325,831,100
Social security act, temporary assistance for
needy families 89,755,300
Total federal revenues 415,586,400
Special revenue funds:
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Private foundations 1,000,000
Certification fees 64,600
Child care home and center licenses fund 501,700
State general fund/general purpose $ 172,403,400
Sec. 105. OFFICE OF EDUCATION PARTNERSHIPS
Full-time equated classified positions 21.0
Before and after school administration--FTEs 2.0 $ 372,300
Camp licensing unit--FTEs 7.0 719,500
Family and community engagement--FTEs 12.0 2,410,000
GROSS APPROPRIATION $ 3,501,800
Appropriated from:
Federal revenues:
Total federal revenues 1,335,500
Total other state restricted revenues 44,200
State general fund/general purpose $ 2,122,100
Sec. 106. OFFICE OF HIGHER EDUCATION
Full-time equated classified positions 51.0
Student financial assistance programs--FTEs 51.0 9,936,500
GROSS APPROPRIATION $ 9,936,500
Appropriated from:
Special revenue funds:
Michigan merit award trust fund 1,286,800
State general fund/general purpose $ 8,649,700
Sec. 107. ONE-TIME APPROPRIATIONS
Child development and care public assistance $ 40,000,000
Childcare funding 1,000,000
Michigan college success 2,000,000
Reenrollment services 2,000,000
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GROSS APPROPRIATION $ 45,000,000
Appropriated from:
State general fund/general purpose $ 45,000,000

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2025-2026
GENERAL SECTIONS
Sec. 201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2027, total state spending under part 1 from state sources is
$238,349,000.00 and total state spending under part 1 from state
sources to be paid to local units of government is $0.
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 subcommittee on the department, the senate and house
fiscal agencies, the senate and house policy offices, and the state
budget office.
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Sec. 204. 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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the 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. The department
or agency shall also transmit all required reports for the current
fiscal year to the standard recipients and any other required
recipients by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 206. The department shall not take disciplinary action
against an employee of the department for communicating with a
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member of the legislature or legislative staff, unless the
communication is prohibited by law and the department is exercising
its authority as provided by law.
Sec. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, each department and agency
receiving appropriations in part 1 shall prepare a report on out-
of-state travel expenses not later than January 1. The report must
list all travel by classified and unclassified employees outside
this state in the previous fiscal year that was funded in whole or
in part with funds appropriated in the department's or agency's
budget. The department or agency shall submit the report to the
standard report recipients and to the house and senate
appropriations committees. The report must include all of the
following information:
(a) The dates of each travel occurrence.
(b) The total transportation and related expenses of each
travel occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, and other revenues.
Sec. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides for estimates of
the total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall submit the report to the standard report
recipients and the chairpersons of the senate and house
appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1,
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there is appropriated an amount not to exceed $10,000,000.00 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 $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 $350,000.00 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 $2,000,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 211. A department or agency shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for each
department or agency:
(a) Fiscal year-to-date expenditures by category.
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(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.
Sec. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
and house appropriations committees.
Sec. 214. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of the local health officer.
Sec. 215. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations in part 1 shall
take all reasonable steps to ensure geographically disadvantaged
business enterprises compete for and perform contracts to provide
services or supplies, or both. Each director shall strongly
encourage firms with which the department or agency contracts to
subcontract with certified geographically disadvantaged business
enterprises for services, supplies, or both.
Sec. 216. On a quarterly basis, a department or agency
receiving appropriations in part 1 shall report on the number of
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FTEs in pay status by type of staff and civil service
classification, including a comparison by line item of the number
of FTEs authorized from funds appropriated in part 1 to the actual
number of FTEs employed by the department or agency at the end of
the reporting period. The report must be submitted to the senate
and house appropriations committees and to the standard report
recipients.
Sec. 217. 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. 218. Not later than 6 months after the state budget
office issues work project letters, a department, an agency, and
the legislature shall submit an annual report that summarizes all
work project accounts. The report 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. 219. 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
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and long-term retention of records. The department may
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 220. 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 appropriations committees, and to the joint committee on
administrative rules.
Sec. 222. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 224. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2027 are estimated at $4,108,800.00. From this amount, total
department appropriations for pension-related legacy costs are
estimated at $4,108,800.00. Total department appropriations for
retiree health care legacy costs are estimated at $0.
Sec. 226. (1) The department shall maximize utilization of its
in-person state workforce. The department shall prioritize
occupancy utilization of office space 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 period to ensure all work hours reported on
timesheets 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
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and occupancy rates of state buildings to ensure in-person work is
optimized and occupancy rates are 80 percent or higher, subject to
market conditions.
(3) The department shall adhere to civil service rules and
regulations that state the standard biweekly work period for a
full-time employee in the classified service of this state is the
equivalent of 80 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed-upon business hours.
Sec. 227. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
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(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 230. 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. 231. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
Sec. 232. Not later than November 15, the department shall
disclose on a publicly accessible website private and other third-
party funds received by the department in the previous fiscal year.
The report must include the amount and source of funding received,
the purpose for which funding was expended, and the amount of any
remaining funds. The report must be submitted to the standard
report recipients and to the chairpersons of the senate and house
appropriations committees.
Sec. 233. (1) Within 30 days after enactment of this act, the
house and senate shall provide to the state budget office a jointly
agreed upon list of legislatively directed spending items funded in
part 1. This 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. As used in this subsection,
"legislatively directed spending items" means that term as defined
in section 364 of the management and budget act, 1984 PA 431, MCL
18.1364.
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(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 post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and shall post an updated report not later than June 15 of
the current fiscal year and again not later than September 15 of
the current fiscal year. The department shall include in the report
the most comprehensive information the department has available at
the time of posting for grants awarded.
Sec. 234. The state budget director shall take steps to ensure
that all state fiscal recovery funds allocated to this state under
the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026
and any subsequent financial close out period.
Sec. 235. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
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Any funds reallocated are unappropriated and immediately
reappropriated for the following purpose:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of Public Law 117-2 must be followed for state fiscal
recovery funds reallocated and reappropriated under subsection (1).
(3) The state budget director shall notify the senate and
house appropriations committees not later than 10 business days
after making any reallocations under subsection (1). The
notification must include the authorized program under which funds
were originally appropriated, the amount of the reallocation, the
program, or programs, or purpose, and the department to which the
funds are being reallocated under subsection (1), and the amount
reallocated to each program or purpose.

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.
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(c) Partner with intermediate school districts to assist in
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.
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(e) Provide access to higher education institutional data
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.

OFFICE OF EARLY CHILDHOOD EDUCATION
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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:
(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.
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(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.
(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-
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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,
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,
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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,
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
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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 state 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
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 enrollment rather than
based on attendance. This shall be done in a manner determined by
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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. 1025. (1) Private revenues received by the department are
appropriated upon receipt and are available for expenditure by the
department as permitted under state and federal law.
(2) Not later than 10 days after the receipt of a private
revenues appropriated in subsection (1), the department shall
notify the standard report recipients of the receipt of the funds,
including source, purpose, and amount.
(3) The amount appropriated under subsection (1) must not
exceed $3,000,000.00.
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.
(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
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care provider providing care for a family described in this
subsection must be licensed in Michigan.
(6) The department shall award funds to ensure employer
recruitment by regional facilitator hubs and statewide program
administration. In addition, the department may provide quarterly
advances for timely provider payments. Upon conclusion of the
program or upon termination of any grant agreement, any unspent
award funds held by any program partner shall either be spent down
toward the state's share of child care payments or returned to the
state at the discretion of the department.
(7) The department shall innovate program and administration
options to attract Michigan employer program participation.

ONE-TIME APPROPRIATIONS
Sec. 1101. From the funds appropriated in part 1 for
reenrollment services, the department shall deliver reenrollment
services for Michigan residents with some college and no degree for
the purpose of reengaging learners to increase the number of
Michigan adults completing postsecondary degrees or credentials in
this state. If necessary, the department may contract with private
organizations with prior reenrollment work for an amount up to
$2,000,000.00 to accomplish the purpose of this section.
Sec. 1102. 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.
Sec. 1103. (1) The child care payment fund is created as a
restricted fund in the department of treasury to be used solely for
the administration of the child care payment program.
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(2) The state treasurer may receive money or other assets from
any source for deposit into the child care payment fund, including,
but not limited to, federal funds, gifts, bequests, and private
donations.
(3) Money deposited into the child care payment fund must be
available for distribution by not later than January 1 of the
calendar year following the distribution. The fund must not be used
to meet state match requirements for federal aid or block grants.
(4) Money available in the child care payment fund at the
close of the fiscal year remains in the fund and does not lapse.
(5) Money available in the fund must not be expended without a
specific appropriation. For the FY 2026-2027 fiscal year there is
appropriated $1,000,000.00 general fund/general purpose dollars.
(6) The department shall administer the fund for auditing
purposes and expend money from the fund for the purpose of
administering this section.
(7) The department shall distribute money in the fund to
qualified providers based on the number of children under the
qualified providers' care. Providers of children who are less than
36 months of age shall receive double the amount of money
distributed under the fund. The department shall evaluate the
number of children served under this program on October 1 of each
year.

ARTICLE 12
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
PART 1
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
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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 9.0
Full-time equated classified positions 967.0
GROSS APPROPRIATION $ 263,938,000
Total interdepartmental grants and
intradepartmental transfers 101,800
ADJUSTED GROSS APPROPRIATION $ 263,836,200
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 $ 96,350,900
Sec. 102. MILITARY
Full-time equated unclassified positions 9.0
Full-time equated classified positions 422.5
Unclassified salaries--FTEs 9.0 $ 1,934,400
Headquarters and armories--FTEs 103.0 24,312,800
Michigan youth challeNGe academy--FTEs 68.0 10,974,700
Military family relief fund 150,000
Military retirement 2,585,600
Military training sites and support facilities-
-FTEs 240.0 47,066,500
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National guard operations 600,500
Michigan national guard member benefit fund--
FTEs 11.5 11,278,600
Starbase grant 2,322,000
GROSS APPROPRIATION $ 101,225,100
Appropriated from:
Interdepartmental grant revenues:
IDG - state police 101,800
Federal revenues:
DOD - DOA - NGB 66,608,700
Federal counternarcotics revenues 100,000
Special revenue funds:
Private donations 90,000
Billeting fund 1,378,500
Military family relief fund 150,000
Morale, welfare, and recreation fund 100,000
Rental fund 187,700
Test project fund 100,000
State general fund/general purpose $ 32,408,400
Sec. 103. MICHIGAN VETERANS AFFAIRS AGENCY
Full-time equated classified positions 61.0
County veteran service grants--FTEs 2.0 $ 4,255,500
Michigan veterans affairs agency
administration--FTEs 49.0 8,491,000
Veterans trust fund administration--FTEs 8.0 1,197,000
Veterans trust fund grants 2,500,000
Veterans service grants--FTEs 2.0 4,255,500
GROSS APPROPRIATION $ 20,699,000
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Appropriated from:
USDVA - VHA 758,800
Special revenue funds:
Private donations 10,000
Michigan veterans trust fund 3,697,000
Veterans license plate fund 50,000
State general fund/general purpose $ 16,183,200
Sec. 104. MICHIGAN VETERANS' FACILITY AUTHORITY
Full-time equated classified positions 483.5
Chesterfield Township home for veterans--FTEs 110.0 $ 34,948,800
D.J. Jacobetti home for veterans--FTEs 179.0 26,759,200
Grand Rapids home for veterans--FTEs 176.0 40,244,700
Information technology services and projects 1,749,600
Michigan veteran homes administration--FTEs 18.0 4,972,000
Veterans cemetery--FTEs 0.5 134,500
GROSS APPROPRIATION $ 108,808,800
Appropriated from:
USDVA - VHA 46,653,700
HHS – HCFA, Medicare, hospital insurance 1,345,400
HHS – HCFA title XIX, Medicaid 8,781,300
Special revenue funds:
Income and assessments 6,309,900
State general fund/general purpose $ 45,718,500
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' homes 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 $ 705,100
GROSS APPROPRIATION $ 705,100
Appropriated from:
Federal revenues:
DOD - DOA - NGB 164,300
State general fund/general purpose $ 540,800

