HB-5807, As Passed House, March 19, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 5807

A bill to make appropriations for the department of

agriculture for the fiscal year ending September 30, 2009; 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:

PART 1

LINE-ITEM APPROPRIATIONS

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

amounts listed in this part are appropriated for the department of

agriculture for the fiscal year ending September 30, 2009, from the

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

appropriations in this part:

DEPARTMENT OF AGRICULTURE

APPROPRIATION SUMMARY:

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

Full-time equated classified positions.......... 593.5

GROSS APPROPRIATION.................................... $ 104,943,200

Interdepartmental grant revenues:

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

IDG from MDLEG (LCC), liquor quality testing fees...... 191,900

IDG from MDEQ, aquifer protection and dispute

resolution........................................... 50,000

IDG from MDEQ, biosolids............................... 92,500

IDG from MDEQ, MAEAP................................... 159,100

IDG from MDEQ, type II well survey..................... 17,000

IDG from DHS, food bank................................ 150,000

Total interdepartmental grants and intradepartmental

transfers............................................ 9,539,200

ADJUSTED GROSS APPROPRIATION........................... $ 95,404,000

Federal revenues:

Corporation for national and community services........ 253,600

DAG, multiple grants................................... 11,376,400

EPA, multiple grants................................... 1,753,300

HHS-FDA................................................ 1,077,700

United States department of labor...................... 400,000

Total federal revenues................................. 14,861,000

Special revenue funds:

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

Private - slow-the-spread foundation................... 148,000

Private - commodity group revenue...................... 89,200

Total private revenues................................. 237,200

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

Agriculture equine industry development fund........... 12,548,400

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

Commodity inspection fees.............................. 1,084,000

Consumer and industry food safety education fund....... 260,500

Dairy and food safety fund............................. 2,728,300

Freshwater protection fund............................. 5,174,300

Gasoline inspection and testing fund................... 2,620,700

Horticulture fund...................................... 79,700

Industry support funds................................. 697,900

Licensing and inspection fees.......................... 4,038,400

Migratory labor housing fund........................... 25,000

Nonretail liquor fees.................................. 678,600

Refined petroleum fund................................. 3,339,000

State services fee fund................................ 9,185,700

Testing fees........................................... 434,500

Upper Peninsula state fair revenue..................... 1,382,500

Weights and measures regulation fees................... 674,800

Total other state restricted revenues.................. 45,852,400

State general fund/general purpose..................... $ 34,453,400

Sec. 102. EXECUTIVE

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

Full-time equated classified positions........... 37.5

Commissions and boards................................. $ 32,800

Unclassified positions--6.0 FTE positions.............. 354,000

Executive direction--10.0 FTE positions................ 923,900

Management services--24.0 FTE positions................ 1,728,800

Statistical reporting service--1.0 FTE positions....... 143,800

Emergency management--2.5 FTE positions................ 243,300

Internal audit services................................ 263,700

GROSS APPROPRIATION.................................... $ 3,690,300

Appropriated from:

Special revenue funds:

Private - commodity group revenue...................... 78,400

Gasoline inspection and testing fund................... 61,200

Industry support funds................................. 34,200

Nonretail liquor fees.................................. 8,800

Refined petroleum fund................................. 50,400

State services fee fund................................ 502,500

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

State general fund/general purpose..................... $ 2,945,800

Sec. 103. DEPARTMENTWIDE

Rent and building occupancy charges.................... $ 1,471,500

GROSS APPROPRIATION.................................... $ 1,471,500

Appropriated from:

Federal revenues:

DAG, multiple grants................................... 106,500

EPA, multiple grants................................... 64,900

HHS-FDA................................................ 14,000

Special revenue funds:

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

Freshwater protection fund............................. 10,100

Licensing and inspection fees.......................... 63,300

Nonretail liquor fees.................................. 8,400

Refined petroleum fund................................. 114,000

State services fee fund................................ 313,200

State general fund/general purpose..................... $ 753,200

Sec. 104. FOOD AND DAIRY

Full-time equated classified positions.......... 115.0

Food safety and quality assurance--115.0 FTE positions. $ 12,642,500

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

GROSS APPROPRIATION.................................... $ 21,521,200

Appropriated from:

Interdepartmental grant revenues:

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

Federal revenues:

DAG, multiple grants................................... 27,100

HHS-FDA................................................ 380,300

Special revenue funds:

Consumer and industry food safety education fund....... 260,500

Dairy and food safety fund............................. 2,728,300

State general fund/general purpose..................... $ 9,246,300

Sec. 105. ANIMAL INDUSTRY

Full-time equated classified positions........... 70.0

Animal health and welfare--21.5 FTE positions.......... $ 2,309,900

Bovine tuberculosis program--48.5 FTE positions........ 8,892,000

GROSS APPROPRIATION.................................... $ 11,201,900

Appropriated from:

Interdepartmental grant revenues:

Federal revenues:

DAG, multiple grants................................... 1,132,100

HHS-FDA................................................ 72,100

Special revenue funds:

Agriculture equine industry development fund........... 2,183,600

Licensing and inspection fees.......................... 106,900

State general fund/general purpose..................... $ 7,707,200

Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT

Full-time equated classified positions.......... 134.5

Pesticide and plant pest management--110.0 FTE

positions............................................ $ 12,186,900

Emerald ash borer control program--24.5 FTE positions.. 5,191,400

GROSS APPROPRIATION.................................... $ 17,378,300

Appropriated from:

Federal revenues:

DAG, multiple grants................................... 6,679,300

EPA, multiple grants................................... 891,500

HHS-FDA................................................ 68,300

Special revenue funds:

Private - slow-the-spread foundation................... 148,000

Commodity inspection fees.............................. 1,084,000

Horticulture fund...................................... 79,700

Industry support funds................................. 340,900

Licensing and inspection fees.......................... 3,660,500

State general fund/general purpose..................... $ 4,426,100

Sec. 107. ENVIRONMENTAL STEWARDSHIP

Full-time equated classified positions........... 51.0

Environmental stewardship--27.0 FTE positions.......... $ 2,844,900

Groundwater and freshwater protection program--15.0

FTE positions........................................ 5,472,500

Farmland and open space preservation--9.0 FTE

positions............................................ 985,500

Technical assistance match............................. 300,000

Agriculture pollution prevention program............... 1,000,100

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

Local conservation districts........................... 916,800

Migrant labor housing.................................. 425,100

Aquifer protection program............................. 50,000

GROSS APPROPRIATION.................................... $ 12,994,900

Appropriated from:

Interdepartmental grant revenues:

IDG from MDEQ, aquifer protection and dispute

resolution........................................... 50,000

IDG from MDEQ, biosolids............................... 92,500

IDG from MDEQ, MAEAP................................... 159,100

IDG from MDEQ, type II well survey..................... 17,000

Federal revenues:

Corporation for national and community services........ 253,600

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

EPA, multiple grants................................... 445,700

United States department of labor...................... 400,000

Special revenue funds:

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

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

Freshwater protection fund............................. 5,164,100

Migratory labor housing fund........................... 25,000

State general fund/general purpose..................... $ 4,511,900

Sec. 108. LABORATORY PROGRAM

Full-time equated classified positions.......... 131.0

Laboratory services--63.0 FTE positions................ $ 6,344,600

USDA monitoring--17.0 FTE positions.................... 2,134,200

Consumer protection program--51.0 FTE positions........ 5,135,200

GROSS APPROPRIATION.................................... $ 13,614,000

IDG from MDLEG (LCC), liquor quality testing fees...... 189,100

Federal revenues:

DAG, multiple programs................................. 2,156,200

EPA, multiple programs................................. 351,200

HHS-FDA................................................ 543,000

Special revenue funds:

Gasoline inspection and testing fund................... 2,532,500

Licensing and inspection fees.......................... 75,100

Refined petroleum fund................................. 3,174,600

State services fee fund................................ 519,700

Testing fees........................................... 434,500

Weights and measures regulation fees................... 674,800

State general fund/general purpose..................... $ 2,963,300

Sec. 109. AGRICULTURE DEVELOPMENT

Full-time equated classified positions............ 9.0

Agriculture development--6.0 FTE positions............. $ 1,072,800

Grape and wine program--3.0 FTE positions.............. 717,100

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

Michigan agricultural surplus system................... 630,500

GROSS APPROPRIATION.................................... $ 2,470,400

Appropriated from:

IDG from DHS, food bank................................ 150,000

Federal revenues:

DAG, multiple grants................................... 275,200

Special revenue funds:

Private - commodity group revenue...................... 10,800

Industry support funds................................. 311,900

Nonretail liquor fees.................................. 660,900

State services fee fund................................ 350,700

State general fund/general purpose..................... $ 710,900

Sec. 110. FAIRS AND EXPOSITIONS

Full-time equated classified positions........... 15.5

Upper Peninsula state fair--6.0 FTE positions.......... $ 1,372,600

Fairs, racing and producer security--9.5 FTE positions. 1,154,600

Premiums - county and state fairs...................... 1,614,000

Building and track improvement - county and state

fairs................................................ 963,200

Purses and supplements - fairs/licensed tracks......... 2,370,000

Licensed tracks - light horse racing................... 132,000

Standardbred breeders' awards.......................... 969,000

Standardbred purses and supplements - licensed tracks.. 1,789,300

Standardbred sire stakes............................... 810,000

Standardbred training and stabling..................... 36,000

Thoroughbred owners' awards............................ 124,000

Thoroughbred program................................... 2,400,000

Thoroughbred sire stakes............................... 830,000

Distribution of outstanding winning tickets............ 700,000

GROSS APPROPRIATION.................................... $ 15,264,700

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund........... 10,160,300

Industry support funds................................. 10,900

Licensing and inspection fees.......................... 132,600

State services fee fund................................ 2,625,100

Upper Peninsula state fair revenue..................... 1,372,600

State general fund/general purpose..................... $ 963,200

Sec. 111. OFFICE OF RACING COMMISSIONER

Full-time equated classified positions........... 30.0

Office of racing commissioner--30.0 FTE positions...... $ 3,811,000

GROSS APPROPRIATION.................................... $ 3,811,000

Appropriated from:

Special revenue funds:

State services fee fund................................ 3,811,000

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

Sec. 112. INFORMATION AND TECHNOLOGY

Information technology services and projects........... $ 1,525,000

GROSS APPROPRIATION.................................... $ 1,525,000

Appropriated from:

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

Special revenue funds:

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

Agriculture equine industry development fund........... 204,500

Gasoline inspection testing fund....................... 27,000

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

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

State services fee fund................................ 1,063,500

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

State general fund/general purpose..................... $ 225,500

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

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

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2008-2009 is $80,305,800.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2008-2009 is $2,416,800.00. The itemized

statement below identifies appropriations from which spending to

local units of government will occur:

DEPARTMENT OF AGRICULTURE

Groundwater and freshwater protection program.......... $ 1,500,000

Local conservation districts........................... 916,800

TOTAL.................................................. $ 2,416,800

Sec. 202. The appropriations authorized under this act are

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

to 18.1594.

Sec. 203. As used in this act:

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

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

(d) "DHS" means the department of human services.

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

agency.

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

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

human services - food and drug administration.

(h) "IDG" means interdepartmental grant.

(i) "MAEAP" means the Michigan agriculture environmental

assurance program.

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

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

quality.

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

economic growth - liquor control commission.

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

Sec. 204. The civil service commission shall bill departments

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

charge authorized by section 5 of article XI of the state

constitution of 1963. Payments shall be made for the total amount

of the billing by the end of the second fiscal quarter.

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

classified civil service. State departments and agencies are

prohibited from hiring any new full-time state classified civil

service employees and prohibited from filling any vacant state

classified civil service positions. This hiring freeze does not

apply to internal transfers of classified employees from 1 position

to another within a department.

(2) The state budget director may grant exceptions to this

hiring freeze when the state budget director believes that the

hiring freeze will result in rendering a state department or agency

unable to deliver basic services, causes loss of revenue to the

state, would result in the inability of the state to receive

federal funds, or would necessitate additional expenditures that

exceed any savings from maintaining a vacancy. The state budget

director shall report quarterly to the chairpersons of the senate

and house of representatives standing committees on appropriations

the number of exceptions to the hiring freeze approved during the

previous quarter and the reasons to justify the exception.

