HB-5509, As Passed Senate, June 2, 2004                                     

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SENATE SUBSTITUTE FOR                             

                                                                                

                               HOUSE BILL NO. 5509                              

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to make appropriations for the department of agriculture                   

                                                                                

    for the fiscal year ending September 30, 2005; to provide for the           

                                                                                

    expenditure of the appropriations; to create funds; to provide for the      

                                                                                

    imposition of fees; to require reports, audits, and plans; to               

                                                                                

    authorize certain transfers by certain state agencies; and to provide       

                                                                                

    for the disposition of fees and other income received by certain state      

                                                                                

    agencies.                                                                   

                                                                                

                  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                    

                                                                                

1                                   PART 1                                      

                                                                                

2                          LINE-ITEM APPROPRIATIONS                             

                                                                                

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

                                                                                

4   amounts listed in this part are appropriated for the department of          

                                                                                

5   agriculture for the fiscal year ending September 30, 2005, from the         

                                                                                

6   funds indicated in this part.  The following is a summary of the            

                                                                                

7   appropriations in this part:                                                

                                                                                


                                                                                

1   DEPARTMENT OF AGRICULTURE                                                   

                                                                                

2   APPROPRIATION SUMMARY:                                                      

                                                                                

3       Full-time equated unclassified positions........5.0                     

                                                                                

4       Full-time equated classified positions........734.0                     

                                                                                

5     GROSS APPROPRIATION................................. $     115,956,700    

                                                                                

6       Interdepartmental grant revenues:                                       

                                                                                

7     IDG from MDCH, local public health operations.......         8,878,700    

                                                                                

8     IDG from MDEQ, biosolids............................            86,100    

                                                                                

9     IDG from MDEQ, right to farm........................           113,000    

                                                                                

10    IDG from MDEQ, type II well survey..................            16,100    

                                                                                

11    IDG from MDLEG (LCC), liquor quality testing fees...           177,300    

                                                                                

12    IDG from MDLEG (LCC), nonretail liquor license fees.           560,500    

                                                                                

13    IDG from MDNR, district forestry and wildlife                             

                                                                                

14      program...........................................         1,000,000    

                                                                                

15    Total interdepartmental grants and intradepartmental                      

                                                                                

16      transfers.........................................        10,831,700    

                                                                                

17    ADJUSTED GROSS APPROPRIATION........................ $     105,125,000    

                                                                                

18      Federal revenues:                                                       

                                                                                

19    DAG, multiple grants................................        30,688,100    

                                                                                

20    EPA, multiple grants................................         2,368,500    

                                                                                

21    HHS-FDA.............................................           349,600    

                                                                                

22    Total federal revenues..............................        33,406,200    

                                                                                

23      Special revenue funds:                                                  

                                                                                

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

                                                                                

25    Private - slow-the-spread foundation................           138,700    

                                                                                

26    Total private revenues..............................           138,700    

                                                                                

27    Agricultural preservation fund......................           900,000    


                                                                                

1     Agriculture equine industry development fund........        11,202,100    

                                                                                

2     Agriculture pollution prevention fund...............               100    

                                                                                

3     Civil penalties.....................................            43,900    

                                                                                

4     Commodity inspection fees...........................           709,400    

                                                                                

5     Environmental response fund.........................         3,000,000    

                                                                                

6     Gasoline inspection and testing fund................         2,035,800    

                                                                                

7     Groundwater and freshwater protection fund..........         4,812,300    

                                                                                

8     Horticulture fund...................................            74,700    

                                                                                

9     Industry support funds..............................           612,100    

                                                                                

10    Licensing and inspection fees.......................         6,232,600    

                                                                                

11    Michigan state fair revenue.........................               200    

                                                                                

12    Pseudorabies and swine brucellosis fund.............            21,200    

                                                                                

13    State services fee fund.............................         8,188,600    

                                                                                

14    Testing fees........................................           386,100    

                                                                                

15    Upper Peninsula state fair revenue..................         1,291,500    

                                                                                

16    Weights and measures regulation fees................           560,100    

                                                                                

17    Total other state restricted revenues...............        40,070,700    

                                                                                

18    State general fund/general purpose.................. $      31,509,400    

                                                                                

19      Sec. 102.  EXECUTIVE                                                        

                                                                                

20      Full-time equated unclassified positions........5.0                     

                                                                                

21      Full-time equated classified positions.........52.0                     

                                                                                

22    Commission and boards............................... $          47,300    

                                                                                

23    Unclassified positions--5.0 FTE positions...........           354,000    

                                                                                

24    Executive direction--10.0 FTE positions.............         1,140,100    

                                                                                

25    Management services--35.5 FTE positions.............         2,830,400    

                                                                                

26    Statistical reporting service--4.0 FTE positions....           341,400    

                                                                                

27    Emergency management--2.5 FTE positions.............           220,500    


                                                                                

1     Human resource optimization user charges............            29,500    

                                                                                

2     GROSS APPROPRIATION................................. $       4,963,200    

                                                                                

3         Appropriated from:                                                    

                                                                                

4       Interdepartmental grant revenues:                                       

                                                                                

5     IDG from MDLEG (LCC), nonretail liquor license fees.             8,800    

                                                                                

6       Special revenue funds:                                                  

                                                                                

7     Gasoline inspection and testing fund................            52,500    

                                                                                

8     Industry support funds..............................            30,000    

                                                                                

9     State services fee fund.............................           352,000    

                                                                                

10    Upper Peninsula state fair revenue..................             9,000    

                                                                                

11    State general fund/general purpose.................. $       4,510,900    

                                                                                

12      Sec. 103.  DEPARTMENTWIDE                                                   

                                                                                

13    Rent and building occupancy charges................. $       1,486,300    

                                                                                

14    Employee turnover savings...........................           (99,900)   

                                                                                

15    Agriculture equine industry development fund                              

                                                                                

16      reimbursement.....................................                 0    

                                                                                

17    GROSS APPROPRIATION................................. $       1,386,400    

                                                                                

