SB-0947, As Passed Senate, April 24, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 947

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to make appropriations for the department of

 

agriculture and rural development for the fiscal year ending

 

September 30, 2013; and to provide for the expenditure of the

 

appropriations.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

FOR FISCAL YEAR 2012-2013

 

     Sec. 101. Subject to the conditions set forth in this act, the

 

amounts listed in this part are appropriated for the department of

 

agriculture and rural development for the fiscal year ending

 

September 30, 2013, from the funds indicated in this part. The

 


following is a summary of the appropriations in this part:

 

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

 

APPROPRIATION SUMMARY

 

   Full-time equated unclassified positions.......... 2.0

 

   Full-time equated classified positions.......... 425.0

 

GROSS APPROPRIATION.................................... $     76,266,300

 

   Interdepartmental grant revenues:

 

IDG from LARA (LCC), liquor quality testing fees.......           209,900

 

IDG-MDNRE, biosolids...................................           107,000

 

Interdepartmental grant revenues.......................             2,400

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................           319,300

 

ADJUSTED GROSS APPROPRIATION........................... $     75,947,000

 

   Federal revenues:

 

USDA, multiple grants..................................         7,629,800

 

EPA, multiple grants...................................         1,704,400

 

HHS-FDA................................................         1,780,400

 

Federal revenues.......................................            85,000

 

Total federal revenues.................................        11,199,600

 

   Special revenue funds:

 

Total local revenues...................................                 0

 

Private-slow the spread foundation.....................            86,800

 

Private-commodity group revenue........................            87,500

 

Private revenues.......................................             1,500

 

Total private revenues.................................           175,800

 

Agriculture preservation fund..........................         1,395,300

 

Agriculture equine industry development fund...........         3,834,900

 


Animal welfare fund....................................           209,600

 

Commodity inspection fees..............................           566,300

 

Consumer and industry food safety education fund.......           306,200

 

Dairy and food safety fund.............................         3,159,800

 

Freshwater protection fund.............................         5,095,500

 

Gasoline inspection and testing fund...................         2,570,200

 

Grain dealer's fee fund................................           535,200

 

Horticulture fund......................................            75,800

 

Industry support funds.................................           549,100

 

Agriculture licensing and inspection fees..............         4,266,800

 

Migrant labor housing fund.............................           157,000

 

Nonretail liquor fees..................................           782,900

 

Refined petroleum fund.................................         4,012,000

 

Testing fees...........................................           475,300

 

Weights and measures regulation fees...................           771,400

 

Renewable fuels fund...................................            50,000

 

State restricted revenues..............................           146,100

 

Total other state restricted revenues..................        28,959,400

 

State general fund/general purpose..................... $     35,612,200

 

    State general fund/general purpose schedule:

 

   Ongoing state general fund/general

 

    purpose................................... 31,995,200

 

   One-time state general fund/general

 

    purpose.................................... 3,617,000

 

   Sec. 102. EXECUTIVE

 

   Full-time equated unclassified positions.......... 2.0

 

   Full-time equated classified positions........... 27.0

 


   Commissions and boards............................... $         23,800

 

Unclassified positions.................................           213,300

 

Executive direction--9.0 FTE positions.................         1,287,300

 

Operational services--15.0 FTE positions...............           995,200

 

Statistical reporting service--1.0 FTE positions.......           157,300

 

Emergency management--2.0 FTE positions................           770,500

 

Accounting service center..............................           920,200

 

Rent and building occupancy............................         1,008,700

 

GROSS APPROPRIATION.................................... $      5,376,300

 

    Appropriated from:

 

   Federal revenues:

 

USDA, multiple grants..................................           228,400

 

EPA, multiple..........................................           177,000

 

HHS-FDA................................................           552,300

 

   Special revenue funds:

 

Private-commodity group revenue........................            87,500

 

Agriculture preservation fund..........................            23,100

 

Freshwater protection fund.............................            34,100

 

Industry support funds.................................            49,500

 

Agriculture licensing and inspection fees..............           159,500

 

Nonretail liquor fees..................................            38,100

 

Refined petroleum fund.................................           320,300

 

State general fund/general purpose..................... $      3,706,500

 

   Sec. 103. FOOD AND DAIRY

 

Full-time equated classified positions............ 101.0

 

Food safety and quality assurance--75.0 FTE positions.. $     10,167,500

 

Milk safety and quality assurance--26.0 FTE positions..         3,474,800

 


