Bill Text: MI HB4280 | 2023-2024 | 102nd Legislature | Engrossed

Michigan House Bill 4280

Bill Title: Appropriations: department of licensing and regulatory affairs; appropriations for fiscal year 2023-2024; provide for. Creates appropriation act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2023-06-28 - Referred To Committee On Appropriations [HB4280 Detail]

Download: Michigan-2023-HB4280-Engrossed.html

Substitute For

HOUSE BILL NO. 4280

A bill to make appropriations for the department of licensing and regulatory affairs for the fiscal year ending September 30, 2024; and to provide for the expenditure of the appropriations.

the people of the state of michigan enact:

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, 2024, from the following funds:

DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
APPROPRIATION SUMMARY
Full-time equated unclassified positions	30.0
Full-time equated classified positions	1,861.9

GROSS APPROPRIATION		$	625,071,200
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers			46,897,200
ADJUSTED GROSS APPROPRIATION		$	578,174,000
Federal revenues:
Total federal revenues			30,004,200
Special revenue funds:
Total local revenues			0
Total private revenues			0
Total other state restricted revenues			258,438,700
State general fund/general purpose		$	289,731,100
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	30.0
Full-time equated classified positions	100.0
Unclassified salaries--FTEs	30.0	$	2,851,200
Administrative services--FTEs	73.0		8,787,100
Executive director programs--FTEs	24.0		2,925,500
FOIA coordination--FTEs	3.0		337,800
Property management			7,738,400
Worker's compensation			130,000
GROSS APPROPRIATION		$	22,770,000
Appropriated from:
Interdepartmental grant revenues:
IDG from MDIFS, accounting services			150,000
Federal revenues:
EPA, underground storage tanks			30,300

HHS-Medicaid, certification of health care providers and suppliers			424,100
HHS-Medicare, certification of health care providers and suppliers			621,000
Special revenue funds:
Aboveground storage tank fees			95,300
Accountancy enforcement fund			67,800
Boiler inspection fund			288,900
Builder enforcement fund			103,300
Construction code fund			788,500
Corporation fees			4,313,100
Elevator fees			310,000
Fire alarm fees			7,500
Fire safety standard and enforcement fund			2,100
Fire service fees			470,800
Fireworks safety fund			61,200
Health professions regulatory fund			1,799,900
Health systems fees			252,700
Licensing and regulation fund			951,500
Liquor license revenue			292,400
Liquor purchase revolving fund			3,131,600
Marihuana registry fund			189,800
Marihuana regulation fund			1,241,600
Marihuana regulatory fund			554,900
Michigan unarmed combat fund			5,900
Mobile home code fund			290,000
Nurse professional fund			39,800
PMECSEMA fund			47,000

Property development fees			7,600
Public utility assessments			3,282,300
Real estate appraiser education fund			2,800
Real estate education fund			11,600
Real estate enforcement fund			11,900
Refined petroleum fund			173,200
Securities fees			1,463,000
Securities investor education and training fund			9,400
Security business fund			7,100
Survey and remonumentation fund			98,600
Tax tribunal fund			825,300
Utility consumer representation fund			54,000
State general fund/general purpose		$	292,200
Sec. 103. PUBLIC SERVICE COMMISSION
Full-time equated classified positions	196.0
Public service commission--FTEs	195.0	$	34,941,000
Renewable energy and electrification infrastructure enhancement and development, ongoing--FTE	1.0		11,744,500
GROSS APPROPRIATION		$	46,685,500
Appropriated from:
Federal revenues:
DOT, gas pipeline safety			3,078,600
Special revenue funds:
Public utility assessments			31,862,400
State general fund/general purpose		$	11,744,500
Sec. 104. LIQUOR CONTROL COMMISSION
Full-time equated classified positions	150.0