18        Appropriated from:                                                    

                                                                                

19      Interdepartmental grant revenues:                                       

                                                                                

20    IDG from MDLEG (LCC), nonretail liquor license fees.             5,800    

                                                                                

21      Federal revenues:                                                       

                                                                                

22    DAG, multiple grants................................           100,500    

                                                                                

23    EPA, multiple grants................................            61,200    

                                                                                

24    HHS-FDA.............................................            13,100    

                                                                                

25      Special revenue funds:                                                  

                                                                                

26    Agricultural preservation fund......................            23,900    

                                                                                

27    Agriculture equine industry development fund........         2,025,000    


                                                                                

1     Groundwater and freshwater protection fund..........             9,500    

                                                                                

2     Licensing and inspection fees.......................            48,200    

                                                                                

3     State services fee fund.............................           304,600    

                                                                                

4     State general fund/general purpose.................. $      (1,205,400)   

                                                                                

5       Sec. 104.  FOOD AND DAIRY                                                   

                                                                                

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

                                                                                

7     Food safety and quality assurance--107.0 FTE                              

                                                                                

8       positions......................................... $      11,325,700    

                                                                                

9     Local public health operations......................         8,878,700    

                                                                                

10    GROSS APPROPRIATION................................. $      20,204,400    

                                                                                

11        Appropriated from:                                                    

                                                                                

12      Interdepartmental grant revenues:                                       

                                                                                

13    IDG from MDCH, local public health operations.......         8,878,700    

                                                                                

14      Federal revenues:                                                       

                                                                                

15    DAG, multiple grants................................            24,800    

                                                                                

16    HHS-FDA.............................................           203,700    

                                                                                

17      Special revenue funds:                                                  

                                                                                

18    Civil penalties.....................................            43,900    

                                                                                

19    Licensing and inspection fees.......................         3,030,400    

                                                                                

20    State general fund/general purpose.................. $       8,022,900    

                                                                                

21      Sec. 105.  ANIMAL INDUSTRY                                                  

                                                                                

22      Full-time equated classified positions.........49.0                     

                                                                                

23    Animal health and welfare--22.5 FTE positions....... $       2,402,500    

                                                                                

24    Bovine tuberculosis program--26.5 FTE positions.....         5,263,300    

                                                                                

25    GROSS APPROPRIATION................................. $       7,665,800    

                                                                                

26        Appropriated from:                                                    

                                                                                

27      Federal revenues:                                                       


                                                                                

1     DAG, multiple grants................................         1,251,000    

                                                                                

2     HHS-FDA.............................................            68,800    

                                                                                

3       Special revenue funds:                                                  

                                                                                

4     Agriculture equine industry development fund........            52,800    

                                                                                

5     Licensing and inspection fees.......................           180,800    

                                                                                

6     Pseudorabies and swine brucellosis fund.............            21,200    

                                                                                

7     State general fund/general purpose.................. $       6,091,200    

                                                                                

8       Sec. 106.  PESTICIDE AND PLANT PEST MANAGEMENT                              

                                                                                

9       Full-time equated classified positions........274.8                     

                                                                                

10    Pesticide and plant pest management--119.8 FTE                            

                                                                                

11      positions......................................... $      12,213,400    

                                                                                

12    Emerald ash borer control program--155.0 FTE                              

                                                                                

13      positions.........................................        25,197,300    

                                                                                

14    Michigan State University...........................           210,000    

                                                                                

15    GROSS APPROPRIATION................................. $      37,620,700    

                                                                                

16        Appropriated from:                                                    

                                                                                

17      Federal revenues:                                                       

                                                                                

18    DAG, multiple grants................................        27,272,500    

                                                                                

19    EPA, multiple grants................................         1,563,500    

                                                                                

20    HHS-FDA.............................................            64,000    

                                                                                

21      Special revenue funds:                                                  

                                                                                

22    Private - slow-the-spread foundation................           138,700    

                                                                                

23    Commodity inspection fees...........................           709,400    

                                                                                

24    Horticulture fund...................................            74,700    

                                                                                

25    Industry support funds..............................           319,900    

                                                                                

26    Licensing and inspection fees.......................         2,860,700    

                                                                                

27    State general fund/general purpose.................. $       4,617,300    


                                                                                

1       Sec. 107.  ENVIRONMENTAL STEWARDSHIP                                        

                                                                                

2       Full-time equated classified positions.........47.0                     

                                                                                

3     Environmental stewardship--32.7 FTE positions....... $       2,566,500    

                                                                                

4     Groundwater and freshwater protection program--8.3                        

                                                                                

5       FTE positions.....................................         4,931,700    

                                                                                

6     Farmland and open space preservation--6.0 FTE                             

                                                                                

7       positions.........................................           875,900    

                                                                                

8     Cooperative resources management initiative program.         1,000,000    

                                                                                

9     Agriculture pollution prevention program............               100    

                                                                                

10    Local conservation districts........................         1,579,900    

                                                                                

11    Migrant labor housing...............................           255,100    

                                                                                

12    GROSS APPROPRIATION................................. $      11,209,200    

                                                                                

13        Appropriated from:                                                    

                                                                                

14      Interdepartmental grant revenues:                                       

                                                                                

15    IDG from MDEQ, biosolids............................            86,100    

                                                                                

16    IDG from MDEQ, right to farm........................           113,000    

                                                                                

17    IDG from MDEQ, type II well survey..................            16,100    

                                                                                

18    IDG from MDNR, district forestry and wildlife                             

                                                                                

19      program...........................................         1,000,000    

                                                                                

20      Federal revenues:                                                       

                                                                                

21    EPA, multiple grants................................           419,700    

                                                                                

22      Special revenue funds:                                                  

                                                                                

23    Agricultural preservation fund......................           875,900    

                                                                                

24    Agriculture pollution prevention fund...............               100    

                                                                                

25    Groundwater and freshwater protection fund..........         4,802,700    

                                                                                

26    State general fund/general purpose.................. $       3,895,600    

                                                                                