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

the Internet to fulfill the reporting requirements of this act.

This requirement shall include transmission of reports via

electronic mail to the recipients identified for each reporting

requirement and shall include placement of reports on an Internet

or Intranet site.

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

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

competitively priced and of comparable quality American goods or

services, or both, are available. Preference should be given to

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

businesses, if they are competitively priced and of comparable

quality. In addition, preference should be given to goods or

services, or both, that are manufactured or provided by Michigan

businesses owned and operated by veterans, if they are

competitively priced and of comparable quality.

Sec. 210. The director of each department receiving

appropriations in part 1 shall take all reasonable steps to ensure

businesses in deprived and depressed communities compete for and

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

director shall strongly encourage firms with which the department

contracts to subcontract with certified businesses in depressed and

deprived communities for services, supplies, or both.

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

department may provide for indemnity as provided for pursuant to

the animal industry act, 1988 PA 466, MCL 287.701 to 287.745, not

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

year ending September 30, 2009. Before the department provides for

an indemnification under this section, the department shall report

the reason for the indemnification, the amount of the

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

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

appropriations subcommittees on agriculture and to the senate and

house fiscal agencies and the state budget director.

(2) The department of agriculture shall make an

indemnification payment for the fair market value of livestock

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

department of natural resources. The fair market value of the

livestock shall be determined pursuant to the indemnification

procedures prescribed in the animal industry act, 1988 PA 466, MCL

287.701 to 287.745. In addition to the funds appropriated in part

1, the department of agriculture is authorized to expend the funds

received from the department of natural resources to reimburse the

department of agriculture for all indemnification payments made

pursuant to this subsection.

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

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

local government agencies, institutions of higher education, or

nonprofit organizations unless the department provides notice of

the grant to the house and senate appropriations subcommittees on

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

shall be used to support research or other related activities for

the purpose of enhancing the agricultural industries in this state.

Sec. 219. From the funds appropriated in part 1 for

information technology, the department shall pay user fees to the

department of information technology for technology-related

services and projects. The user fees shall be subject to provisions

of an interagency agreement between the department and the

department of information technology.

Sec. 220. Amounts appropriated in part 1 for information

technology may be designated as work projects and carried forward

to support technology projects under the direction of the

department of information technology. Funds designated in this

manner are not available for expenditure until approved as work

projects under section 451a of the management and budget act, 1984

PA 431, MCL 18.1451a.

Sec. 223. (1) Due to the current budgetary problems in this

state, out-of-state travel shall be limited to situations in which

1 or more of the following conditions apply:

(a) The travel is required by legal mandate or court order or

for law enforcement purposes.

(b) The travel is necessary to protect the health or safety of

Michigan citizens or visitors or to assist other states in similar

circumstances.

increase state revenues, including protecting existing federal

funds or securing additional federal funds.

(d) The travel is necessary to comply with federal

requirements.

(e) The travel is necessary to secure specialized training for

staff that is not available within this state.

(f) The travel is financed entirely by federal or nonstate

funds.

(2) If out-of-state travel is necessary but does not meet 1 or

more of the conditions in subsection (1), the state budget director

may grant an exception to allow the travel. Any exceptions granted

by the state budget director shall be reported on a monthly basis

to the house and senate appropriations committees.

(3) Not later than January 1 of each year, each department

shall prepare a travel report listing all travel by classified and

unclassified employees outside this state in the immediately

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

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

submitted to the chairs and members of the house and senate

appropriations committees, the fiscal agencies, and the state

budget director. The report shall include the following

information:

(a) The name of each person receiving reimbursement for travel

outside this state or whose travel costs were paid by this state.

(b) The destination of each travel occurrence.

(d) A brief statement of the reason for each travel

occurrence.

(e) The transportation and related costs of each travel

occurrence, including the proportion funded with state general

fund/general purpose revenues, the proportion funded with state

restricted revenues, the proportion funded with federal revenues,

and the proportion funded with other revenues.

(f) A total of all out-of-state travel funded for the

immediately preceding fiscal year.