Liquor licensing and enforcement--FTEs	119.0	$	17,761,100
Management support services--FTEs	31.0		4,900,400
GROSS APPROPRIATION		$	22,661,500
Appropriated from:
Special revenue funds:
Direct shipper enforcement revolving fund			308,700
Liquor control enforcement and license investigation revolving fund			175,000
Liquor license fee enhancement fund			76,400
Liquor license revenue			8,402,500
Liquor purchase revolving fund			13,698,900
State general fund/general purpose		$	0
Sec. 105. OCCUPATIONAL REGULATION
Full-time equated classified positions	1,027.9
Bureau of community and health systems--FTEs	171.0	$	25,269,900
Bureau of construction codes--FTEs	172.0		26,015,200
Bureau of fire services--FTEs	78.0		14,028,700
Bureau of professional licensing--FTEs	202.0		40,966,500
Bureau of survey and certification--FTEs	155.9		26,025,600
Child care licensing and regulation--FTEs	140.0		23,677,800
Corporations, securities, and commercial licensing bureau--FTEs	109.0		15,854,400
Urban search and rescue			1,000,000
GROSS APPROPRIATION		$	172,838,100
Appropriated from:
Interdepartmental grant revenues:
IDG from MDE, child care licensing			20,076,100
Federal revenues:

DHS, fire training systems			528,000
DOT, hazardous materials training and planning			20,000
EPA, underground storage tanks			820,600
HHS-Medicaid, certification of health care providers and suppliers			8,958,500
HHS-Medicare, certification of health care providers and suppliers			14,438,800
Special revenue funds:
Aboveground storage tank fees			333,100
Accountancy enforcement fund			780,600
Adult foster care facilities licenses fund			416,500
Boiler inspection fund			2,974,900
Builder enforcement fund			644,000
Child care home and center licenses fund			501,700
Construction code fund			11,435,200
Corporation fees			8,551,800
Division on deafness fund			73,400
Elevator fees			3,951,300
Fire alarm fees			135,500
Fire safety standard and enforcement fund			31,100
Fire service fees			2,699,500
Fireworks safety fund			1,241,200
Health professions regulatory fund			27,332,600
Health systems fees			4,005,000
Licensing and regulation fund			11,808,300
Liquor purchase revolving fund			150,700
Marihuana regulatory fund			500,000
Mobile home code fund			2,108,600

Nurse aide registration fund			598,100
Nurse professional fund			1,967,200
Nursing home administrative penalties			100,000
PMECSEMA fund			1,907,100
Property development fees			192,600
Real estate appraiser education fund			65,500
Real estate education fund			347,500
Real estate enforcement fund			554,400
Refined petroleum fund			2,699,400
Securities fees			5,258,300
Securities investor education and training fund			496,500
Security business fund			237,900
Survey and remonumentation fund			893,800
State general fund/general purpose		$	33,002,800
Sec. 106. CANNABIS REGULATORY AGENCY
Full-time equated classified positions	173.0
Cannabis regulatory agency--FTEs	173.0	$	28,004,600
GROSS APPROPRIATION		$	28,004,600
Appropriated from:
Special revenue funds:
Industrial hemp licensing and registration fund			300,000
Marihuana registry fund			3,475,500
Marihuana regulation fund			17,805,800
Marihuana regulatory fund			6,423,300
State general fund/general purpose		$	0
Sec. 107. MICHIGAN OFFICE OF ADMINISTRATIVE HEARINGS AND RULES
Full-time equated classified positions	194.0

Michigan office of administrative hearings and rules--FTEs	194.0	$	38,840,500
GROSS APPROPRIATION		$	38,840,500
Appropriated from:
Interdepartmental grant revenues:
IDG revenues - administrative hearings and rules			26,671,100
Special revenue funds:
Construction code fund			26,700
Corporation fees			4,340,500
Health professions regulatory fund			859,200
Health systems fees			164,900
Licensing and regulation fund			900,300
Liquor purchase revolving fund			481,000
Marihuana regulation fund			253,500
Marihuana regulatory fund			98,700
Public utility assessments			2,487,200
Securities fees			1,019,100
Tax tribunal fund			847,600
State general fund/general purpose		$	690,700
Sec. 108. COMMISSIONS
Full-time equated classified positions	21.0
Michigan indigent defense commission--FTEs	21.0	$	3,167,400
Michigan unarmed combat commission			126,200
GROSS APPROPRIATION		$	3,293,600
Appropriated from:
Special revenue funds:
Michigan unarmed combat fund			126,200

