Bill Text: MI HB5514 | 2023-2024 | 102nd Legislature | Engrossed

Michigan House Bill 5514

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Appropriations: department of licensing and regulatory affairs; appropriations for fiscal year 2024-2025; provide for. Creates appropriation act.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2024-06-05 - Referred To Conference Committee 06/05/2024 [HB5514 Detail]

Download: Michigan-2023-HB5514-Engrossed.html

Substitute For

HOUSE BILL NO. 5514

A bill to make appropriations for the department of licensing and regulatory affairs for the fiscal year ending September 30, 2025; 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, 2025, from the following funds:

DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS
APPROPRIATION SUMMARY
Full-time equated unclassified positions	30.0
Full-time equated classified positions	1,786.0

GROSS APPROPRIATION		$	636,467,200
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers			27,682,800
ADJUSTED GROSS APPROPRIATION		$	608,784,400
Federal revenues:
Total federal revenues			30,471,300
Special revenue funds:
Total local revenues			0
Total private revenues			0
Total other state restricted revenues			277,507,400
State general fund/general purpose		$	300,805,700
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	30.0
Full-time equated classified positions	104.0
Unclassified salaries--FTEs	30.0	$	2,993,800
Administrative services--FTEs	77.0		9,032,800
Consultation, education, and performance office			400,000
Executive director programs--FTEs	24.0		2,973,800
FOIA coordination--FTEs	3.0		351,800
Property management			7,067,100
Worker's compensation			93,400
GROSS APPROPRIATION		$	22,912,700
Appropriated from:
Interdepartmental grant revenues:
IDG from MDIFS, accounting services			150,000
Federal revenues:

EPA, underground storage tanks			30,400
HHS-Medicaid, certification of health care providers and suppliers			375,800
HHS-Medicare, certification of health care providers and suppliers			624,200
Special revenue funds:
Aboveground storage tank fees			92,800
Accountancy enforcement fund			55,200
Boiler inspection fund			288,400
Builder enforcement fund			104,100
Construction code fund			836,400
Corporation fees			4,425,800
Elevator fees			312,500
Fire alarm fees			7,600
Fire safety standard and enforcement fund			2,100
Fire service fees			353,400
Fireworks safety fund			58,900
Health professions regulatory fund			1,886,200
Health systems fees			252,000
Licensing and regulation fund			899,000
Liquor license revenue			292,400
Liquor purchase revolving fund			3,173,100
Marihuana registry fund			191,600
Marihuana regulation fund			1,327,500
Marihuana regulatory fund			562,300
Michigan unarmed combat fund			5,900
Mobile home code fund			261,300
Nurse professional fund			40,500

PMECSEMA fund			48,000
Property development fees			7,800
Public utility assessments			3,314,000
Real estate appraiser education fund			2,700
Real estate education fund			11,700
Real estate enforcement fund			12,000
Refined petroleum fund			151,800
Securities fees			1,490,700
Securities investor education and training fund			9,600
Security business fund			7,100
Survey and remonumentation fund			97,800
Tax tribunal fund			825,300
Utility consumer representation fund			54,000
State general fund/general purpose		$	270,800
Sec. 103. PUBLIC SERVICE COMMISSION
Full-time equated classified positions	223.0
Public service commission--FTEs	223.0	$	41,071,000
GROSS APPROPRIATION		$	41,071,000
Appropriated from:
Federal revenues:
DOT, gas pipeline safety			3,027,200
Special revenue funds:
Public utility assessments			38,043,800
State general fund/general purpose		$	0
Sec. 104. LIQUOR CONTROL COMMISSION
Full-time equated classified positions	150.0
Liquor licensing and enforcement--FTEs	119.0	$	17,855,700
Management support services--FTEs	31.0		4,951,800