Sec. 224. The department shall not take disciplinary action

against an employee for truthfully to the best of his or her

knowledge communicating with a member of the legislature or his or

her staff.

Sec. 225. In recognition of the important role it can play in

attracting large-scale agricultural events, it is the intent of the

legislature that the department of agriculture, in conjunction with

interested parties, explore opportunities to expand the facilities

and size of the Michigan State University pavilion for agriculture

and livestock education.

Sec. 227. On or before April 1, 2009, the department shall

report to the state budget director, the senate and house of

representatives appropriations committees on agriculture, and the

senate and house fiscal agencies on the impact of major department

program areas on Michigan agriculture, environmental protection,

and consumer protection. The report shall include a comparison of

program expenditures with the estimated economic impact of

programs, either in terms of actual federal or private funds

leveraged or the potential economic loss of not performing the

program functions.

Sec. 228. (1) In addition to the funds appropriated in part 1,

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

federal contingency funds. These funds are not available for

expenditure until they have been transferred to another line item

in this act under section 393(2) of the management and budget act,

1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $6,000,000.00 for state

restricted contingency funds. These funds are not available for

expenditure until they have been transferred to another line item

in this act under section 393(2) of the management and budget act,

1984 PA 431, MCL 18.1393.

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

appropriated an amount not to exceed $100,000.00 for local

contingency funds. These funds are not available for expenditure

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

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

MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $100,000.00 for private

contingency funds. These funds are not available for expenditure

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

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

MCL 18.1393.

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

principal executive department, state agency, or authority to hire

a person to provide legal services that are the responsibility of

the attorney general. This prohibition does not apply to legal

services for bonding activities and for those activities that the

attorney general authorizes.

Sec. 231. From the funds appropriated in part 1 for salaries

and benefits, the department shall provide funding in the pesticide

and plant pest management, food and dairy, animal industry,

environmental stewardship and laboratory divisions for not less

than 315 employees who provide direct service to the public or

substantially support the work of those who provide direct service.

Expenditures shall be made so that these divisions continue to

provide service to protect the public health, safety, and welfare

and environment.

Sec. 232. From the funds appropriated in part 1, the director

shall implement continuous improvement efficiency mechanisms in the

programs administered by the department. The continuous improvement

House Bill No. 5807 (H-1) as amended March 19, 2008

efficiency mechanisms shall identify changes made in programs to

increase efficiency and reduce expenditures in the programs. On

March 31, 2009 and September 30, 2009, the director shall submit a

report to the state budget director, the senate and house

appropriation subcommittees, and the senate and house fiscal

agencies on the progress made toward increased efficiencies in

departmental programs. At a minimum, each report shall include

information on the program review process, the type of improvement

mechanisms implemented, and actual and projected expenditure

savings as a result of the increased program efficiencies.

[Sec. 233. From the funds appropriated in part 1, the department shall develop, post, and maintain, on a publicly accessible Internet site, all expenditures made by the agency within a fiscal year. The posting must include the purpose for which each expenditure is made.]

EXECUTIVE

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

and use that revenue to cover necessary expenses related to

publications, audit and licensing functions, livestock sales,

certification of nursery stock, bean inspection services, and

laboratory analyses as specified in the following:

(a) Management services publications.

(b) Management services audit and licensing functions.

certification of virus free foundation stock.

(d) Pesticide and plant pest management bean inspection and

grading services.

(e) Laboratory support testing for testing horses in draft

horse pulling contests at county fairs when local jurisdictions

request state assistance.

(f) Laboratory support analyses to determine foreign

substances in horses engaged in racing or pulling contests at

tracks.

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

agricultural products for disease, foreign products for disease,

toxic materials, foreign substances, and quality standards.

(h) Laboratory support test samples for other agencies and

organizations.

(i) Fruit and vegetable inspection at shipping and termination

points and processing plants.

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

representatives appropriations subcommittees on agriculture and the

senate and house fiscal agencies 30 days prior to proposing changes

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

market conditions act, 1915 PA 91, MCL 285.35.