State general fund/general purpose	$	3,167,400
Sec. 109. GRANTS
Firefighter training grants	$	2,300,000
Liquor law enforcement grants		9,900,000
Medical marihuana operation and oversight grants		3,000,000
Michigan indigent defense commission grants		206,072,900
Remonumentation grants		6,800,000
Utility consumer representation		850,000
GROSS APPROPRIATION	$	228,922,900
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		850,000
State general fund/general purpose	$	205,772,900
Sec. 110. INFORMATION TECHNOLOGY
Information technology services and projects	$	22,354,500
GROSS APPROPRIATION	$	22,354,500
Appropriated from:
Federal revenues:
DOT, gas pipeline safety		44,900
EPA, underground storage tanks		99,900
HHS-Medicaid, certification of health care providers and suppliers		357,300

HHS-Medicare, certification of health care providers and suppliers			582,200
Special revenue funds:
Aboveground storage tank fees			34,500
Accountancy enforcement fund			1,100
Boiler inspection fund			327,200
Construction code fund			1,287,500
Corporation fees			5,253,900
Elevator fees			475,600
Fire safety standard and enforcement fund			3,000
Fire service fees			536,900
Fireworks safety fund			51,900
Health professions regulatory fund			1,869,200
Health systems fees			297,400
Licensing and regulation fund			1,098,800
Liquor license revenue			47,600
Liquor purchase revolving fund			4,361,100
Marihuana registry fund			153,800
Marihuana regulation fund			985,000
Marihuana regulatory fund			432,000
Michigan unarmed combat fund			6,800
Mobile home code fund			175,600
PMECSEMA fund			38,500
Public utility assessments			1,277,700
Real estate appraiser education fund			1,000
Real estate education fund			1,900
Refined petroleum fund			170,300
Securities fees			263,400

Securities investor education and training fund		1,000
Survey and remonumentation fund		73,900
Tax tribunal fund		183,000
State general fund/general purpose	$	1,860,600
Sec. 111. ONE-TIME APPROPRIATIONS
Bureau of fire services - smoke detectors	$	1,600,000
Bureau of survey and certification		1,200,000
Cannabis regulatory agency reference laboratory		2,800,000
Child care licensing bureau background check program		200,000
Corporations online filing modernization		2,700,000
Michigan saves		5,000,000
Premanufactured unit plan review upgrades		700,000
Renewable energy and electrification infrastructure enhancement and development, one-time		24,500,000
GROSS APPROPRIATION	$	38,700,000
Appropriated from:
Special revenue funds:
Corporation fees		2,700,000
Marihuana regulation fund		2,800,000
State general fund/general purpose	$	33,200,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2023-2024

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 fiscal year 2023-2024 is $548,169,800.00 and state spending from state sources to be paid to local units of government for fiscal year 2023-2024 is $228,072,900.00. 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		206,072,900
Remonumentation grants		6,800,000
TOTAL	$	228,072,900

Sec. 202. The appropriations authorized 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.

(d) "DOT" means the United States Department of Transportation.

(e) "EPA" means the United States Environmental Protection Agency.

(f) "FOIA" means the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

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

(h) "HHS" means the United States Department of Health and

Human Services.

(i) "IDG" means interdepartmental grant.

(j) "MDE" means the Michigan department of education.

(k) "MDIFS" means the Michigan department of insurance and financial services.

(l) "PMECSEMA" means pain management education and controlled substances electronic monitoring and antidiversion.

(m) "Subcommittees" means the subcommittees of the house and senate appropriations committees with jurisdiction over the budget for the department.

Sec. 204. The department shall use the internet to fulfill the reporting requirements of this part. This requirement shall include transmission of reports via email to the recipients identified for each reporting requirement and it shall include placement of reports on an internet site.

Sec. 205. Except as otherwise provided in this part, all reports required under this part shall be submitted to the subcommittees, the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.

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:

(a) Funds appropriated in part 1 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. 207. The department shall not take disciplinary action against an employee of the department or departmental agency in the state classified civil service because the employee communicates with a member of the legislature or a member's staff, unless the communication is prohibited by law and the department or agency taking disciplinary action is exercising its authority as provided by law.