PART 1A
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2025-2026
Sec. 150. There is appropriated for the department of military
and veterans affairs to supplement appropriations for the fiscal
year ending September 30, 2026, from the following funds:
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
APPROPRIATION SUMMARY
Full-time equated unclassified positions 0.0
Full-time equated classified positions 0.0
GROSS APPROPRIATION $ 152,000,000
Total interdepartmental grants and
intradepartmental transfers 0
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ADJUSTED GROSS APPROPRIATION $ 152,000,000
Federal revenues:
Total federal revenues 0
Special revenue funds:
Total local revenues 0
Total private revenues 0
Total other state restricted revenues 152,000,000
State general fund/general purpose $ 0
Sec. 151. ONE-TIME APPROPRIATIONS
Selfridge Air National Guard base $ 152,000,000
GROSS APPROPRIATION $ 152,000,000
Appropriated from:
Special revenue funds:
State restricted revenue 152,000,000
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
$109,324,000.00 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
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County veteran service grants $ 4,041,500
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 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 subcommittees on the department budget, 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) "Veterans' facility" means that term as defined in section
2 of the Michigan veterans' facility authority act, 2016 PA 560,
MCL 36.102.
(o) "VSO" means veterans service organization.
(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. 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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the 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. The department
or agency shall also transmit all required reports for the current
fiscal year to the standard report recipients and any other
required recipients by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
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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. 206. The department shall not take disciplinary action
against an employee of the department or a state agency for
communicating 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. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, the department and each
agency receiving appropriations part 1 shall prepare a report on
out-of-state travel expenses not later than January 1. The report
must list all travel by classified and unclassified employees
outside this state in the previous fiscal year that was funded in
whole or in part with funds appropriated in the department's or
agency's budget. The department or agency shall submit the report
to the standard report recipients and to the senate and house
appropriations committees. The report must include all of the
following information:
(a) The dates of each travel occurrence.
(b) The total transportation and related expenses of each
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travel occurrence and the proportion 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.
Sec. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall transmit the report to the standard report
recipients and to the chairpersons of the senate and house
appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $8,600,000.00 for
federal contingency authorization. These funds 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
restricted contingency authorization. These funds 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. These funds are not available for
expenditure until they have been transferred to another line item
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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. These funds are not available for
expenditure until they have been transferred to another line item
in part 1 under section 393(2) of the management and budget act,
1984 PA 431, MCL 18.1393.
Sec. 211. (1) The department or agency shall cooperate with
the department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for the
department or each 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) The department shall cooperate with the department of
technology, management, and budget to update the searchable website
on a quarterly basis.
Sec. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
and house appropriations committees.
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Sec. 213. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of a local health officer.
Sec. 214. 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, inter-transfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 215. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations in part 1 shall
take all reasonable steps to ensure geographically disadvantaged
business enterprises compete for and perform contracts to provide
services or supplies, or both. The director shall strongly
encourage firms with which the department contracts to subcontract
with certified geographically disadvantaged business enterprises
for services, supplies, or both. As used in this section,
"geographically disadvantaged business enterprises" means that term
as defined in Executive Directive No. 2023-1.
Sec. 216. On a quarterly basis, the department or agency
receiving appropriations in part 1 shall report on the number of
full-time equated positions in pay status by civil service
classification, including a comparison by line item of the number
of full-time equated positions authorized from funds appropriated
in part 1 to the actual number of full-time equated positions
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employed by the department at the end of the reporting period. The
report must be submitted to the standard report recipients and to
the senate and house appropriations committees.
Sec. 217. The state budget director shall take steps to ensure
that all state fiscal recovery funds allocated to this state under
the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026
and any subsequent financial close out period.
Sec. 218. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
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safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of the American rescue plan act of 2021, Public Law 117-
2, must be followed for state fiscal recovery funds reallocated and
reappropriated under subsection (1).
(3) The state budget director shall notify the senate and the
house appropriations committees not later than 1 business day after
making any reallocations under subsection (1). The notification
must include the authorized program under which funds were
originally appropriated, the amount of the reallocation, the
program, or programs, or purpose, and the department to which the
funds are being reallocated under subsection (1), and the amount
reallocated to each program or purpose.
Sec. 219. 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 may
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 220. 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 appropriations committees, and to the joint committee on
administrative rules.
Sec. 222. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
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work project funds available for the same purposes are exhausted.
Sec. 223. 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. 224. 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. 225. 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. 226. (1) Not later than 30 days after enactment of this
act, the house of representatives and senate shall provide to the
state budget office a jointly agreed-upon list of legislatively
directed spending items funded in part 1 as defined in section 364
of the management and budget act, 1984 PA 431, MCL 18.364. 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 18.364 and
18.364a.
(2) In accordance with section 364(4) of the management and
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budget act, 1984 PA 431, MCL 18.1364, the department or agency
administering the grant shall post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and shall post an updated report not later than June 15 of
the current fiscal year and again not later than September 15 of
the current fiscal year. The department shall include in the report
the most comprehensive information the department has available at
the time of posting for grants awarded.
Sec. 227. (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) If a private donation received is $10,000.00 or more, the
department must submit a report within 14 calendar days after
receiving that donation that provides the amount of the donation
and the purpose for which the money will be expended, if known.
Sec. 229. By 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. 233. (1) The department shall maximize utilization of the
department's in-person state workforce. The department shall
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prioritize occupancy utilization of office space 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 period to ensure all work hours
reported on the timesheet were actually worked.
(2) The department shall comply with requirements set by the
office of the state employer on in-person work and utilization and
occupancy rates of state buildings to ensure in-person work is
optimized and occupancy rates are 80% or higher, subject to market
conditions.
(3) The department shall adhere to the rules and regulations
of civil service, which state that the standard biweekly work
period for a full-time employee in the classified service of this
state is the equivalent of 80 hours of work. The department shall
establish policies and processes to ensure all employees are
working their jobs during agreed-upon business hours.
Sec. 235. Not later than 6 months after the state budget
office issues work project letters, the department shall submit an
annual report that summarizes all work project accounts. The report
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. 236. Total authorized appropriations from all sources
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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. 237. Not later than November 15, the department shall
disclose on a publicly accessible website 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. The department
shall submit the report to the standard report recipients and to
the chairpersons of the senate and house appropriations committees.
Sec. 239. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
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department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 240. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
Sec. 241. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
must do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department in the previous fiscal year.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose or
purposes.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the house
and senate appropriations committees, the house and senate fiscal
agencies, and the state budget office that details all of the
following:
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(i) The type of funding received.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
specified purpose or purposes.
(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) The type or types of funding anticipated.
(ii) The amount or amounts of funding anticipated.
(iii) The purpose or purposes of the funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
similar time frame as would be reported under subsection (1),
subsection (1) does not apply.

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
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
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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 evaluate
armories and submit an annual report 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
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
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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
provide a report on the revenues, expenditures, and fund balance of
the military family relief fund. The department shall itemize
expenditures in the report by purpose, including, but not limited
to, for advertising and assistance grants. The report must also
include information 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
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into active duty on the availability of assistance through the
military family relief fund.
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
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
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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 an
annual report of operations and expenditures regarding the fund for
the previous fiscal year.
Sec. 307. (1) From the funds appropriated in part 1 for
Michigan National Guard member benefit program, 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
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
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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
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.
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(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
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
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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
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
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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
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 the
Michigan National Guard member benefit fund, the department shall
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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 provide a
report on the Tricare premium reimbursement program. The report
must include, 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 the
Michigan National Guard member benefit fund, the department shall
create and administer a child care assistance program as provided
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 provide a
report on the Michigan National Guard child care assistance
program. The report must include, 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.
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(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 restricted Michigan
National Guard member benefit fund. All funds in the restricted
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 child care assistance program.
(2) As used in this section, "Michigan National Guard member
benefit fund" means the Michigan National Guard member benefit fund
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, as provided under the following
program authorities:
(a) Sections 37, 38, and 39 of article IX of the state
constitution of 1963.
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(b) 1946 (1st Ex Sess) PA 9, MCL 35.602 to 35.610.
(c) R 35.1 to R 35.7 of the Michigan Administrative Code.
(d) R 35.621 to R 35.623 of the Michigan Administrative Code.
(2) Not later than January 15 , the MVAA shall provide a
detailed report of the Michigan veterans' trust fund that includes,
for the previous fiscal year, the following information:
(a) Details concerning 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) A detailed breakdown of the Michigan veterans' trust fund
expenditures for the emergency grant program, including the amount
distributed to each county for operating costs, administrative
costs and emergency grants.
(d) Expenditures for state operating costs and administrative
costs.
(e) The number of approved emergency grant applications, by
category of assistance, and the number of denied applications, by
reason of denial.
(f) 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.
(g) The overall financial status of the Michigan veterans'
trust fund, including revenues and year-end balance.
(h) Expenditures for program partnerships, delineated by
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, as provided under
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Executive Reorganization Order No. 2013-2, MCL 32.92.
(b) Develop and operate an outreach program that communicates
benefit eligibility information to at least 50% of Michigan's
population of veterans, as assessed by annual census estimates,
with a goal of reaching 100% and enabling 100% to access benefit
information online.
(c) Communicate veteran benefit information pertaining to the
Michigan military family relief fund, Michigan veterans' trust
fund, and USDVA health, financial, and memorial benefits to which
veterans are entitled.
(d) Fulfill requests for military discharge certificates (DD-
214) upon request.
(e) Not later than March 1, submit a report providing, to the
extent known, data on the estimated number of homeless veterans, by
county, in this state.
(f) Not later than March 1, submit a report on 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
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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
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.
(i) Not later than March 1, submit a report on the activities
and outcomes of its outreach services, including the percentage of
Michigan veterans contacted through its outreach programs.
Sec. 410. (1) The MVAA shall 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. The MVAA shall report
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annually on the number of benefit claims, by type, submitted to the
USDVA by MVAA and maintain the staffing and resources necessary to
process a minimum of 500 claims per year.
(2) The MVAA shall develop and implement a process to ensure
that all county veterans counselors receive the training and
accreditation necessary to provide quality services to veterans,
and not later than March 1, the MVAA shall provide a report for the
previous fiscal year that includes information on the number and
percentage of county veterans counselors trained by the MVAA, the
number and percentage who received funding from the MVAA to attend
training, and a description of the training provided, with an
overall goal of 100% of county veterans trained.
(3) 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) From the funds appropriated in part 1 for
veterans service grants, 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 all of 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
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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
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.
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(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
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.
(2) 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.
(3) 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
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advocacy hours, number of claims for benefits submitted by type of
claim, and other information deemed appropriate by the MVAA.
(4) From the funds appropriated in part 1 for veterans service
grants, $214,000.00 must be allocated to cover necessary
administrative and implementation costs incurred by the MVAA.
(5) The unexpended funds appropriated in part 1 for veterans
service 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 must be available for expenditures for projects
under this section until the projects have been completed. The
following is in compliance with section 451a of the management and
budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to administer and award
competitive grants to 1 or more congressionally chartered VSOs or a
coalition of VSOs.
(b) The project will be accomplished by state employees and
grantees.
(c) The tentative completion date is September 30, 2028.
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 31
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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
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
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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
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
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and applicable law.
(6) A county that receives grant funding under section 3a of
1953 PA 192, MCL 35.623a, shall use the grant funding only for
allowable expenditures. As used in this subsection, "allowable
expenditures" means any of the following:
(a) Payroll and salaries.
(b) Staff onboarding and training.
(c) Office space.
(d) Information technology and equipment.
Sec. 414. (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 in 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. 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
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,
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municipalities, 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
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
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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.
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
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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.
(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'
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facility.
(b) The agenda and minutes of public meetings of the MVFA
board.
(2) The MVH shall provide a report with copies of each
veterans' facility's USDVA State Veteran Home quarterly report.
These quarterly reports shall also be posted on the MVH website and
these reports must include 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
560, MCL 36.112, not later than January 31, the MVFA shall provide
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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
as provided under sections 368, 382, and 382a of the Michigan
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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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PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2025-2026

GENERAL SECTIONS
Sec. 1201. In accordance with section 30 of article IX of the
state constitution of 1963, for the fiscal year ending September
30, 2026, total state spending from state sources under part 1A is
$152,000,000.00 and total state spending from state sources under
part 1A to be paid to local units of government is $0.00.
Sec. 1202. The appropriations under this part and part 1A are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.

DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
Sec. 1301. (1) Funds appropriated in part 1A for Selfridge Air
National Guard Base must be used to support costs of runway
encroachment solutions while complying with air installation
compatible use zone program recommendations, including, but not
limited to, all of the following:
(a) Capital improvements necessary to shift the runway to the
north and repair the airfield and nonairfield features of the base
and surrounding community impacted by the shift.
(b) Infrastructure projects including, but not limited to,
roadways repairs, vehicle access to the base and to the museum,
stormwater drain and culvert repairs and modernization, force
protection features, airfield features, and taxiway extensions.
(2) Unexpended funds appropriated in part 1A for Selfridge Air
National Guard Base are designated as a work project appropriation.
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Unencumbered or unallotted funds shall not lapse at the end of the
fiscal year and shall 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 costs of runway
encroachment solutions.
(b) The project will be accomplished by utilizing state
employees, contracts with service providers, or both.
(c) The total estimated cost of the project is
$152,000,000.00.
(d) The tentative completion date is September 30, 2027.
Sec. 1302. (1) The department shall identify 1 or more of the
following methods for funding Selfridge Air National Guard Base
under part 1A:
(a) Unobligated work project account balances associated with
the strategic outreach and attraction reserve fund created in
section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254,
or other lapsed account balances determined by the state budget
director.
(b) Unobligated general fund/general purpose or federal
appropriations that are eligible to support Selfridge Air National
Guard Base infrastructure improvements.
(c) Special obligation bond financing through the Michigan
strategic fund created in section 5 of the Michigan strategic fund
act, 1984 PA 270, MCL 125.2005.
(2) The department must make every effort to fully utilize the
funding options and available revenues identified in subsection
(1). After identifying 1 or more of the funding sources under
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subsection (1) and amounts available from those funding sources
that will be used to support Selfridge Air National Guard Base, the
department shall identify any remaining costs.
(3) Pursuant to section 352 of the management and budget act,
1984 PA 431, MCL 18.1352, there is appropriated from the
countercyclical budget and economic stabilization fund created
under section 351 of the management and budget act, 1984 PA 431,
MCL 18.1351, an amount equal to the amount identified by the
department under subsection (2) to support remaining costs for
Selfridge Air National Guard Base appropriated in part 1A. The
annual growth rate for the current calendar year was estimated to
be less than 0% at the most recent consensus revenue estimating
conference.