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

a report to the senate and house of representatives appropriations

subcommittees on agriculture and the senate and house fiscal

agencies detailing all the fees charged by the department under the

authorization provided in this section, including, but not limited

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

generated by each fee in the previous fiscal year.

Sec. 304. (1) To ensure motor fuel quality and quantity, the

department shall maintain the motor fuel quality program and shall

not reduce program level of effort below that of the 2006-2007

fiscal year. Notwithstanding the provisions of section 205, the

department shall maintain field and laboratory staff for the motor

fuel quality program.

(2) On or before January 1, 2008 and every 6 months

thereafter, the department shall report to the senate and house

appropriations subcommittees on agriculture and the senate and

house fiscal agencies the results of both complaint-based and

random-based inspections, including the number of inspections

performed, samples collected, and compliance rates.

Sec. 306. From the funds appropriated in section 102, private

funds for agricultural statistics shall be used to match state

funds at not less than 50% of study costs.

FOOD AND DAIRY

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

inspection and licensing functions carried out by local health

departments to ensure uniform application and enforcement of

minimum program requirements. On or before April 1, 2009, the

department shall report to the senate and house appropriations

subcommittees on agriculture, the senate and house fiscal agencies,

and the state budget director on local health department

conformance with minimum program requirements.

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

resulting from its efforts to control a significant food-borne

outbreak, the director shall seek additional resources to reimburse

the local unit of government for these additional costs. The

director shall involve the local health officer of the jurisdiction

affected in all aspects of the control of any food-borne outbreak.

Sec. 402. Not later than April 1, 2009, the department shall

provide a report to the house and senate appropriations

subcommittees on agriculture and the house and senate fiscal

agencies describing significant food-borne outbreaks and

emergencies including any enforcement actions taken related to food

safety during the 2007-2008 fiscal year.

Sec. 404. From the funds appropriated in section 104 for food

safety and quality assurance, not less than $150,000.00 from the

consumer and industry food safety education fund shall be expended

for purposes required under section 4117 of the food law of 2000,

2000 PA 92, MCL 289.4117, including the statewide training and

education to consumers on food safety and the training and

education on food safety to food service establishment employees

and department employees and agents who enforce section 4117 of the

food law of 2000, 2000 PA 92, MCL 289.4117.

Sec. 406. Notwithstanding the provisions of section 205, the

department is authorized to fill open positions in the food and

dairy inspection program.

Sec. 407. Funds appropriated in part 1 of 2007 PA 128 for food

and dairy, food safety and quality assurance, shall not lapse but

shall continue to be available for completion of the e-inspector

program in accordance with the provisions of section 451a of the

management and budget act, 1984 PA 431, MCL 18.1451a.

ANIMAL INDUSTRY

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

bovine tuberculosis program, the department shall reimburse the

department of natural resources for those costs associated with

monitoring and testing wildlife for bovine tuberculosis that are

necessary to support the department goals and are jointly agreed to

by the department and the department of natural resources to be in

excess of efforts necessary to effectively plan and execute the

eradication of bovine tuberculosis from Michigan's wild free-

ranging deer herd.

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

bovine tuberculosis, the department shall pay for all whole herd

testing costs and individual animal testing costs in the modified

accredited zone to maintain split-state status requirements. These

costs include indemnity and compensation for injury causing death

or downer to animals.

Sec. 452. The department shall apply for all federal and

private funds for which it is eligible that can be used to support

the bovine tuberculosis program.

Sec. 454. The department shall use its resources to

collaborate with the United States department of agriculture to

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

zoned as modified accredited advanced. The department shall also

aggressively work toward eradicating bovine TB in the modified

accredited zone.

Sec. 455. The department shall prepare a plan to provide for

cattle without official identification that may arrive at a

saleyard. If an animal arrives untagged at a saleyard without

official identification, the saleyard may charge a fee for the tag

and for application. The tag may be purchased by and identified to

the saleyard. The saleyard shall maintain records for all animals

tagged on its premises. The department plan shall be in compliance

with the "Michigan Bovine TB Eradication Program - Application for

TB Free/Modified Accredited Status", April 2007.

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

be used to enforce the mandatory electronic animal identification

program for any domestic animals other than cattle until specific

procedures and guidelines for electronic animal identification are

outlined in statute.