Sec. 208. The department shall prepare a report on out-of-state travel expenses not later than January 1 of each year. The travel report shall be a listing of all travel by classified and unclassified employees outside this state in the immediately preceding fiscal year that was funded in whole or in part with funds appropriated in the department's budget. The report shall be submitted to the senate and house appropriations committees. The report shall include the following information:

(a) The dates of each travel occurrence.

(b) The total transportation and related costs of each travel occurrence, including the proportion funded with state general fund/general purpose revenues, the proportion funded with state restricted revenues, the proportion funded with federal revenues, and the proportion funded with other revenues.

Sec. 209. Funds appropriated in this part and part 1 must not be used by the department to hire a person to provide legal services that are the responsibility of the attorney general. This prohibition does not apply to legal services for bonding activities

and for those outside services that the attorney general authorizes.

Sec. 210. Not later than December 15, the state budget office shall prepare and transmit a report that provides estimates of the total general fund/general purpose appropriation lapses at the close of the prior fiscal year. This report must summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the chairpersons of the senate and house appropriations committees.

Sec. 211. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $10,000,000.00 for federal contingency authorization. Authorized 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 $25,000,000.00 for state restricted contingency authorization. Authorized 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 $1,000,000.00 for local contingency authorization. Authorized 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.

(4) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $500,000.00 for private contingency authorization. Authorized 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. 212. The department shall cooperate with the department of technology, management, and budget to maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following for the department:

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

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

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

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

(e) Job specifications and wage rates.

Sec. 213. Within 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide the chairpersons of the senate and house appropriations committees with an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the prior 2 fiscal years.

Sec. 214. The department shall maintain, on a publicly accessible website, a department scorecard that identifies, tracks, and regularly updates key metrics that are used to monitor and improve the department's performance.

Sec. 215. 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 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, supplies, or both.

Sec. 216. On a quarterly basis, the department shall submit to the senate and house appropriations committees and the recipients required under section 205 of this part 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 at the end of the reporting period.

Sec. 217. Appropriations in part 1 shall, to the extent possible by the department, not be expended until all existing work project authorization available for the same purposes is exhausted.

Sec. 218. The department shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed. The department may electronically retain copies of reports unless otherwise required by federal or state guidelines.

Sec. 219. Not later than April 1, the department shall report on each specific policy change made to implement a public act affecting the department that took effect during the prior calendar year to the senate and house appropriations committees and the joint committee on administrative rules.

Sec. 220. (1) From the funds appropriated in part 1, the department shall do all of the following:

(a) Report to the senate and house appropriations committees

any amount of severance pay for a department director, deputy director, or other high-ranking department official not later than 14 days after a severance agreement with the director or official is signed. The name of the director or official and the amount of severance pay must be included in the report required by this subdivision.

(b) By February 1, report on the total amount of severance pay remitted to former department employees during the fiscal year ending September 30, 2023, and the number of former department employees that were remitted severance pay during the fiscal year ending September 30, 2023.

(2) As used in this section, "severance pay" means compensation that is both payable or paid upon the termination of employment and in addition to either wages or benefits earned during the course of employment or generally applicable retirement benefits.

Sec. 221. It is the intent of the legislature that the department maximize the efficiency of the state workforce and, where possible, prioritize in-person work. Each executive branch department, agency, board, or commission that receives funding under part 1 must post its in-person, remote, or hybrid work policy on its website.

Sec. 222. (1) No funding appropriated in part 1 shall be used to restrict or interfere with actions related to diversity, equity, and inclusion (DEI); to restrict or impede a marginalized community's access to government resources, programs, or facilities; or to diminish, interfere with, or restrict an individual's ability to exercise the right to reproductive freedom.

(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. 223. 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. Within 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. 224. (1) Grants supported with private revenues received by the department are appropriated upon receipt and are available for expenditure by the department, subject to subsection (3), for purposes specified within the grant agreement and as permitted under state and federal law.

(2) Within 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) shall not exceed $2,000,000.00.

Sec. 225. (1) The department may charge registration fees to attendees of informational, training, or special events sponsored by the department and related to activities that are under the department's purview.

(2) These fees shall reflect the costs for the department to sponsor the informational, training, or special events.