27      Sec. 108.  LABORATORY PROGRAM                                               


                                                                                

1       Full-time equated classified positions........148.0                     

                                                                                

2     Laboratory services--60.5 FTE positions............. $       5,062,400    

                                                                                

3     USDA monitoring--18.0 FTE positions.................         1,906,500    

                                                                                

4     Consumer protection program--69.5 FTE positions.....         4,893,100    

                                                                                

5     GROSS APPROPRIATION................................. $      11,862,000    

                                                                                

6         Appropriated from:                                                    

                                                                                

7       Interdepartmental grant revenues:                                       

                                                                                

8     IDG from MDLEG (LCC), liquor quality testing fees...           174,500    

                                                                                

9       Federal revenues:                                                       

                                                                                

10    DAG, multiple grants................................         1,926,900    

                                                                                

11    EPA, multiple grants................................           324,100    

                                                                                

12      Special revenue funds:                                                  

                                                                                

13    Environmental response fund.........................         3,000,000    

                                                                                

14    Gasoline inspection and testing fund................         1,957,100    

                                                                                

15    State services fee fund.............................           479,600    

                                                                                

16    Testing fees........................................           386,100    

                                                                                

17    Weights and measures regulation fees................           560,100    

                                                                                

18    State general fund/general purpose.................. $       3,053,600    

                                                                                

19      Sec. 109.  AGRICULTURE DEVELOPMENT                                          

                                                                                

20      Full-time equated classified positions..........8.0                     

                                                                                

21    Agriculture development--5.0 FTE positions.......... $         842,300    

                                                                                

22    Export market development program...................            50,000    

                                                                                

23    Grape and wine program--3.0 FTE positions...........           677,600    

                                                                                

24    Food bank...........................................           630,500    

                                                                                

25    Future farmers of America...........................            59,900    

                                                                                

26    GROSS APPROPRIATION................................. $       2,260,300    

                                                                                

27        Appropriated from:                                                    


                                                                                

1       Interdepartmental grant revenues:                                       

                                                                                

2     IDG from MDLEG (LCC), nonretail liquor license fees.           545,400    

                                                                                

3       Federal revenues:                                                       

                                                                                

4     DAG, multiple grants................................           112,400    

                                                                                

5       Special revenue funds:                                                  

                                                                                

6     Industry support funds..............................           232,200    

                                                                                

7     State services fee fund.............................           263,700    

                                                                                

8     State general fund/general purpose.................. $       1,106,600    

                                                                                

9       Sec. 110.  FAIRS AND EXPOSITIONS                                            

                                                                                

10      Full-time equated classified positions.........16.5                     

                                                                                

11    Michigan state fair operations...................... $             200    

                                                                                

12    Upper Peninsula state fair--7.0 FTE positions.......         1,281,600    

                                                                                

13    Fairs, racing and producer security--9.5 FTE                              

                                                                                

14      positions.........................................           992,400    

                                                                                

15    Building and track improvement - county and state                         

                                                                                

16      fairs.............................................           963,100    

                                                                                

17    Premiums - county and state fairs...................         1,614,100    

                                                                                

18    Purses and supplements - fairs/licensed tracks......         2,431,600    

                                                                                

19    Standardbred Fedele Fauri futurity..................            80,600    

                                                                                

20    Standardbred Michigan futurity......................            80,600    

                                                                                

21    Quarterhorse programs...............................            39,500    

                                                                                

22    Licensed tracks-light horse racing..................            76,400    

                                                                                

23    Standardbred breeders' awards.......................         1,231,000    

                                                                                

24    Standardbred purses and supplements-licensed tracks.           275,600    

                                                                                

25    Standardbred sire stakes............................         1,031,400    

                                                                                

26    Thoroughbred sire stakes............................         1,031,400    

                                                                                

27    Standardbred training and stabling..................            43,500    


                                                                                

1     Thoroughbred program................................         1,804,700    

                                                                                

2     Thoroughbred owners' awards.........................           155,300    

                                                                                

3     Distribution of outstanding winning tickets.........           699,900    

                                                                                

4     Michigan festivals, fairs, and events...............               100    

                                                                                

5     GROSS APPROPRIATION................................. $      13,833,000    

                                                                                

6         Appropriated from:                                                    

                                                                                

7       Special revenue funds:                                                  

                                                                                

8     Agriculture equine industry development fund........         8,981,500    

                                                                                

9     Industry support funds..............................            30,000    

                                                                                

10    Licensing and inspection fees.......................           112,500    

                                                                                

11    Michigan state fair revenue.........................               200    

                                                                                

12    State services fee fund.............................         3,177,500    

                                                                                

13    Upper Peninsula state fair revenue..................         1,281,600    

                                                                                

14    State general fund/general purpose.................. $         249,700    

                                                                                

15      Sec. 111.  OFFICE OF RACING COMMISSIONER                                    

                                                                                

16      Full-time equated classified positions.........31.7                     

                                                                                

17    Office of racing commissioner--31.7 FTE positions... $       3,609,100    

                                                                                

18    GROSS APPROPRIATION................................. $       3,609,100    

                                                                                

19        Appropriated from:                                                    

                                                                                

20      Special revenue funds:                                                  

                                                                                

21    State services fee fund.............................         3,609,100    

                                                                                

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

                                                                                

23      Sec. 112.  INFORMATION TECHNOLOGY                                           

                                                                                

24    Information technology services and projects........ $       1,342,600    

                                                                                

25    GROSS APPROPRIATION................................. $       1,342,600    

                                                                                

26        Appropriated from:                                                    

                                                                                

27      Interdepartmental grant revenues:                                       


                                                                                

1     IDG from MDLEG (LCC), liquor quality testing fees...             2,800    

                                                                                

2     IDG from MDLEG (LCC), nonretail liquor license fees.               500    

                                                                                

3       Special revenue funds:                                                  

                                                                                

4     Agricultural preservation fund......................               200    

                                                                                

5     Agriculture equine industry development fund........           142,800    

                                                                                