Sec. 457. On or before October 15, 2008, and on a monthly

basis thereafter, the department shall report to the senate and

house agriculture committees, the senate and house appropriations

subcommittees on agriculture, and the senate and house fiscal

agencies on the department's progress toward meeting the USDA

requirements as outlined in the March 2007 bovine TB program

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

information and data on: wildlife risk mitigation plan

implementation in the modified accredited zone; implementation of a

movement certificate process; progress toward annual surveillance

test requirements set out in the June 2007 MOU; compliance efforts

and rates for animals crossing the Mackinac Bridge; efforts to work

with slaughter facilities in Michigan, as well as those that

slaughter a significant number of animals from Michigan;

educational programs and information for Michigan's livestock

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

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

Michigan.

Sec. 458. From the funds appropriated in section 105 for

animal industry, the department shall provide inspection and

testing of aquaculture facilities and aquaculture researchers as

provided under the Michigan aquaculture development act, 1996 PA

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

department shall work with aquaculture facilities and aquaculture

researchers to identify, contain, and eradicate viral hemorrhagic

septicemia in this state.

Sec. 459. Notwithstanding the provisions of section 205, the

department is authorized to fill open positions in the bovine

tuberculosis program.

LABORATORY SERVICES

Sec. 501. From the appropriation in part 1 for laboratory

services, a sufficient amount is appropriated from licensing and

inspection fee revenue to maintain the department's animal feed

testing programs.

ENVIRONMENTAL STEWARDSHIP

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

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

housing program.

Sec. 604. The appropriation in section 107 for local

conservation districts shall be allocated in the following manner:

(a) Of the total appropriation, each local conservation

district meeting the minimum grant requirements shall receive a

grant of $11,605.00 to support basic operations, unless the

district resides in a county consisting of multiple districts, in

which case a $11,605.00 grant shall be divided equally among the

districts in that county. The amount of money allocated under this

subdivision shall not be used by local conservation districts to

replace any money received from local sources.

(b) Any amount remaining from the appropriation after

distributions under subdivision (a) shall be allocated for local

conservation district training.

Sec. 605. From the appropriation in part 1 for technical

assistance match, not less than $300,000.00 shall be used to fund

local conservation district technical assistance for individuals

with contracts under the 2002 farm bill administered by USDA's

natural resources conservation service. Increasing the level of

technical assistance will ensure producers can access the federal

money available under their individual contracts and quickly put

that money to work in Michigan.

Sec. 606. The department shall actively search for all

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

USDA environmental quality incentives program.

Sec. 607. It is the intent of the legislature that the

department continue its activities in support of intercounty

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

1956, 1956 PA 40, MCL 280.101 to 280.106.

AGRICULTURE DEVELOPMENT

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

Michigan surplus products are offered to the food bank council and

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

bank council for the direct purchase of foods from Michigan

growers, manufacturers, or wholesalers.

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

market development program shall be used to coordinate state

participation in the federal market access program and to leverage

federal and private funds for the purpose of developing new and

enhancing existing export markets for Michigan agricultural

products.

Sec. 706. Not later than April 1, 2009, the department shall

provide a report to the house and senate appropriations

subcommittees on agriculture and the house and senate fiscal

agencies describing the department's agriculture development and

export market development activities. The report shall identify

grants awarded during the prior fiscal year, including a

description of federal or private funds made available as a result

of department activities.

Sec. 707. In awarding grants from the agricultural development

fund created under the Julian-Stille value-added act, 2000 PA 322,

MCL 285.301 to 285.304, the department shall give due consideration

to the diversity of Michigan agriculture and its economic

importance.

Sec. 708. The department is authorized to receive and expend

funds appropriated from the agricultural development fund created

in section 2 of the Julian-Stille value-added act, 2000 PA 322, MCL

285.302.

Sec. 709. (1) Not later than April 1, 2009, the department

shall provide a report to the house and senate appropriations

subcommittees on agriculture and the house and senate fiscal

agencies describing the activities of the grape and wine industry

council established under section 303 of the Michigan liquor

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

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

(a) Council activities and accomplishments for the previous

fiscal year.

