FIRST CONFERENCE REPORT

The Committee of Conference on the matters of difference between the two Houses concerning

Senate Bill No. 139, entitled

A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2018; and to provide for the expenditure of the appropriations.

Recommends:

First: That the House recede from the Substitute of the House as passed by the House.

Second: That the Senate and House agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:

(attached)

Third: That the Senate and House agree to the title of the bill to read as follows:

A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2018; and to provide for the expenditure of the appropriations.

_______________________ ________________________

Mike Green Roger Victory

_______________________ ________________________

Jim Stamas Mary Whiteford

_______________________ ________________________

Hoon-Yung Hopgood Jon Hoadley

Conferees for the Senate Conferees for the House

SUBSTITUTE FOR

SENATE BILL NO. 139

A bill to make appropriations for the department of

agriculture and rural development for the fiscal year ending

September 30, 2018; and to provide for the expenditure of the

appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the department of

agriculture and rural development for the fiscal year ending

September 30, 2018, from the following funds:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

APPROPRIATION SUMMARY

Full-time equated unclassified positions......... 6.0

Full-time equated classified positions......... 493.5

GROSS APPROPRIATION................................... $ 113,352,500

Interdepartmental grant revenues:

IDG from department of licensing and regulatory

affairs, liquor quality testing fees................ 221,800

IDG from department of environmental quality,

biosolids............................................ 88,500

Total interdepartmental grants and intradepartmental

transfers............................................ 310,300

ADJUSTED GROSS APPROPRIATION.......................... $ 113,042,200

Federal revenues:

USDA, multiple grants................................. 6,133,100

EPA, multiple grants.................................. 1,268,100

HHS-FDA............................................... 3,733,900

Department of interior................................ 238,800

Total federal revenues................................ 11,373,900

Special revenue funds:

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

Private – slow-the-spread foundation.................. 21,100

Private - commodity group revenue..................... 80,500

Total private revenues................................ 101,600

Agriculture equine industry development fund.......... 3,667,200

Agriculture licensing and inspection fees............. 4,065,800

Agriculture preservation fund......................... 1,427,800

Animal welfare fund................................... 193,300

Commodity inspection fees............................. 710,700

Consumer and industry food safety education fund..... 355,800

Dairy and food safety fund............................ 5,925,300

Drinking water declaration of emergency reserve fund. 100

Feed control fund..................................... 1,243,200

Fertilizer control fund............................... 849,900

Freshwater protection fund............................ 7,914,500

Gasoline inspection and testing fund.................. 1,504,700

Grain dealers fee fund................................ 580,000

Horticulture fund..................................... 38,800

Industry support funds................................ 444,900

Migratory labor housing fund.......................... 167,800

Nonretail liquor fees................................. 908,900

Private forestland enhancement fund................... 480,200

Refined petroleum fund................................ 3,197,100

Rural development fund................................ 2,000,000

Testing fees.......................................... 265,000

Weights and measures regulation fees.................. 720,000

Total other state restricted revenues................. 36,661,000

State general fund/general purpose.................... $ 64,905,700

State general fund/general purpose schedule:

Ongoing state general fund/general

purpose.................................. $54,155,700

One-time state general fund/general

purpose.................................. $10,750,000

Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT

Full-time equated unclassified positions......... 6.0

Full-time equated classified positions.......... 24.0

Unclassified salaries--6.0 FTE positions.............. $ 562,300

Accounting service center............................. 1,150,400

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

Emergency management--4.0 FTE positions............... 1,079,600

Executive direction--20.0 FTE positions............... 2,216,900

Property management................................... 709,000

GROSS APPROPRIATION................................... $ 5,742,000

Appropriated from:

Federal revenues:

HHS-FDA............................................... 434,400

Special revenue funds:

Agriculture licensing and inspection fees............. 127,700

Agriculture preservation fund......................... 17,000

Freshwater protection fund............................ 25,300

Industry support funds................................ 54,300

Nonretail liquor fees................................. 30,500

State general fund/general purpose.................... $ 5,052,800

Sec. 103. INFORMATION AND TECHNOLOGY

Information technology services and projects.......... $ 1,778,500

GROSS APPROPRIATION................................... $ 1,778,500

Appropriated from:

Interdepartmental grant revenues:

IDG from department of licensing and regulatory

affairs, liquor quality testing fees................ 3,200

Special revenue funds:

Agriculture licensing and inspection fees............. 93,800

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

Dairy and food safety fund............................ 61,200

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

Gasoline inspection testing fund...................... 31,800

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

State general fund/general purpose.................... $ 1,587,700

Sec. 104. FOOD AND DAIRY

Full-time equated classified positions......... 125.0

Food safety and quality assurance--94.0 FTE positions $ 16,798,400

Milk safety and quality assurance--31.0 FTE positions 4,510,300

GROSS APPROPRIATION................................... $ 21,308,700

Appropriated from:

Federal revenues:

HHS-FDA............................................... 2,301,500

USDA, multiple grants................................. 136,300

Special revenues funds:

Consumer and industry food safety education fund..... 355,800

Dairy and food safety fund............................ 5,373,900

State general fund/general purpose.................... $ 13,141,200

Sec. 105. ANIMAL INDUSTRY

Full-time equated classified positions.......... 61.0

Animal disease prevention and response--61.0 FTE

positions............................................ $ 9,267,300

Indemnification - livestock depredation............... 50,000

GROSS APPROPRIATION................................... $ 9,317,300

Appropriated from:

Federal revenues:

Department of interior................................ 40,800

HHS-FDA............................................... 46,600

USDA, multiple grants................................. 528,600

Special revenue funds:

Private - commodity group revenue..................... 30,500

Agriculture licensing and inspection fees............. 69,700

Animal welfare fund................................... 193,300

State general fund/general purpose.................... $ 8,407,800

Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT

Full-time equated classified positions.......... 94.0

Pesticide and plant pest management--88.0 FTE

positions............................................ $ 14,073,800

Producer security/grain dealers--6.0 FTE positions... 618,500

GROSS APPROPRIATION................................... $ 14,692,300

Appropriated from:

Federal revenues:

Department of interior................................ 101,700

EPA, multiple grants.................................. 536,700

HHS-FDA............................................... 325,100

USDA, multiple grants................................. 715,000

Special revenue funds:

Private - slow-the-spread foundation.................. 21,100

Agriculture licensing and inspection fees............. 3,543,200

Commodity inspection fees............................. 709,600

Feed control fund..................................... 1,056,600

Fertilizer control fund............................... 825,900

Freshwater protection fund............................ 154,600

Grain dealers fee fund................................ 572,100

Horticulture fund..................................... 38,800

Industry support funds................................ 248,000

State general fund/general purpose.................... $ 5,843,900

Sec. 107. ENVIRONMENTAL STEWARDSHIP

Full-time equated classified positions.......... 65.5

Environmental stewardship - MAEAP--25.0 FTE positions $ 10,236,600

Farmland and open space preservation--10.0 FTE

positions............................................ 1,623,100

Intercounty drain--6.0 FTE positions.................. 802,900

Migrant labor housing--9.0 FTE positions.............. 1,206,800

Qualified forest program--9.0 FTE positions........... 2,351,200

Right-to-farm--6.5 FTE positions...................... 950,800

GROSS APPROPRIATION................................... $ 17,171,400

Appropriated from:

Interdepartmental grant revenues:

IDG from department of environmental quality,

biosolids............................................ 88,500

Federal revenues:

Department of interior................................ 96,300

EPA, multiple grants.................................. 558,700

USDA, multiple grants................................. 822,300

Special revenue funds:

Agriculture preservation fund......................... 1,410,600

Freshwater protection fund............................ 7,689,500

Migratory labor housing fund.......................... 139,200

Private forestland enhancement fund................... 480,200

State general fund/general purpose.................... $ 5,886,100

Sec. 108. LABORATORY SERVICES

Full-time equated classified positions......... 107.0

Central licensing and customer service call

center--11.0 FTE positions........................... $ 1,218,000

Consumer protection program--41.0 FTE positions....... 6,711,200

Laboratory services--42.0 FTE positions............... 6,829,000

USDA monitoring--13.0 FTE positions................... 1,622,100

GROSS APPROPRIATION................................... $ 16,380,300

Appropriated from:

Interdepartmental grant revenues:

IDG from department of licensing and regulatory

affairs, liquor quality testing fees................ 218,600

Federal revenues:

EPA, multiple grants.................................. 172,700

HHS-FDA............................................... 626,300

USDA, multiple grants................................. 1,623,200

Special revenue funds:

Agriculture licensing and inspection fees............. 231,400

Commodity inspection fees............................. 1,100

Dairy and food safety fund............................ 490,200

Feed control fund..................................... 186,600

Fertilizer control fund............................... 24,000

Freshwater protection fund............................ 45,000

Gasoline inspection and testing fund.................. 1,472,900

Grain dealers fee fund................................ 7,900

Migratory labor housing fund.......................... 28,600

Refined petroleum fund................................ 3,197,100

Testing fees.......................................... 265,000

Weights and measures regulation fees.................. 720,000

State general fund/general purpose.................... $ 7,069,700

Sec. 109. AGRICULTURE DEVELOPMENT

Full-time equated classified positions.......... 17.0

Agriculture development--12.0 FTE positions........... $ 4,019,800

Food and agriculture investment program............... 4,743,900

Grape and wine program--3.0 FTE positions............. 927,000

Rural development fund grant program--1.0 FTE

position............................................. 2,000,000

Statistical reporting service--1.0 FTE position....... 204,700

GROSS APPROPRIATION................................... $ 11,895,400

Appropriated from:

Federal revenues:

USDA, multiple grants................................. 2,307,700

Special revenue funds:

Private - commodity group revenue..................... 50,000

Industry support funds................................ 142,600

Nonretail liquor fees................................. 877,900

Rural development fund................................ 2,000,000

State general fund/general purpose.................... $ 6,517,200

Sec. 110. FAIRS AND EXPOSITIONS

County fairs, shows, and expositions grants........... $ 649,300

Fairs and racing...................................... 256,600

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

Light horse racing - breeders' awards................. 20,000

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

Standardbred breeders' awards......................... 345,900

Standardbred purses and supplements - licensed tracks 671,800

Standardbred sire stakes.............................. 275,000

Thoroughbred breeders' awards......................... 368,600

Thoroughbred sire stakes.............................. 378,800

Thoroughbred supplements - licensed tracks............ 601,900

GROSS APPROPRIATION................................... $ 4,316,500

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund.......... 3,667,200

State general fund/general purpose.................... $ 649,300

Sec. 111. ONE-TIME APPROPRIATIONS

Drinking water declaration of emergency............... $ 100

Enhanced wildlife risk management project............. 500,000

Intercounty drain..................................... 250,000

Agriculture industry research and development......... 7,900,000

Food bank council of Michigan......................... 2,000,000

Albion equestrian center.............................. 100,000

GROSS APPROPRIATION................................... $ 10,750,100

Appropriated from:

Special revenue funds:

Drinking water declaration of emergency reserve fund. 100

State general fund/general purpose.................... $ 10,750,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2017-2018

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 2017-2018 is $101,566,700.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2017-2018 is $6,850,000.00. The itemized

statement below identifies appropriations from which spending to

local units of government will occur:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

Environmental stewardship/MAEAP....................... $ 4,250,000

Enhanced wildlife risk management project............. 500,000

Qualified forest program.............................. 1,500,000

Rural development fund grant program.................. 600,000

TOTAL................................................. $ 6,850,000

Sec. 202. The appropriations authorized under part 1 and this

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

18.1101 to 18.1594.