ARTICLE 13
DEPARTMENT OF NATURAL RESOURCES
PART 1
LINE-ITEM APPROPRIATIONS
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 2,499.9
GROSS APPROPRIATION $ 597,918,100
Appropriated from:
Interdepartmental grant revenues:
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Total interdepartmental grants and
intradepartmental transfers 208,300
ADJUSTED GROSS APPROPRIATION $ 597,709,800
Federal revenues:
Total federal revenues 102,198,400
Special revenue funds:
Total local revenues 0
Total private revenues 8,330,900
Total other state restricted revenues 425,493,600
State general fund/general purpose $ 61,686,900
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 149.1
Unclassified salaries--FTEs 6.0 $ 1,023,100
Accounting service center 1,751,800
Executive direction--FTEs 11.6 2,380,000
Finance and operations--FTEs 112.5 19,986,200
Gifts and pass-through transactions 5,003,600
Legal services--FTEs 4.0 725,700
Minerals Management--FTEs 17.0 3,006,800
Natural resources commission 77,100
Office of public lands--FTEs 4.0 1,501,600
Property management 3,611,400
GROSS APPROPRIATION $ 39,067,300
Appropriated from:
Interdepartmental grant revenues:
IDG, land acquisition services-to-work orders 208,300
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Federal revenues:
Federal funds 836,900
Special revenue funds:
Private funds 5,003,600
Deer habitat reserve 170,000
Forest development fund 4,812,600
Forest land user charges 8,100
Forest recreation account 55,500
Game and fish protection account 8,758,000
Land exchange facilitation and management fund 4,565,400
Local public recreation facilities fund 231,400
Marine safety fund 915,900
Michigan natural resources trust fund 1,717,300
Michigan state parks endowment fund 4,471,500
Nongame wildlife fund 14,100
Off-road vehicle safety education fund 700
Off-road vehicle trail improvement fund 273,200
Public use and replacement deed fees 30,800
Recreation improvement account 90,200
Snowmobile registration fee revenue 51,400
Snowmobile trail improvement fund 134,600
Sportsmen against hunger fund 500
State park improvement account 2,276,300
Turkey permit fees 81,500
Waterfowl fees 3,400
Waterways account 956,000
Wildlife resource protection fund 44,900
State general fund/general purpose $ 3,355,200
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Sec. 103. DEPARTMENT INITIATIVES
Full-time equated classified positions 21.0
Great Lakes restoration initiative $ 2,904,500
Invasive species prevention and control--FTEs 21.0 5,997,200
GROSS APPROPRIATION $ 8,901,700
Appropriated from:
Federal revenues:
Federal funds 2,904,500
State general fund/general purpose $ 5,997,200
Sec. 104. COMMUNICATION AND CUSTOMER SERVICES
Full-time equated classified positions 144.3
Cultural resource management--FTEs 5.5 $ 1,037,700
Marketing and outreach--FTEs 95.3 24,204,500
Michigan historical center--FTEs 43.5 7,328,300
Michigan wildlife council 2,803,400
GROSS APPROPRIATION $ 35,373,900
Appropriated from:
Federal revenues:
Federal funds 3,419,600
State park improvement, federal 322,200
Special revenue funds:
Forest development fund 179,500
Forest recreation account 19,100
Game and fish protection account 14,164,100
Land exchange facilitation and management fund 52,600
Marine safety fund 41,300
Michigan historical center operations fund 1,655,700
Michigan state parks endowment fund 123,900
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Nongame wildlife fund 12,600
Off-road vehicle trail improvement fund 120,700
Recreation passport fees 674,200
Snowmobile registration fee revenue 21,700
Snowmobile trail improvement fund 107,800
Sportsmen against hunger fund 1,703,400
State park improvement account 4,416,500
Waterways account 169,800
Wildlife management public education fund 2,803,400
Youth hunting and fishing education and
outreach fund 46,000
State general fund/general purpose $ 5,319,800
Sec. 105. WILDLIFE MANAGEMENT
Full-time equated classified positions 210.5
Natural resources heritage--FTEs 9.0 $ 842,600
Wildlife management--FTEs 201.5 56,179,300
GROSS APPROPRIATION $ 57,021,900
Appropriated from:
Federal revenues:
Federal funds 26,845,400
Special revenue funds:
Private funds 465,700
Cervidae licensing and inspection fees 85,100
Deer habitat reserve 1,824,600
Forest development fund 280,800
Game and fish protection account 20,713,500
Nongame wildlife fund 483,300
Pheasant hunting license fees 245,800
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Turkey permit fees 1,393,100
Waterfowl fees 152,800
State general fund/general purpose $ 4,531,800
Sec. 106. FISHERIES MANAGEMENT
Full-time equated classified positions 208.5
Aquatic resource mitigation--FTEs 2.0 $ 739,200
Fish production--FTEs 59.0 12,870,600
Fisheries resource management--FTEs 147.5 35,394,700
GROSS APPROPRIATION $ 49,004,500
Appropriated from:
Federal revenues:
Federal funds 12,521,800
Special revenue funds:
Private funds 136,700
Fisheries settlement 739,100
Game and fish protection account 34,359,300
Invasive species fund 100
State general fund/general purpose $ 1,247,500
Sec. 107. LAW ENFORCEMENT
Full-time equated classified positions 298.0
Body cameras for conservation officers--FTEs 5.0 $ 872,300
General law enforcement--FTEs 293.0 57,303,800
GROSS APPROPRIATION $ 58,176,100
Appropriated from:
Federal revenues:
Federal funds 8,482,000
Special revenue funds:
Cervidae licensing and inspection fees 53,400
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Forest development fund 45,400
Forest recreation account 72,800
Game and fish protection account 20,592,600
Marine safety fund 3,054,700
Michigan state parks endowment fund 71,400
Off-road vehicle safety education fund 175,400
Off-road vehicle trail improvement fund 3,415,100
Snowmobile registration fee revenue 726,200
State park improvement account 72,800
Waterways account 21,700
Wildlife resource protection fund 1,196,900
State general fund/general purpose $ 20,195,700
Sec. 108. PARKS AND RECREATION DIVISION
Full-time equated classified positions 1,095.0
Forest recreation and trails--FTEs 87.4 $ 11,697,400
MacMullan Conference Center--FTEs 15.0 1,380,300
Michigan conservation corps 500,000
Recreational boating--FTEs 182.5 25,689,200
State parks--FTEs 810.1 105,777,300
GROSS APPROPRIATION $ 145,044,200
Appropriated from:
Federal revenues:
Federal funds 144,200
Michigan state waterways fund, federal 2,172,300
Special revenue funds:
Private funds 1,000,000
Forest recreation account 6,135,500
MacMullan Conference Center account 1,380,300
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Michigan state parks endowment fund 11,531,700
Off-road vehicle safety education fund 8,100
Off-road vehicle trail improvement fund 3,107,600
Pure Michigan trails fund 100
Recreation improvement account 600,300
Recreation passport fees 220,300
Snowmobile registration fee revenue 17,400
Snowmobile trail improvement fund 2,083,800
State park improvement account 88,288,000
State park improvement account - Belle Isle
subaccount 875,000
Waterways account 23,543,500
State general fund/general purpose $ 3,936,100
Sec. 109. MACKINAC ISLAND STATE PARK COMMISSION
Full-time equated classified positions 17.0
Historical facilities system--FTEs 13.0 $ 1,746,700
Mackinac Island State Park operations--FTEs 4.0 139,300
GROSS APPROPRIATION $ 1,886,000
Appropriated from:
Special revenue funds:
Mackinac Island State Park fund 1,740,900
Mackinac Island State Park operation fund 139,300
State general fund/general purpose $ 5,800
Sec. 110. FOREST RESOURCES DIVISION
Full-time equated classified positions 356.5
Forest management and timber market
development--FTEs 219.5 $ 51,175,500
Wildfire protection--FTEs 137.0 23,547,600
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GROSS APPROPRIATION $ 74,723,100
Appropriated from:
Federal revenues:
Federal funds 6,128,600
Federal national forest timber fund 9,147,600
Special revenue funds:
Private funds 1,624,900
Commercial forest fund 26,000
Fire equipment fund 668,700
Forest development fund 43,196,300
Forest land user charges 252,000
Game and fish protection account 855,900
Waterways account 55,600
State general fund/general purpose $ 12,767,500
Sec. 111. GRANTS
Dam management grant program $ 350,000
Deer habitat improvement partnership initiative 200,000
Federal - clean vessel act grants 400,000
Federal - forest stewardship grants 2,000,000
Federal - rural community fire protection 1,050,000
Federal - urban forestry grants 900,000
Grants to communities - federal oil, gas, and
timber payments 3,450,000
Grants to counties - marine safety 3,074,700
National recreational trails 3,913,500
Nonmotorized trail development and maintenance
grants 200,000
Off-road vehicle safety training grants 60,000
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Off-road vehicle trail improvement grants 6,216,800
Recreation improvement fund grants 916,800
Recreation passport local grants 4,000,000
Snowmobile law enforcement grants 380,100
Snowmobile local grants program 9,590,400
Trail easements 700,000
GROSS APPROPRIATION $ 37,402,300
Appropriated from:
Federal revenues:
Federal funds 13,280,900
Special revenue funds:
Private funds 100,000
Deer habitat reserve 200,000
Local public recreation facilities fund 4,000,000
Marine safety fund 1,407,300
Off-road vehicle safety education fund 60,000
Off-road vehicle trail improvement fund 6,216,800
Permanent snowmobile trail easement fund 700,000
Recreation improvement account 916,800
Snowmobile registration fee revenue 380,100
Snowmobile trail improvement fund 9,590,400
State general fund/general purpose $ 550,000
Sec. 112. INFORMATION TECHNOLOGY
Information technology services and projects $ 10,874,500
GROSS APPROPRIATION $ 10,874,500
Appropriated from:
Federal revenues:
Special revenue funds:
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Commercial forest fund 2,100
Deer habitat reserve 62,000
Forest development fund 1,577,600
Forest land user charges 24,100
Forest recreation account 44,300
Game and fish protection account 3,966,000
Land exchange facilitation and management fund 30,800
Marine safety fund 166,200
Michigan natural resources trust fund 24,800
Michigan state parks endowment fund 1,366,200
Nongame wildlife fund 30,700
Off-road vehicle safety education fund 10,500
Off-road vehicle trail improvement fund 29,200
Pure Michigan trails fund 100
Recreation improvement account 49,500
Snowmobile registration fee revenue 11,700
Snowmobile trail improvement fund 76,000
Sportsmen against hunger fund 600
State park improvement account 1,528,500
Turkey permit fees 34,000
Waterfowl fees 3,300
Waterways account 511,800
Wildlife resource protection fund 42,300
Youth hunting and fishing education and
outreach fund 2,000
State general fund/general purpose $ 1,280,200
Sec. 113. CAPITAL OUTLAY
(1) RECREATIONAL LANDS AND INFRASTRUCTURE
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Federal - land and water conservation fund
payments $ 12,900,000
Fisheries infrastructure 1,326,900
Off-road vehicle trail development and
maintenance 1,000,000
Snowmobile trail development and maintenance 2,800,000
State game and wildlife area infrastructure 3,864,500
State parks repair and maintenance 30,450,000
Wetland restoration, enhancement, and
acquisition 1,933,700
GROSS APPROPRIATION $ 55,375,100
Appropriated from:
Federal revenues:
Federal funds 14,025,000
Special revenue funds:
Private funds
Game and fish protection account 4,066,400
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 933,700
State general fund/general purpose $ 2,500,000
(2) WATERWAYS BOATING PROGRAM
Local boating infrastructure maintenance and
improvements $ 5,000,000
State boating infrastructure maintenance 20,067,400
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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
Sec. 114. ONE-TIME APPROPRIATIONS
Whitefish recovery $ 100
GROSS APPROPRIATION $ 100
Appropriated from:
Special revenue funds:
Private funds 0
State general fund/general purpose $ 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 from state sources under part 1 is
$487,680,400.00 and total state spending under part 1 from state
sources to be paid to local units of government is $15,262,100.00.
The following itemized statement identifies appropriations from
which spending to local units of government will occur:
DEPARTMENT OF NATURAL RESOURCES
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Dam management grant program $ 175,000
Fisheries habitat improvement grants 125,000
Grants to counties – marine safety 1,407,300
Invasive species prevention and control 2,179,200
Local boating infrastructure maintenance and
improvements
5,000,000
Nonmotorized trail development and maintenance
grants
100,000
Off-road vehicle safety training grants 60,000
Off-road vehicle trail improvement grants 1,067,600
Recreation improvement fund grants 91,700
Recreation passport local grants 4,525,900
Snowmobile law enforcement grants 380,100
Wildlife habitat improvement grants 150,300
TOTAL $ 15,262,100
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) "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
appropriations subcommittee on agriculture and natural resources,
the house appropriations subcommittee on agriculture and rural
development and natural resources, the senate and house fiscal
agencies, the senate and house policy offices, and the state budget
office.
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Sec. 204. 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
or agency's Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the 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. The department
or agency shall also transmit all required reports for the current
fiscal year to the standard recipients and any other required
recipients by email.
Sec. 205. 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
serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 206. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
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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. 207. The department shall not take disciplinary action
against an employee of the department for communicating with a
member of the legislature or legislative staff unless the
communication is prohibited by law and the department is exercising
its authority as provided by law.
Sec. 208. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, each department and agency
receiving appropriations in part 1 shall prepare a report on out-
of-state travel expenses not later than January 1. The report must
list all travel outside this state by classified and unclassified
employees in the previous fiscal year that was funded in whole or
in part with funds appropriated in the department's or agency's
budget. The department shall submit the report to the standard
report recipients and to the senate and house appropriations
committees. The report must include all of the following
information:
(a) The dates of each travel occurrence.
(b) The total transportation and related costs of each travel
occurrence and the proportions funded with state general fund or
general purpose revenues, state restricted revenues, federal
revenues, local revenues, and private revenues, including specific
sources of state restricted, federal, local, and private revenues.
Sec. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund or general purpose appropriation lapses at the
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close of the previous fiscal year. The report must summarize the
projected year-end general fund or general purpose appropriation
lapses by major departmental program or program areas. The state
budget office shall submit the report to the standard report
recipients and to the chairpersons of the senate and house of
representatives appropriations committees.
Sec. 210. 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. These funds are not
available for expenditure until they have been transferred to
another line item in part 1 under section 393(2) of the management
and budget act, 1984 PA 431, MCL 18.1393.
Sec. 211. (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. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on the
estimated state restricted fund balances, state restricted fund
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projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and the chairpersons of the senate and
house appropriations committees.
Sec. 213. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of the local health officer.
Sec. 214. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations in part 1 shall
take all reasonable steps to ensure geographically disadvantaged
business enterprises compete for and perform contracts to provide
services or supplies, or both. The director shall strongly
encourage firms with which the department contracts to subcontract
with certified geographically disadvantaged business enterprises
for services, supplies, or both. As used in this section,
"geographically disadvantaged business enterprises" means that term
as defined in Executive Directive No. 2023-1.
Sec. 215. On a quarterly basis, the department or agency
receiving appropriations in part 1 shall report on the number of
full-time equated positions in pay status by civil service
classification, including a comparison by line item of the number
of full-time equated positions authorized from funds appropriated
in part 1 to the actual number of full-time equated positions
employed by the department at the end of the reporting period. The
report must be submitted to the senate and house appropriations
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committees and the standard report recipients.
Sec. 216. (1) The department shall maximize utilization of its
in-person state workforce. The department shall prioritize
occupancy utilization of office space 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 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 in-person work is
optimized and occupancy rates are 80% or higher, subject to market
conditions.
(3) The department shall adhere to civil service rules and
regulations that state the standard biweekly work period for a
full-time employee in the classified service of this state is the
equivalent of 80 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed-upon business hours.
Sec. 217. 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 may
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 218. 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
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number. The department shall submit the report to the standard
report recipients, the senate and house appropriations committees,
and the joint committee on administrative rules.
Sec. 219. The state budget director shall take steps to ensure
that all state fiscal recovery funds allocated to this state under
the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026,
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026,
and any subsequent financial close out period.
Sec. 220. 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. 221. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund or general purpose
appropriations for payroll and covered benefits for eligible public
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health and safety employees at the department of corrections.
(b) To reclassify general fund or general purpose
appropriations for payroll and covered benefits for eligible public
health and safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of the American rescue plan act of 2021, Public Law 117-
2 must be followed for state fiscal recovery funds reallocated and
reappropriated under subsection (1).
(3) The state budget director shall notify the senate and
house appropriations committees not later than 1 business day after
making any reallocations under subsection (1). The notification
must include the authorized program under which funds were
originally appropriated, the amount of the reallocation, the
program, or programs, or purpose, and the department to which the
funds are being reallocated under subsection (1), and the amount
reallocated to each program or purpose.
Sec. 222. Not later than 6 months after the state budget
office issues work project letters, the department shall submit an
annual report that summarizes all work project accounts. The report
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. 223. A department or agency that receives an
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appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 224. 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 are estimated at $0.00.
Sec. 225. Not later than April 1, the department shall provide
to the standard report recipients a copy of its annual strategic
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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. 227. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
Sec. 228. Not later than November 15, the department must
disclose on a publicly accessible website private and other third-
party funds received by the department in the previous fiscal year.
The report must include the amount and source of funding received,
the purpose for which funding was expended, and the amount of any
remaining funds, if any. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
and house appropriations committees.
Sec. 229. (1) Within 30 days of enactment of this act, the
house of representatives and senate shall provide to the state
budget office a jointly agreed-upon list of legislatively directed
spending items funded in part 1 as defined in section 364 of the
management and budget act, 1984 PA 431, MCL 18.1364. The list must
include all information and documents pertaining to the funded
items as publicly disclosed under section 364 of the management and
budget act, 1984 PA 431, MCL 18.1364.
(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 post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and shall post an updated report not later than June 15 of
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the current fiscal year and again not later than September 15 of
the current fiscal year. The department shall include in the report
the most comprehensive information the department has available at
the time of posting for grants awarded.
Sec. 230. (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 $ 39,100
Waterways account 14,100
(d) Department of treasury:
Game and fish protection account $ 4,812,400
Waterways account 495,000
Michigan natural resources trust fund 3,289,700
(2) In addition to the money appropriated in part 1, there is
appropriated from the following state restricted funds to the civil
service commission the amount calculated for each fund pursuant to
section 5 of article XI of the state constitution of 1963:
(a) Michigan conservation and recreation legacy fund.
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(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. 231. 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. 232. 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. 233. (1) The department may accept monetary and
nonmonetary gifts, bequests, donations, contributions, or grants
from any private or public source to support, in whole or in part,
a departmental function or program. The department shall expend or
use such gifts, bequests, donations, contributions, or grants for
the purposes designated by the private or public source, if the
purpose is specified.
(2) Amounts remaining from revenue collected by the department
under this section that are unexpended and unencumbered must not
lapse to the general fund but must be carried forward to the
subsequent fiscal year.
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Sec. 234. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
must do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department in the previous fiscal year.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose or
purposes.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the house
and senate appropriations committees, the house and senate fiscal
agencies, and the state budget office that details all of the
following:
(i) The type of funding received.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
specified purpose or purposes.
(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
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anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) The type or types of funding anticipated.
(ii) The amount or amounts of funding anticipated.
(iii) The purpose or purposes of the funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
similar time frame as would be reported under subsection (1),
subsection (1) does not apply.

COMMUNICATION AND CUSTOMER SERVICES
Sec. 240. (1) In addition to supporting the existing
archeological responsibilities of the department within the
Michigan History Center, the funds appropriated in part 1 for
cultural resource management and cultural resource management one-
time must be utilized to establish an ongoing process of increased
consultation with known lineal descendants and officials of Native
American tribes on whose aboriginal lands a planned archeological
activity will occur or an inadvertent discovery has been made. The
consultation must address the identification, treatment, and
disposition of Native American cultural items.
(2) The department is encouraged to, whenever possible,
repatriate or transfer from its collections Native American
cultural items, including human remains, funerary objects, sacred
objects, and objects of cultural patrimony, to the lineal
descendants and to Native American tribes described in subsection
(1).
(3) The department, in coordination with the Michigan
department of transportation, shall research indigenous trail tree
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markers with the intent to place historical highway markers at the
trees.

