FY 2024-25: LICENSING AND REGULATORY AFFAIRS
Summary: As Passed by the Senate
Senate Bill 764 (S-1)
Analyst: Marcus Coffin
Difference: Senate
FY 2023-24 From FY 2023-24
Enacted FY 2024-25 FY 2024-25 FY 2024-25 FY 2024-25 Enacted
as of 2/7/24 Executive House Senate Conference Amount %
IDG/IDT $46,897,200 $27,682,800 $27,682,800 $27,682,800 ($19,214,400) (41.0)
Federal 50,004,200 30,471,300 30,471,300 30,471,300 (19,532,900) (39.1)
Local 0 0 0 0 0 --
Private 0 0 0 0 0 --
Restricted 259,708,400 280,707,400 277,507,400 286,707,400 26,999,000 10.4
GF/GP 271,331,100 296,605,700 300,805,700 296,450,700 25,119,600 9.3
Gross $627,940,900 $635,467,200 $636,467,200 $641,312,200 $13,371,300 2.1
FTEs 1,893.9 1,818.0 1,816.0 1,818.0 (75.9) (4.0)
Note: Appropriation figures for FY 2024-25 include all proposed appropriation amounts, including amounts designated as "one-
time."
Overview
The Department of Licensing and Regulatory Affairs (LARA) is the state's primary regulatory entity. The department
oversees regulation across a variety of sectors, including commercial and occupational activities, construction and fire
safety, health care and human services, public utilities, liquor control, and cannabis. Units within LARA also conduct and
adjudicate administrative hearings, oversee rules promulgation, provide support for the Michigan Indigent Defense
Commission and the Unarmed Combat Commission, and administer multiple grant programs, including Michigan Indigent
Defense Commission grants.
FY 2023-24 FY 2024-25
Enacted Senate
Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
1. Michigan Indigent Defense Commission (MIDC) Grants Gross $220,917,400 $37,427,900
Executive includes $37.4 million GF/GP to support grant distributions to Restricted 300,000 0
district and circuit court funding units to fund the state's projected share GF/GP $220,617,400 $37,427,900
of FY 2024-25 costs associated with MIDC standards 1-8 and the
indigency standard. Of the total, $24.6 million is included for compliance
with standards 1, 2, 3, 4, 5, and 8, which pertain to the education and
training of defense counsel, timing and location of attorney-client
interviews, defense investigations and experts, presence of counsel at
first appearance and other trial stages, independence of indigent
criminal defense services from the judiciary, and attorney compensation,
contracting, and payments; $12.9 million is included for costs incurred
for compliance with MIDC standards 6 and 7, which pertain to indigent
defense workloads and attorney qualification and review. House and
Senate concur.
2. Executive Order 2023-6 Implementation FTE NA (147.0)
Executive reflects the removal of $25.6 million Gross ($4.4 million Gross NA ($25,586,500)
GF/GP) and 147.0 FTE positions to effectuate the reorganization of IDG/IDT NA (20,653,100)
various childcare and educational functions within the Department of Restricted NA (544,600)
Lifelong Education, Advancement, and Potential, required under EO GF/GP NA ($4,388,800)
2023-6. This adjustment would result in the complete removal of
functions related to childcare and camps licensing from LARA. House
and Senate concur.
House Fiscal Agency 1 6/19/2024
 FY 2023-24 FY 2024-25
Enacted Senate
Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
3. Renewable Energy and Electrification Infrastructure FTE 2.0 (2.0)
Enhancement and Development Gross $21,300,000 ($21,300,000)
(a) Executive removes $21.3 million Gross ($20.0 million one-time Federal 20,000,000 (20,000,000)
Coronavirus State Fiscal Recovery Fund; $1.3 million one-time GF/GP) GF/GP $1,300,000 ($1,300,000)
included in the FY 2023-24 budget for grants to businesses, nonprofit
organizations, and local government units for planning, developing,
designing, acquiring, or constructing renewable energy and
electrification infrastructure projects. House and Senate concur.
(b) House includes $500,000 GF/GP (one-time) for FY 2024-25 grants FTE NA 0.0
to businesses, nonprofit organizations, and local government units for Gross NA $0
planning, developing, designing, acquiring, or constructing renewable GF/GP NA $0
energy and electrification infrastructure projects, which include
renewable natural gas facilities and electric vehicle fast-charging
infrastructure on publicly owned land within 1,000 feet of a U.S. highway
or state trunkline roadway. From the gross funding total, $125,000 and
authorization for 1.0 FTE is provided for the Public Service Commission
to administer the grant program. House also includes boilerplate section
1004, which directs the department to expend $5.0 million of
unexpended work project appropriations for this purpose. Senate does
not include.