Sec. 203. As used in part 1 and this part:

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

development.

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

Agency.

(d) "FDA" means the United States Food and Drug

Administration.

(e) "Fiscal agencies" means the Michigan house fiscal agency

and the Michigan senate fiscal agency.

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

(g) "HHS" means the United States Department of Health and

Human Services.

(h) "IDG" means interdepartmental grant.

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

regulatory affairs.

(j) "LCC" means the Michigan liquor control commission.

(k) "MAEAP" means the Michigan agriculture environmental

assurance program.

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

quality.

(m) "MDNR" means the Michigan department of natural resources.

(n) "MOU" means memorandum of understanding.

(o) "Subcommittees" means all members of the subcommittees of

the house and senate appropriations committees with jurisdiction

over the budget for the department.

(p) "TB" means tuberculosis.

(q) "USDA" means the United States Department of Agriculture.

Sec. 204. The departments and agencies receiving

appropriations in part 1 shall use the internet to fulfill the

reporting requirements of this part. 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. 205. 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. 206. The director shall take all reasonable steps to

ensure businesses in deprived and depressed communities compete for

and perform contracts to provide services or supplies, or both.

Each director shall strongly encourage firms with which the

department contracts to subcontract with certified businesses in

depressed and deprived communities for services or supplies, or

both.

Sec. 207. The departments and agencies receiving

appropriations in part 1 shall prepare a report on out-of-state

travel expenses not later than January 1 of each year. The travel

report shall be a listing of all travel by classified and

unclassified employees outside this state in the immediately

preceding fiscal year that was funded in whole or in part with

funds appropriated in the department's budget. The report shall be

submitted to the house and senate appropriations committees, the

house and senate fiscal agencies, and the state budget director.

The report shall include the following information:

(a) The dates of each travel occurrence.

(b) The transportation and related costs of each travel

occurrence, including the proportion funded with state general

fund/general purpose revenues, the proportion funded with state

restricted revenues, the proportion funded with federal revenues,

and the proportion funded with other revenues.

Sec. 208. 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.

Sec. 209. Not later than November 30, the state budget office

shall prepare and transmit a report that provides for estimates of

the total general fund/general purpose appropriation lapses at the

close of the prior 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 chairpersons of the senate and house of

representatives standing committees on appropriations and the

senate and house fiscal agencies.

Sec. 210. (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 part 1 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 part 1 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 part 1

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 part 1

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

MCL 18.1393.

Sec. 211. The department shall cooperate with the department

of technology, management, and budget to maintain a searchable

website accessible by the public at no cost that includes, but is

not limited to, all of the following for each department or agency:

(a) Fiscal year-to-date expenditures by category.

(b) Fiscal year-to-date expenditures by appropriation unit.

including the vendor name, payment date, payment amount, and

payment description.

(d) The number of active department employees by job

classification.

(e) Job specifications and wage rates.

Sec. 212. Within 14 days after the release of the executive

budget recommendation, the department shall cooperate with the

state budget office to provide the senate and house appropriations

chairs, the subcommittees, 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, 2017 and September 30, 2018.

Sec. 213. The department shall maintain, on a publicly

accessible website, a department scorecard that identifies, tracks,

and regularly updates key metrics that are used to monitor and

improve the agency's performance.

Sec. 214. Total authorized appropriations from all sources

under part 1 for legacy costs for the fiscal year ending September

30, 2018 is $12,400,000.00. From this amount, total agency

appropriations for pension-related legacy costs are estimated at

$6,381,100.00. Total agency appropriations for retiree health care

legacy costs are estimated at $6,018,900.00.

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. 234. 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.

DEPARTMENTAL ADMINISTRATION AND SUPPORT

Sec. 301. (1) The department may establish a fee schedule and

collect fees for the following work activities and services:

(a) Pesticide and plant pest management propagation and

certification of virus-free foundation stock.

(b) Fruit and vegetable inspection and grading services at

shipping and termination points and processing plants.

horse pulling contests at county fairs when local jurisdictions

request state assistance.