GROSS APPROPRIATION.................................... $     13,642,300

 

    Appropriated from:

 

   Federal revenues:

 

USDA-multiple grants...................................           247,500

 

HHS-FDA................................................           476,400

 

   Special revenues funds:

 

Consumer and industry food safety education fund.......           306,200

 

Dairy and food safety fund.............................         3,159,800

 

State general fund/general purpose..................... $      9,452,400

 

   Sec. 104. ANIMAL INDUSTRY

 

   Full-time equated classified positions........... 60.0

 

Animal disease prevention and response--60.0 FTE

 

   positions............................................ $       8,956,700

 

GROSS APPROPRIATION.................................... $      8,956,700

 

    Appropriated from:

 

   Federal revenues:

 

USDA-multiple grants...................................           836,200

 

HHS-FDA................................................            44,200

 

   Special revenue funds:

 

Animal welfare fund....................................           209,600

 

Agriculture licensing and inspection fees..............           123,100

 

State general fund/general purpose..................... $      7,743,600

 

   Sec. 105. PESTICIDE AND PLANT PEST MANAGEMENT

 

   Full-time equated classified positions........... 81.0

 

Pesticide and plant pest management--77.0 FTE

 

   positions............................................ $     10,610,100

 

Producer security/grain dealers--4.0 FTE positions.....           574,200

 


GROSS APPROPRIATION.................................... $     11,184,300

 

    Appropriated from:

 

   Federal revenues:

 

USDA-multiple grants...................................         1,166,100

 

EPA-multiple grants....................................           769,500

 

HHS-FDA................................................           113,700

 

   Special revenue funds:

 

Private-slow the spread foundation.....................            86,800

 

Commodity inspection fees..............................           566,300

 

Grain dealer's fee fund................................           535,200

 

Horticulture fund......................................            75,800

 

Industry support funds.................................           350,800

 

Agriculture licensing and inspection fees..............         3,866,700

 

State general fund/general purpose..................... $      3,653,400

 

   Sec. 106. ENVIRONMENTAL STEWARDSHIP

 

   Full-time equated classified positions........... 50.0

 

Environmental stewardship--18.0 FTE positions.......... $      6,146,400

 

Michigan agricultural environmental assurance

 

   program--7.0 FTE positions...........................         1,621,500

 

Farmland and open space preservation--9.0 FTE

 

   positions............................................           872,000

 

Local conservation districts...........................               100

 

Migrant labor housing--9.0 FTE positions...............         1,156,900

 

Right-to-farm--3.0 FTE positions.......................           555,100

 

Intercounty drains--4.0 FTE positions..................           453,100

 

GROSS APPROPRIATION.................................... $     10,805,100

 

    Appropriated from:

 


   Interdepartmental grant revenues:

 

IDG-MDNRE, biosolids...................................           107,000

 

   Federal revenues:

 

USDA-multiple grants...................................         1,035,200

 

EPA-multiple grants....................................           373,800

 

   Special revenue funds:

 

Agriculture preservation fund..........................           872,000

 

Freshwater protection fund.............................         5,061,300

 

Migratory labor housing fund...........................           157,000

 

State general fund/general purpose..................... $      3,198,800

 

   Sec. 107. LABORATORY PROGRAM

 

   Full-time equated classified positions........... 90.0

 

Laboratory services--38.0 FTE positions................ $      5,686,400

 

USDA monitoring program--13.0 FTE positions............         2,548,700

 

Consumer protection program--39.0 FTE positions........         5,667,300

 

GROSS APPROPRIATION.................................... $     13,902,400

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG from LARA (LCC), liquor quality testing fees.......           206,900

 

   Federal revenues:

 

USDA-multiple grants...................................         2,549,600

 

EPA-multiple grants....................................           384,100

 

HHS-FDA................................................           593,800

 

   Special revenue funds:

 

Agriculture equine industry development fund...........           592,400

 

Gasoline inspection and testing fund...................         2,540,700

 

Agriculture licensing and inspection fees..............            87,100

 


Refined petroleum fund.................................         3,691,700

 

Renewable fuels fund...................................            50,000

 

Testing fees...........................................           475,300

 

Weights and measures regulation fees...................           771,400

 

State general fund/general purpose..................... $      1,959,400

 

   Sec. 108. AGRICULTURAL DEVELOPMENT

 

   Full-time equated classified positions........... 13.0

 

