2024 House Bill 5502

1. Amend page 22, following line 18, by inserting:

“Sec. 309. The department receiving appropriations in part 1 shall maintain, on a publicly accessible website, information that identifies, tracks, and regularly updates key metrics that are used to monitor and improve the department’s or agency’s performance.

Sec. 310. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this part or part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within this part or part 1 for the particular department, board, commission, officer, or institution.

Sec. 311. (1) From the funds appropriated in part 1, the department shall do all of the following:

(a) Report to the standard report recipients and 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, 2024 and the total number of former department employees that were remitted severance pay during the fiscal year ending September 30, 2024.

(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.”.

1. Amend page 22, following line 18, by inserting:

“Sec. 309. Not later than August 1, the department shall submit a report to the senate and house appropriations committees and to the standard report recipients that details all current work project accounts and their status. The report must include all of the following information for each current work project account:

(a) The original work project amount.

(b) A detailed accounting of expenditures to date.

(c) The current balance of the work project account.

(d) The intended use of any remaining funds in the work project account.

(e) The expected completion date of the work project.”.

1. Amend page 22, following line 18, by inserting:

“Sec. 309. Appropriations under part 1 from state or federal sources are prohibited from being used to provide services, grants, or programming to individuals who are not citizens of the United States, unless the individual is a qualified alien under 8 U.S.C. section 1641.”.

1. Amend page 22, following line 18, by inserting:

“Sec. 309. (1) Any funds appropriated in part 1 that are utilized for grants or grant programs are subject to the following conditions:

(a) Grant funds shall only be provided to an entity that has been established or operating in this state or another state for more than 2 years prior to approval or disbursement of the grant.

(b) Grant funds shall only be provided to an entity that has had an office within this state or in the service area covered under any grant for at least 6 months prior to approval or disbursement of the grant.

(c) Prior to the disbursement or awarding of any grant, all grant recipients must provide a spending plan specifying how all grant funds would be used and if any grant funds would be provided to a third party or subrecipient.

(d) Each department or agency responsible for the disbursement or awarding of grant funds must audit the entity’s use of the grant funds for each fiscal year in which the grant is active.

(e) Grant recipients and their immediate family members are prohibited from being employed by the executive branch or legislative branch of this state. In addition, grant recipients are prohibited from serving on any state board that has direct or indirect responsibility for the approval or auditing of grant funds disbursed by any department or agency.

(f) Full and complete audits of grant funds issued by the department or an agency of this state, without redaction unless required by law, must be posted to the department’s website in a conspicuous place for public review.

(2) On a quarterly basis, the department shall submit a report to the standard report recipients on legislatively-sponsored grant funds that includes, but is not limited to, all of the following:

(a) The status of each grant.

(b) The amount distributed to each grant.

(c) The remaining amount to be distributed to each grant.”.

1. Amend page 41, following line 5, by inserting:

“Sec. 529. (1) From the funds appropriated in part 1, the MEDC shall issue a report not later than December 31 outlining the MEDC’s current processes for ensuring that there is accountability and transparency in the use of state grant funds.

(2) The MEDC shall conduct an audit of expenses for any grant recipient that incurs expenditures of $200,000.00 or more in a fiscal quarter.

(3) If the Michigan strategic fund finds that any of the grant expenditures made by a grant recipient are inappropriate or unlawful during the course of an audit described under subsection (2), the fund shall refer the recipient to the department of attorney general for further investigation and the fund shall freeze any state grant funds available to the grant recipient until all investigations are completed.”.

1. Amend page 41, following line 18, by inserting:

“Sec. 603. From the funds appropriated in part 1, the office of global Michigan shall provide a quarterly report to the standard report recipients on the newcomer rental assistance program. The report must contain all of the following information:

(a) The total number of individuals served by the program and the number of individuals served in each county.

(b) The number of individuals served by immigration status type.

(c) The average length of a subsidy provided to individuals under the program and the total amount of subsidies administered through the program to date.

(d) The number of program applications received and the number of program applications rejected, including an analysis of the reasons for rejection, broken down by rejection category.