(d) Laboratory support analyses to determine foreign

substances in horses engaged in racing or pulling contests at

tracks.

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

agricultural products for disease, foreign products for disease,

toxic materials, foreign substances, and quality standards.

(f) Laboratory support test samples for other state and local

agencies and public or private organizations.

(2) The department may receive and expend revenue from the

fees authorized under subsection (1), subject to appropriation, for

the purpose of recovering expenses associated with the work

activities and services described in subsection (1). Fee revenue

collected by the department under subsection (1) shall not lapse to

the state general fund at the end of the fiscal year but shall

carry forward for appropriation by the legislature in the

subsequent fiscal year.

(3) The department shall notify the subcommittees, the fiscal

agencies, and the state budget office 30 days prior to proposing

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

1915 PA 91, MCL 285.35.

(4) On or before February 1 of each year, the department shall

provide a report to the subcommittees, the fiscal agencies, and the

state budget office 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. (1) The department may contract with or provide

grants to local units of government, institutions of higher

education, or nonprofit organizations to support activities

authorized by appropriations in part 1. As used in this section,

contracts and grants include, but are not limited to, contracts for

delivery of groundwater/freshwater programs, MAEAP technical

assistance, forest management, invasive species monitoring,

wildlife risk mitigation, grants promoting proper pesticide

disposal, and research grants for the purpose of enhancing the

agricultural industries in this state.

(2) The department shall provide notice of contracts or grants

authorized under this section to the subcommittees, the fiscal

agencies, and the state budget office not later than 7 days before

the department notifies contract or grant recipients.

FOOD AND DAIRY

Sec. 401. (1) The department shall report on the previous

calendar year's activities of the food and dairy division. The

report shall include information on activities and outcomes of the

dairy safety and inspection program, the food safety inspection

program, the foodborne illness and emergency response program, and

the food service program.

(2) The report shall include information on significant

foodborne outbreaks and emergencies, including any enforcement

actions taken related to food safety during the prior calendar

year.

(3) The report shall be transmitted to the subcommittees, the

fiscal agencies, and the state budget office and posted to the

department's website on or before April 1 of each year.

Sec. 402. From the funds appropriated in part 1 for food

safety and quality assurance fund the department shall issue a

grant of $150,000.00 to a third-party entity for the purposes of

providing education and training as it relates to proper management

of draft beer delivery systems. The grant issued under this section

shall be focused on providing education and training to the new

entities that were given the ability by 2016 PA 514 to fill

growlers for off-premises consumption under section 537 of the

Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1537.

Sec. 403. It is the intent of the legislature that the

department work with the FDA and representatives of agriculture

producers to develop on-farm food safety education and training

programs to assist producers in implementing the food safety

modernization act, Public Law 111-353, requirements. The department

may receive and expend federal revenues in excess of the federal

revenue appropriated in part 1, section 104, for food safety

modernization act, Public Law 111-353, education and training

program activities. The department shall notify the subcommittees

and the fiscal agencies prior to expending federal revenues

authorized under this section.

ANIMAL INDUSTRY

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. 452. The department shall report on the previous calendar

year's activities of the animal industry division. The report shall

be transmitted to the subcommittees, the fiscal agencies, and the

state budget office and posted to the department's website on or

before April 1 of each year.

Sec. 453. (1) From the funds appropriated in part 1 for animal

disease prevention and response, the department may provide for

indemnity pursuant to the animal industry act, 1988 PA 466, MCL

287.701 to 287.746, not to exceed $100,000.00 per order. Any

indemnification agreement between the department and an owner of

livestock that exceeds $100,000.00 shall be subject to specific

appropriation by the legislature.

(2) The department shall not make an indemnification payment

under the animal industry act, 1988 PA 466, MCL 287.701 to 287.746,

until the department provides all of the following information to

the subcommittees, the fiscal agencies, and the state budget

office:

(a) The reason for the indemnification.

(b) The amount of the indemnification.