DEPARTMENT INITIATIVES
Sec. 251. 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. 252. (1) In addition to the funds appropriated in part 1,
revenue deposited in the invasive species fund created in section
41311 of the natural resources and environmental protection act,
1994 PA 451, MCL 324.41311, is appropriated and may be expended for
invasive species immediate response efforts.
(2) The department shall annually notify the house and senate
appropriations subcommittees on natural resources and the house and
senate fiscal agencies of any expenditure of funds appropriated
under subsection (1).
Sec. 257. The department shall prioritize right-of-way permits
or easements for construction or maintenance of broadband
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
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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 of the natural resources and environmental protection act, 1994
PA 451, MCL 324.2101 to 324.2165, fees must be set by the director
at a rate that allows the department to recover its costs for
providing these services.
Sec. 304. In addition to the funds appropriated in part 1, the
department may receive and expend money from state restricted
sources to pay vendor costs associated with administering sales of
carbon offset credits.

COMMUNICATION AND CUSTOMER SERVICES
Sec. 408. By December 1, the department shall submit to the
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senate and house appropriations subcommittees on natural resources
a report on all land transactions completed by the department in
the prior fiscal year. 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
affected by the transaction, and the transaction type.

FOREST RESOURCES DIVISION
Sec. 802. From the funds appropriated in part 1, the
department shall, by January 1, prepare and submit to the senate
appropriations subcommittee on agriculture and natural resources,
the house appropriations subcommittee on agriculture and rural
development and natural resources, and the standing committees of
the senate and house with primary responsibility for natural
resources issues a report on all of the following:
(a) The number of acres of state forestland prepared for
timber harvesting in the prior fiscal year.
(b) The number of acres of state forestland timber sold 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,
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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 defined in section 2 of the emergency management act,
1976 PA 390, MCL 30.402.
(2) Funds appropriated under subsection (1) must not be
expended unless the state budget director recommends the
expenditure and the department notifies the house and senate
committees on appropriations. By December 1 each year, the
department shall provide a report to the senate and house fiscal
agencies and the state budget office on the use of the disaster and
emergency contingency fund during the prior fiscal year.
(3) If Federal Emergency Management Agency (FEMA)
reimbursement is approved for costs paid from the disaster and
emergency contingency fund, the federal revenue must 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,
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the house appropriations subcommittee on agriculture and rural
development and natural resources, the senate and house fiscal
agencies, and the state budget director on all amounts appropriated
under this section during the prior fiscal year.

CAPITAL OUTLAY
Sec. 1103. The appropriations in part 1 for capital outlay
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.

ONE-TIME APPROPRIATIONS
Sec. 1201. (1) Funds appropriated in part 1 for whitefish
recovery must be used by the department to support efforts to
recover and monitor not more than 3 lake whitefish stocks.
(2) Funds appropriated under this section must be used for
activities that include, but are not limited to, spawning and
rearing activities and post-stocking assessment and evaluation
necessary to support lake whitefish stock recovery.
(3) The department may contract with or enter into agreements
with qualified nonprofit, research-based organizations to implement
a lake whitefish stock recovery plan developed by the department.
(4) Activities under this section must be conducted using
department-owned hatchery facilities or facilities owned or
operated by partners contracted under subsection (3).
(5) Funds appropriated under this section must not be used for
operational expenses or for the support of full-time equated
positions or permanent state positions. The department may utilize
limited-term employees as necessary to carry out the purposes of
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this section.

ARTICLE 14
DEPARTMENT OF STATE POLICE
PART 1
LINE-ITEM APPROPRIATIONS
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 7.0
Full-time equated classified positions 3,568.0
GROSS APPROPRIATION $ 979,683,600
Interdepartmental grant revenues:
Total interdepartmental grants and
intradepartmental transfers 29,521,800
ADJUSTED GROSS APPROPRIATIONS $ 950,161,800
Federal revenues:
Total federal revenues 100,351,800
Special revenue funds:
Total local revenues 5,088,800
Total private revenues 35,000
Total other state restricted revenues 200,908,000
State general fund/general purpose $ 643,778,200
Sec. 102. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 7.0
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Full-time equated classified positions 139.0
Unclassified salaries--FTEs 7.0 $ 1,473,900
Department services--FTEs 39.0 10,679,700
Departmentwide 49,120,900
Executive direction--FTEs 61.0 11,225,500
Mobile office and system support--FTEs 39.0 7,522,500
GROSS APPROPRIATION $ 80,022,500
Appropriated from:
Interdepartmental grant revenues:
IDG from department of transportation, state
trunkline fund 86,700
IDG from department of treasury, casino gaming
fees 434,700
IDG, training academy charges 229,100
IDT - auto theft funds 1,500
IDT - truck safety fund 75,400
Federal revenues:
DHS 32,400
DOJ 12,800
DOJ, interest bearing 9,900
DOT 301,400
Federal indirect funds 2,789,000
Special revenue funds:
Local - AFIS fees 100
Local - LEIN fees 800
Local - reimbursed services 300
Local - school bus revenue 8,900
Auto theft prevention fund 26,300
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Criminal justice information center service
fees 2,900,600
Drunk driving prevention and training fund 3,200
Forensic science reimbursement fees 52,300
Hazardous materials training center fees 46,800
Highway safety fund 304,200
Marihuana regulatory fund 271,400
Michigan justice training fund 3,700
Michigan merit award trust fund 16,600
Motor carrier fees 421,700
Narcotics-related forfeiture revenue 400
Nuclear plant emergency planning reimbursement 23,400
Precision driving track fees 800
Reimbursed services 300
Sex offenders registration fund 800
State forensic laboratory fund 90,400
State police administrator and coordinator 911
fund 25,800
State police service fees 400
State services fee fund 261,800
Tobacco tax revenue 117,500
Traffic law enforcement and safety fund 639,200
Truck driver safety fund 1,800
Vehicle sales proceeds 650,000
State general fund/general purpose $ 70,180,100
Sec. 103. LAW ENFORCEMENT SERVICES
Full-time equated classified positions 607.0
Biometrics and identification--FTEs 60.0 $ 13,055,900
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Criminal justice information center--FTEs 154.0 34,884,500
Forensic science--FTEs 281.0 50,114,200
Grants and community services--FTEs 31.0 22,889,800
Office of school safety--FTEs 6.0 1,410,900
State 9-1-1 administration--FTEs 5.0 1,165,700
Training operations--FTEs 70.0 16,447,300
GROSS APPROPRIATION $ 139,968,300
Appropriated from:
Interdepartmental grant revenues:
IDG from department of state 428,700
IDG from department of transportation, state
trunkline fund 791,100
IDG, training academy charges 3,081,200
IDT, Michigan Justice training fund 1,100,000
Federal revenues:
DOJ 14,344,300
DOJ, interest bearing 4,029,500
DOT 1,975,400
Special revenue funds:
Local - SRMS fees 919,200
Private donations 20,000
Auto theft prevention fund 9,018,200
Criminal justice information center service
fees 30,490,700
Drunk driving prevention and training fund 676,000
Forensic science reimbursement fees 1,033,300
Michigan set aside fund 600,000
Motor carrier fees 148,500
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Precision driving track fees 346,100
Sex offenders registration fund 697,800
State forensic laboratory fund 767,600
State police administrator and coordinator 911
fund 1,165,700
State services fee fund 8,459,400
Student safety fund 250,000
Traffic crash revenue 592,400
State general fund/general purpose $ 59,033,200
Sec. 104. MICHIGAN COMMISSION ON LAW ENFORCEMENT
STANDARDS
Full-time equated classified positions 27.0
In-service training--FTEs 7.0 13,280,300
Justice training grants--FTEs 3.0 $ 10,000,000
Public safety officers benefit fund--FTE 1.0 303,300
Standards and training--FTEs 16.0 4,115,000
Training only to local units 855,000
GROSS APPROPRIATION $ 28,553,600
Appropriated from:
Federal revenues:
DOJ 280,900
Special revenue funds:
Law enforcement officers training fund 25,300
Marihuana regulatory fund 3,440,400
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
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State general fund/general purpose $ 13,922,000
Sec. 105. FIELD SERVICES
Full-time equated classified positions 2,153.0
Investigative services--FTEs 148.5 $ 44,212,400
Post operations--FTEs 2,004.5 465,457,600
GROSS APPROPRIATION $ 509,670,000
Appropriated from:
Interdepartmental grant revenues:
IDG from department of treasury, casino gaming
fees 6,890,500
IDT - Auto theft funds 1,159,800
Federal revenues:
DOJ 4,678,600
DOT 2,125,800
Federal forfeiture revenues 544,100
Federal investigations - reimbursed services 4,031,800
Special revenue funds:
Local - reimbursed services 1,259,000
Bottle bill enforcement fund 787,600
Highway safety fund 10,416,900
Marihuana regulation fund 3,447,400
Marihuana regulatory fund 2,674,500
Michigan merit award trust fund 872,900
Narcotics-related forfeiture revenue 1,554,100
Nonnarcotic forfeiture revenue 50,600
State police service fees 6,285,200
State services fee fund 1,028,600
Tobacco tax revenue 5,656,300
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Traffic law enforcement and safety fund 35,918,400
Trooper school recruitment fund 5,069,700
State general fund/general purpose $ 415,218,200
Sec. 106. SPECIALIZED SERVICES
Full-time equated classified positions 642.0
Commercial vehicle enforcement--FTEs 211.0 $ 40,920,600
Emergency management and homeland security--
FTEs 64.0 17,605,900
Hazardous materials programs--FTEs 25.0 23,717,300
Highway safety planning--FTEs 25.0 22,288,500
Intelligence operations--FTEs 228.0 36,975,000
Secondary road patrol program--FTE 1.0 18,003,200
Special operations--FTEs 88.0 21,900,900
GROSS APPROPRIATION $ 181,411,400
Appropriated from:
Interdepartmental grant revenues:
IDG from department of transportation, state
trunkline fund 12,805,700
IDG from department of treasury, public safety
answer point training 911 fund 100,000
IDT - truck safety fund 2,100,000
Federal revenues:
DHS 32,488,500
DOT 32,507,400
Special revenue funds:
Local - school bus revenue 1,948,800
Private donations 15,000
Bottle bill enforcement fund 230,000
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Criminal justice information center service
fees 329,600
Hazardous materials training center fees 749,700
Marihuana regulation fund 257,700
Marihuana regulatory fund 390,200
Motor carrier fees 9,266,900
Nuclear plant emergency planning reimbursement 2,467,400
Reimbursed services 1,893,000
Rental of departmental aircraft 52,400
Secondary road patrol and training fund 18,003,200
State police dispatch operator 911 fund 681,900
Truck driver safety fund 4,978,300
State general fund/general purpose $ 60,145,700
Sec. 107. INFORMATION TECHNOLOGY
Information technology services and projects $ 30,057,800
GROSS APPROPRIATION $ 30,057,800
Appropriated from:
Interdepartmental grant revenues:
IDG from department of transportation, state
trunkline fund 124,200
IDG from department of treasury, casino gaming
fees 80,000
IDG, training academy charges 11,500
IDT - auto theft funds 4,300
IDT - truck safety fund 17,400
Federal revenues:
DHS 50,000
DOJ 100,000
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DOT 50,000
Special revenue funds:
Local - AFIS fees 80,000
Local - LEIN fees 851,300
Local - school bus revenue 20,400
Auto theft prevention fund 6,200
Criminal justice information center service
fees 11,500,000
Drunk driving prevention and training fund 3,600
Forensic science reimbursement fees 76,500
Highway safety fund 92,400
Marihuana regulatory fund 773,700
Michigan merit award trust fund 3,400
Motor carrier fees 170,500
Nuclear plant emergency planning reimbursement 12,800
Sex offenders registration fund 228,400
State forensic laboratory fund 50,000
State services fee fund 84,400
Tobacco tax revenue 21,400
Traffic crash revenue 246,900
Traffic law enforcement and safety fund 119,500
State general fund/general purpose $ 15,279,000
Sec. 108. ONE-TIME APPROPRIATIONS
Disaster and emergency contingency fund $ 10,000,000
GROSS APPROPRIATION $ 10,000,000
Appropriated from:
State general fund/general purpose $ 10,000,000

