2023 House Bill 4292 / Public Act 321

1. Amend page 32, by striking out all of line 18 and inserting:

“Local unit municipal pension principal payment grants

100”

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

2. Amend page 131, following line 5, by inserting:

“Sec. 979c. (1) From the funds appropriated in part 1 for local unit municipal pension principal payment grants, the department of treasury shall establish and operate a grant program that would provide grant awards to qualified units for deposit into a qualified unit’s qualified retirement system or systems. The grant award payment into the qualified retirement system must be in addition to a qualified unit’s actuarially determined contribution as reported under section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, as of December 31, 2021 and must not be used by the qualified unit to meet its actuarially determined contribution for a qualified retirement system or systems.

(2) To qualify for a grant award under this section, a qualified unit must certify and attest via an affidavit that it shall implement all of the following practices upon the receipt of a grant award:

(a) The qualified unit shall make, in full, all actuarially determined contributions. If a qualified unit’s actual contribution is less than the actuarially determined contribution, the qualified unit shall remit an amount equal to the difference to the qualified retirement system within 12 months. If the qualified unit fails to remit this payment within 12 months, the department of treasury may intercept the qualified unit’s revenue sharing payment. For a qualified unit that is a road commission, the department of transportation, in cooperation with the department of treasury, may intercept an available state revenue distribution.

(b) The qualified unit shall not provide contractual benefit enhancements unless the contractual benefit enhancement is 100% prefunded. Failure to meet the conditions of this subdivision requires repayment of the grant award that was received by the qualified unit. The qualified governmental unit shall notify the department of treasury in a form and manner prescribed of any contractual benefit enhancement under this subsection within 30 days.

(c) A qualified retirement system with a discount rate or assumed rate of return less than or equal to 7% must assume a discount rate or assumed rate of return of not more than the current rate. A qualified retirement system with a discount rate or assumed rate of return greater than 7% must lower its discount rate or assumed rate of a return to a rate at or below 7% within the immediately succeeding 5-year period.

(d) The qualified retirement system shall adopt, on the recommendation of the actuary and in accordance with all applicable actuarial standards of practice, the most current mortality tables that are most appropriate for the characteristics of the population, which may subsequently be adjusted based on an experience study of the qualified retirement system.

(e) A qualified unit, if that unit has, previous to the enactment of this bill, had an amortization schedule approved by an accredited actuary in accordance with all actuarial standards of practice, and if that amortization schedule has been reviewed and approved by the state treasurer, is not subject to the uniform actuarial assumptions of retirement systems’ assumption on amortization and may maintain its current amortization schedule.

(f) Within 5 years, the qualified unit shall comply with the uniform actuarial assumptions of retirement systems, except for the discount rate and assumed rate of return assumptions, published as of December 31, 2021 by the state treasurer under the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2801 to 38.2812, for the qualified retirement system.

(3) The department of treasury shall distribute the funds appropriated in part 1 for local unit municipal pension principal payment grants according to the following:

(a) 60% to qualified units whose qualified retirement systems funded ratios are no less than 60% but less than 80%.

(b) 40% to qualified units whose qualified retirement systems are funded at ratios of at least 80%.

(c) For qualified units that are between 60% but less than 80% funded, grant awards under this section must not exceed $2,000,000.00 or an amount that would increase the qualified retirement system’s funded ratio to 80%, whichever is less.

(d) For qualified units whose funded ratio is 80% or greater, grant awards under this section must not exceed $2,000,000.00 or an amount that would increase the qualified retirement system’s funded ratio to 100%, whichever is less.

(e) A grant must not be awarded if it would increase a qualified unit’s funded ratio to more than 100%.

(f) Any funds not awarded by September 30, 2024 must be used for additional rounds of applications until all funds are dispersed.

(g) The $2,000,000.00 grant cap does not apply to additional rounds of grant awards.

(4) The department of treasury shall develop, and publish on the department website, program guidelines, an application process, and the associated application materials no later than April 15, 2024. The department of treasury must accept applications from qualified units beginning April 15, 2024 and ending on June 15, 2024. Grant awards to a qualified retirement system under this section must be disbursed no later than August 30, 2024.

(5) From the funds appropriated in part 1 for local unit municipal pension principal payment grant, an amount not to exceed $500,000.00 may be used by the department of treasury for administrative costs related to this section, including, but not limited to, the use of a vendor to assist with processing applications.

(6) If the amount appropriated is insufficient to meet all grant award requests, the department of treasury shall prorate payments under this section by reducing the amount of the allocation as otherwise calculated under this section by an equal percentage per qualified unit receiving funds under this section.