4. Clean Energy Implementation FTE NA 31.0
Executive includes $5.8 million of state restricted funding authorization Gross NA $5,822,700
from Public Utility Assessments and authorization for 31.0 FTE positions Restricted NA 5,822,700
to support the implementation and administration of responsibilities GF/GP NA $0
under 2023 PAs 229, 231, 233, 234, and 235, colloquially referred to as
the "clean energy package". Funding would be utilized to support staffing
costs within the Public Service Commission (PSC), Michigan Office of
Administrative Hearings and Rules, and Administrative Services line
items. Departmental responsibilities under the acts include reviewing
renewable energy plans, expanding reviews of Integrated Resource
Plan and Energy Waste Reduction filings, and PSC oversight of
renewable energy facility siting. House and Senate concur.
5. Michigan Saves Gross $5,500,000 ($1,500,000)
Executive removes $5.5 million GF/GP (one-time) that was appropriated GF/GP $5,500,000 ($1,500,000)
in FY 2023-24 for Michigan Saves, a non-profit green bank. House
includes $5.0 million GF/GP one-time for Michigan Saves for FY 2024-
25. Funding would be used to offer credit enhancement tools intended
to incentivize lending at lower rates and under better terms for renewable
energy and energy efficiency improvement loans to commercial,
residential, and public entities. Such credit enhancement tools would
include a loan loss reserve fund. Senate includes $4.0 million GF/GP
(ongoing) for this purpose.
6. Elevator Inspections FTE NA 10.0
Executive includes $4.4 million of state restricted funding authorization Gross NA $4,400,000
from Elevator Fees and authorization for 10.0 FTE positions to hire Restricted NA 4,400,000
additional elevator inspectors within the Bureau of Construction Codes GF/GP NA $0
to address significant inspection backlogs. Additional funding is available
because of administrative rule changes that increased certain elevator
fees effective June 2023. House includes $2.2 million of state restricted
funding authorization and authorization for 5.0 FTE positions for this
purpose. Senate concurs with Executive.
House Fiscal Agency 2 6/19/2024
 FY 2023-24 FY 2024-25
Enacted Senate
Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
7. Cannabis Regulatory Agency (CRA) FTE 173.0 9.0
Executive includes $3.4 million of additional state restricted funding Gross $28,004,600 $3,448,500
authorization from marihuana funds and authorization for 9.0 FTEs to Restricted 28,004,600 3,448,500
hire additional CRA staff and to support the statewide marihuana GF/GP $0 $0
monitoring system, which tracks marihuana inventory and sales.
Approximately $2.0 million of the increase would be allocated for costs
associated with the monitoring system; this increase would allow for the
elimination of monthly user license fees which currently support the
system. The remaining $1.4 million would be allocated for increased
staffing. Additional staff would include 4.0 positions within the Legal
Section, 2.0 positions within the License Maintenance Section, 1.0
auditor within the Financial Compliance Section, and 2.0 fire inspectors.
House includes $1.4 million in additional state restricted funding
authorization and FTE authorization for additional staff but does not
include funding for the statewide marihuana monitoring system. Senate
concurs with Executive.
8. Cannabis Regulatory Agency – Attorney General Gross NA $2,049,600
Executive includes $2.0 million of state restricted funding authorization Restricted NA 2,049,600
from marihuana funds to support costs incurred by the Department of GF/GP NA $0
Attorney General for increased enforcement activities conducted in the
cannabis sector. House and Senate concur.
9. Nursing Home Surveys and Investigations FTE NA 12.0
Executive includes $1.9 million GF/GP and authorization for 12.0 FTE Gross NA $1,700,000
positions to hire additional staff to offset increased workloads associated Restricted NA 1,700,00
with health and long-term care facilities and to conduct surveys and GF/GP NA $0
investigations of nursing homes. The increased staffing would assist with
federal performance measure compliance. House concurs. Senate
includes $1.7 million of state restricted funding authorization from Health
Systems Fees and authorization for 12.0 FTE positions for this purpose.