PART 2
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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 fiscal year ending September 30,
2027, total state spending under part 1 from state sources is
$844,686,200.00 and total state spending under part 1 from state
sources to be paid to local units of government is $40,441,500.00.
The following itemized statement identifies appropriations from
which spending to local units of government will occur:
DEPARTMENT OF STATE POLICE
In-service training $ 14,586,000
Justice training grants 10,000,000
Secondary road patrol program 15,000,000
Training only to local units 855,500
TOTAL $ 40,441,500
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) "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.
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(h) "DOT" means the United States Department of
Transportation.
(i) "FTE" means full-time equated position in the classified
service of this state.
(j) "IDG" means interdepartmental grant.
(k) "LEIN" means the law enforcement information network.
(l) "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.
(m) "SIGMA" means the statewide integrated governmental
management application.
(n) "SRMS" means the state records management system.
(o) "Standard report recipients" means 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. 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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the 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. The department
or agency shall also transmit all required reports for the current
fiscal year to the standard report recipients and any other
required recipients by email.
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Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
competitively priced and of comparable quality.
(c) Preference must be given to goods or services, or both,
that are manufactured or provided by Michigan businesses owned and
operated by veterans, if they are competitively priced and of
comparable quality.
Sec. 206. The department shall not take disciplinary action
against an employee of the department for communicating with a
member of the legislature or legislative staff, unless the
communication is prohibited by law and the department is exercising
its authority as provided by law.
Sec. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, each department and agency
receiving appropriations in part 1 shall prepare a report on out-
of-state travel expenses not later than January 1 of each year. The
report must list all travel by classified and unclassified
employees outside this state in the previous fiscal year that was
funded in whole or in part with funds appropriated in the
department's or agency's budget. The department or agency shall
submit the report to the standard report recipients and to the
senate and house appropriations committees. The report must include
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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 proportion 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, and other revenues.
Sec. 208. 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. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental program or program area. The state
budget office shall submit the report to the standard report
recipients and to the chairpersons of the senate and house
appropriations committees.
Sec. 210. (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.
(2) In addition to the funds appropriated in part 1, there is
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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. 211. The department shall cooperate with the department
of technology, management, and budget to maintain a searchable
website accessible by the public at no cost that includes, but is
not limited to, all of the following for the department:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
Sec. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
and house appropriations committees.
Sec. 213. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of a local health officer.
Sec. 214. To the extent permissible under the management and
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budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations in part 1 shall
take all reasonable steps to ensure that geographically
disadvantaged business enterprises compete for and perform
contracts to provide services or supplies, or both. The director
shall strongly encourage firms with which the department contracts
to subcontract with geographically disadvantaged business
enterprises for services or supplies, or both. As used in this
section, "geographically disadvantaged business enterprises" means
that term as defined in Executive Directive No. 2023-01.
Sec. 215. (1) The department shall maximize utilization of its
in-person state workforce. The department shall prioritize
occupancy utilization of office space 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 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 in-person work is
optimized and occupancy rates are 80% or higher, subject to market
conditions.
(3) The department shall adhere to civil service rules and
regulations that state the standard biweekly work period for a
full-time employee in the classified service of this state is the
equivalent of 80.0 hours of work. The department shall establish
policies and processes to ensure all employees are working their
jobs during agreed-upon business hours.
Sec. 216. On a quarterly basis, the department or agency
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receiving appropriations in part 1 shall report on the number of
full-time equated positions in pay status by civil service
classification, including a comparison by line item of the number
of full-time equated positions authorized from funds appropriated
in part 1 to the actual number of full-time equated positions
employed by the department at the end of the reporting period. The
report must be submitted to the standard report recipients and to
the senate and house appropriations committees.
Sec. 218. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
(e) Reduce or eliminate a program that provides services to
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residents of this state.
Sec. 219. 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 may
electronically retain copies of reports unless otherwise required
by federal and state guidelines.
Sec. 220. 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, the senate and house
appropriations committees, and the joint committee on
administrative rules.
Sec. 222. To the extent possible, the department shall not
expend appropriations under part 1 until all existing authorized
work project funds available for the same purposes are exhausted.
Sec. 223. Not later than 6 months after the state budget
office issues work project letters, the department shall submit an
annual report that summarizes all work project accounts. The report
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. 224. 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. 225. 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. 226. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
Sec. 227. Not later than November 15, the department shall
disclose on a publicly accessible website 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. The report
must be submitted to the standard report recipients and to the
chairpersons of the senate and house appropriations committees.
Sec. 228. The department shall submit a biannual report on the
performance metrics cited or information required to be reported in
this part, reasons for nonachievement of metric targets, and
proposed corrective actions.
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Sec. 229. (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. 230. (1) Within 30 days of enactment of this act, the
house and senate shall provide to the state budget office a jointly
agreed-upon list of legislatively directed spending items funded in
part 1 as defined in section 364 of the management and budget act,
1984 PA 431, MCL 18.1364. 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 post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
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report and shall post an updated report not later than June 15 of
the current fiscal year, and again not later than September 15 of
the current fiscal year. The department shall include in the report
the most comprehensive information the department has available at
the time of posting for grants awarded.
Sec. 231. (1) The department may accept monetary and
nonmonetary gifts, bequests, donations, contributions, or grants
from any private or public source to support, in whole or in part,
a departmental function or program. The department shall expend or
use the gifts, bequests, donations, contributions, or grants
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. 232. (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
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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 704(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
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. 233. The state budget director shall take steps to ensure
that all state fiscal recovery funds allocated to this state under
the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026,
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026,
and any subsequent financial closeout period.
Sec. 234. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
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are not limited to, completed projects coming in under budget or
funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of Public Law 117-2 must be followed for state fiscal
recovery funds reallocated and reappropriated under subsection (1).
(3) The state budget director shall notify the senate and
house appropriations committees not later than 1 business day after
making any reallocations under subsection (1). The notification
must include the authorized program under which funds were
originally appropriated, the amount of the reallocation, the
program, or programs, or purpose, and the department to which the
funds are being reallocated under subsection (1), and the amount
reallocated to each program or purpose.
Sec. 235. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
must do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
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house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department in the previous fiscal year.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose or
purposes.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the house
and senate appropriations committees, the house and senate fiscal
agencies, and the state budget office that details all of the
following:
(i) The type of funding received.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
specified purpose or purposes.
(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) The type or types of funding anticipated.
(ii) The amount or amounts of funding anticipated.
(iii) The purpose or purposes of the funding.
(2) If another reporting requirement under this part would
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provide substantially similar information on a substantially
similar time frame as would be reported under subsection (1),
subsection (1) does not apply.

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.
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.
(5) Revenues received for contractual or reimbursed services
in excess of the appropriations in part 1 are appropriated and may
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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
department may purchase real property and shall notify the standard
report recipients within 10 days of the purchase.

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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 228, 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
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
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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 228.
(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
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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
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 228.
(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,
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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.
(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 228:
(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
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section 228.
(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
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
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authority.
(b) Administration of the Edward Byrne memorial justice
assistance 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:
(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,
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) 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.
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(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.
(3) The department may use the funds appropriated in part 1
that represent attrition savings to offset the cost of recruiting
efforts described under subsection (1).
(4) 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) Diversity and 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
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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
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 Byrne justice assistance grant program funding to
the judiciary by interdepartmental grant.

MICHIGAN COMMISSION ON LAW ENFORCEMENT STANDARDS
Sec. 501. (1) MCOLES shall establish standards for the
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 public acts that affect MCOLES.
(3) From the funds appropriated in part 1, MCOLES, by March 1,
shall submit a report to the standard report recipients that
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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:
(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.
Sec. 502. The general fund/general purpose funds appropriated
in part 1 for 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.
Sec. 503. 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.

FIELD SERVICES
Sec. 601. (1) Department enlisted personnel who are employed
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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
occurrence of crime.
(3) The department shall report on the number of residence
checks of registered sex offenders conducted, as provided under
section 228.
Sec. 602. (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-
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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. 603. (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
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. 604. The department shall provide fire investigation
training and investigative assistance to public safety agencies in
this state.
Sec. 605. From the funds appropriated in part 1, the
department shall make an organized, strategic effort to recruit
trooper school candidates and other new employees that mirror the
diverse racial, religious, and cultural backgrounds that make up
the communities in this state.

SPECIALIZED SERVICES
Sec. 701. (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. 702. (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. 703. (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. 704. (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 232 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) 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
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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.
(6) 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.
(7) 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.
(8) 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
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.
(9) The department shall track and report on a biannual basis,
as provided in section 228 of this part, the status of the
department's assessment of critical infrastructure vulnerabilities,
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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.
(10) 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.
Sec. 705. 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. 706. (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.
(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. 707. The department shall serve as an active liaison
between the department of technology, management, and budget and
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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.

ONE-TIME APPROPRIATIONS
Sec. 801. (1) The general fund/general purpose funds
appropriated in part 1 for the disaster and emergency contingency
fund must be deposited into the disaster and emergency contingency
fund created in section 18 of the emergency management act, 1976 PA
390, MCL 30.418.
(2) Due to a significant increase in climate-related
emergencies and disaster events, the existing $10,000,000.00
statutory cap and distribution guidelines in section 18 of the
emergency management act, 1976 PA 390, MCL 30.418, are not
sufficient. It is the intent of the legislature to complete passage
of Senate Bill No. 109 of 2025 and increase funding to meet the
needs of residents and communities impacted by emergencies or
disaster events.