6     Gasoline inspection and testing fund................            26,200    

                                                                                

7     Groundwater and freshwater protection fund..........               100    

                                                                                

8     State services fee fund.............................             2,100    

                                                                                

9     Upper Peninsula state fair revenue..................               900    

                                                                                

10    State general fund/general purpose.................. $       1,167,000    

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

11                                    PART 2                                    

                                                                                

12                     PROVISIONS CONCERNING APPROPRIATIONS                     

                                                                                

13  GENERAL SECTIONS                                                            

                                                                                

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

                                                                                

15  constitution of 1963, total state spending from state resources under       

                                                                                

16  part 1 for fiscal year 2004-2005 is $71,580,100.00 and state spending       

                                                                                

17  from state resources to be paid to local units of government for            

                                                                                

18  fiscal year 2004-2005 is $3,379,900.00.  The itemized statement below       

                                                                                

19  identifies appropriations from which spending to local units of             

                                                                                

20  government will occur:                                                      

                                                                                

21  DEPARTMENT OF AGRICULTURE                                                   

                                                                                

22    Groundwater and freshwater protection program....... $       1,800,000    

                                                                                

23    Local conservation districts........................         1,579,900    

                                                                                

24    TOTAL............................................... $       3,379,900    

                                                                                

25      Sec. 202.  The appropriations authorized under this act are                 


                                                                                

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

                                                                                

2   18.1594.                                                                    

                                                                                

3       Sec. 203.  As used in this act:                                             

                                                                                

4       (a)  "DAG" means the United States department of agriculture.               

                                                                                

5       (b)  "Department" means the department of agriculture.                      

                                                                                

6       (c)  "Director" means the director of the department.                       

                                                                                

7       (d)  "EPA" means the United States environmental protection agency.         

                                                                                

8       (e)  "FTE" means full-time equated.                                         

                                                                                

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

                                                                                

10  human services - food and drug administration.                              

                                                                                

11      (g)  "IDG" means interdepartmental grant.                                   

                                                                                

12      (h)  "MDCH" means the Michigan department of community health.              

                                                                                

13      (i)  "MDLEG (LCC)" means the Michigan department of labor and               

                                                                                

14  economic growth - liquor control commission.                                

                                                                                

15      (j)  "MDEQ" means the Michigan department of environmental quality.         

                                                                                

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

                                                                                

17      Sec. 204.  The department of civil service shall bill departments           

                                                                                

18  and agencies at the end of the first fiscal quarter for the 1% charge       

                                                                                

19  authorized by section 5 of article XI of the state constitution of          

                                                                                

20  1963.  Payments shall be made for the total amount of the billing by        

                                                                                

21  the end of the second fiscal quarter.                                       

                                                                                

22      Sec. 205.  (1) A hiring freeze is imposed on the state classified           

                                                                                

23  civil service.  State departments and agencies are prohibited from          

                                                                                

24  hiring any new classified civil service employees and prohibited from       

                                                                                

25  filling any vacant state classified civil service positions.  This          

                                                                                

26  hiring freeze does not apply to internal transfers of classified            

                                                                                

27  employees from 1 position to another within a department.                   


                                                                                

1       (2) The hiring freeze described in subsection (1) does not apply            

                                                                                

2   to any classified state civil service position that meets any of the        

                                                                                

3   following criteria:                                                         

                                                                                

4       (a) Filling the vacant position will directly prevent the loss of           

                                                                                

5   federal funding.                                                            

                                                                                

6       (b) The vacant position deals directly with the direct provision            

                                                                                

7   of public safety services including prison officers, law enforcement        

                                                                                

8   officers, and child services enforcement workers.                           

                                                                                

9       (c) The vacant position provides direct health care services                

                                                                                

10  including physicians, nurses, and other direct health care providers.       

                                                                                

11      (3) The state budget director shall report quarterly to the                 

                                                                                

12  chairpersons of the senate and house of representatives standing            

                                                                                

13  committees on appropriations the number of new state classified civil       

                                                                                

14  service employees hired during the previous quarter and the reasons to      

                                                                                

15  justify the hiring.                                                         

                                                                                

16      Sec. 208.  Unless otherwise specified, the department shall use             

                                                                                

17  the Internet to fulfill the reporting requirements of this act.  This       

                                                                                

18  shall include transmission of reports via electronic mail to the            

                                                                                

19  recipients identified for each reporting requirement and shall include      

                                                                                

20  placement of reports on an Internet or Intranet site.                       

                                                                                

21      Sec. 209.  (1) Funds appropriated in part 1 shall not be used for           

                                                                                

22  the purchase of foreign goods or services, or both, if competitively        

                                                                                

23  priced and of comparable quality American goods or services, or both,       

                                                                                

24  are available.                                                              

                                                                                

25      (2) In addition to the requirements in subsection (1), the                  

                                                                                

26  purchase of goods or services, or both, if competitively priced and of      

                                                                                

27  comparable quality shall be Michigan goods or services, or both, if         


                                                                                

1   available.  The department shall also encourage the use of Michigan         

                                                                                

2   produced agricultural products by all state agencies and departments        

                                                                                

3   if competitively priced and of comparable quality, if available.            

                                                                                

4       Sec. 210.  The director of each department receiving                        

                                                                                

5   appropriations in part 1 shall take all reasonable steps to ensure          

                                                                                

6   businesses in deprived and depressed communities compete for and            

                                                                                

7   perform contracts to provide services or supplies, or both.  Each           

                                                                                

8   director shall strongly encourage firms with which the department           

                                                                                

9   contracts to subcontract with certified businesses in depressed and         

                                                                                

10  deprived communities for services, supplies, or both.                       