GROSS APPROPRIATION		$	22,807,500
Appropriated from:
Special revenue funds:
Direct shipper enforcement revolving fund			313,900
Liquor control enforcement and license investigation revolving fund			175,000
Liquor license fee enhancement fund			76,400
Liquor license revenue			8,377,400
Liquor purchase revolving fund			13,864,800
State general fund/general purpose		$	0
Sec. 105. OCCUPATIONAL REGULATION
Full-time equated classified positions	907.0
Bureau of community and health systems--FTEs	164.0	$	25,453,600
Bureau of construction codes--FTEs	179.0		30,511,100
Bureau of fire services--FTEs	84.0		13,901,400
Bureau of professional licensing--FTEs	198.0		42,445,800
Bureau of survey and certification--FTEs	175.0		29,068,200
Corporations, securities, and commercial licensing bureau--FTEs	107.0		16,467,700
Urban search and rescue			1,000,000
GROSS APPROPRIATION		$	158,847,800
Appropriated from:
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			9,118,700

HHS-Medicare, certification of health care providers and suppliers			14,647,000
Special revenue funds:
Aboveground storage tank fees			343,700
Accountancy enforcement fund			1,206,000
Adult foster care facilities licenses fund			373,600
Boiler inspection fund			2,992,300
Builder enforcement fund			644,000
Construction code fund			13,565,600
Corporation fees			9,083,300
Division on deafness fund			73,400
Elevator fees			6,213,400
Fire alarm fees			138,300
Fire safety standard and enforcement fund			32,300
Fire service fees			2,844,000
Fireworks safety fund			1,249,400
Health professions regulatory fund			27,323,300
Health systems fees			4,139,500
Licensing and regulation fund			11,819,800
Liquor purchase revolving fund			156,100
Marihuana regulatory fund			500,000
Mobile home code fund			2,125,800
Nurse aide and medication aide registration fund			1,657,800
Nurse professional fund			1,967,200
PMECSEMA fund			2,566,800
Property development fees			192,600
Real estate appraiser education fund			65,500

Real estate education fund			601,900
Real estate enforcement fund			754,400
Refined petroleum fund			2,656,200
Securities fees			5,342,000
Securities investor education and training fund			500,300
Security business fund			239,900
Survey and remonumentation fund			903,400
State general fund/general purpose		$	31,441,700
Sec. 106. CANNABIS REGULATORY AGENCY
Full-time equated classified positions	182.0
Cannabis regulatory agency--FTEs	182.0	$	31,649,200
GROSS APPROPRIATION		$	31,649,200
Appropriated from:
Special revenue funds:
Industrial hemp licensing and registration fund			295,900
Marihuana registry fund			3,233,300
Marihuana regulation fund			20,442,000
Marihuana regulatory fund			7,678,000
State general fund/general purpose		$	0
Sec. 107. MICHIGAN OFFICE OF ADMINISTRATIVE HEARINGS AND RULES
Full-time equated classified positions	196.0
Michigan office of administrative hearings and rules--FTEs	196.0	$	38,627,600
GROSS APPROPRIATION		$	38,627,600
Appropriated from:
Interdepartmental grant revenues:

IDG revenues - administrative hearings and rules			26,096,000
Special revenue funds:
Construction code fund			27,100
Corporation fees			4,326,500
Health professions regulatory fund			874,600
Health systems fees			165,100
Licensing and regulation fund			914,300
Liquor purchase revolving fund			486,600
Marihuana regulation fund			253,500
Marihuana regulatory fund			98,700
Public utility assessments			2,946,300
Securities fees			1,037,500
Tax tribunal fund			822,100
State general fund/general purpose		$	579,300
Sec. 108. COMMISSIONS
Full-time equated classified positions	21.0
Michigan indigent defense commission--FTEs	21.0	$	3,140,200
Michigan unarmed combat commission			126,200
GROSS APPROPRIATION		$	3,266,400
Appropriated from:
Special revenue funds:
Michigan unarmed combat fund			126,200
State general fund/general purpose		$	3,140,200
Sec. 109. 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		258,345,300
Remonumentation grants		6,800,000
Utility consumer representation		2,100,000
GROSS APPROPRIATION	$	282,445,300
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		2,100,000
State general fund/general purpose	$	258,045,300
Sec. 110. INFORMATION TECHNOLOGY
Information technology services and projects	$	27,589,700
GROSS APPROPRIATION	$	27,589,700
Appropriated from:
Interdepartmental grant revenues:
IDG revenues - administrative hearings and rules		1,436,800
Federal revenues:
DOT, gas pipeline safety		152,600
EPA, underground storage tanks		99,900
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			1,100
Boiler inspection fund			385,500
Construction code fund			1,321,900
Corporation fees			5,755,700
Elevator fees			503,400
Fire safety standard and enforcement fund			3,000
Fire service fees			538,600
Fireworks safety fund			72,800
Health professions regulatory fund			3,380,000
Health systems fees			364,700
Industrial hemp licensing and registration fund			4,000
Licensing and regulation fund			936,700
Liquor license revenue			234,400
Liquor purchase revolving fund			4,751,800
Marihuana registry fund			192,600
Marihuana regulation fund			1,221,500
Marihuana regulatory fund			548,000
Michigan unarmed combat fund			6,800
Mobile home code fund			204,000
Nurse aide and medication aide registration fund			7,000
PMECSEMA fund			68,500
Public utility assessments			2,018,000
Real estate appraiser education fund			1,000
Real estate education fund			4,300
Refined petroleum fund			235,200
Securities fees			460,600

Securities investor education and training fund			5,600
Survey and remonumentation fund			75,400
Tax tribunal fund			208,500
State general fund/general purpose		$	1,328,400
Sec. 111. ONE-TIME APPROPRIATIONS
Full-time equated classified positions	3.0
5-year energy waste reduction and demand response statewide study		$	1,000,000
Bureau of fire services - smoke detectors			250,000
Health professions implicit bias study			250,000
Michigan indigent defense commission limited-term staff--FTEs	2.0		250,000
Michigan saves			5,000,000
Renewable energy and electrification infrastructure enhancement and development--FTE	1.0		500,000
GROSS APPROPRIATION		$	7,250,000
Appropriated from:
Special revenue funds:
Health professions regulatory fund			250,000
Public utility assessments			1,000,000
State general fund/general purpose		$	6,000,000

part 2

provisions concerning appropriations

for fiscal year 2024-2025

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, 2025, total state spending under part 1 from state sources is $578,313,100.00 and state spending from state sources to be paid to local units of government is $280,345,300.00. The following itemized statement 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		258,345,300
Remonumentation grants		6,800,000
TOTAL	$	280,345,300

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 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) "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 subcommittees, 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. The department shall use the internet to fulfill the reporting requirements of this part. This requirement includes transmitting reports to the standard report recipients and any other required recipients by email and posting the reports on an internet site.

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 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 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. The department shall not use funds appropriated in part 1 to hire a person to provide legal services that are the responsibility of the attorney general. This section does not apply to legal services for bonding activities or to outside legal services that the attorney general authorizes.

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 $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 $25,000,000.00 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 $200,000.00 for local contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for private contingency authorization. Amounts appropriated under this subsection are not available for expenditure until they have been 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.

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

(e) Job specifications and wage rates.

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 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. 2019-08.

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 the senate and house appropriations committees.

Sec. 216. It is the intent of the legislature that the department maximize the efficiency of the state workforce and, if possible, prioritize in-person work and post its in-person, remote, or hybrid work policy on its website.

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

Sec. 221. 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. 222. (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. 223. (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 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. 224. 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. 225. (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, 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. 226. (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.

(d) Bureau of professional licensing.

(2) The report under subsection (1) must be in a format that is consistent between the agencies listed in subsection (1) and must provide, but is not limited to, the following information for the previous fiscal year, as applicable, for each agency:

(a) Revenue generated by and expenditures disbursed for each regulatory product.