(7) As used in this section:

(a) “Contractual benefit enhancement” means any change to the current benefit policy for active members in a qualified retirement system that increases the actuarially determined contribution rate or decreases the funded ratio of the system. This does not include wage and salary increases.

(b) “Qualified retirement system” means a retirement pension benefit within a retirement system, as defined in section 3 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2803, of a qualified unit, with a funded ratio of 60% or greater based on the last report filed as required by section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, as of December 31, 2021.

(c) “Qualified unit” means a city, county, township, village, or road commission that operates a qualified retirement system.”.

1. Amend page 44, following line 10, by inserting:

“Sec. 230. (1) Any department, agency, board, commission, or public officer that receives funding under part 1 shall not:

(a) Require as a condition of accessing any facility or receiving services that an individual provide proof that he or she has received a COVID-19 vaccine except as provided by federal law or as a condition of receiving federal Medicare or Medicaid funding.

(b) Produce, develop, issue, or require a COVID-19 vaccine passport.

(c) Develop a database or make any existing database publicly available to access an individual’s COVID-19 vaccine status by any person, company, or governmental entity.

(d) Require as a condition of employment that an employee or official provide proof that he or she has received a COVID-19 vaccine. This subdivision does not apply to any hospital, congregate care facility, or other medical facility or any hospital, congregate care facility, or other medical facility operated by a local unit of government that receives federal Medicare or Medicaid funding.

(2) A department, agency, board, commission, or public officer may not subject any individual to any negative employment consequence, retaliation, or retribution because of that individual’s COVID-19 vaccine status.

(3) Subsection (1) does not prohibit any person, department, agency, board, commission, or public officer from transmitting proof of an individual’s COVID-19 vaccine status to any person, company, or governmental entity, so long as the individual provides affirmative consent.

(4) If a department, agency, board, commission, subdivision, or official or public officer is required to establish a vaccine policy due to a federal mandate, it must provide exemptions to any COVID-19 vaccine policy to the following individuals:

(a) An individual for whom a physician certifies that a COVID-19 vaccine is or may be detrimental to the individual’s health or is not appropriate.

(b) An individual who provides a written statement to the effect that the requirements of the COVID-19 vaccine policy cannot be met because of religious convictions or other consistently held objections to immunization.

(5) As used in this section, “public officer” means a person appointed by the governor or another executive department official or an elected or appointed official of this state or a political subdivision of this state.”.

1. Amend page 72, line 19, by striking out all of section 717 and inserting:

“Sec. 717. (1) The department of state may accept nonmonetary gifts, donations, or contributions of property, of a de minimus value, from any private or public source to support, in whole or in part, the operation of a departmental function relating to licensing, regulation, or safety, but may accept donations of motorcycles for use for motorcycle safety training and testing. The department may recognize a private or public contributor for making the contribution. The department may reject a gift, donation, or contribution.

(2) The department of state shall not accept a gift, donation, or contribution under subsection (1) if receipt of the gift, donation, or contribution is conditioned upon a commitment of future state funding.

(3) On March 1 of each year, the department of state shall file a report with the senate and house of representatives standing committees on appropriations, the chairpersons of the relevant appropriations subcommittees, the senate and house fiscal agencies, and the state budget director. The report shall list any gift, donation, or contribution received by the department under subsection (1) for the prior calendar year and the source of each gift, donation, or contribution.”.

1. Amend page 43, line 24, by striking out all of section 222 and inserting:

“Sec. 222. Money appropriated in part 1 must not be used to require actions related to diversity, equity, and inclusion (DEI); to restrict or impede any community’s access to government resources, programs, or facilities; or to diminish, interfere with, or restrict an individual’s ability to exercise rights as outlined under the State Constitution.”.

1. Amend page 16, following line 28, by inserting:

“Election challenger training

100”

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

2. Amend page 73, line 7, after “law” by striking out the balance of the line through “elections” on line 10.

3. Amend page 73, following line 28, by inserting:

“Sec. 724. The department of state shall submit a report 90 days after every election on the number of individuals who both registered to vote within 60 days of an election and who cancelled that registration or moved their registration to another location within 60 days after the same election.

Sec. 725. The department of state shall submit a report to the senate and house standing committees on elections by April 1 on all requirements the department had to meet to participate in the Electronic Registration Information Center (ERIC) multi-state program. The report must include, but is not limited to, a description of all requests, including the date of the request and type of data requested, copies of agreements and any and all actions taken by the secretary of state and bureau of elections to meet requirements of the ERIC program.