(e) The number of landlords participating in the program.

(f) A detailed accounting of all funds available to the program, including, but not limited to, fund source and any restrictions placed on the appropriate use of those funds.”.

1. Amend page 22, following line 18, by inserting:

“Sec. 309. For the purpose of things considered under joint rule 8, in order to be considered as part of the conference committee as a point of difference, the item must have appeared in either chamber’s budget bill for the department or agency being considered during the conference.”.

1. Amend page 24, following line 16, by inserting:

“Sec. 353. (1) As a condition of receiving funds appropriated under part 1, for any project being considered for strategic outreach and attraction reserve fund funding, the fund shall satisfy all of the following conditions not less than 30 days before approving a project:

(a) Receive a foreign entity report from the committee on foreign investment in the United States that provides a review of any foreign persons or entities that may provide foreign investment associated with the project.

(b) Receive confirmation of a form 800, known as a full voluntary notice, being filed with the United States Department of Treasury if any person or organization affiliated with the project is a citizen of or based in a nation on the list of countries of particular concern, special watch list countries, or affiliated with entities of particular concern as defined by the United States Department of State, or designated as a foreign entity of concern as defined in the infrastructure investment and jobs act, Public Law 117-58.

(c) Receive a letter of safe harbor from the United States Department of Treasury if any person or organization affiliated with the project is a citizen of or based in a nation on the list of countries of particular concern, special watch list countries, or affiliated with entities of particular concern as defined by the United States Department of State, or designated as a foreign entity of concern as defined in the infrastructure investment and jobs act, Public Law 117-58.

(d) Notify the speaker of the house, the house minority leader, the senate majority leader, and the senate minority leader if any person or organization affiliated with the project is a citizen of or based in a nation on the list of countries of particular concern, special watch list countries, or affiliated with entities of particular concern as defined by the United States Department of State, or designated a foreign entity of concern as defined in the infrastructure investment and jobs act, Public Law 117-58.

(e) Post on the department’s publicly accessible website a list of any entities that have any person or organization affiliated with the project that is a citizen of or based in a nation on the list of countries of particular concern, special watch list countries, or affiliated with entities of particular concern as defined by the United States Department of State, or designated a foreign entity of concern as defined in the infrastructure investment and jobs act, Public Law 117-58.

(2) As a condition of receiving funds appropriated under part 1, for any project being considered for strategic outreach and attraction reserve fund funding, the fund must disclose information that includes, but is not limited to, the following when complying with notification requirements not later than 30 days prior to approving a project:

(a) Name of the project receiving funding.

(b) Name of the organization receiving funding.

(c) Name of any individual or entity requiring notification under this section.

(d) A copy of the safe harbor letter from the United States Department of Treasury.”.

1. Amend page 41, following line 5, by inserting:

“Sec. 529. (1) As a condition of receiving funds appropriated under part 1, the MEDC must adopt a streamlined performance and business development services standard not later than December 31. Copies of the streamlined performance and business development services standard must be transmitted to each member of the legislature not later than January 15.

(2) As used in this section, “streamlined performance and business development services standard” means a policy to combine servicing and customer assistance functions related to any program or service offered by the MEDC. At a minimum, the policy must combine points of contact and substantially similar programming to limit wait times and service delays.”.

1. Amend page 22, following line 18, by inserting:

“Sec. 309. (1) The department and each type 1 agency organized under the department shall review all programs that are established within the department and the type 1 agencies that accomplish the same or similar missions within their purview. This requirement must include metrics that include, but are not limited to, the following:

(a) The number of individuals served by each program.

(b) The administrative costs of each program.

(c) The number of employees assigned to each program.

(d) The outcomes for each program participant.

(2) The department shall submit a report to the standard report recipients not later than December 31 that contains data for each of the metrics described in subsection (1).”.

1. Amend page 22, following line 18, by inserting:

“Sec. 309. The department shall provide a report to the standard report recipients that provides a comparative analysis of the state of Michigan’s economy and how it has been impacted annually by economic development funding since January 1, 2021. This report must include, but is not limited to, all of the following:

(a) An analysis of how any funds provided directly to business entities have impacted the prosperity region that the project is located in.