(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) 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.

Sec. 227. 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 a report to the standard report recipients on changes to the employee performance monitoring process that are planned or implemented, as well as the number of employee evaluations performed.

Sec. 228. Not later than September 30, the department shall submit a report to the standard report recipients that details any expenditure of funds for a television or radio production that was

made to a third-party vendor in the fiscal year ending September 30, 2025. The report must include all of the following information for each expenditure:

(a) Total amount of the expenditure.

(b) Fund source for the expenditure.

(d) Purpose of the production.

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 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.

Sec. 302. From the funds appropriated in part 1, the Michigan public service commission shall conduct 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. Subject to the requirements of this section, if there is a city with a population between 195,000 and 700,000 according to the most recent federal decennial census within a judicial district described under section 302 of the revised judicature act of 1961, 1961 PA 236, MCL 600.302, the public hearing for that district must

be conducted in that city.

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 unlicensed out-of-state retailers and third-party marketers identified with the shipping records 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, 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 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 Michigan 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 Michigan that has been identified with the shipping records described in subsection (1). The notice must include all of the following statements:

(a) That shipping wine into Michigan by unlicensed out-of-state retailers and third-party marketers is illegal, and wineries shipping into Michigan 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 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. 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
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 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 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 health systems administration from fees and collections that exceeds the amount appropriated in part 1 may 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 $800.00 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.

(d) Any recommendations for consideration by the legislature.

Sec. 506. Not later than November 30, the department shall submit a report to the standard report recipients on the Michigan automated prescription system. The report must include, but is not limited to, the total number of all of the following:

(a) Licensed health professionals registered to the Michigan automated prescription system.

(b) Dispensers registered to the Michigan automated prescription system.

(d) Dispensers using the Michigan automated prescription system.

(e) 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) 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) Delegate users registered to the Michigan automated prescription system.

Sec. 507. From the funds appropriated in part 1 for the 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.

Sec. 508. 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.

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.

Cannabis regulatory agency

Sec. 601. Not later than January 31, the department shall submit a comprehensive report to the standard report recipients for all marihuana programs administered by the cannabis regulatory agency. This report must include, but is not limited to, all of the 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 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.

Sec. 602. From the funds appropriated in part 1, the cannabis regulatory agency shall post on a publicly accessible website a

list of all of the following:

(a) The number of investigative reports that identify violations of the Michigan Medical Marihuana Act, 2008 IL 1, MCL 333.26421 to 333.26430, the medical marihuana facilities licensing 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.

(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 of any suspected illegal activities and the category of suspected illegal activities the agency referred to the department of state police or other appropriate law enforcement agency.

(f) For any licensee subject to disciplinary proceedings

initiated by the agency:

(i) Name of the licensee.

(ii) Description of the allegation.

(iii) Complaint type.

(iv) Process used to resolve the allegation.

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

Sec. 603. 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.

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

Sec. 604. The cannabis regulatory agency shall not use any of the funds appropriated in part 1 to offset user fees that are assessed by the agency for activities related to the marihuana enforcement tracking reporting and compliance statewide tracking system.

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 September 30, the Michigan indigent defense commission shall submit a report to the standard report recipients 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. The Michigan indigent defense commission shall place particular emphasis on the costs that may be avoided after standards are developed and compliance plans are in place.

Sec. 803. Not later than March 1, the Michigan indigent defense commission shall submit a report to the standard report recipients that contains all of the following:

(a) A detailed explanation of the total cost calculation for each indigent defense standard for which grant recipients are receiving state grant funding. The explanation must include a comprehensive itemization of the types of costs included for each standard.

(b) An itemized listing of how much funding each grant recipient is receiving for each indigent defense standard.

(c) An explanation of the specific causal factors associated with any increase or decrease of Michigan indigent defense commission grant funding from the previous fiscal year level.