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

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

Sec. 226. The department may make available to interested entities otherwise unavailable customized listings of nonconfidential information in its possession, such as names and addresses of licensees. The department may establish and collect a reasonable charge to provide this service. The revenue received from this service is appropriated when received and shall be used to offset expenses to provide the service. Any balance of this revenue collected and unexpended at the end of the fiscal year shall lapse to the appropriate restricted fund.

Sec. 227. (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 shall 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 for the following documents:

(a) Corporation and securities division documents, reports,

and papers required or permitted by law pursuant to section 1060(6) of the business corporation act, 1972 PA 284, MCL 450.2060.

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

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

(d) Construction code manuals.

(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 shall carry forward to the subsequent fiscal year and not lapse to the general fund.

Sec. 228. (1) Not later than December 31, the department shall submit a report pertaining to licensing and regulatory programs during the immediately preceding fiscal year for the following agencies:

(a) Liquor control commission.

(b) Bureau of fire services.

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

(e) Bureau of professional licensing.

(f) Bureau of community and health systems.

(2) The report shall be in a format that is consistent between the agencies listed in subsection (1). Agencies listed in subsection (1)(a) and (b) shall report by regulated activity, and agencies listed in subsection (1)(c), (d), (e), and (f) shall report by regulatory product or regulated activity, or both. Subject to this subsection, the report shall provide, but is not limited to, the following information for the immediately preceding fiscal year, as applicable, for each agency:

(a) Revenue generated by and expenditures disbursed by regulatory fund.

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

(d) Number of initial applications.

(e) Number of initial applications denied.

(f) Number of license renewals.

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

(h) Number of examinations proctored for initial applications.

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

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

(k) Number of complaints received.

(l) Number of complaints investigated.

(m) Number of complaints closed with no action.

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

(o) Average amount of time to complete investigations.

(p) Number of enforcement actions, including license

revocations, suspensions, and fines.

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

(r) Number of administrative hearing adjudications.

(3) As used in subsection (2), "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. As used in this subsection and subsection (2), "regulated activity" means the particular activities, entities, facilities, and industries regulated by the agencies specified in subsection (1).

Sec. 229. It is the intent of the legislature that the department establish an employee performance monitoring process that is consistent throughout the department, in addition to current civil service commission evaluations. The department shall submit an annual report on changes to the employee performance monitoring process that are planned or implemented, as well as the number of employee evaluations performed.

Sec. 230. Unless prohibited by law, the department may accept credit card or other electronic means of payment for licenses, fees, or permits.

PUBLIC SERVICE COMMISSION

Sec. 301. 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 in

the department upon awarding of grants and may be expended for grant payments and administrative related expenses incurred in the operation of the grant program.

Sec. 302. (1) From the funds appropriated in part 1 for renewable energy and electrification infrastructure enhancement and development, ongoing and renewable energy and electrification infrastructure enhancement and development, one-time, funding must be expended only for grants to businesses, nonprofit organizations, and units of local government for the purposes of planning, developing, designing, acquiring, or constructing renewable energy and electrification infrastructure projects. As used in this section, "renewable energy and electrification infrastructure projects" includes electrification programs to allow solar arrays larger than 5 megawatts to connect to the grid, renewable natural gas facilities, and electric vehicle fast charging infrastructure upgrades within 1,000 feet of a U.S. highway or state trunkline roadway.

(2) The Michigan public service commission must develop program guidelines and implement an application process for the grant program within 6 months after the effective date of this act and must first prioritize and approve grants that meet the goals of the governor's MI healthy climate plan.

(3) Grant applicants must perform an impact study that includes an analysis of potential cost savings, environmental impacts, and local economic benefits of the proposed renewable energy and electrification infrastructure project. A utility, at its sole discretion, may prepare a single impact study covering the utility's service territory that accounts for likely proposals, evaluates regional opportunities, and minimizes or eliminates the

need for repetitive studies. Sufficient detail must be provided in the study to allow the Michigan public service commission to evaluate each proposed project, including how it will align with the governor's MI healthy climate plan.

(4) An applicant applying for a grant to be used to develop RNG infrastructure shall include all of the following:

(a) The project details, including the location of biogas and the proposed interconnection.