(b) Return on investment of any awarded funds.

(c) Statewide job creation statistics.

(d) Number of in-state project applications.

(e) Number of out-of-state project applications.”.

1. Amend page 5, line 22, after “217.0” by striking out “37,474,600” and inserting “36,6333,500”.

2. Amend page 6, line 9, after “health” by striking out “15,784,200” and inserting “15,361,800”.

3. Amend page 6, line 13, after “fund” by striking out “959,200” and inserting “942,800”.

4. Amend page 6, line 14, after “fees” by striking out “11,533,100” and inserting “11,398,700”.

5. Amend page 6, line 19, after “fund” by striking out “11,499,800” and inserting “11,362,600”.

6. Amend page 6, line 21, after “fees” by striking out “11,054,400” and inserting “10,923,700” and adjusting the subtotals, totals, and section 201 accordingly.

1. Amend page 56, following line 8, by inserting:

“Sec. 808. The department shall provide a report to the standard report recipients detailing any funds expended over the past 5 years for unemployment insurance benefit claims monitoring. Funds appropriated in part 1 for unemployment insurance agency must be used to support ongoing costs related to unemployment insurance benefit claims monitoring and fraud detection through the use of a third-party service that provides a proprietary identity document capture and verification solution.”.

1. Amend page 3, line 21, after “10.0” by striking out “5,000,000” and inserting “7,000,000”.

2. Amend page 3, line 27, by striking out all of line 27.

3. Amend page 53, following line 29, by inserting:

“Sec. 717. Not less than 80 percent of the funds appropriated in part 1 for community and worker economic transition office must be used for direct grants to workers displaced by economic transitions in sectors that include, but are not limited to, automotive, utilities, manufacturing, and building trades.”.

1. Amend page 13, line 5, after “grants” by striking out “6,000,000” and inserting “1,000,000” and adjusting the subtotals, totals, and section 201 accordingly.

2. Amend page 77, line 4, after “grants,” by striking out “$6,000,000.00” and inserting “$1,000,000.00”.

3. Amend page 77, line 10, after “allocated” by striking out “$6,000,000.00” and inserting “$1,000,000.00”.

1. Amend page 12, following line 25, by inserting:

Pure Michigan

5,000,000

and adjusting the subtotals, totals, and section 201 accordingly.

1. Amend page 62, line 3, by striking out all of section 1005 and inserting:

“Sec. 1005. From the funds appropriated in part 1 for community and fitness centers, the department shall allocate $10,000,000.00 for a grant program to support community and fitness centers located throughout this state. Grants awarded under this section must be awarded on a first-come, first-served basis. The total amount of a grant awarded under this section must not exceed $500,000.00.”.

1. Amend page 22, line 26, by striking out all of section 352.

1. Amend page 11, line 18, by striking out all of line 18.

2. Amend page 11, line 26, by striking out all of line 26.

3. Amend page 12, following line 1, by inserting:

Fire gear equipment grants

15,000,000

and adjusting the subtotals, totals, and section 201 accordingly.

4. Amend page 67, following line 2, by inserting:

“Sec. 1010. (1) From the funds appropriated in part 1 for fire gear equipment grants, the department shall distribute funding to local units of government that have all of the following:

(a) A fully paid fire department of an airport operated by a county, public airport authority, or state university or college.

(b) A member of a fully paid fire or police department of a city, township, or village employed and compensated on a full-time basis.

(c) A member of a fully paid public fire authority employed and compensated on a full-time basis.

(2) A grant that is provided under this section must be used to purchase a second set of turnout gear for firefighters employed by full-time fire departments.

(3) A grant that is provided under this section must not exceed $3,500.00 per full-time member of the department.” and renumbering the remaining sections accordingly.

1. Amend page 12, following line 4, by inserting:

Going pro

15,000,000

and adjusting the subtotals, totals, and section 201 accordingly.

1. Amend page 13, following line 7, by inserting:

Youth career development program

450,000

and adjusting the subtotals, totals, and section 201 accordingly.