10. Bureau of Professional Licensing (BPL) Authorization Increase FTE 202.0 0.0
Executive includes an additional $1.5 million of state restricted funding Gross $40,966,500 $1,500,000
authorization from 4 separate funds for the BPL line item. This Restricted 40,587,800 1,500,000
authorization increase would allow LARA to properly align staff with the GF/GP $378,700 $0
relevant fund to support the specific work being completed. This
alignment would assist the department with auditing and would prevent
expenditures from funds with insufficient revenue. House and Senate
concur.
11. Bureau of Construction Codes (BCC) Authorization Increase FTE 172.0 2.0
Executive includes $1.5 million of state restricted funding authorization Gross $26,634,900 $1,486,300
from the Construction Code Fund and authorization for 2.0 FTE positions Restricted 25,335,600 1,486,300
to hire additional regulation agents within the BCC to address a backlog GF/GP $1,299,300 $0
of builder-related complaints. House and Senate concur.
12. Utility Consumer Representation Gross $850,000 $1,250,000
Executive includes an additional $1.3 million in state restricted funding Restricted 850,000 1,250,000
authorization from the Utility Consumer Representation Fund for Utility GF/GP $0 $0
Consumer Representation to reflect base contribution adjustments that
were made via 2023 PA 231. These adjustments increase the amount
available from the fund. The increase would bring total funding for Utility
Consumer Representation to $2.1 million, which supports grants
administered by the Utility Consumer Participation Board and awarded
to nonprofit organizations and local units of government (upon
application and approval) for representation and advancement of
residential utility customers' interests in administrative and judicial
proceedings. House and Senate concur.
House Fiscal Agency 3 6/19/2024
 FY 2023-24 FY 2024-25
Enacted Senate
Budget Changes from FY 2023-24 Enacted Appropriations (as of 2/7/24) Change
13. Medication Aide Program Implementation FTE NA 7.0
Executive includes $1.1 million of state restricted funding authorization Gross NA $1,062,200
from the Nurse Aide and Medication Aide Registration Fund and Restricted NA 1,062,200
authorization for 7.0 FTE positions to hire additional staff to administer GF/GP NA $0
medication aide training and certification requirements created by 2023
PA 273. Funding would also be used to develop and implement a
medication aide training curriculum, testing requirements, and to
improve regulatory compliance. House and Senate concur.
14. PSC 5-Year Energy Waste Reduction and Demand Response Gross $0 $1,000,000
Study Restricted 0 1,000,000
Executive includes $1.0 million of state restricted funding authorization GF/GP $0 $0
to support consulting services that would be necessary for PSC to fulfill
a requirement for 5-year studies on statewide energy waste reduction
and demand response potential. The requirement for studies is
established within 2016 PA 341. House concurs but designates the
funding as one-time. Senate concurs with Executive.
15. Sign Language Qualified Interpreters Gross NA $800,000
Executive includes $800,000 GF/GP to support the Qualified Interpreter Restricted NA 800,000
Program (QIP) within the Bureau of Community and Health Systems. GF/GP NA $0
The QIP is responsible for certifying, credentialing, and endorsing
qualified American Sign Language (ASL) interpreters. The funding would
support 3.0 new full-time staff positions, updates to database systems,
and evaluation of testing methodologies for ASL interpreters. House
does not include. Senate includes $800,000 of state restricted funding
authorization from Health Systems Fees for this purpose.
16. PSC Authorization Increase FTE 195.0 0.0
Executive includes $562,600 of additional state restricted funding Gross $34,941,000 $562,600
authorization from Public Utility Assessments to allow the PSC to hire Federal 3,078,600 0
personnel to fill currently vacant FTE positions. The FTEs would assist Restricted 31,862,400 562,600
with the PSC's call center and customer outreach activities. PSC activity GF/GP $0 $0
levels are expected to increase due to statutory changes and new
programs that the PSC is responsible for implementing and
administering, including changes made under the clean energy package
and a FY 2023-24 grant program. House and Senate concur.
17. Corporations, Securities, and Commercial Licensing Bureau FTE 109.0 0.0
(CSCLB) Authorization Increase Gross $15,854,400 $550,000
Executive includes an additional $550,000 of state restricted funding Restricted 15,854,400 550,000
authorization from Corporation Fees to allow the CSCLB to fill vacant GF/GP $0 $0
FTE positions and to reinstate senior-level positions. These positions
would be used to address increased work volumes resulting from growth
in the number of active business entities regulated by the CSCLB.
House and Senate concur.
18. Consultation, Education, and Performance Office Gross $0 $400,000
Executive includes $400,000 of additional state restricted funding Restricted 0 400,000