(b) The cost estimates for the interconnection, metering, and gas conditioning equipment needed to connect to an existing pipeline system.

(d) Any local economic impact from the RNG infrastructure development.

(e) The end-use application for the RNG infrastructure with a focus on projects being used for opportunities in this state.

(5) After receiving an application under this section, the Michigan public service commission must allow local units of government, environmental groups, and business interests directly affected by the proposal 45 days to review the application and provide comments. The Michigan public service commission must give the applicant 15 days after the comments have been received from interested parties, at the applicant's discretion, to modify or maintain their initial proposal.

(6) The Michigan public service commission must review all proposals and award grants to applicants it determines have met the criteria in this section. All grants must include full and timely cost recovery from the fund for the infrastructure requirements of

the affected utility made necessary by the grant.

(7) Grant recipients under this section must submit a report to the Michigan public service commission detailing how the grant money was used within 30 days after the completion of the relevant project.

(8) As used in this section, "renewable natural gas" or "RNG" means methane derived from organic material and degradable carbon sources, including, but not limited to, carbon sources and materials sourced from municipal solid waste, agricultural waste, plant materials, or food waste.

(9) The unexpended funds appropriated in part 1 for renewable energy and electrification infrastructure enhancement and development, ongoing, 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 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 renewable energy and electrification infrastructure projects.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2028.

(10) The unexpended funds appropriated in part 1 for renewable energy and electrification infrastructure enhancement and development, one-time, 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 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 renewable energy and electrification infrastructure projects.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2028.

(11) The funds appropriated in part 1 for renewable energy and electrification infrastructure enhancement and development, ongoing and renewable energy and electrification infrastructure enhancement and development, one-time, must not be used to expand the use of conventional natural gas.

Sec. 303. From the funds appropriated in part 1, the Michigan public service commission shall conduct the following hearings to address questions from the public and receive public comments:

(a) At least 1 public hearing in any city with a population between 195,000 and 700,000 according to the most recent federal decennial census.

(b) Not including any public hearing required under subdivision (a), at least 1 public hearing within each of the 4 judicial districts described under section 302 of the revised judicature act of 1961, 1961 PA 236, MCL 600.302. Any hearing conducted within district 4, as that district is described under section 302 of the revised judicature act of 1961, 1961 PA 236, MCL 600.302, must be conducted outside of Ingham County.

LIQUOR CONTROL COMMISSION

Sec. 401. (1) From the appropriations in part 1 from the direct shipper enforcement revolving fund, the liquor control commission shall expend these 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. In addition to other investigative methods, the commission shall use shipping records available to it under section 203(21) of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1203, to assist with this effort. The liquor control commission must refer all unlicensed out-of-state retailers and third-party marketers identified with the shipping records to the attorney general.

(2) By February 1, the liquor control commission shall provide a report to the legislature detailing the commission's activities to investigate and audit the illegal shipping of wine and the results of these activities. The report shall include the following:

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

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

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

broken down 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 Michigan identified with the shipping records under subsection (1).

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

(3) From the appropriations 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 Michigan that has been identified via the shipping records under subsection (1). The notice must include all of the following:

(a) Notification that shipping wine into Michigan by retailers and third-party marketers is illegal, and wineries shipping into Michigan must obtain a direct shipper license.

(b) Under section 909 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1909, making unlawful shipments of wine into Michigan 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.

OCCUPATIONAL REGULATION

Sec. 501. Money appropriated under this part and part 1 for the bureau of fire services shall not be expended unless, in accordance with section 2c of the fire prevention code, 1941 PA 207, MCL 29.2c, inspection and plan review fees will be charged

according to the following schedule:

Operation and maintenance inspection fee
Facility type	Facility size		Fee
Hospitals	Any		$8.00 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 set forth in the Michigan Administrative Code and as determined under section 8 of 1976 PA 333, MCL 338.2158, and section 16 of 1967 PA 227, MCL 408.816, that are unexpended at the end of the fiscal year shall carry forward to the subsequent fiscal year.

Sec. 503. Not later than February 15, the department shall submit a report providing 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 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 preceding 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 preceding 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 preceding fiscal year and a description of how these costs were calculated.