2. Amend page 77, following line 23, by inserting:

“Sec. 1034. From the funds appropriated in part 1 for youth career development program, the department shall allocate $450,000.00 to an entity developing an initiative based on the United States Department of Labor YouthBuild model that serves emancipated youth and emerging adults ages 16 to 24 who experience vulnerable circumstances that prevent them from engaging in education, professional training, and living wage employment opportunities. The department shall allocate the funds under this section to an entity located in a township with a population between 1,805 and 1,815 in a county with a population between 132,000 and 135,000 according to the most recent federal decennial census for a youth career development program.” and renumbering the remaining section accordingly.

1. Amend page 12, following line 22, by inserting:

Neighborhood talent investment pilot

5,000,000

and adjusting the subtotals, totals, and section 201 accordingly.

2. Amend page 72, following line 6, by inserting:

“Sec. 1023. (1) From the funds appropriated in part 1 for neighborhood talent investment pilot, the department shall develop guidelines, allocate funding, and coordinate with state agencies to implement this section. The neighborhood talent investment pilot must have the following goals:

(a) To increase this state’s population of young talent by creating high-density, high-amenity, walkable, vibrant street life neighborhoods or districts.

(b) To create business ownership opportunities for local residents.

(2) The department shall award funding for approved local plans and execute grant agreements to existing grant recipients of the neighborhood talent concentration pilot established in 2023 PA 119, provided that the department determines the pilots are consistent with the objectives under this section. The department shall allocate funds by an open competition between prospective pilot grant recipients. No grant recipient is guaranteed additional funding under this section.

(3) To be eligible for a neighborhood talent investment pilot grant, an applicant must be a consortium of entities that includes local governments, local economic development organizations, nonprofit organizations, and local businesses. Consortium applicants shall appoint a nonprofit organization as the lead applicant to serve as a fiduciary and project manager for the consortium. Only grant applicants that provide a minimum of 50% local or private match may be considered for a state grant. Qualified plan proposals must include all of the following:

(a) The transition of roadway usage from cars to alternative transportation spaces, including, but not limited to, walking, biking, and transit.

(b) Artwork, outdoor recreation, open spaces, and greenways.

(c) Commercial corridor activation, including innovations to fill vacant retail space with locally owned businesses.

(d) Mixed-use development that contributes to dense, walkable areas.

(e) Transit and mixed-income housing development. A qualified plan must include proposals for transit and mixed-income housing development, but state funds must not be used for transit and mixed-income housing development.

(4) The department shall consider all of the following when selecting grant recipients:

(a) The likelihood that a proposed plan will lead to accelerated young talent population growth within the neighborhood or district.

(b) The extent to which a proposed plan will support the creation and ongoing success of locally owned businesses.

(c) The extent to which a proposed plan will create dense, walkable, vibrant spaces.

(d) The extent to which zoning and code restrictions have been, or will need to be, modified to support high-density residential development.

(e) The extent to which the proposed plan supports facilities and walkways that house or present cultural arts programs, performances, and exhibitions.

(f) The extent to which the proposed plan provides mixed-income housing.

(g) The likelihood of successful implementation of a proposed plan and the plan’s sustainability.

(5) To the extent possible, the department shall coordinate the selection of grant recipients with input from and communication with the department of transportation, MSHDA, MEDC, the department of natural resources, and the Michigan arts and culture council.” and renumbering the remaining sections accordingly.

1. Amend page 11, line 22, after “development” by striking out “100” and inserting “2,000,000” and adjusting the subtotals, totals, and section 201 accordingly.

2. Amend page 62, following line 2, by inserting:

“Sec. 1005. From the funds appropriated in part 1 for center for social enterprise development, the department shall allocate $2,000,000.00 to a statewide foundation supporting small businesses in this state to partner with an association of comprehensive human service providers that support individuals with disabilities, for the purpose of creating a center for social enterprise development. The center for social enterprise development must administer direct grants to small businesses and nonprofit organizations that seek to establish or expand a social enterprise with an emphasis on employing individuals who are marginalized or economically disadvantaged.” and renumbering the remaining sections accordingly.