September 17, 2003
September 17, 2003
Governor Jennifer M. Granholm today signed Executive Order 2003-14 creating the Department of Labor and Economic Growth (DLEG) to promote job creation and economic growth in Michigan by centralizing and streamlining the state’s job, workforce, and economic development functions under one department.
| Executive Order 2003-14 |
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"Our goal is to make Michigan a magnet state for economic development and job creation, and the Department of Labor and Economic Growth will be a critical element to our success in reaching that goal," Granholm said. "The department will allow state government to be more nimble and aggressive in creating jobs, enabling us to spend taxpayer dollars more efficiently, and will create a one-stop shop for business creation and development."
The Department of Labor and Economic Growth will be created by renaming the Department of Consumer and Industry Services (CIS) and merging many Department of Career Development functions into the new department along with several other key programs from other departments. Highlights of the new department include:
Most regulatory functions that relate specifically to commercial, business, and workers’ issues will be in the DLEG, such as the Bureau of Commercial Services, the Michigan Public Service Commission, the Construction Code Division, the Unemployment Insurance Agency, the Workers’ Compensation Agency, Workplace Safety and Health, the Michigan Employment Relations Commission, the Michigan Tax Tribunal, and the Liquor Control Commission.
The Worker’s Compensation Qualifications Advisory Committee will be expanded.
The Bureau of Worker’s and Unemployment Compensation will be divided into three agencies within the DLEG: Unemployment Insurance Agency; Workers’ Compensation Agency; and the Wage and Hour Division.
CIS Functions to be transferred away from the DLEG include:
The Bureau of Family Services – which oversees adult foster care, homes for the aged, child care homes/centers, child caring institutions, child placement agencies, adult/children camps, and court-operated facilities – will move to the Family Independence Agency (FIA) and be renamed the Office of Child and Adult Licensing;
The Bureau of Health Services that regulates health professionals will be transferred to the Department of Community Health;
The Bureau of Health Systems that regulates hospitals, emergency medical services, and nursing homes will be transferred to the Department of Community Health.
Among those autonomous agencies that will be moved to the DLEG are: the Michigan Broadband Development Authority; Michigan Economic Growth Authority; Michigan Next Energy Authority; and, the Michigan Strategic Fund which is the state’s partner in the inter-local agreement creating the Michigan Economic Development Corporation.
The reorganization consolidates fire code enforcement and training functions within the new department. Arson investigation and related law enforcement activities will remain at Michigan State Police.
To aid in the promotion of the economic empowerment of Michigan citizens, the Advisory Council on Deaf and Hard of Hearing, the Commission for the Blind, the Commission on Disability Concerns, and the Commission of Spanish-Speaking Affairs will be housed in the DLEG.
No jobs are expected to be lost due to implementation of the executive order.
Despite reports to the contrary, the executive order will not eliminate the worker’s compensation appellate function. While the current Worker’s Compensation Appellate Commission will be eliminated, a separate appellate function will be handled by appellate magistrates assigned for three-year terms.
"At a time when we are trying to streamline government and find efficiencies, we cannot afford to have work units that are underutilized," Granholm said. "Not only is the number of pending appeals down 78 percent over the past decade, but the average number of decisions among the seven members of the appellate commission is down 57 percent.
"It makes perfect sense to have a distinct and well-qualified group of magistrates performing the appellate function," Granholm added.
For a complete copy of Executive Order 2003-14, visit http://www.michigan.gov/gov/0,1607,7-168-21975-75283--,00.html.