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

Sec. 504. If the revenue collected by the department for health systems administration from fees and collections exceeds the amount appropriated in part 1, the revenue may be carried forward into the subsequent fiscal year. The revenue carried forward under this section shall be used as the first source of funds in the subsequent fiscal year.

Sec. 505. (1) Beginning October 1, for the purpose of defraying the costs associated with responding to false final inspection appointments and to discourage the practice of calling for final inspections when the 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 not to exceed $1,000.00 for responding to a second or

subsequent confirmed false inspection appointment. Fees collected under this section shall be deposited into the restricted account referenced by section 2c(2) 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 prepare a report that provides the amount of the fee assessed under subsection (1), the number of fees assessed and issued per region, the cost allocation for the work performed and reduced as a result of this section, and any recommendations for consideration by the legislature.

Sec. 506. The department shall submit a report on the Michigan automated prescription system to the senate and house appropriations committees by November 30. The report shall include, but is not limited to, the following:

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

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

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

(e) Number of cases related to overprescribing, overdispensing, and drug diversion where the department took administrative action as a result of information and data generated from the Michigan automated prescription system.

(f) The number of hospitals, doctor's offices, pharmacies, and other health facilities that have integrated the Michigan automated

prescription system into their electronic health records systems.

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

Sec. 507. From the amount appropriated in part 1 for bureau of community and health systems, upon receipt of the order of suspension of a licensed adult foster care home, home for the aged, or nursing home, the department shall serve the facility and provide contemporaneous notice to the offices of legislators representing a district where the licensed facility is situated and to the senate and house subcommittees on health and human services.

Sec. 508. From the funds appropriated in part 1 for the bureau of construction codes, at least $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.

Sec. 509. From the funds appropriated in part 1 for the bureau of construction codes, it is the intent of the legislature that the department allocate at least $900,000.00 to cooperate with the office of the state employer, the relevant collective bargaining unit, and any other relevant stakeholders to increase compensation rates for elevator inspectors employed by the department.

Sec. 510. 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. Pursuant to available funds, the payment of final judgments shall be made in the order in which the final judgments were entered and began accruing interest.

Sec. 511. From the funds appropriated in part 1 for the bureau

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

Cannabis regulatory agency

Sec. 601. The department shall submit a comprehensive annual report for all marihuana programs administered by the cannabis regulatory agency by January 31 to the senate and house appropriations committees. This report shall include, but is not limited to, all of the following information for the prior fiscal year regarding the marihuana programs under the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430, the medical marihuana facilities licensing act, 2016 PA 281, MCL 333.27101 to 333.27801, and the Michigan Regulation and Taxation of Marihuana Act, 2018 IL 1, MCL 333.27951 to 333.27967:

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

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

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

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

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

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

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

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

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

(j) The total amount collected from application fees or established regulatory assessment and the specific fund this 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) 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) Number of investigations opened pertaining to each license category.

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

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

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

(s) A description of the types of enforcement actions taken

against licensees.

(t) 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.

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

(a) The number of investigative reports that identify suspected illegal or irregular activities of licensees under the agency's purview.

(b) The number of investigative reports that identify suspected marihuana product without the tracking numbers assigned by the statewide monitoring system affixed, tagged, or labeled as required by the act or the rules.

(c) The number of complaints filed by the public with the agency concerning marihuana product without the tracking numbers assigned by the statewide monitoring system affixed, tagged, or labeled as required by the act or the rules.

(d) The number of complaints filed by the public with the agency concerning unlicensed commercial production or sale of delta-8 THC.

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

(f) The number of reports of any suspected or illegal activities and the category of suspected illegal or irregular activities the agency referred to the department of state police, or other appropriate law enforcement agency, of any suspected or

illegal activities contained in the reports in subdivisions (a), (b), (c), and (d).

(g) For any licensee subject to disciplinary proceedings initiated by the agency under the reports in subdivisions (a), (b), (c), and (d), the cannabis regulatory agency shall post the following information on a publicly available website upon the closure of any investigative report:

(i) Name of licensee.

(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.