Agricultural development--10.0 FTE positions........... $      2,712,000

 

Grape and wine program--3.0 FTE positions..............           788,600

 

GROSS APPROPRIATION.................................... $      3,500,600

 

    Appropriated from:

 

   Federal revenues:

 

USDA-multiple grants...................................         1,566,800

 

   Special revenue funds:

 

Industry support funds.................................           148,800

 

Nonretail liquor fees..................................           744,300

 

State general fund/general purpose..................... $      1,040,700

 

   Sec. 109. FAIRS AND EXPOSITIONS

 

   Full-time equated classified positions............ 3.0

 

Horse racing grant program administration--3.0 FTE

 

   positions............................................ $        351,100

 

Purses and supplements - fairs/licensed tracks.........           708,300

 

Licensed tracks - light horse racing...................            40,300

 

Standardbred breeders' awards..........................           285,900

 

Standardbred purses and supplements - licensed tracks..           527,800

 

Standardbred sire stakes...............................           239,000

 

Thoroughbred supplements - licensed tracks.............           385,900

 


Thoroughbred breeders' awards..........................           358,600

 

Thoroughbred sire stakes...............................           244,800

 

GROSS APPROPRIATION.................................... $      3,141,700

 

    Appropriated from:

 

   Special revenue funds:

 

Agriculture equine industry development fund...........         3,141,700

 

State general fund/general purpose..................... $              0

 

   Sec. 110. INFORMATION AND TECHNOLOGY

 

Information technology services and projects........... $       1,404,900

 

GROSS APPROPRIATION.................................... $      1,404,900

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG from LARA (LCC), liquor quality testing fees.......             3,000

 

   Special revenue funds:

 

Agriculture preservation fund..........................               200

 

Agriculture equine industry development fund...........           100,800

 

Freshwater protection fund.............................               100

 

Gasoline inspection testing fund.......................            29,500

 

Agriculture licensing and inspection fees..............            30,400

 

Nonretail liquor fees..................................               500

 

State general fund/general purpose..................... $      1,240,400

 

   Sec. 111. CAPITAL OUTLAY

 

Farmland and open space development acquisition........ $         500,000

 

GROSS APPROPRIATION.................................... $        500,000

 

    Appropriated from:

 

   Special revenue funds:

 

Agriculture preservation fund..........................           500,000

 


State general fund/general purpose..................... $              0

 

   Sec. 112. ONE-TIME BASIS APPROPRIATIONS

 

State employee lump-sum payments....................... $        470,300

 

Private forestry program...............................           600,000

 

Rural development value-added grants...................         2,100,000

 

New food safety requirements...........................           500,000

 

County fairs capital improvement grants................           181,600

 

Antrim County water supply project.....................               100

 

GROSS APPROPRIATION.................................... $      3,852,000

 

    Appropriated from:

 

Interdepartmental grant revenues.......................             2,400

 

Federal revenues.......................................            85,000

 

Private revenues.......................................             1,500

 

State restricted revenues..............................           146,100

 

State general fund/general purpose..................... $      3,617,000

 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

FOR FISCAL YEAR 2012-2013

 

GENERAL SECTIONS

 

     Sec. 201. Pursuant to section 30 of article IX of the state

 

constitution of 1963, total state spending from state resources

 

under part 1 for fiscal year 2012-2013 is $64,571,600.00 and state

 

spending from state resources to be paid to local units of

 

government for fiscal year 2012-2013 is $1,500,000.00. The itemized

 

statement below identifies appropriations from which spending to

 


local units of government will occur:

 

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

 

Environmental protection............................... $       1,500,000

 

TOTAL.................................................. $      1,500,000

 

     Sec. 202. The appropriations authorized under this act are

 

subject to the management and budget act, 1984 PA 431, MCL 18.1101

 

to 18.1594.

 

     Sec. 203. As used in this act:

 

     (a) "Department" means the department of agriculture and rural

 

development.

 

     (b) "Director" means the director of the department.

 

     (c) "EPA" means the United States environmental protection

 

agency.

 

     (d) "FTE" means full-time equated.

 

     (e) "HHS-FDA" means the United States department of health and

 

human services - food and drug administration.

 

     (f) "IDG" means interdepartmental grant.

 

     (g) "LARA" means the Michigan department of licensing and

 

regulatory affairs.

 

     (h) "MDEQ" means the Michigan department of environmental

 

quality.

 

     (i) "USDA" means the United States department of agriculture.