                                                                                

11      Sec. 211.  (1) The unexpended and unobligated balance of any                

                                                                                

12  state restricted fund or account remaining at the end of the fiscal         

                                                                                

13  year shall revert back to the state restricted fund or account from         

                                                                                

14  which appropriated and be available for appropriation for the next          

                                                                                

15  fiscal year.  Appropriations that revert to a state restricted fund or      

                                                                                

16  account pursuant to this section shall not revert to the general fund       

                                                                                

17  of this state.                                                              

                                                                                

18      (2) A state restricted revenue fund or account that receives                

                                                                                

19  revenues in excess of expenditures made from that state restricted          

                                                                                

20  revenue fund or account shall not have the excess revenue revert to         

                                                                                

21  the general fund of this state.                                             

                                                                                

22      Sec. 212.  (1) Of the funds appropriated in part 1, the                     

                                                                                

23  department may provide for indemnity as provided for pursuant to the        

                                                                                

24  animal industry act of 1987, 1988 PA 466, MCL 287.701 to 287.745, not       

                                                                                

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

                                                                                

26  ending September 30, 2005.  Before the department provides for an           

                                                                                

27  indemnification under this section, the department shall report the         


                                                                                

1   reason for the indemnification, the amount of the indemnification, and      

                                                                                

2   to whom the indemnification is to be paid.  The report shall be given       

                                                                                

3   to each member of the house and senate appropriations subcommittees on      

                                                                                

4   agriculture and to the senate and house fiscal agencies and the state       

                                                                                

5   budget director.                                                            

                                                                                

6       (2) The department of agriculture shall make an indemnification             

                                                                                

7   payment for the fair market value of livestock killed by a wolf or          

                                                                                

8   coyote, if the kill is verified by the department of natural                

                                                                                

9   resources.  The fair market value of the livestock shall be determined      

                                                                                

10  pursuant to the indemnification procedures prescribed in the animal         

                                                                                

11  industry act, 1988 PA 466, MCL 287.701 to 287.745.  In addition to the      

                                                                                

12  funds appropriated in part 1, the department of agriculture is              

                                                                                

13  authorized to expend the funds received from the department of natural      

                                                                                

14  resources to reimburse the department of agriculture for all                

                                                                                

15  indemnification payments made pursuant to this subsection.                  

                                                                                

16      Sec. 214.  Of the funds appropriated in part 1 that are other               

                                                                                

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

                                                                                

18  local government agencies, institutions of higher education, or             

                                                                                

19  nonprofit organizations unless the department provides notice of the        

                                                                                

20  grant to the house and senate appropriations subcommittees on               

                                                                                

21  agriculture at least 10 days before the grant is issued.  The grants        

                                                                                

22  shall be used to support research or other related activities for the       

                                                                                

23  purpose of enhancing the agricultural industries in this state.             

                                                                                

24      Sec. 216.  The unexpended and unencumbered balance of revenue               

                                                                                

25  deposited pursuant to section 20 of the horse racing law of 1995, 1995      

                                                                                

26  PA 279, MCL 431.320, for the fiscal year ending September 30, 2004,         

                                                                                

27  shall be appropriated to the Michigan agriculture equine industry           


                                                                                

1   development fund for distribution as set forth in section 20 of the         

                                                                                

2   horse racing law of 1995, 1995 PA 279, MCL 431.320.                         

                                                                                

3       Sec. 219.  The department of information technology shall                   

                                                                                

4   annually publish a schedule of rates, user fees, and charges or             

                                                                                

5   assessments for standard services and information system support            

                                                                                

6   requirements to be made to departments for technology related services      

                                                                                

7   and projects.  This schedule, as well as copies of related interagency      

                                                                                

8   agreements, shall be provided to the state budget office and the house      

                                                                                

9   and senate committees on appropriations before October 15, 2004.  The       

                                                                                

10  department of agriculture shall not process any payments or fund            

                                                                                

11  transfers to the department of information technology until 30 days         

                                                                                

12  after the 2004-2005 fiscal year schedule of rates, user fees, and           

                                                                                

13  assessments is provided to the legislature, pursuant to this section.       

                                                                                

14      Sec. 220.  Amounts appropriated in part 1 for information                   

                                                                                

15  technology may be designated as work projects and carried forward to        

                                                                                

16  support technology projects under the direction of the department of        

                                                                                

17  information technology.  Funds designated in this manner are not            

                                                                                

18  available for expenditure until approved as work projects under             

                                                                                

19  section 451a of the management and budget act, 1984 PA 431, MCL             

                                                                                

20  18.1451a.                                                                   

                                                                                

21      Sec. 222.  The negative appropriation for employee turnover                 

                                                                                

22  savings in part 1 shall be satisfied by employee cost savings realized      

                                                                                

23  from the natural delay associated with position posting, recruitment,       

                                                                                

24  and hiring of employees to fill approved vacancies for existing             

                                                                                

25  positions within the department.  Appropriation authorization               

                                                                                

26  adjustments required to implement the negative appropriation shall be       

                                                                                

27  made after the approval of transfers by the legislature under section       


                                                                                

1   393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.          

                                                                                

                                                                                

                                                                                

2   EXECUTIVE                                                                   

                                                                                

3       Sec. 301.  Per diem rates for commodity committees established in           

                                                                                

4   the agriculture commodities marketing act, 1965 PA 232, MCL 290.651 to      

                                                                                

5   290.674, 1970 PA 29, MCL 290.421 to 290.430, 1964 PA 114, MCL 290.551       

                                                                                

6   to 290.568, and the beef industry commission act, 1972 PA 291, MCL          

                                                                                

7   287.601 to 287.610, will be set based upon levels established in            

                                                                                

8   section 301 of 2002 PA 516.                                                 

                                                                                

9       Sec. 302.  (1) The department may receive and expend revenue and            

                                                                                

10  use that revenue to cover necessary expenses related to publications,       

                                                                                

11  audit and licensing functions, livestock sales, certification of            

                                                                                

12  nursery stock, bean inspection services, and laboratory analyses as         

                                                                                

13  specified in the following:                                                 

                                                                                

14      (a) Management services publications.                                       

                                                                                

15      (b) Management services audit and licensing functions.                      

                                                                                

16      (c) Pesticide and plant pest management propagation and                     

                                                                                

17  certification of virus free foundation stock.                               