ARTICLE 15
STATE TRANSPORTATION DEPARTMENT
PART 1
LINE-ITEM APPROPRIATIONS
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
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Full-time equated unclassified positions 6.0
Full-time equated classified positions 3,213.3
GROSS APPROPRIATION $ 8,499,621,400
Total interdepartmental grants and
intradepartmental transfers 4,555,300
ADJUSTED GROSS APPROPRIATION $ 8,495,066,100
Federal revenues:
Total federal revenues 2,374,354,200
Special revenue funds:
Total local revenues 86,948,500
Total private revenues 20,500,000
Total other state restricted revenues 6,013,263,400
State general fund/general purpose $ 0
Sec. 102. DEBT SERVICE
Airport safety and protection plan $ 3,618,300
Blue Water Bridge fund 3,318,400
Economic development 234,300
Local bridge fund 77,300
State trunkline 333,554,100
GROSS APPROPRIATION $ 340,802,400
Appropriated from:
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. INTERDEPARTMENTAL GRANTS
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CTF grant to civil service commission $ 225,300
CTF grant to department of attorney general 112,600
CTF grant to department of technology,
management, and budget 45,400
CTF grant to department of treasury 54,900
CTF grant to legislative auditor general 47,800
MTF grant to department of environment, Great
Lakes, and energy 2,277,200
MTF grant to department of state for collection
of revenue and fees 20,000,000
MTF grant to department of treasury 3,817,000
MTF grant to legislative auditor general 388,200
SAF grant to civil service commission 140,000
SAF grant to department of attorney general 196,900
SAF grant to department of technology,
management, and budget 32,900
SAF grant to department of treasury 72,200
SAF grant to legislative auditor general 37,600
STF grant to civil service commission 7,160,100
STF grant to department of attorney general 2,269,800
STF grant to department of state police 13,807,700
STF grant to department of technology,
management, and budget 1,409,700
STF grant to department of treasury 167,000
STF grant to legislative auditor general 901,600
GROSS APPROPRIATION $ 53,163,900
Appropriated from:
Comprehensive transportation fund 486,000
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Michigan transportation fund 26,482,400
State aeronautics fund 479,600
State trunkline fund 25,715,900
State general fund/general purpose $ 0
Sec. 104. DEPARTMENTAL ADMINISTRATION AND
SUPPORT
Full-time equated unclassified positions 6.0
Full-time equated classified positions 315.3
Unclassified salaries--FTE positions 6.0 $ 1,023,100
Asset management council 2,299,900
Business support services--FTEs 77.0 13,696,500
Commission audit--FTEs 29.3 4,976,200
Economic development and enhancement programs--
FTEs 11.0 1,916,700
Finance, contracts, and support services--FTEs 198.0 30,444,900
Property management 8,616,000
Worker's compensation 1,546,300
GROSS APPROPRIATION $ 64,519,600
Appropriated from:
IDG for accounting service center user charges 4,555,300
Comprehensive transportation fund 1,873,600
Economic development fund 414,900
Michigan transportation fund 5,237,800
State aeronautics fund 750,700
State trunkline fund 51,687,300
State general fund/general purpose $ 0
Sec. 105. INFORMATION TECHNOLOGY
Information technology services and projects $ 47,931,900
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GROSS APPROPRIATION $ 47,931,900
Appropriated from:
Federal aid - transportation programs 536,400
Blue Water Bridge fund 60,300
Comprehensive transportation fund 245,400
Economic development fund 40,600
Michigan transportation fund 320,700
State aeronautics fund 191,400
State trunkline fund 46,537,100
State general fund/general purpose $ 0
Sec. 106. TRANSPORTATION PLANNING
Full-time equated classified positions 142.0
Planning services--FTEs 142.0 $ 45,364,700
Grants to regional planning councils 488,800
GROSS APPROPRIATION $ 45,853,500
Appropriated from:
Federal aid - transportation programs 26,000,000
Comprehensive transportation fund 366,200
Michigan transportation fund 11,473,700
State aeronautics fund 31,500
State trunkline fund 7,982,100
State general fund/general purpose $ 0
Sec. 107. DESIGN AND ENGINEERING SERVICES
Full-time equated classified positions 1,654.3
Business services--FTEs 44.8 $ 11,386,400
Program development and delivery--FTEs 1,046.5 138,457,700
System operations management--FTEs 563.0 127,255,200
GROSS APPROPRIATION $ 277,099,300
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Appropriated from:
Federal aid - transportation programs 26,001,600
Comprehensive transportation fund 187,100
Michigan transportation fund 20,238,400
State trunkline fund 230,672,200
State general fund/general purpose $ 0
Sec. 108. HIGHWAY MAINTENANCE
Full-time equated classified positions 911.7
State trunkline operations--FTEs 911.7 $ 530,033,300
GROSS APPROPRIATION $ 530,033,300
Appropriated from:
State trunkline fund 530,033,300
State general fund/general purpose $ 0
Sec. 109. ROAD AND BRIDGE PROGRAMS
Cities and villages $ 1,112,369,700
County road commissions 2,012,101,400
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 fund 6,504,600
Rail grade crossing 3,000,000
Rail grade crossing - surface improvements 3,000,000
State trunkline federal aid and road and bridge
construction 1,988,815,500
Rail grade separation fund 40,000,000
GROSS APPROPRIATION $ 5,756,341,900
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Appropriated from:
Federal aid - transportation programs 1,741,778,500
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 2,408,775,700
State trunkline fund 607,006,900
Neighborhood roads fund 863,200,000
Local grade separation fund 40,000,000
State general fund/general purpose $ 0
Sec. 110. BLUE WATER BRIDGE
Full-time equated classified positions 47.0
Blue Water Bridge operations--FTEs 47.0 $ 8,013,800
GROSS APPROPRIATION $ 8,013,800
Appropriated from:
Blue Water Bridge fund 8,013,800
State general fund/general purpose $ 0
Sec. 111. TRANSPORTATION ECONOMIC DEVELOPMENT
Forest roads $ 4,741,600
Rural county primary 10,620,800
Rural county urban system 2,500,000
Urban county congestion 10,620,800
GROSS APPROPRIATION $ 28,483,200
Appropriated from:
Economic development fund 28,483,200
State general fund/general purpose $ 0
Sec. 112. AERONAUTICS SERVICES
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Full-time equated classified positions 48.0
Air service program $ 50,000
Aviation services--FTEs 48.0 7,953,300
GROSS APPROPRIATION $ 8,003,300
Appropriated from:
State aeronautics fund 8,003,300
State general fund/general purpose $ 0
Sec. 113. PUBLIC TRANSPORTATION SERVICES
Full-time equated classified positions 50.0
Passenger transportation services--FTEs 50.0 $ 8,092,400
GROSS APPROPRIATION $ 8,092,400
Appropriated from:
Federal aid - transportation programs 2,000,000
Comprehensive transportation fund 6,092,400
State general fund/general purpose $ 0
Sec. 114. LOCAL BUS TRANSIT
Local bus operating $ 315,000,000
Nonurban operation/capital 41,935,500
GROSS APPROPRIATION $ 356,935,500
Appropriated from:
Federal aid - transportation programs 39,935,500
Local funds 2,000,000
Comprehensive transportation fund 315,000,000
State general fund/general purpose $ 0
Sec. 115. INTERCITY PASSENGER
Full-time equated classified positions 41.0
Detroit/Wayne County Port Authority $ 600,000
Freight property management 1,300,000
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Intercity services 10,865,700
Office of rail--FTEs 41.0 7,587,000
Rail operations and infrastructure 219,388,500
GROSS APPROPRIATION $ 239,741,200
Appropriated from:
Federal aid - transportation programs 106,429,700
Local funds 260,000
Private funds 4,500,000
Comprehensive transportation fund 119,426,200
Intercity bus equipment fund 45,400
Michigan transportation fund 2,238,700
Rail freight fund 6,000,000
State trunkline fund 841,200
State general fund/general purpose $ 0
Sec. 116. PUBLIC TRANSPORTATION DEVELOPMENT
Full-time equated classified positions 4.0
Municipal credit program $ 2,000,000
Service initiatives 6,300,000
Specialized services 30,615,900
Van pooling 300,000
Intermodal capital 298,832,200
Infrastructure projects authority program 65,000,000
Maritime and ports facility assistance program-
-FTEs 4.0 5,294,700
GROSS APPROPRIATION $ 408,342,800
Appropriated from:
Federal aid - transportation programs 161,672,500
Local funds 37,185,000
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Private funds 4,000,000
Comprehensive transportation fund 135,190,600
Infrastructure projects authority fund 65,000,000
Maritime and ports 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 $ 3,300,000
Special maintenance, remodeling, and additions 5,350,500
GROSS APPROPRIATION $ 8,650,500
Appropriated from:
State trunkline fund 8,650,500
State general fund/general purpose $ 0
(2) AIRPORT IMPROVEMENT PROGRAMS
Airport safety, protection and improvement
program $ 181,309,800
Detroit Metropolitan Wayne County Airport 6,435,000
IIJA airport infrastructure grants 115,000,000
GROSS APPROPRIATION $ 302,744,800
Appropriated from:
Federal aid - transportation programs 270,000,000
Local funds 17,500,000
Private funds 2,000,000
Qualified airport fund 6,435,000
State aeronautics fund 6,809,800
State general fund/general purpose $ 0
Sec. 118. ONE-TIME APPROPRIATIONS
Coloma salt storage building $ 5,168,100
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Facilities capital outlay 5,600,000
Great Lakes Tunnel project - phase II oversight 4,100,000
GROSS APPROPRIATION $ 14,868,100
Appropriated from:
State trunkline fund 10,768,100
Michigan infrastructure fund 4,100,000
State general fund/general purpose $ 0

PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2026-2027
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state sources under
part 1 for the fiscal year ending September 30, 2027 is
$6,013,263,400.00 and state spending from state sources to be paid
to local units of government for fiscal year 2027 is
$3,887,048,500.00. The itemized statement below 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
County road commissions 2,012,101,400
Grants to local programs 33,000,000
Local agency wetland mitigation bank fund 2,000,000
Local bridge program 126,550,900
Local grade separation program 40,000,000
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Movable bridge fund 3,252,300
Rail grade crossing 1,500,000
Rail grade crossing - surface improvements 3,000,000
Forest roads 4,741,600
Rural county primary 10,620,800
Rural county urban system 2,500,000
Urban county congestion 10,620,800
Air service program 50,000
Local bus operating 315,000,000
Detroit/Wayne County Port Authority 600,000
Infrastructure projects authority program 65,000,000
Intermodal capital 118,890,600
Municipal credit program 2,000,000
Service initiatives 1,000,000
Specialized services 13,000,000
Airport safety, protection, and improvement
program 6,809,800
Detroit Metropolitan Wayne County Airport 6,435,000
Total payments to local units of government $ 3,887,048,500
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) "CTF" means comprehensive transportation fund.
(b) "Department" means the state transportation department.
(c) "FTE" means full-time equated.
(d) "IDG" means interdepartmental grant.
(e) "IIJA" means the infrastructure investment and jobs act,
2021, Public Law 117-58.
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(f) "MTF" means Michigan transportation fund.
(g) "SAF" means state aeronautics fund.
(h) "Standard report recipients" means 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.
(i) "STF" means state trunkline fund.
Sec. 204. 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 Michigan.gov website not later than the due date
required for each report. In addition to placing all reports
required in the current fiscal year on the department's or agency's
website, the 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 archivable location. The department or
agency shall also transmit all required reports for the current
fiscal year to the standard recipients and any other required
recipients by email.
Sec. 205. To the extent permissible under section 261 of the
management and budget act, 1984 PA 431, MCL 18.1261, all of the
following apply to the expenditure of funds appropriated in part 1:
(a) The funds must not be used for the purchase of foreign
goods or services, or both, if competitively priced and of
comparable quality American goods or services, or both, are
available.
(b) Preference must be given to goods or services, or both,
manufactured or provided by Michigan businesses, if they are
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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. 206. The department shall not take disciplinary action
against an employee of the department for communicating with a
member of the legislature or legislative staff, unless the
communication is prohibited by law and the department is exercising
its authority as provided by law.
Sec. 207. Consistent with section 217 of the management and
budget act, 1984 PA 431, MCL 18.1217, each department and agency
receiving appropriations in part 1 shall prepare a report on out-
of-state travel expenses not later than January 1. The report must
list all travel by classified and unclassified employees outside
this state in the previous fiscal year that was funded in whole or
in part with funds appropriated in the department's or agency's
budget. The department shall submit the report to the standard
recipients and to the house and senate appropriations committees.
The report must include all of the following information:
(a) The dates of each travel occurrence.
(b) The total transportation and related expenses of each
travel occurrence and the proportions funded with state general
fund/general purpose revenues, state restricted revenues, federal
revenues, and other revenues.
Sec. 208. 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
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serving in each house, intertransfer funds within part 1 for the
particular department, board, commission, officer, or institution.
Sec. 209. Not later than December 15, the state budget office
shall prepare and submit a report that provides estimates of the
total general fund/general purpose appropriation lapses at the
close of the previous fiscal year. The report must summarize the
projected year-end general fund/general purpose appropriation
lapses by major departmental programs or program areas. The state
budget office shall submit the report to the standard report
recipients and to the chairpersons of the senate and house
appropriations committees.
Sec. 210. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $500,000,000.00 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 $40,000,000.00 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 $1,000,000.00 for local
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
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(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $11,000,000.00 for private
contingency authorization. Amounts appropriated under this
subsection are not available for expenditure until they have been
transferred to another line item in part 1 under section 393(2) of
the management and budget act, 1984 PA 431, MCL 18.1393.
Sec. 211. A department or agency shall cooperate with the
department of technology, management, and budget to maintain a
searchable website accessible by the public at no cost that
includes, but is not limited to, all of the following for each
department or agency:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
Sec. 212. Not later than 14 days after the release of the
executive budget recommendation, the department shall cooperate
with the state budget office to provide an annual report on
estimated state restricted fund balances, state restricted fund
projected revenues, and state restricted fund expenditures for the
previous 2 fiscal years. The report must be submitted to the
standard report recipients and to the chairpersons of the senate
and house appropriations committees.
Sec. 214. To the extent permissible under the management and
budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director of
each department or agency receiving appropriations in part 1 shall
take all reasonable steps to ensure geographically disadvantaged
business enterprises compete for and perform contracts to provide
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services or supplies, or both. The director shall strongly
encourage firms with which the department contracts to subcontract
with certified geographically disadvantaged business enterprises
for services or supplies, or both. As used in this section,
"geographically disadvantaged business enterprises" means that term
as defined in Executive Directive No. 2023-1.
Sec. 215. On a quarterly basis, the department or agency
receiving appropriations in part 1 shall report on the number of
FTE positions in pay status by civil service classification,
including a comparison by line item of the number of FTE positions
authorized from funds appropriated in part 1 to the actual number
of FTE positions employed by the department at the end of the
reporting period. The report must be submitted to the senate and
house appropriations committees and to the standard report
recipients.
Sec. 216. (1) A department or agency shall maximize
utilization of its in-person state workforce. A department or
agency shall prioritize occupancy utilization of office space for
each division within the department or agency. Employees with job
responsibilities that require the employees to serve in their
capacities outside of an office shall be monitored each pay period
to ensure all work hours reported on the timesheet were 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 in-
person work is optimized and occupancy rates are 80% or higher,
subject to market conditions.
(3) A department or agency shall adhere to civil service rules
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and regulations that state the standard biweekly work period for a
full-time employee in the classified service of this state is the
equivalent of 80 hours of work. A department or agency shall
establish policies and processes to ensure all employees are
working their jobs during agreed-upon business hours.
Sec. 218. A department or agency receiving appropriations in
part 1 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 may electronically
retain copies of reports unless otherwise required by federal and
state guidelines.
Sec. 219. Not later than April 1, the department shall report
on each specific policy change made to implement a public act
affecting the department that took effect during the previous
calendar year. The report must include a reference to the public
act that necessitates the policy change. The department shall
submit the report to the standard report recipients, the senate and
house appropriations committees, and the joint committee on
administrative rules.
Sec. 221. (1) Funds appropriated in part 1 must not be used to
restrict or impede a marginalized community's access to government
resources, programs, or facilities.
(2) From the funds appropriated in part 1, local governments
shall report any action or policy that attempts to restrict or
interfere with the duties of a local health officer.
Sec. 222. Not later than 6 months after the state budget
office issues work project letters, the department shall submit an
annual report that summarizes all work project accounts. The report
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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. 232. A department or agency that receives an
appropriation under this part or part 1 must provide an annual
report to the standard report recipients detailing federal policy
changes that do, or are expected to do, any of the following:
(a) Affect the operations of the department, including
reductions in federal revenue. For federal revenue reductions, the
annual report must detail the impact on the department or agency
and residents of this state, including, but not limited to, all of
the following information:
(i) The amount of additional state revenue required to replace
the lost federal revenue.
(ii) The services the department or agency will have to reduce
or eliminate due to the lost revenue.
(iii) The anticipated fiscal impact on residents of this state.
(b) Affect an industry, community, population, or other group
regulated or served by, or that otherwise engages with, the
department or agency.
(c) Create a regulatory gap that could negatively impact the
public.
(d) Increase the department's or agency's costs.
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(e) Reduce or eliminate a program that provides services to
residents of this state.
Sec. 234. 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
department appropriations for pension-related legacy costs are
estimated at $34,726,300.00. Total department appropriations for
retiree health care legacy costs are estimated at $0.00.
Sec. 235. 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. 236. The department shall report on any court settlement
that may require further legislative review of state statutory
programs or regulations.
Sec. 237. Not later than November 15, the department must
disclose on a publicly accessible website 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. The report
must be submitted to the standard report recipients and to the
chairpersons of the senate and house appropriations committees.
Sec. 239. (1) Not later than 30 days after the enactment of
this act, the house of representatives and senate shall provide to
the state budget office a jointly agreed-upon list of legislatively
directed spending items funded in part 1 as defined in 2025 PA 32
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and 2025 PA 33. The list must include all information and documents
pertaining to the funded items as publicly disclosed in accordance
with 2025 PA 32 and 2025 PA 33.
(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 post a report in a publicly
accessible location on its website beginning March 15 of the
current fiscal year. The department or agency shall update the
report and shall post an updated report not later than June 15 of
the current fiscal year and again not later than September 15 of
the current fiscal year. The department shall include in the report
the most comprehensive information the department has available at
the time of posting for grants awarded.
Sec. 240. The state budget director shall take steps to ensure
that all state fiscal recovery funds allocated to this state under
the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. Any state fiscal
recovery funds that would otherwise lapse after September 30, 2026,
are automatically reappropriated for the same purpose as originally
authorized and available for expenditure through December 31, 2026,
and any subsequent financial closeout period.
Sec. 241. (1) The state budget director shall take steps to
ensure that all state fiscal recovery funds allocated to this state
under the American rescue plan act of 2021, Public Law 117-2, are
expended by December 31, 2026, as required by law. The state budget
director may reallocate appropriated funds for the purpose of fully
utilizing state fiscal recovery funds that are in jeopardy of not
meeting the expenditure deadline for reasons that may include, but
are not limited to, completed projects coming in under budget or
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funds unable to be fully used by subrecipients. The state budget
director shall reallocate any of the funds reallocated under this
subsection to the programs or purposes specified in this section.
Any funds reallocated are unappropriated and immediately
reappropriated for the following purposes:
(a) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of corrections.
(b) To reclassify general fund/general purpose appropriations
for payroll and covered benefits for eligible public health and
safety employees at the department of state police.
(2) All applicable guidance, implementation, and reporting
provisions of the American rescue plan act of 2021, Public Law 117-
2, must be followed for state fiscal recovery funds reallocated and
reappropriated under subsection (1).
(3) The state budget director shall notify the senate and the
house appropriations committees not later than 1 business day after
making any reallocations under subsection (1). The notification
must include the authorized program under which funds were
originally appropriated, the amount of the reallocation, the
program, or programs, or purpose, and the department to which the
funds are being reallocated under subsection (1), and the amount
reallocated to each program or purpose.
Sec. 242. (1) In addition to any other requirements under this
part, if the department is authorized under this part to expend
funds in addition to those appropriated in part 1, the department
must do all of the following:
(a) Not later than November 1, provide a report to the
chairpersons of the house and senate appropriations committees, the
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house and senate fiscal agencies, and the state budget office that
details all of the following:
(i) The type of funding received during the previous fiscal
year that was authorized in part 2 of the article that made
appropriations for the department in the previous fiscal year.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) How much of the funding was spent and for what purpose.
(b) Not later than 60 days after receipt of funds authorized
under this part, provide a report to the chairpersons of the house
and senate appropriations committees, the house and senate fiscal
agencies, and the state budget office that details all of the
following:
(i) The type of funding received.
(ii) When the funding was received.
(iii) The amount of funding received.
(iv) The anticipated or actual amount to be spent and the
specified purpose.
(c) Not later than February 15, provide a report to the
chairpersons of the house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget office with
an estimate of funding authorized by this part that the department
anticipates it will receive in the subsequent fiscal year,
identifying all of the following:
(i) The type of funding anticipated.
(ii) The amount of funding anticipated.
(iii) The purpose of the funding.
(2) If another reporting requirement under this part would
provide substantially similar information on a substantially
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similar time frame as would be reported under subsection (1),
subsection (1) does not apply.

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. 302. Not later than December 31, the department shall
submit, to the standard report recipients and to the chairpersons
of the senate and house of representatives appropriations
committees, a report that includes the estimated available fund
balances for all of the following:
(a) The transportation economic development fund.
(b) The local grade separation fund.
(c) The infrastructure projects authority fund.
(d) The comprehensive transportation fund.
(e) The Michigan transportation fund.
(f) The state aeronautics fund.
(g) The contracting opportunity loan fund.
(h) The local bridge fund.
(i) The movable bridge fund.
(j) The intercity bus equipment and facility fund.
(k) The rail freight fund.
(l) The recreation improvement fund.
(m) The neighborhood roads fund.
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(n) The maritime and port fund.
(o) The Blue Water Bridge fund.
(p) The local agency wetland mitigation bank fund.
Sec. 303. (1) The department shall not utilize bridge bundling
contracting methods for projects involving the construction,
rehabilitation, or replacement of bridges delivered through the
local agency program unless all of the following conditions apply:
(a) A local agency program bridge bundling project package is
limited to a maximum of 5 bridges.
(b) A local agency program bridge bundling project package
must be confined to a single department region or limited to
contiguous counties.
(c) The department shall not impose any bidder qualification
requirements beyond standard prequalification. The department shall
not use requests for qualifications, statements of qualifications,
shortlisting, or other additional prerequisites for bidders.
(2) Bridge bundling for state trunkline or freeway projects
may be utilized where multiple structures are contiguous or nearly
contiguous, or if bundling is required for traffic control, cost
efficiency, or federal funding participation.
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
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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.
(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
legislature, the state budget director, and the senate and house
fiscal agencies its rolling 5-year plan listing by county or by
county road commission all highway construction projects for the
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fiscal year and all expected projects for the ensuing fiscal years.
Sec. 309. (1) Notwithstanding any other law, a state contract
for a pavement marking project or for the purchase of materials for
a pavement marking project must include in the contract a
requirement that, in any yellow water-based paint product procured,
all yellow pigments permanently incorporated in the material must
be manufactured in the United States according to the rules of
origin under the United States-Mexico-Canada agreement, Public Law
116-113.
(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. 313. (1) From funds appropriated in part 1, the
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
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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
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
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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 204 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.
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
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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
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. 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
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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. 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.
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.

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. 502. 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.
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.
(3) Interest earned in the transportation economic development
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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.
(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.

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.
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
this part and part 1 and section 13c of 1951 PA 51, MCL 247.663c.
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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, 247.663c, remains in the neighborhood roads
fund and carries forward.

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
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
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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. 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:
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(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, 2026 and the immediately
following 4 fiscal years.
(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. 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
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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.

CAPITAL OUTLAY
Sec. 901. (1) From federal-state-local project appropriations
contained in part 1 for the purpose of assisting political entities
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
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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.

ONE-TIME APPROPRIATIONS
Sec. 1001. The unexpended funds appropriated in part 1 for
Great Lakes Tunnel project – phase II oversight 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 work project is to support planning,
construction oversight, and administration of the Great Lakes
Tunnel project by the Mackinac Straits corridor authority, in
accordance with section 14d of 1952 PA 214, MCL 254.324d.
(b) The work project will be accomplished by utilizing state
employees or contracts with service providers, or both.
(c) The total estimated cost of the project is $4,100,000.00.
(d) The tentative completion date is September 30, 2031.
Enacting section 1. This act does not take effect unless
Senate Bill No. 877 of the 103rd Legislature is enacted into law.