Sec. 804. From the funds appropriated in part 1, the Michigan indigent defense commission shall notify the standard report recipients not more than 30 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

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 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 agree to submit a report to the department not later than September 15 on how the grant was expended. The department shall submit a report 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.

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 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.

(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 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 indigent defense commission limited-term staff, the Michigan indigent defense commission shall do 1 of the following to conduct financial examinations into how Michigan indigent defense commission grant awards are used by grant recipients:

(a) Hire limited-term employees.

(b) Contract with an external vendor.

(2) The Michigan indigent defense commission shall submit biannual reports to the standard report recipients not later than April 1 and September 30 that provide all of the following information:

(a) An explanation of whether the funds appropriated in part 1 for Michigan indigent defense commission limited-term staff were expended to hire limited-term employees or to contract with an external vendor. If the funds were expended to contract with an external vendor, the report must identify which vendor was

selected.

(b) The total number of financial examinations conducted and a description of the scope of the financial examinations.

Sec. 1003. 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 clean energy improvement 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 or on-site wastewater system replacements or repairs.

Sec. 1004. (1) From the unexpended and unencumbered funds appropriated in 2019 PA 60 and 2020 PA 166 for Michigan indigent defense commission grants, $5,000,000.00 is appropriated for renewable energy and electrification infrastructure enhancement and development.

(2) The funds appropriated under subsection (1) 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 using state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2029.

Sec. 1005. (1) From the funds appropriated in part 1 and section 1004 for renewable energy and electrification infrastructure enhancement and development, except as otherwise provided in subsection (11), funds must be expended only for grants to businesses, nonprofit organizations, and local units of government for the purpose of planning, developing, designing, acquiring, or constructing renewable energy and electrification infrastructure projects.

(2) From the total amount of funds for grants awarded under this section for electric vehicle fast-charging infrastructure, 25% of the total amount must be allocated for infrastructure that provides charging at a power level of 350 kilowatts or less and 75% of the total amount must be allocated for infrastructure that provides charging at a power level of not less than 350 kilowatts.

(3) The Michigan public service commission shall develop guidelines for the grant program described in subsection (1) and implement an application process for the grant program not later than 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.

(4) Applicants for a grant under this section must perform an impact study that includes an analysis of potential cost savings, environmental impacts, and local economic benefits of the applicant's proposed renewable energy and electrification infrastructure project. A utility, at its sole discretion, may

prepare a single impact study that covers 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 the proposed project will align with the governor's MI healthy climate plan.

(5) An applicant that applies for a grant to be used to develop RNG infrastructure shall include all of the following information in the applicant's application:

(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.

(6) After receipt of an application under this section, the Michigan public service commission shall 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 shall allow the applicant not less than 15 days after the comments have been received from interested parties, at the applicant's discretion, to modify or maintain the applicant's initial proposal.

(7) The Michigan public service commission shall 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.

(8) Not later than 30 days after the completion of the relevant project, grant recipients under this section shall submit a report to the Michigan public service commission that details how the grant money was used.

(9) The unexpended funds appropriated in part 1 for renewable energy and electrification infrastructure enhancement and development 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 using state employees or contracts with service providers, or both.

(d) The tentative completion date is September 30, 2029.

(10) The funds appropriated in part 1 and section 1004 for renewable energy and electrification infrastructure enhancement and development must not be used to expand the use of conventional natural gas.

(11) From the funds appropriated in part 1 and section 1004 for renewable energy and electrification infrastructure enhancement

and development, the Michigan public service commission shall not use more than $125,000.00, upon awarding of the grants, for administrative-related expenses incurred by the commission for the operation of the grant program. Funds supporting the grant program are appropriated in the Michigan public service commission upon awarding of the grants.

(12) As used in this section:

(a) "Renewable energy and electrification infrastructure projects" includes, but is not limited to, renewable natural gas facilities and electric vehicle fast-charging infrastructure upgrades on publicly owned land within 1,000 feet of a United States highway or state trunkline roadway.

(b) "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, septage feedstock, plant materials, or food waste.