Sec. 726. From funds appropriated in part 1, the department of state shall explore available options for meeting the requirements of subsection (5), section 509o of 1954 PA 116, MCL 168.509o(5) to serve as an alternative to the department’s current form of participation in the Electronic Registration Information Center (ERIC) multi-state program, including alternative forms of participation in the ERIC program.

Sec. 727. From the funds appropriated in part 1 for election challenger training, the department of state shall hire sufficient staffing to implement an election challenger training program.”.

4. Amend page 74, line 10, after “22-2.” by inserting “Eligible expenditures are limited to purchases and costs related to the following:

(a) Ballot drop boxes.

(b) Security cameras for ballot drop boxes.

(c) Software and updates to the Qualified Voter File to accommodate early voting.

(d) A permanent absentee-voter list.

(e) Military postmark dates.

(f) Ballot tracking.”.

1. Amend page 41, line 1, after “of” by striking out “$0.00” and inserting “$300,000,000.00”.

1. Amend page 17, line 26, by striking out all of line 26.

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

2. Amend page 32, following line 20, by inserting:

“Prop 22-2

50,000,000”

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

3. Amend page 74, line 8, by striking out all of section 751.

4. Amend page 131, following line 5, by inserting:

“Sec. 979c. Funds appropriated in part one for early voting shall be used for costs associated with early voting as required under Proposal 22-2 and shall not be used for any other purpose. Funds shall be distributed by November 1, 2023 by average voter turnout per precinct across all precincts.”.

1. Amend page 54, following line 2, by inserting:

“Sec. 325. The department of attorney general shall provide a report by April 1 to the senate and house appropriations committees and the senate and house standing committees on elections the number of election-related complaints received and the number of substantiated complaints addressed by the department of attorney general.

Sec. 326. The department of attorney general shall submit a report by November 1 that includes, but is not limited to, the following information for the prior fiscal year about participants of the job court program:

(a) The number by county.

(b) The number who are first-time offenders and repeat offenders.

(c) The rate of program recidivism.

(d) The number who fall under the age groups of 26 and under, 27 to 45, 46 to 60, and over 60 years of age.

(e) The number by category of offense.”.

2. Amend page 71, line 8, after “appropriations” by inserting a comma and “the local unit of government in which the branch office is located,”.

3. Amend page 73, following line 28, by inserting:

“Sec. 723. The department of state shall submit a report by September 30 on the activities and services of all mobile branch office vehicle units. The report must include, but is not limited to, the names of facilities and addresses visited by each mobile office, the date of visit, whether the type of facility visited was a public or private facility, and the number of transactions processed by type, including motor vehicle, voter, and licensing transactions, per location.”.

1. Amend page 66, line 19, after “charge” by striking out “$15.00” and inserting “$11.00”.

1. Amend page 42, line 6, by striking out all of section 216 and inserting:

“Sec. 216. (1) On a quarterly basis, the department shall report to the senate and house appropriations committees, the senate and house appropriations subcommittees on the department budget, and the senate and house fiscal agencies the following information:

(a) The number of FTEs in pay status by type of staff and civil service classification.

(b) A comparison by line item of the number of FTEs authorized from funds appropriated in part 1 to the actual number of FTEs employed by the department at the end of the reporting period.

(2) By March 1 of the current fiscal year and annually thereafter, the department shall report to the senate and house appropriations committees, the senate and house appropriations subcommittees on the department budget, and the senate and house fiscal agencies the following information:

(a) Number of employees that were engaged in remote work in 2023.

(b) Number of employees authorized to work remotely and the actual number of those working remotely in the current reporting period.

(c) Estimated net cost savings achieved by remote work.

(d) Reduced use of office space associated with remote work.”.

2. Amend page 43, following line 14, by inserting:

“(c) Maintain an internet site that posts any severance pay in excess of 6 weeks of wages, regardless of the position held by the former department employee receiving severance pay.”.

3. Amend page 44, following line 10, by inserting:

“Sec. 225. 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 and part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, inter-transfer funds within this part and part 1 for the particular department, board, commission, officer, or institution.

Sec. 229. (1) If the office of the auditor general has identified an initiative or made a recommendation that is related to savings and efficiencies in an audit report for an executive branch department or agency, the department or agency shall report within 6 months of the release of the audit on their efforts and progress made toward achieving the savings and efficiencies identified in the audit report. The report shall be submitted to the chairs of the senate and house of representatives standing committees on appropriations, the chairs of the senate and house of representatives standing committees with jurisdiction over matters relating to the department that is audited, and the senate and house fiscal agencies.