 

     Sec. 206. (1) In addition to the funds appropriated in part 1,

 

there is appropriated an amount not to exceed $5,000,000.00 for

 

federal contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item

 

in this act 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 $6,000,000.00 for state

 

restricted contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item

 

in this act 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 $100,000.00 for local

 

contingency funds. These funds are not available for expenditure

 

until they have been transferred to another line item in this act

 

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 funds. These funds are not available for expenditure

 

until they have been transferred to another line item in this act

 

under section 393(2) of the management and budget act, 1984 PA 431,

 

MCL 18.1393.

 

     Sec. 208. Unless otherwise specified, the departments shall

 

use the Internet to fulfill the reporting requirements of this act.

 

This requirement may include transmission of reports via electronic

 

mail to the recipients identified for each reporting requirement,

 

or it may include placement of reports on an Internet or Intranet

 

site.

 

     Sec. 209. Funds appropriated in part 1 shall 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. Preference shall be given to

 

goods or services, or both, manufactured or provided by Michigan

 

businesses, if they are competitively priced and of comparable

 

quality. In addition, preference shall 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. 212. The department and agencies receiving appropriations

 

in part 1 shall receive and retain copies of all reports funded

 

from appropriations in part 1. Federal and state guidelines for

 

short-term and long-term retention of records shall be followed.

 

The department may electronically retain copies of reports unless

 

otherwise required by federal and state guidelines.

 

     Sec. 215. The department shall not take disciplinary action

 

against an employee for communicating with a member of the

 

legislature or his or her staff.

 

     Sec. 228. Not later than November 15, the department shall

 

prepare and transmit a report that provides for estimates of the

 

total general fund/general purpose appropriation lapses at the

 

close of the fiscal year. This report shall summarize the projected

 

year-end general fund/general purpose appropriation lapses by major

 

departmental program or program areas. The report shall be

 

transmitted to the office of the state budget, the chairpersons of

 

the senate and house of representatives standing committees on

 

appropriations, and the senate and house fiscal agencies.

 

     Sec. 229. Within 14 days after the release of the executive

 


budget recommendation, the department shall provide the state

 

budget director, the senate and house appropriations chairs, the

 

senate and house appropriations subcommittees on agriculture and

 

rural development, respectively, and the senate and house fiscal

 

agencies with an annual report on estimated state restricted fund

 

balances, state restricted fund projected revenues, and state

 

restricted fund expenditures for the fiscal years ending September

 

30, 2012 and September 30, 2013.

 

     Sec. 230. Funds appropriated in part 1 shall not be used by a

 

principal executive department, state agency, or authority to hire

 

a person to provide legal services that are the responsibility of

 

the attorney general. This prohibition does not apply to legal

 

services for bonding activities and for those outside services that

 

the attorney general authorizes.

 

 

 

EXECUTIVE

 

     Sec. 301. (1) Pursuant to the appropriations in part 1, the

 

department may receive and expend revenue and use that revenue to

 

cover necessary expenses related to publications, audit and

 

licensing functions, livestock sales, certification of nursery

 

stock, and laboratory analyses as specified in the following:

 

     (a) Management services publications.

 

     (b) Management services audit and licensing functions.

 

     (c) Pesticide and plant pest management propagation and

 

certification of virus-free foundation stock.

 

     (d) Pesticide and plant pest management grading services.

 

     (e) Laboratory support testing for testing horses in draft

 


horse pulling contests at county fairs when local jurisdictions

 

request state assistance.

 

     (f) Laboratory support analyses to determine foreign

 

substances in horses engaged in racing or pulling contests at

 

tracks.

 

     (g) Laboratory support analyses of food, livestock, and

 

agricultural products for disease, foreign products for disease,

 

toxic materials, foreign substances, and quality standards.

 

     (h) Laboratory support test samples for other agencies and

 

organizations.

 

     (i) Fruit and vegetable inspection at shipping and termination

 

points and processing plants.

 

     (2) The department shall notify the senate and house

 

appropriations subcommittees on agriculture and rural development

 

and the senate and house fiscal agencies 30 days prior to proposing

 

changes in fees authorized under this section or under section 5 of

 

1915 PA 91, MCL 285.35.

 

     (3) Annually, before February 1, the department shall provide

 

a report to the senate and house appropriations subcommittees on

 

agriculture and rural development and the senate and house fiscal

 

agencies detailing all the fees charged by the department under the

 

authorization provided in this section, including, but not limited

 

to, rates, number of individuals paying each fee, and the revenue

 

generated by each fee in the previous fiscal year.

