Bill Text: MI HB5459 | 2023-2024 | 102nd Legislature | Introduced

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Bill Title: Appropriations: supplemental; funding for infrastructure investment and grant programs; provide for. Creates appropriation act.

Spectrum: Moderate Partisan Bill (Democrat 14-2)

Status: (Introduced) 2024-02-21 - Bill Electronically Reproduced 02/20/2024 [HB5459 Detail]

Download: Michigan-2023-HB5459-Introduced.html

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HOUSE BILL NO. 5459

A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2024; 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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part 1

line-item appropriations

Sec. 101. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year

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ending September 30, 2024, from the following funds:

APPROPRIATION SUMMARY
GROSS APPROPRIATION		$	13,000,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers			0
ADJUSTED GROSS APPROPRIATION		$	13,000,000
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		$	13,000,000
Sec. 102. DEPARTMENT OF TREASURY
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION		$	13,000,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers			0
ADJUSTED GROSS APPROPRIATION		$	13,000,000
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		$	13,000,000

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(2) ONE-TIME APPROPRIATIONS
Back office grant program		$	10,000,000
Back office infrastructure investment			3,000,000
GROSS APPROPRIATION		$	13,000,000
Appropriated from:
State general fund/general purpose		$	13,000,000

 

part 2

provisions concerning appropriations

general sections

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2024 is $13,000,000.00 and total state spending from state sources to be paid to local units of government is $10,000,000.00.

Sec. 202. The appropriations made and expenditures authorized under this part and part 1 and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

 

DEPARTMENT OF TREASURY

Sec. 301. (1) The funds appropriated in part 1 for back office grant program must be used to establish and operate a back office grant program that provides grants to local units of government for 1 or more of the following related to finance, human resources, or information technology operations:

(a) Assistance with complex, unanticipated, or emergent needs.

(b) Investments in critical business operations.

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(c) Human resource programs to improve recruitment and retention.

(d) Cybersecurity and resiliency testing of information technology infrastructure.

(e) Alternative staffing when recruitment or retention efforts fail.

(2) The department of treasury shall contract with a qualified nonprofit for the administration of the back office grant program. The contract must provide for oversight of the back office grant program by the department of treasury. Not more than 5% of the funds appropriated in part 1 for back office grant program may be paid to the qualified nonprofit for the administration of the back office grant program.

(3) The qualified nonprofit, in consultation with the department of treasury, shall do all of the following:

(a) Develop a detailed application, approval, and compliance process for the back office grant program that is published and available on the qualified nonprofit's website.

(b) Establish local match requirements for receipt of a grant under the back office grant program. Local match requirements established under this subdivision must take into account a local unit of government's financial need.

(c) Authorize the expenditure of grant funds for the back office grant program to the qualified accounting firm with which the department of treasury contracts in accordance with section 302 or 1 of the department of treasury approved qualified accounting firms on behalf of the local unit of government approved for the grant.

(4) The department of treasury shall disburse $2,500,000.00 of

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grant funds to the qualified nonprofit in advance and replenish those funds not later than 30 days after appropriate reporting from the qualified nonprofit on the use of funds in accordance with the application, approval, and compliance process developed under subsection (3).

(5) The unexpended funds appropriated in part 1 for back office grant program 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 of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to establish and operate a back office grant program to provide local units of government the opportunity to enhance the functional areas of finance, human resources, and information technology in a financial needs-based cost-sharing arrangement with this state.

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

(c) The total estimated cost of the project is $10,000,000.00.

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

(6) As used in this section:

(a) "Back office grant program" means the grant program established and operated under this section.

(b) "Local unit of government" means a city, village, township, county, or any intergovernmental, metropolitan, or local department, agency, or authority, or other local political subdivision.

(c) "Qualified nonprofit" means a nonprofit association that

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represents counties in this state.

Sec. 302. (1) From the funds appropriated in part 1 for back office infrastructure investments, the department of treasury shall contract with a qualified accounting firm to provide a statewide talent acquisition and training program that does all of the following:

(a) Creates a pool of professional staff available via alternative staffing arrangements to local units of government in finance, human resources, and information technology.

(b) Provides classroom and on-the-job training for the pool of professional staff to provide those employees with well-rounded skill sets in the areas of finance, human resources, and information technology.

(c) Establishes standardized policies and procedures for finance, human resources, and information technology operations to achieve efficient and effective results.

(d) Provides standardized technology solutions for finance, human resources, and information technology networks.

(2) The contract under subsection (1) shall reimburse the qualified accounting firm only for actual expenses of the statewide talent acquisition and training program plus 10% for indirect administration costs.

(3) The unexpended funds appropriated in part 1 for back office infrastructure investments 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 of the management and budget act, 1984 PA 431, MCL 18.1451a:

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(a) The purpose of the project is to provide a statewide talent acquisition and training program for local units of government to enhance the overall pool of local government experts in the critical functions of finance, human resources, and information technology.

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

(c) The total estimated cost of the project is $3,000,000.00.

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

(4) As used in this section:

(a) "Firm" means that term as defined in section 720 of the occupational code, 1980 PA 299, MCL 339.720.

(b) "Local unit of government" means a city, village, township, county, or any intergovernmental, metropolitan, or local department, agency, or authority, or other local political subdivision.

(c) "Qualified accounting firm" means a firm that meets all of the following requirements:

(i) Is licensed in this state under section 728 of the occupational code, 1980 PA 299, MCL 339.728, to engage in the practice of public accounting in this state.

(ii) Provides both bundled and ad hoc services in all of the following areas:

(A) Finance.

(B) Human resources.

(C) Information technology, including network hosting.

(D) Financial planning, including investment advisory and fiduciary capabilities.

(iii) Is registered with the United States Securities and

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Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

(iv) Has physical locations within at least 7 of the 10 prosperity regions.

(v) For any remaining prosperity regions where the firm does not have a physical location under subparagraph (iv), the firm has a physical location within 60 miles of the prosperity region's border.