(b) Council expenditures for the previous fiscal year by

category of administration, industry support, research and

education grants, and promotion and consumer education.

results of research grant projects completed during the prior

fiscal year.

Sec. 710. The department may match external funding for

domestic and international marketing programs for the purpose of

developing new and enhancing existing export markets for Michigan

agricultural products.

FAIRS AND EXPOSITIONS

Sec. 801. Within 60 days of the close of each fiscal quarter,

the department shall report to the state budget director, the

senate and house of representatives appropriations committees on

agriculture, and the senate and house fiscal agencies on the

agriculture equine industry development fund established in section

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

report shall identify actual revenue and fund balance through the

preceding fiscal quarter and estimated revenue and fund balance

through the end of the fiscal year. The report shall identify

simulcast racing revenue generated by each licensed track, license

fees, and revenue generated from the casino wagering tax.

Sec. 802. From the amount appropriated in section 110 for

purses and supplements – fairs/licensed tracks, $220,000.00 is to

be used for state purse supplements at state licensed pari-mutuel

tracks for races comprised only of Michigan-bred horses segregated

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

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

pace division.

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

for the thoroughbred program is $23,500.00 for the Michigan united

thoroughbred breeders and owners association to conduct a

thoroughbred yearling show. The Michigan united thoroughbred

breeders and owners association shall submit to the department an

itemized list of expenses showing that the expenses of the yearling

show were paid.

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

thoroughbred owners' awards, awards shall be distributed pursuant

to section 20 of the horse racing law of 1995, 1995 PA 279, MCL

431.320.

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

appropriations subcommittees and the fiscal agencies of any planned

reductions in appropriations, allocations, or expenditures from the

agriculture equine industry development fund no less than 10 days

before such reductions are implemented.

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

fair receiving funds in section 110 to be used for prizes or

awards, in whole or in part, as a condition precedent to the

receiving of the funds for those purposes, shall publish the rules

relative to the prizes, awards, and deadlines for entries eligible

for the funds in their official premium books or lists relative to

the prizes or awards. An aggrieved exhibitor may make a written

complaint to the fair within 10 days after the fair ends. If the

fair has not satisfactorily settled the grievance within 45 days

after it is submitted to the fair, the aggrieved person may file

the complaint with the department and the department shall

investigate the complaint and make a finding of fact regarding the

complaint and take appropriate action regarding the complaint.

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

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

appropriated to provide for overnight purse supplements pursuant to

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

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

premiums - county and state fairs, $91,400.00 shall be expended to

reimburse up to 75% premiums paid to large livestock and equine

exhibitors in shows or exhibitions held by statewide associations

as defined by the department. Livestock expositions shall be

limited to participation in this program and prohibited from

participation in any state-funded premium programs. The Michigan

horse show association fall youth show shall be included.

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

state fairs in section 110, $40,000.00 shall be awarded through a

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

youth education programs to promote youth involvement and adult

exhibitions in the animal agriculture industry.

Sec. 811. The funds appropriated in section 110 for

distribution of outstanding winning tickets are not available for

expenditure until they are deposited in the Michigan agriculture

equine industry development fund pursuant to section 2 of 1951 PA

90, MCL 431.252. These funds shall be expended in accordance with

section 2 of 1951 PA 90, MCL 431.252. The department shall provide

notice to the house and senate appropriations subcommittees on

agriculture at least 10 days before the funds are expended. This

notice shall include the amount that each program receives from the

outstanding winning ticket revenue deposited in the Michigan

agriculture equine industry development fund.

OFFICE OF RACING COMMISSIONER

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

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

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

crime that involves the horse racing industry. A reward paid

pursuant to this section shall be paid out of the office of racing

commissioner line item.

Sec. 902. In the event there is no live thoroughbred race meet

in 2008 or 2009, all purse money and program money appropriated for

the thoroughbred industry in fiscal year 2007-2008 and fiscal year

2008-2009 shall be held in escrow for a period not to exceed 18

months, or until a thoroughbred race meet license is applied for

and granted by the office of racing commissioner. In the event

there is no thoroughbred meet in 2008 or 2009, the purse pool