SB-0139, As Passed Senate, May 3, 2017
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.................................... $ 109,744,600
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........................... $ 109,434,300
Federal revenues:
USDA, multiple grants.................................. 6,133,100
EPA, multiple grants................................... 1,268,100
HHS-FDA................................................ 3,633,900
Department of Interior................................. 238,800
Total federal revenues................................. 11,273,900
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 preservation fund.......................... 1,427,800
Agriculture equine industry development fund........... 3,667,200
Agriculture licensing and inspection fees.............. 4,065,800
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
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.................. 36,660,900
State general fund/general purpose..................... $ 61,397,900
State general fund/general purpose schedule:
Ongoing state general fund/general
purpose................................... 54,847,900
One-time state general fund/general
purpose.................................... 6,550,000
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions........... 24.0
Unclassified positions................................. $ 562,300
Accounting service center.............................. 1,150,400
Commissions and boards................................. 23,800
Emergency management--4.0 FTE positions................ 979,600
Executive direction--20.0 FTE positions................ 2,216,900
Property management.................................... 709,000
GROSS APPROPRIATION.................................... $ 5,642,000
Appropriated from:
Federal revenues:
HHS-FDA................................................ 334,400
Special revenue funds:
Agriculture preservation fund.......................... 17,000
Agriculture licensing and inspection fees.............. 127,700
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 preservation fund.......................... 200
Agriculture licensing and inspection fees.............. 93,800
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.. $ 16,648,400
Milk safety and quality assurance--31.0 FTE positions.. 4,510,300
GROSS APPROPRIATION.................................... $ 21,158,700
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..................... $ 12,991,200
Sec. 105. ANIMAL INDUSTRY
Full-time equated classified positions........... 61.0
Animal agriculture initiative.......................... $ 399,000
Animal disease prevention and response--61.0 FTE
positions............................................ 9,364,300
Indemnification - livestock depredation................ 50,000
GROSS APPROPRIATION.................................... $ 9,813,300
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..................... $ 8,903,800
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............ 2,697,300
Right-to-farm--6.5 FTE positions....................... 950,800
GROSS APPROPRIATION.................................... $ 17,517,500
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..................... $ 6,232,200
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. AGRICULTURAL DEVELOPMENT
Full-time equated classified positions........... 17.0
Agricultural 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
Advanced deposit wagering.............................. 100
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.................................... $ 4,316,600
Appropriated from:
Special revenue funds:
Agriculture equine industry development fund........... 3,667,200
State general fund/general purpose..................... $ 649,400
Sec. 111. ONE-TIME APPROPRIATIONS
Enhanced wildlife risk management project.............. $ 1,000,000
Intercounty drain...................................... 250,000
Tree fruit commission.................................. 1,500,000
Fruit and vegetable mobile lab project................. 1,200,000
Food bank council of Michigan.......................... 2,500,000
Albion equestrian center............................... 100,000
GROSS APPROPRIATION.................................... $ 6,550,000
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 6,550,000
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 $98,058,900.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2017-2018 is $7,350,000.00. 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.............. $ 1,000,000
Rural development fund grant program................... $ 600,000
Qualified forest program............................... 1,500,000
TOTAL.................................................. $ 7,350,000
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.
(c) "EPA" means the United States Environmental Protection
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.
(c) Fiscal year-to-date payments to a selected vendor,
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.
DEPARTMENTWIDE
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.
(c) Laboratory support testing for testing horses in draft
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 and the
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.
(4) On or before February 1 of each year, the department shall
provide a report to the subcommittees and the 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. (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 and the fiscal
agencies 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 and
the fiscal agencies and posted to the department's website on or
before April 1 of each year.
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 and the fiscal agencies and
posted to the department's website on or before April 1 of each
year.
Sec. 453. (1) The department shall not make an indemnification
payment exceeding $100,000.00 in accordance with 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 and the fiscal agencies:
(a) The reason for the indemnification.
(b) The amount of the indemnification.
(2) 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.
(3) The department shall include in its annual report required
in section 452 all indemnification payments for livestock
depredation made in the previous fiscal year. The report shall
include all of the following information:
(a) The reason for the indemnification.
(b) The amount of the indemnification.
(c) The person to whom the indemnification was paid.
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 and the fiscal agencies 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 and fiscal agencies. 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, 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; 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.
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 and
the fiscal agencies 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 and the fiscal
agencies 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 and the fiscal
agencies 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 and the fiscal agencies 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,
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, 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. 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) All projects will be funded in accordance with this
section and the project guidelines approved by the Michigan
agriculture commission prior to an award.
(c) The estimated cost of this project is identified in the
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.
(c) Infrastructure development.
(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. 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 and the fiscal
agencies 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.
(c) The purpose of the grant, including measurable outcomes.
(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
and the fiscal agencies 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.
(c) Grants awarded during the previous fiscal year and the
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 projects on both fair and
nonfair events. These reports are due 3 years immediately following
project completion.
(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.
(c) The estimated cost of the project is identified in the
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 and the fiscal agencies, which shall
include a listing of the grantees, award amounts, match funding,
and project outcomes.
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
appropriations are anticipated to be the same as those for fiscal
year 2017-2018, 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 2018 consensus revenue estimating
conference.