(2) If the office of the auditor general does not receive the required report regarding initiatives related to savings and efficiencies within the 6-month time frame, the office of the auditor general may charge noncompliant executive branch departments and agencies for the cost of performing a subsequent audit to ensure that the initiatives related to savings and efficiencies have been implemented.

Sec. 235. By April 1, the state budget director shall submit a report to the senate and house appropriations committees, the chairpersons of the relevant appropriations subcommittees, and the senate and house fiscal agencies. The report shall recommend a contingency plan for each federal funding source included in the state budget of $10,000,000.00 or more in the event that the federal government reduces funding to this state through that source by 10% or greater.

Sec. 240. (1) Concurrently with the submission of the fiscal year 2024-2025 executive budget recommendations, the state budget office shall provide the senate and house appropriations committees, the chairpersons of the relevant appropriations subcommittees, the senate and house fiscal agencies, and the policy offices a report that lists each new program or program enhancement for which funds in excess of $500,000.00 are appropriated in part 1 of each departmental appropriation act.

(2) By July 1 of the current fiscal year, the state budget director and the chairs of the senate and house appropriations committees shall identify new programs or program enhancements identified under subsection (1) for measurement using program–specific metrics.

(3) By September 30 of the next fiscal year, the state budget office shall provide a report on the specific metrics and the progress in meeting the estimated performance for each program identified under subsection (2) to the senate and house appropriations committees, the senate and house appropriations subcommittees on each state department, and the senate and house fiscal agencies and policy offices. It is the intent of the legislature that the governor consider the estimated performance of the new program or program enhancement as the basis for any increase in funds appropriated from the prior year.”.

4. Amend page 50, following line 5, by inserting:

“Sec. 315. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2024 are $15,363,500.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $10,108,800.00. Total agency appropriations for retiree health care legacy costs are estimated at $5,254,700.00.”.

5. Amend page 54, line 23, after “exceed” by striking out “$2,000,000.00” and inserting “$1,000,000.00”.

6. Amend page 54, line 29, after “exceed” by striking out “$750,000.00” and inserting “$375,000.00”.

7. Amend page 57, following line 15, by inserting:

“Sec. 410. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2024 are $1,906,200.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $1,254,200.00. Total agency appropriations for retiree health care legacy costs are estimated at $652,000.00.”.

8. Amend page 63, following line 10, by inserting:

“Sec. 615. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2024 are $24,100,500.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $15,857,600.00. Total agency appropriations for retiree health care legacy costs are estimated at $8,242,900.00.”.

9. Amend page 65, line 21, after “exceed” by striking out “$2,000,000.00” and inserting “$500,000.00”.

10. Amend page 65, line 27, after “exceed” by striking out “$7,500,000.00” and inserting “$500,000.00”.

11. Amend page 66, line 4, after “exceed” by striking out “$50,000.00” and inserting “$25,000.00”.

12. Amend page 66, line 10, after “exceed” by striking out “100,000.00” and inserting “$50,000.00”.

13. Amend page 73, following line 28, by inserting:

“Sec. 725. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2024 are estimated at $24,888,700.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $16,376,200.00. Total agency appropriations for retiree health care legacy costs are estimated at $8,512,500.00.”.

14. Amend page 74, line 21, after “exceed” by striking out “$4,000,000.00” and inserting “$2,000,000.00”.

15. Amend page 74, line 27, after “exceed” by striking out “$8,000,000.00” and inserting “$4,000,000.00”.

16. Amend page 75, line 4, after “exceed” by striking out “$150,000.00” and inserting “$75,000.00”.

17. Amend page 75, line 10, after “exceed” by striking out “$2,000,000.00” and inserting “$50,000.00”.

18. Amend page 84, following line 3, by inserting:

“Sec. 822e. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2024 are estimated at $68,102,400.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $44,809,800.00. Total agency appropriations for retiree health care legacy costs are estimated at $23,292,600.00.”.

19. Amend page 97, line 20, after “exceed” by striking out “$1,000,000.00” and inserting “$500,000.00”.

20. Amend page 98, line 3, after “exceed” by striking out “$200,000.00” and inserting “$100,000.00”.

21. Amend page 98, line 9, after “exceed” by striking out “$40,000.00” and inserting “$20,000.00”.

22. Amend page 113, following line 21, by inserting:

“Sec. 948. Total authorized appropriations from all department of treasury sources under part 1 for legacy costs for the fiscal year ending September 30, 2024 are $34,683,000.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $22,820,600.00. Total agency appropriations for retiree health care legacy costs are estimated at $11,862,400.00.”.