Sec. 603. The department shall submit a comprehensive annual report for all hemp programs administered by the cannabis regulatory agency by January 31. The report must include, but is not limited to, all of the following:

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

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

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

Sec. 604. (1) From the FTEs provided for in part 1 for the cannabis regulatory agency, the cannabis regulatory agency must use at least 5.0 FTEs to conduct in-person no-notice inspections of

licensed processors, with higher priority given to inspecting those facilities that produce distillate or other concentrates and that produce the most marihuana product. These inspections shall happen quarterly and at times the facility intakes a significant amount of biomass or other raw material.

(2) The cannabis regulatory agency shall post an annual report of these inspections on a publicly accessible website that lists all of the following:

(a) The number of inspections and the number of investigative reports that identify suspected illegal or irregular activities of licensees as identified by the inspections.

(b) The number of complaints filed by the public with the cannabis regulatory agency concerning possible illegal or irregular activities by a licensed processor or cultivation facility regarding the production of distillate or concentrates.

(c) The number and outcome of all cannabis regulatory agency disciplinary proceedings initiated against any licensee subject to the reports in subsections (a) and (b), including if the suspected or illegal activities under subsections (a) and (b) have been referred to the department of state police or other appropriate law enforcement agencies or if any product has been recalled.

(d) For any licensee subject to disciplinary proceedings initiated by the cannabis regulatory agency under the reports in subsections (a) and (b), the cannabis regulatory agency shall post all of the following information on a publicly available website upon the closure of any investigative report:

(i) Name of the licensee.

(ii) Description of the allegation.

(iii) Complaint type (CRA inspection or public).

(iv) Process used to resolve the investigation.

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

COMMISSIONS

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

Sec. 802. From the funds appropriated in part 1, the Michigan indigent defense commission shall submit a report by September 30 on 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. Particular emphasis shall be placed on those costs that may be avoided after standards are developed and compliance plans are in place.

GRANTS

Sec. 901. (1) The department shall expend the funds appropriated in part 1 for marihuana operation and oversight grants for grants to counties for education and outreach programs relating to the Michigan medical marihuana program and the adult-use marihuana program, pursuant to 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. These grants shall 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 money available to each county on its website. In addition, the department shall work collaboratively with counties regarding the availability of these grant funds. A county requesting a grant shall apply on a form developed by the department and available on its website. The form shall contain the county's specific projected plan for use of the money and its agreement to maintain all records and to submit documentation to the department to support the use of the grant money.

(3) In order to be eligible to receive a grant under subsection (1), a county shall apply not later than January 1 and agree to report how the grant was expended and to provide that report to the department not later than September 15. The department shall submit a report not later than October 15 of the subsequent fiscal year detailing the grant amounts by recipient and

the reported uses of the grants in the preceding fiscal year.

Sec. 902. (1) The amount appropriated in part 1 for firefighter training grants shall only be expended 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 amount appropriated in part 1 for firefighter training grants is expended by the firefighters training council, established in 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, the following apply to the extent otherwise permissible by law:

(a) The amount appropriated in part 1 for firefighter training grants shall be allocated pursuant to section 14(2) of the firefighters training council act, 1966 PA 291, MCL 29.374.

(b) If the amount allocated to any county under subdivision (a) is less than $5,000.00, the amounts disbursed to each county under subdivision (a) shall be adjusted to provide for a minimum payment of $5,000.00 to each county.

(3) Not later than February 1, the department shall submit a financial report identifying the following information for the preceding fiscal year:

(a) The amount of the payments that would be made to each county if the distribution formula described by the first sentence of 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.

(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 must 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 that contains all of the following information:

(a) The number of smoke detectors that the bureau of fire 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. From the funds appropriated in part 1 for Michigan saves, the Michigan public service commission may award a $5,000,000.00 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. (1) From the funds appropriated in part 1 for premanufactured unit plan review upgrades, the bureau of construction codes shall implement changes to decrease the average length of time to process and review premanufactured unit plan submissions.

(2) The department shall submit biannual reports not later than April 1 and September 30 that include all of the following information:

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

(b) The average length of time to process a premanufactured unit plan submission in fiscal year 2022-2023.

(d) The total number of premanufactured unit plans submitted in fiscal year 2022-2023.

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

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Bill Text: MI HB4280 | 2023-2024 | 102nd Legislature | Engrossed

Michigan House Bill 4280

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