(3) From the funds appropriated in part 1 for indemnification

- livestock depredation, the department shall make indemnification

payments for livestock killed by a wolf, coyote, or cougar pursuant

to the wildlife depredation indemnification act, 2012 PA 487, MCL

285.361 to 285.365.

(4) The department shall include in the annual report required

under section 452 all indemnification payments for livestock

depredation made in the previous calendar year. The report shall

include all of the following information:

(a) The reason for the indemnification.

(b) The amount of the indemnification.

Sec. 454. The department shall use its resources to

collaborate with the USDA to monitor bovine TB, consistent with the

May 2016 memorandum of understanding between the department and the

USDA.

Sec. 457. (1) On or before October 15, 2017, the department

shall provide to the subcommittees, the fiscal agencies, and the

state budget office a report on bovine TB status and department

activities.

(2) For each fiscal quarter following the report required in

subsection (1), the department shall provide an update to the

subcommittees, the fiscal agencies, and the state budget office.

The quarterly update reports shall identify significant impacts to

the program, including new incidence of bovine TB in this state,

department activity associated with specific new incidence of

bovine TB, any changes in USDA requirements or movement orders, and

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; efforts to work with slaughter facilities in

this state, as well as those that slaughter a significant number of

animals from this state; educational programs and information for

this state's livestock community; and any other item the

legislature should be aware of that will promote or hinder efforts

to achieve bovine TB-free status for this state.

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.

Sec. 459. It is the intent of the legislature that the

department shall not conduct whole herd bovine TB testing on any 1

herd in a TB-free zone more often than every 4 years or re-test

until all other herds in their county have been tested, unless

involved in an epidemiological investigation, there is an outbreak

within a 10-radius-mile area, or is not on a verified wildlife risk

mitigated premises. If there is an outbreak within a 10-radius-mile

area, protocols outlined by the current memorandum of understanding

with the USDA shall be used.

Sec. 461. (1) From the funds appropriated in part 1 for bovine

TB risk mitigation, the department shall establish a program to

identify and mitigate risks related to the transmission of bovine

TB from the wildlife to cattle. Risk mitigation activities shall

include grants to livestock producers to implement risk mitigation

projects. Grants under this section may be made only for risk

mitigation projects identified and approved by the department prior

to the start of project activity. The department may work with

local conservation districts in implementing the bovine TB risk

mitigation program.

(2) From the funds appropriated in part 1 for bovine TB risk

mitigation, not to exceed $20,000.00, the department shall

establish a grant program to assist in the construction of

protective systems for apiaries. The department may make grants

under this program to reimburse apiary owners for costs of projects

designed to protect apiaries from damage by wildlife, subject to

all of the following:

(a) Grants may not exceed $250.00 per apiary site.

(b) Grants under this subsection may be made only for projects

identified and approved by the department prior to the start of

project activity.

(3) The department shall report on grants issued under this

section as provided in section 302.

PESTICIDE AND PLANT PEST MANAGEMENT

Sec. 501. The department shall report on the previous calendar

year's activities of the pesticide and plant pest management

division. The report shall be transmitted to the subcommittees, the

fiscal agencies, and the state budget office and posted to the

department's website on or before April 1 of each year.

ENVIRONMENTAL STEWARDSHIP

Sec. 601. The funds appropriated in part 1 for environmental

stewardship/MAEAP 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 2014.

Sec. 602. The department shall report on the previous calendar

year's activities of the environmental stewardship division. The

report shall be transmitted to the subcommittees, the fiscal

agencies, and the state budget office and posted to the

department's website on or before April 1 of each year.

Sec. 604. The department may receive and expend federal

revenues in excess of the federal revenue appropriated in part 1,

section 107, for environmental stewardship and MAEAP activities.

The department shall notify the subcommittees, the fiscal agencies,

and the state budget office prior to expending federal revenues

authorized under this section.

Sec. 608. (1) The appropriations in part 1 for qualified

forest affidavit program are 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.