 

     Sec. 302. Of the funds appropriated in part 1 that are other

 

than line-item grants, the department shall not provide grants to

 

local government agencies, institutions of higher education, or

 


nonprofit organizations unless the department provides notice of

 

the grant to the senate and house appropriations subcommittees on

 

agriculture and rural development at least 10 days before the grant

 

is issued. The grants shall be used to support research or other

 

related activities for the purpose of enhancing the agricultural

 

industries in this state.

 

 

 

FOOD AND DAIRY

 

     Sec. 402. Not later than April 1, 2013, the department shall

 

provide a report to the senate and house appropriations

 

subcommittees on agriculture and rural development and the senate

 

and house fiscal agencies describing significant food-borne

 

outbreaks and emergencies, including any enforcement actions taken

 

related to food safety during the 2011-2012 fiscal year.

 

 

 

ANIMAL INDUSTRY

 

     Sec. 450. From the funds appropriated in part 1 for the bovine

 

tuberculosis program, the department shall reimburse the department

 

of natural resources for those costs associated with monitoring and

 

testing wildlife for bovine tuberculosis that are necessary to

 

support the department goals and are jointly agreed to by the

 

department and the department of natural resources to be in excess

 

of efforts necessary to effectively plan and execute the

 

eradication of bovine tuberculosis from Michigan's wild free-

 

ranging deer herd.

 

     Sec. 451. From the funds appropriated in part 1 for bovine

 

tuberculosis, the department shall pay for all whole herd testing

 


costs and individual animal testing costs in the modified

 

accredited zone to maintain split-state status requirements. These

 

costs include indemnity and compensation for injury causing death

 

or downer to animals.

 

     Sec. 453. (1) Of the funds appropriated in part 1, the

 

department may provide for indemnity as provided for pursuant to

 

the animal industry act, 1988 PA 466, MCL 287.701 to 287.746, not

 

to exceed $100,000.00 per order from any line item for the fiscal

 

year ending September 30, 2013. Before the department provides for

 

an indemnification under this section, the department shall report

 

the reason for the indemnification, the amount of the

 

indemnification, and to whom the indemnification is to be paid. The

 

report shall be given to each member of the senate and house

 

appropriations subcommittees on agriculture and rural development

 

and to the senate and house fiscal agencies and to the state budget

 

director.

 

     (2) The department of agriculture and rural development shall

 

make an indemnification payment for the fair market value of

 

livestock killed by a wolf, coyote, or cougar, if the kill is

 

verified by the department of natural resources. The fair market

 

value of the livestock shall be determined pursuant to the

 

indemnification procedures prescribed in the animal industry act,

 

1988 PA 466, MCL 287.701 to 287.745. In addition to the funds

 

appropriated in part 1, the department of agriculture and rural

 

development is authorized to expend the funds received from the

 

department of natural resources to reimburse the department of

 

agriculture and rural development for all indemnification payments

 


made pursuant to this subsection.

 

     Sec. 454. The department shall use its resources to

 

collaborate with the United States department of agriculture to

 

obtain TB-free status for the area of the Lower Peninsula that is

 

zoned as modified accredited advanced. The department shall also

 

aggressively work toward eradicating bovine TB in the modified

 

accredited zone. The department shall also convene a workgroup to

 

work toward eradicating bovine TB in the modified accredited zone.

 

     Sec. 456. Of the funds appropriated in part 1, no funds shall

 

be used to enforce the mandatory electronic animal identification

 

program for any domestic animals other than cattle until specific

 

procedures and guidelines for electronic animal identification are

 

outlined in statute.

 

     Sec. 457. On or before October 15, 2012, and on a quarterly

 

basis thereafter, the department shall report to the senate and

 

house agriculture committees, the senate and house appropriations

 

subcommittees on agriculture and rural development, and the senate

 

and house fiscal agencies on the department's progress toward

 

meeting the USDA requirements as outlined in the March 2007 bovine

 

TB program review. The report shall include, but is not limited to,

 

information and data on: wildlife risk mitigation plan

 

implementation in the modified accredited zone; implementation of a

 

movement certificate process; progress toward annual surveillance

 

test requirements set out in the June 2007 MOU; efforts to work

 

with slaughter facilities in Michigan, as well as those that

 

slaughter a significant number of animals from Michigan;

 

educational programs and information for Michigan's livestock

 


community; any other item the legislature should be aware of that

 

will promote or hinder efforts to achieve bovine TB-free status for

 

Michigan.