                                                                                

18      (d) Pesticide and plant pest management bean inspection and                 

                                                                                

19  grading services.                                                           

                                                                                

20      (e) Laboratory support testing for testing horses in draft horse            

                                                                                

21  pulling contests at county fairs when local jurisdictions request           

                                                                                

22  state assistance.                                                           

                                                                                

23      (f) Laboratory support analyses to determine foreign substances in          

                                                                                

24  horses engaged in racing or pulling contests at tracks.                     

                                                                                

25      (g) Laboratory support analysis of food, livestock, and                     

                                                                                

26  agricultural products for disease, foreign products for disease, toxic      


                                                                                

1   materials, foreign substances, and quality standards.                       

                                                                                

2       (h) Laboratory support test samples for other agencies and                  

                                                                                

3   organizations.                                                              

                                                                                

4       (i) Fruit and vegetable inspection at shipping and termination              

                                                                                

5   points and processing plants.                                               

                                                                                

6       (2) The department shall notify the senate and house of                     

                                                                                

7   representatives appropriations subcommittees on agriculture and the         

                                                                                

8   senate and house fiscal agencies 60 days prior to the effective date        

                                                                                

9   of any proposed changes to the fees authorized under this section.          

                                                                                

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

                                                                                

11  report to the senate and house of representatives appropriations            

                                                                                

12  subcommittees on agriculture and the senate and house fiscal agencies       

                                                                                

13  detailing all the fees charged by the department under the                  

                                                                                

14  authorization provided in this section, including, but not limited to,      

                                                                                

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

                                                                                

16  generated by each fee in the previous fiscal year.                          

                                                                                

17      Sec. 303.  Of the funds appropriated in part 1 for statistical              

                                                                                

18  reporting service, $90,000.00 shall be used for surveys which include,      

                                                                                

19  but are not limited to, fruit, vegetables, and nursery stock, which         

                                                                                

20  encompasses Christmas trees and ornamental plants.  The director of         

                                                                                

21  the Michigan department of agriculture is given authority to include        

                                                                                

22  other agricultural surveys such as turfgrass in the 3- to 5-year            

                                                                                

23  rotation.  The survey shall include information such as existing            

                                                                                

24  plantings/acreage, new plantings/acreage, production, and number of         

                                                                                

25  growers.                                                                    

                                                                                

                                                                                

                                                                                

26  FOOD AND DAIRY                                                              


                                                                                

1       Sec. 401.  (1) The department shall monitor restaurant inspection           

                                                                                

2   and licensing functions carried out by local health departments to          

                                                                                

3   ensure uniform application and enforcement of minimum program               

                                                                                

4   requirements.  On or before April 1, 2005, the department shall report      

                                                                                

5   to the senate and house appropriations subcommittees on agriculture,        

                                                                                

6   the senate and house fiscal agencies, and the state budget director on      

                                                                                

7   local health department conformance with minimum program                    

                                                                                

8   requirements.                                                               

                                                                                

9       (2) If a local unit of government incurs additional costs                   

                                                                                

10  resulting from its efforts to control a significant food-borne              

                                                                                

11  outbreak, the director shall seek additional resources to reimburse         

                                                                                

12  the local unit of government for these additional costs.  The director      

                                                                                

13  shall involve the local health officer of the jurisdiction affected in      

                                                                                

14  all aspects of the control of any food-borne outbreak.                      

                                                                                

15      Sec. 402.  Not later than April 1, 2005, the department shall               

                                                                                

16  provide a report to the house and senate appropriations subcommittees       

                                                                                

17  on agriculture and the house and senate fiscal agencies describing          

                                                                                

18  significant food-borne outbreaks and emergencies including any              

                                                                                

19  enforcement actions taken related to food safety during the 2003-2004       

                                                                                

20  fiscal year.                                                                

                                                                                

21      Sec. 403.  The department, in conjunction with the department of            

                                                                                

22  community health, shall assure that a process is in place that              

                                                                                

23  requires a local unit of government to obtain prior approval from the       

                                                                                

24  department before any reallocation or redistribution of program funds       

                                                                                

25  appropriated in section 104.                                                

                                                                                

                                                                                

                                                                                

26  ANIMAL INDUSTRY                                                             


                                                                                

1       Sec. 450.  From the funds appropriated in section 105 for the               

                                                                                

2   bovine tuberculosis program, the department of agriculture shall            

                                                                                

3   reimburse the department of natural resources for those costs               

                                                                                

4   associated with monitoring and testing wildlife for bovine                  

                                                                                

5   tuberculosis that are necessary to support the department of                

                                                                                

6   agriculture goals and are jointly agreed to by the department of            

                                                                                

7   agriculture and the department of natural resources to be in excess of      

                                                                                

8   efforts necessary to effectively plan and execute the eradication of        

                                                                                

9   bovine tuberculosis from Michigan's wild free-ranging deer herd.            

                                                                                

10      Sec. 451.  From the funds appropriated in section 105 for bovine            

                                                                                

11  tuberculosis, the department shall pay for all whole herd testing           

                                                                                

12  costs and individual animal testing costs in the modified accredited        

                                                                                

13  zone to achieve and maintain split-state status requirements.  These        

                                                                                

14  costs include producer assistance, indemnity, and compensation for          

                                                                                

15  injury causing death or downer to animals.                                  

                                                                                

16      Sec. 452.  In the event of a significant animal or plant health             

                                                                                

17  outbreak, the director shall seek additional state and federal              

                                                                                

18  resources to cover the additional costs associated with addressing the      

                                                                                

19  outbreak.                                                                   

                                                                                

                                                                                

                                                                                

20  PESTICIDE AND PLANT PEST MANAGEMENT                                         

                                                                                

21      Sec. 501.  Of the funds appropriated in section 106 to the                  

                                                                                

22  pesticide and plant pest management division, up to $100,000.00 may be      

                                                                                

23  made available to the Michigan cooperative extension service for the        

                                                                                

24  purpose of training of applicators.  Reimbursement shall be based on        

                                                                                

25  actual expenditures and revenue availability.                               