LABORATORY PROGRAM

Sec. 651. The department shall report on the previous calendar

year's activities of the laboratory division. The report shall be

transmitted to the subcommittees, the fiscal agencies, and the

state budget office and posted to the department's website on or

before April 1 of each year.

AGRICULTURE DEVELOPMENT

Sec. 701. (1) From the funds appropriated in part 1 for the

food and agriculture investment program, the department shall

establish and administer a food and agriculture investment program.

(2) The food and agriculture investment program shall expand

the Michigan food and agriculture sector, grow Michigan exports,

promote the development of value-added agricultural production,

food hubs, food incubators, and community-based processing

facilities, and the expansion of farm markets and urban

agriculture, and increase food processing activities within the

state by accelerating projects and infrastructure development that

support growth in the food and agriculture processing industry.

(3) In addition to the funds appropriated in part 1, the

department may receive and expend funds received from outside

sources for the food and agriculture investment program.

(4) Before the allocation of funding, all projects shall

receive approval from the Michigan commission of agriculture and

rural development, except for projects selected through a

competitive process by a joint evaluation committee selected by the

director and consisting of representatives that have agriculture,

business, and economic development expertise. Projects funded

through the food and agriculture investment program will be

required to have a grant agreement that outlines milestones and

activities that must be met in order to receive a disbursement of

funds. Projects must also identify measurable project outcomes.

(5) The department shall include in the agriculture

development annual report a report on the food and agriculture

investment program for the previous fiscal year that includes a

listing of the grantees, award amounts, match funding, project

locations, and project outcomes.

(6) The food and agriculture investment program shall be

administered by the department and provide support for food and

agriculture projects that will enable growth in the industry and

this state's economy.

(7) The unexpended portion of the food and agriculture

investment program is a work project appropriation in accordance

with section 451a(1) of the management and budget act, 1984 PA 431,

MCL 18.1451a. All of the following apply to the project:

(a) The purpose of the project is to promote and expand the

Michigan food and agriculture sector, grow Michigan exports, and

increase food processing activities within the state.

(b) The project will be funded in accordance with this section

and the project guidelines approved by the Michigan agriculture

commission prior to an award.

appropriation line item.

(d) The tentative completion date for the work project is

September 30, 2020.

(8) The department may expend money from the funds

appropriated in part 1 for the food and agriculture investment

program, including all of the following activities:

(a) Grants.

(b) Loans or loan guarantees.

(d) Other economic assistance.

(e) Program administration.

(f) Export assistance.

(9) The department shall expend no more than 10% from the

funds appropriated in part 1 for the food and agriculture

investment program for administrative purposes.

Sec. 702. The department shall work with the rural development

fund board to establish a process and criteria for funding projects

as well as establishing metrics and measurable outcomes for the

program. Funds appropriated from the rural development fund shall

be used in accordance with the provisions of the rural development

fund act, 2012 PA 411, MCL 286.941 to 286.947.

Sec. 706. (1) The department shall report on the previous

calendar year's activities of the agriculture development division.

The report shall be transmitted to the subcommittees, the fiscal

agencies, and the state budget office and posted to the

department's website on or before April 1 of each year.

(2) The report shall include the following information on any

grants awarded during the prior fiscal year:

(a) The name of the grantee.

(b) The amount of the grant.

(d) Additional state, federal, private, or local funds

contributed to the grant project.

(e) The completion date of grant-funded activities.

Sec. 709. (1) Not later than April 1 of the current fiscal

year, the department shall provide a report to the subcommittees,

fiscal agencies, and the state budget office describing the

activities of the grape and wine industry council established under

section 303 of the Michigan liquor control code 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.

results of research grant projects completed during the previous

fiscal year.

FAIRS AND EXPOSITIONS

Sec. 801. All appropriations from the agriculture 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 Michigan gaming control

board's regulatory expenses and the department's expenses to

administer horse racing programs and laboratory analysis, shall be

reduced proportionately if revenues to the agriculture equine

industry development fund decline during the preceding fiscal year

to a level lower than the amounts appropriated in part 1.