 

     Sec. 458. From the funds appropriated in part 1 for animal

 

industry, the department shall provide inspection and testing of

 

aquaculture facilities and aquaculture researchers as provided

 

under section 7 of the Michigan aquaculture development act, 1996

 

PA 199, MCL 286.877. It is the intent of the legislature that the

 

department shall work with aquaculture facilities and aquaculture

 

researchers to identify, contain, and eradicate viral hemorrhagic

 

septicemia in this state.

 

 

 

PESTICIDE AND PLANT PEST MANAGEMENT

 

     Sec. 551. (1) It is the intent of the legislature that the

 

department work with the fruit and vegetable industry to ensure the

 

development of a sustainable system of third-party inspections of

 

fruits and vegetables.

 

     (2) From the funds appropriated in part 1 for pesticide and

 

plant pest management, not less than $200,000.00 shall be used for

 

the purpose to ensure that Michigan commodities receive

 

departmental inspections required by other governments to ship

 

commodities out of Michigan. The department shall devise a plan to

 

provide these required government inspections in a timely manner.

 

 

 

ENVIRONMENTAL STEWARDSHIP

 

     Sec. 601. The part 1 appropriation line item environmental

 

stewardship shall be used to support department agriculture

 


pollution prevention programs, including groundwater and freshwater

 

protection programs under part 87 of the Michigan natural resources

 

and environmental protection act, 1994 PA 451, MCL 324.8701 to

 

324.8717, and technical assistance in implementing conservation

 

grants available under the federal farm bill of 2008.

 

     Sec. 606. The department shall actively search for all

 

possible funding sources to be used to match federal funds in the

 

USDA environmental quality incentives program.

 

     Sec. 607. (1) It is the intent of the legislature that the

 

department continue its activities in support of intercounty

 

drainage districts as provided in chapter 5 of the drain code of

 

1956, 1956 PA 40, MCL 280.101 to 280.106.

 

     (2) The department shall work with representatives of

 

intercounty drainage districts to develop a mutually agreeable

 

method of funding department costs associated with the intercounty

 

drainage program.

 

 

 

AGRICULTURE DEVELOPMENT

 

     Sec. 706. Not later than April 1, 2013, the department shall

 

provide a report to the senate and house appropriations

 

subcommittees on agriculture and rural development and the senate

 

and house fiscal agencies describing the department's agriculture

 

development and export market development activities. The report

 

shall identify grants awarded during the prior fiscal year,

 

including a description of federal or private funds made available

 

as a result of department activities.

 

     Sec. 709. (1) Not later than April 1, 2013, the department

 


shall provide a report to the senate and house appropriations

 

subcommittees on agriculture and rural development and the senate

 

and house fiscal agencies describing the activities of the grape

 

and wine industry council established under section 303 of the

 

Michigan liquor control act of 1998, 1998 PA 58, MCL 436.1303.

 

     (2) The report shall include all of the following:

 

     (a) Council activities and accomplishments for the previous

 

fiscal year.

 

     (b) Council expenditures for the previous fiscal year by

 

category of administration, industry support, research and

 

education grants, and promotion and consumer education.

 

     (c) Grants awarded during the prior fiscal year and the

 

results of research grant projects completed during the prior

 

fiscal year.

 

 

 

FAIRS AND EXPOSITIONS

 

     Sec. 801. All appropriations from the agricultural equine

 

industry development fund shall be spent on equine-related

 

purposes. No funds from the agriculture equine industry development

 

fund shall be expended for nonequine-related purposes without prior

 

approval of the legislature.

 

     Sec. 802. All appropriations from the agriculture equine

 

industry development fund, except for the racing commission and

 

laboratory analysis program appropriations, shall be reduced

 

proportionately if revenues to the agriculture equine industry

 

development fund decline during the fiscal year ending September

 

30, 2012 to a level lower than the amounts appropriated in section

 


108.

 

 

 

CAPITAL OUTLAY

 

     Sec. 1002. (1) The director shall allocate lump-sum

 

appropriations made in this act consistent with statutory

 

provisions and the purposes for which funds were appropriated.

 

Lump-sum allocations shall address priority program or facility

 

needs and may include, but are not limited to, design,

 

construction, remodeling and addition, special maintenance, major

 

special maintenance, energy conservation, and demolition.