                                                                                

                                                                                


                                                                                

1   ENVIRONMENTAL STEWARDSHIP                                                   

                                                                                

2       Sec. 602.  The department shall expend the amount appropriated              

                                                                                

3   for migrant labor housing grants for construction of new migrant labor      

                                                                                

4   housing.  Project grants shall not exceed $5,000.00 per unit.  An           

                                                                                

5   applicant is not eligible for more than a $20,000.00 grant in any           

                                                                                

6   fiscal year.                                                                

                                                                                

7       Sec. 603.  The department shall apply for all federal funds for             

                                                                                

8   which it is eligible that can be used to support the migrant labor          

                                                                                

9   housing program.                                                            

                                                                                

10      Sec. 604.  The appropriation in section 107 for local                       

                                                                                

11  conservation districts shall be allocated in the following manner:          

                                                                                

12      (a) Of the total appropriation, each local conservation district            

                                                                                

13  meeting the minimum grant requirements shall receive a grant of             

                                                                                

14  $20,000.00 to support basic operations, unless the district resides in      

                                                                                

15  a county consisting of multiple districts, in which case a $20,000.00       

                                                                                

16  grant shall be divided equally among the districts in that county.          

                                                                                

17  The amount of money allocated under this subdivision shall not be used      

                                                                                

18  by local conservation districts to replace any money received from          

                                                                                

19  local sources.                                                              

                                                                                

20      (b) Any amount remaining from the appropriation after                       

                                                                                

21  distributions under subdivision (a) shall be allocated for local            

                                                                                

22  conservation district training.                                             

                                                                                

                                                                                

                                                                                

23  LABORATORY PROGRAM                                                          

                                                                                

24      Sec. 650.  The appropriation in section 108 from the                        

                                                                                

25  environmental response fund represents a portion of the revenue             

                                                                                

26  transferred to the fund from the Michigan underground storage tank          


    House Bill No. 5509 as amended June 2, 2004                                 

1   financial assurance fund pursuant to section 21550 of the natural           

                                                                                

2   resources and environmental protection act, 1994 PA 451, MCL                

                                                                                

3   324.21550.                                                                  

                                                                                

                                                                                

                                                                                

4   AGRICULTURE DEVELOPMENT                                                     

                                                                                

5       Sec. 701.  Within the appropriations in part 1 for agriculture              

                                                                                

6   development, $677,600.00 is for the grape and wine industry council,        

                                                                                

7   from which the department may provide grants for the purposes as            

                                                                                

8   described in section 303 of the Michigan liquor control code of 1998,       

                                                                                

9   1998 PA 58, MCL 436.1303.                                                   

                                                                                

10      Sec. 702.  In any given year when insufficient amounts of                   

                                                                                

11  Michigan surplus products are offered to the food bank council and          

                                                                                

12  accepted for distribution, unused funds may be applied by the food          

                                                                                

13  bank council for the direct purchase of foods from Michigan growers,        

                                                                                

14  manufacturers, or wholesalers.                                              

                                                                                

15      Sec. 704.  Indirect costs may not be charged against the future             

                                                                                

16  farmers of America grant in section 109 by any administering agency.        

                                                                                

17      Sec. 705.  The appropriation in section 109 for the export market           

                                                                                

18  development program shall be used to coordinate state participation in      

                                                                                

19  the federal market access program and to leverage federal funds for         

                                                                                

20  the purpose of developing new and enhancing existing export markets         

                                                                                

21  for Michigan agricultural products.                                         

22      Sec. 706.  From the appropriation in part 1 for agriculture                 

23  development, $40,100.00 shall be provided to the northwest Michigan         

24   horticultural research station.

    <<Sec.  707.  The legislature believes that fostering partnerships to benefit rural Michigan is important.  In order to enhance current efforts, the Michigan commission of agriculture shall allocate time on its agenda at least twice each year during regular commission meetings to receive reports from the Michigan rural partnership council and explore ways to work together to advance the interests of rural Michigan.  In addition, the Michigan rural partnership council is encouraged to submit an annual report to the senate and house of representatives appropriations subcommittees on agriculture and the senate and house of representatives standing committees dealing with agriculture issues.>>          

25  FAIRS AND EXPOSITIONS                                                       


                                                                                

1       Sec. 801.  The department shall submit a report each month to the           

                                                                                

2   state budget director, the senate and house appropriations                  

                                                                                

3   subcommittees on agriculture, and the senate and house fiscal agencies      

                                                                                

4   that states the simulcasting revenues generated in the preceding month      

                                                                                

5   by each licensed track and the amount received from license fees.           

                                                                                

6       Sec. 802.  (1) The appropriation in section 110 for standardbred            

                                                                                

7   purses and supplements - licensed tracks is intended to provide state       

                                                                                

8   purse supplements for 4 races at state licensed pari-mutuel horse           

                                                                                

9   racing tracks.  The purse supplements are to be used for races              

                                                                                

10  comprised only of Michigan-bred horses segregated into a 4-year-old         

                                                                                

11  colt trot division, a 4-year-old filly trot division, a 4-year-old          

                                                                                

12  colt pace division, and a 4-year-old filly pace division.                   

                                                                                

13      (2) The appropriation in part 1 for licensed tracks - light horse           

                                                                                

14  racing shall be allocated as follows:                                       

                                                                                

15    Arabian and Appaloosa horse racing.................. $          19,200    

                                                                                

16    Quarter horse racing................................            57,200    

                                                                                

17      Sec. 803.  Included in the appropriation made in section 110 for            

                                                                                

18  the thoroughbred program is $30,500.00 for the Michigan united              

                                                                                

19  thoroughbred breeders and owners association to conduct a thoroughbred      

                                                                                

20  yearling show.  The Michigan united thoroughbred breeders and owners        

                                                                                

21  association shall submit to the department an itemized list of              

                                                                                

22  expenses showing that the expenses of the yearling show were paid.          