Sec. 804. It is the intent of the legislature that the

Michigan gaming control board shall use actual expenditure data in

determining the actual regulatory costs of conducting racing dates

and shall provide that data to the senate and house of

representatives appropriations subcommittees on agriculture and

rural development and general government and the fiscal agencies by

November 1 of the current fiscal year. The Michigan gaming control

board shall not be reimbursed for more than the actual regulatory

cost of conducting race dates. If a certified horsemen's

organization funds more than the actual regulatory cost, the

balance shall remain in the agriculture equine industry development

fund to be used to fund subsequent race dates conducted by race

meeting licensees with which the certified horsemen's organization

has contracts. If a certified horsemen's organization funds less

than the actual regulatory costs of the additional horse racing

dates, the Michigan gaming control board shall reduce the number of

future race dates conducted by race meeting licensees with which

the certified horsemen's organization has contracts. Prior to the

reduction in the number of authorized race dates due to budget

deficits, the executive director of the Michigan gaming control

board shall provide notice to the certified horsemen's

organizations with an opportunity to respond with alternatives. In

determining actual costs, the Michigan gaming control board shall

take into account that each specific breed may require different

regulatory mechanisms.

Sec. 805. (1) The department shall establish and administer a

county fairs, shows, and expositions grant program. The program

shall have the following objectives:

(a) Assist in the promotion of building improvements or other

capital improvements at county fairgrounds of the state.

(b) Provide financial support, promotion, prizes, and premiums

of equine, livestock, and other agricultural commodity expositions

in the state.

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

to county fairs or other organizations from the funds appropriated

in part 1 for county fairs, shows, and expositions grants. Grantees

will be required to provide a dollar-for-dollar cash match with

grant awards and identify measurable project outcomes. A county

fair organization that received a county fair capital improvement

grant in the prior fiscal year shall not receive a grant from the

appropriation in part 1.

(3) From the amount appropriated in part 1 for county fairs,

shows, and expositions, up to $20,000.00 shall be expended for the

purpose of financial support, promotion, prizes, and premiums of

equine, livestock, and other agricultural commodity expositions in

this state.

(4) All fairs receiving grants under this section shall

provide a report to the department on the financial impact

resulting from the capital improvement project on both fair and

nonfair events. These reports are due for 3 years immediately

following the completion of the capital improvement project.

(5) The department shall identify criteria, evaluate

applications, and provide recommendations to the director for final

approval of grant awards.

(6) The department may expend money from the funds

appropriated in part 1 for the county fairs, shows, and expositions

grants for administering the program.

(7) The unexpended portion of the county fairs, shows, and

expositions grants is considered a work project appropriation in

accordance with section 451a of the management and budget act, 1984

PA 431, MCL 18.1451a. The following apply to the project:

(a) The purpose of the project is to support building

improvements or other capital improvements at county fairgrounds of

the state.

(b) All grants will be distributed in accordance with this

section and the grant guidelines published prior to the request for

proposals.

appropriation line item.

(d) The tentative completion date for the work project is

September 30, 2020.

(8) The department shall provide a year-end report on the

county fairs, shows, and expositions grants no later than December

1, 2018 to the subcommittees, the fiscal agencies, and the state

budget director that includes a listing of the grantees, award

amounts, match funding, and project outcomes.

ONE-TIME APPROPRIATIONS

Sec. 901. From the appropriations in part 1 for agriculture

industry research and development, funds shall be expended as

follows:

Animal agriculture initiative......................... $ 2,500,000

Fruit and vegetable campus/mobile labs................ 3,200,000

Fruit and vegetable campus/mobile labs workforce

development initiative .............................. 1,200,000

Tree fruit commission................................. 1,000,000

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2018-2019

GENERAL SECTIONS

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

appropriations for the fiscal year ending on September 30, 2019 for

the line items listed in part 1. The fiscal year 2018-2019