 

     (2) The state budget director may authorize that funds

 

appropriated for lump-sum appropriations shall be available for no

 

more than 3 fiscal years following the fiscal year in which the

 

original appropriation was made. Any remaining balance from

 

allocations made in this section shall lapse to the fund from which

 

it was appropriated pursuant to the lapsing of funds as provided in

 

the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

 

     Sec. 1003. The appropriations in part 1 for capital outlay

 

shall be carried forward at the end of the fiscal year consistent

 

with the provisions of section 248 of the management and budget

 

act, 1984 PA 431, MCL 18.1248.

 

 

 

ONE-TIME BASIS ONLY APPROPRIATIONS

 

     Sec. 1101. (1) The department shall establish and administer a

 

rural development value-added grant program. The program shall

 

promote the expansion of value-added agricultural production,

 

processing, and access within the state.

 


     (2) The department shall award grants on a competitive basis

 

from the funds appropriated in part 1 for rural development value-

 

added grants. Grantees will be required to provide a cash match and

 

identify measurable project outcomes. Eligible grantees may

 

include, but are not limited to, individuals, partnerships,

 

cooperatives, private or public corporations, and local units of

 

government.

 

     (3) A joint evaluation committee shall be selected by the

 

director with representatives with agriculture, business, and

 

economic development expertise. The joint evaluation committee

 

shall identify criteria, evaluate applications, and provide

 

recommendations to the director for final approval of grant awards.

 

     (4) The department may expend money from the funds

 

appropriated in part 1 for the rural development valued-added

 

grants for administering the program.

 

     (5) The unexpended portion of the rural development value-

 

added grant program is considered a work project appropriation in

 

accordance with the management and budget act, 1984 PA 431, MCL

 

18.1101 to 18.1594.

 

     (6) The department shall provide an interim report no later

 

than March 15, 2013 and year-end report no later than September 30,

 

2013 to the senate and house appropriations subcommittees on

 

agriculture and rural development and the senate and house fiscal

 

agencies, including the grantees, award amount, match funding, and

 

project outcomes.

 

     Sec. 1102. (1) The department shall establish and administer a

 

county fairs capital improvement grant program. The program shall

 


assist in the promotion of building improvements or other capital

 

improvements at county fairgrounds of the state.

 

     (2) The department shall award grants on a competitive basis

 

to county fair organizations from the funds appropriated in part 1

 

for county fairs capital improvements grants. Grantees will be

 

required to provide a dollar-for-dollar cash match with grant

 

awards and identify measurable project outcomes.

 

     (3) The department shall identify criteria, evaluate

 

applications, and provide recommendations to the director for final

 

approval of grant awards.

 

     (4) The department may expend money from the funds

 

appropriated in part 1 for the county fairs capital improvement

 

grants for administering the program.

 

     (5) The unexpended portion of the county fairs capital

 

improvement grant program is considered a work project

 

appropriation in accordance with the management and budget act,

 

1984 PA 431, MCL 18.1101 to 18.1594.

 

     (6) The department shall provide an interim report no later

 

than March 15, 2013 and a year-end report no later than September

 

30, 2013 to the senate and house appropriations subcommittees on

 

agriculture and rural development and the senate and house fiscal

 

agencies, including the grantees, award amount, match funding, and

 

project outcomes.

 

     Sec. 1103. (1) The appropriations in part 1 for private

 

forestry program is for the purpose of increasing the knowledge of

 

nonindustrial private forestland owners of sound forest management

 

practices and increasing the amount of commercial timber production

 


from those lands.

 

     (2) The department shall work in partnership with stakeholder

 

groups and other state and federal agencies to increase the active

 

management of nonindustrial private forestland to foster the growth

 

of Michigan's timber product industry.

 

 

 

 

 

PART 2A

 

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

 

FOR FISCAL YEAR 2013-2014

 

GENERAL SECTIONS

 

     Sec. 1201. It is the intent of the legislature to provide

 

appropriations for the fiscal year ending on September 30, 2014 for

 

the line items listed in part 1. The fiscal year 2013-2014

 

appropriations are anticipated to be the same as those for fiscal

 

year 2012-2013, except that the line items will be adjusted for

 

changes in caseload and related costs, federal fund match rates,

 

economic factors, and available revenue. These adjustments will be

 

determined after the January 2013 consensus revenue estimating

 

conference.