                                                                                

23      Sec. 804.  From the funds appropriated in section 110 for                   

                                                                                

24  thoroughbred owners' awards, awards shall be distributed pursuant to        

                                                                                

25  section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320.       

                                                                                

26      Sec. 805.  The department shall notify the senate and house                 

                                                                                

27  appropriations subcommittees and the fiscal agencies of any planned         


                                                                                

1   reductions in appropriations, allocations, or expenditures from the         

                                                                                

2   agriculture equine industry development fund no less than 10 days           

                                                                                

3   before such reductions are implemented.                                     

                                                                                

4       Sec. 806.  A county fair, district fair, 4-H fair, or state fair            

                                                                                

5   receiving funds in section 110 to be used for prizes or awards, in          

                                                                                

6   whole or in part, as a condition precedent to the receiving of the          

                                                                                

7   funds for those purposes, shall publish the rules relative to the           

                                                                                

8   prizes, awards, and deadlines for entries eligible for the funds in         

                                                                                

9   their official premium books or lists relative to the prizes or             

                                                                                

10  awards.  An aggrieved exhibitor may make a written complaint to the         

                                                                                

11  fair within 10 days after the fair ends.  If the fair has not               

                                                                                

12  satisfactorily settled the grievance within 45 days after it is             

                                                                                

13  submitted to the fair, the aggrieved person may file the complaint          

                                                                                

14  with the department and the department shall investigate the complaint      

                                                                                

15  and make a finding of fact regarding the complaint and take                 

                                                                                

16  appropriate action regarding the complaint.                                 

                                                                                

17      Sec. 807.  Of the amount appropriated in section 110 for purses             

                                                                                

18  and supplements - fairs/licensed tracks, a sufficient amount is             

                                                                                

19  appropriated to provide for overnight purse supplements pursuant to         

                                                                                

20  the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336.          

                                                                                

21      Sec. 808.  Of the amount appropriated in section 110 for                    

                                                                                

22  premiums, $11,400.00 shall be expended as a grant for the Michigan          

                                                                                

23  horse show association - fall youth show.                                   

                                                                                

24      Sec. 809.  From the appropriations for premiums - county and                

                                                                                

25  state fairs in section 110, $120,000.00 shall be awarded through a          

                                                                                

26  competitive grant program to local, regional, or state fairs or             

                                                                                

27  expositions to promote youth involvement and adult exhibitions in the       


                                                                                

1   animal agriculture industry.  Appropriate exhibition classes for youth      

                                                                                

2   shall be developed that encourage a production exhibit for which            

                                                                                

3   premium awards may be paid.  The age for youth exhibitors shall be          

                                                                                

4   determined by the standards of the association requesting the grant         

                                                                                

5   or, if standards do not exist, the age for youth exhibitors shall be        

                                                                                

6   ages 9 through 21.  Implementation of the latest technologies into the      

                                                                                

7   evaluation of the animals shall be encouraged in the production             

                                                                                

8   exhibit.  Adult exhibitions should focus on the performance or end          

                                                                                

9   product, or both, with the appropriate technologies used to enhance         

                                                                                

10  placings and the awarding of premiums.                                      

                                                                                

11      Sec. 811.  The funds appropriated in section 110 for distribution           

                                                                                

12  of outstanding winning tickets are not available for expenditure until      

                                                                                

13  they are deposited in the agriculture equine industry development fund      

                                                                                

14  pursuant to section 2 of 1951 PA 90, MCL 431.252.  These funds shall        

                                                                                

15  be expended in accordance with section 2 of 1951 PA 90, MCL 431.252,        

                                                                                

16  and only after they have been transferred to another line item in this      

                                                                                

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

                                                                                

18  431, MCL 18.1393.                                                           

                                                                                

19      Sec. 813.  (1) On or before March 29, 2005, the department,                 

                                                                                

20  together with the senate and house fiscal agencies and the department       

                                                                                

21  of management and budget, shall estimate the unreserved and                 

                                                                                

22  unencumbered closing balance of the agriculture equine industry             

                                                                                

23  development fund for the fiscal year ending September 30, 2004.  The        

                                                                                

24  estimate shall consider lapsed appropriations from the fund and any         

                                                                                

25  carryforward amounts designated for appropriation in the fiscal year        

                                                                                

26  ending September 30, 2004.                                                  

                                                                                

27      (2) On or before April 5, 2005, the department shall request a              


                                                                                

1   legislative transfer in accordance with section 393 of the management       

                                                                                

2   and budget act, 1984 PA 431, MCL 18.1393, to appropriate any estimated      

                                                                                

3   unreserved and unencumbered agriculture equine industry development         

                                                                                

4   fund balance in excess of $250,000.00.  The appropriations included in      

                                                                                

5   the transfer request shall be in accordance with the requirements of        

                                                                                

6   section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320.       

                                                                                

7   At the same time the department forwards its transfer request to the        

                                                                                

8   department of management and budget, the department shall submit            

                                                                                

9   copies of the transfer request to the senate and house appropriations       

                                                                                

10  subcommittees on agriculture and the senate and house fiscal                

                                                                                

11  agencies.                                                                   

                                                                                

12      Sec. 814.  The amount appropriated in part 1 for Michigan                   

                                                                                

13  festivals, fairs, and events shall be provided to the Michigan              

                                                                                

14  festivals and events association for the purpose of promoting               

                                                                                

15  commodity-related festivals, fairs, and events on a statewide basis.        

                                                                                

16  The grant shall be made available only if matched 100% by dollars or        

                                                                                

17  in-kind contributions from the association.                                 

                                                                                

                                                                                

                                                                                

18  OFFICE OF RACING COMMISSIONER                                               

                                                                                

19      Sec. 901.  The racing commissioner may pay rewards of not more              

                                                                                

20  than $5,800.00 to a person who provides information that results in         

                                                                                

21  the arrest and conviction on a felony or misdemeanor charge for a           

                                                                                

22  crime that involves the horse racing industry.  A reward paid pursuant      

                                                                                

23  to this section shall be paid out of the office of racing commissioner      

                                                                                

24  line item.