HB-5807, As Passed Senate, May 27, 2008

 

 

 

 

 

 

 

 

 

 

 

 

SENATE 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.................................... $    104,855,000

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................        11,339,200

 

ADJUSTED GROSS APPROPRIATION........................... $     93,515,800

 

   Federal revenues:

 

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

 

   Special revenue funds:

 

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

 

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

 

Total other state restricted revenues..................        45,927,400

 

State general fund/general purpose..................... $     32,490,200

 

   FUND SOURCE SUMMARY:

 

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

 

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

 

GROSS APPROPRIATION.................................... $    104,855,000

 

   Interdepartmental grant revenues:

 

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

 

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

 

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

 

IDG from MDNR, district forestry and wildlife program..         1,800,000

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................        11,339,200

 

ADJUSTED GROSS APPROPRIATION........................... $     93,515,800

 

   Federal revenues:

 

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

 

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

 

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

 

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

 

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

 

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

 

   Special revenue funds:

 

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

 

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

 

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

 

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

 

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

 

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

 

Cervidae licensing and inspection fees.................            75,000

 

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

 

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

 

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


 

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

 

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

 

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

 

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

 

Migratory labor housing................................            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

 

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

 

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

 

Total other state restricted revenues..................        45,927,400

 

State general fund/general purpose..................... $     32,490,200

 

   Sec. 102. EXECUTIVE

 

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

 

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

 

Commission 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

 

Agricultural statistics--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:

 

   Private funds:


 

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

 

   Special revenue funds:

 

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.......... $      2,384,900

 

Bovine tuberculosis program--48.5 FTE positions........         7,708,300

 

GROSS APPROPRIATION.................................... $     10,093,200

 

    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...........         1,000,000

 

Cervidae licensing and inspection fees.................            75,000

 

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


 

State general fund/general purpose..................... $      7,707,100

 

   Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT

 

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

 

Pesticide and plant pest management--110.0 FTE

 

   positions............................................ $     12,186,800

 

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

 

Fruit and vegetable processing inspections.............               100

 

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

 

Cooperative resources management initiative program....         1,800,000

 

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

 

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

 

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

 

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

 

GROSS APPROPRIATION.................................... $     13,794,900

 

    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

 

IDG from MDNR, district forestry and wildlife program..         1,800,000

 

   Federal revenues:

 

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

 

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

 

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

 

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................................            25,000

 

State general fund/general purpose..................... $      3,511,900

 

   Sec. 108. LABORATORY PROGRAM


 

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

 

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

 

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

 

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

 

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

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

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

 

   Federal revenues:

 

DAG, multiple grants...................................         2,156,200

 

EPA, multiple grants...................................           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:

 

   Interdepartmental grant revenues:

 

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

 

   Federal revenues:

 

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

 

   Special revenue funds:

 

Private - commodity group..............................            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

 

Building and track improvement - county and state

 

   fairs................................................               100

 

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

 

Purses and supplements - fairs/licensed tracks.........         2,646,100

 

Licensed tracks - light horse racing...................           147,400

 

Standardbred breeders' awards..........................         1,081,900

 

Standardbred purses and supplements - licensed tracks..         1,997,700

 

Standardbred sire stakes...............................           904,400

 

Thoroughbred sire stakes...............................           926,700

 

Standardbred training and stabling.....................            40,200

 

Thoroughbred program...................................         2,679,600

 

Thoroughbred owners' awards............................           138,400


 

Distribution of outstanding winning tickets............           781,500

 

GROSS APPROPRIATION.................................... $     15,485,200

 

    Appropriated from:

 

   Special revenue funds:

 

Agriculture equine industry development fund...........        11,343,900

 

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..................... $            100

 

   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 TECHNOLOGY

 

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

 

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

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

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 and 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 $78,417,600.00 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.

 

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

 

     (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.

 

     (c) The travel is necessary to produce budgetary savings or to

 

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 senate and house of representatives standing committees on

 

appropriations.

 

     (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.

 

     (c) The dates 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. 229. (1) The department shall report no later than April

 

1, 2009 on each specific policy change made by the department to

 

implement a public act affecting that department that took effect

 

during the preceding calendar year. The department shall report to

 

the house and senate appropriations subcommittees on the budget for

 

the department, the joint committee on administrative rules, and

 

the senate and house fiscal agencies.

 

     (2) Funds appropriated in part 1 shall not be used by the

 

department to adopt a rule that will apply to a small business and

 

that will have a disproportionate economic impact on small

 

businesses because of the size of those businesses if the

 

department fails to reduce the disproportionate economic impact of

 

the rule on small businesses as provided under section 40 of the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.240.

 

     (3) As used in this section:

 

     (a) "Rule" means that term as defined under section 7 of the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.207.

 

     (b) "Small business" means that term as defined under section

 

7a of the administrative procedures act of 1969, 1969 PA 306, MCL

 

24.207a.

 

     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

 

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 the fiscal year. The posting shall include the purpose for

 

which each expenditure is made.

 

     Sec. 234. The department shall not approve the travel of more

 

than 1 departmental employee to a specific professional development

 

conference or training seminar that is located outside of this

 

state. The only exception to this travel restriction involves a

 

professional development conference or training seminar that is

 

funded by a federal or private funding source and requires more

 

than 1 person from a department to attend.

 

     Sec. 235. Available funds from the appropriation in part 1 may

 

be provided to the C.S. Mott group for sustainable food systems at

 

Michigan State University to plan for and coordinate a matched

 

savings tool for Michigan's emerging farmers and to leverage

 

federal funds for the purpose of developing and enhancing local

 

markets for Michigan agricultural products.

 

 

 

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.


 

     (c) Pesticide and plant pest management propagation and

 

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. 403. The department, in conjunction with the department

 

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

 

requires a local unit of government to obtain prior approval from

 

the department before any reallocation or redistribution of program

 

funds appropriated in section 104.

 

     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 quarterly

 

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.

 

     Sec. 460. If revenues to the agriculture equine industry

 

development fund decline during the fiscal year sending September

 

30, 2009, the proportion of funds used for the bovine tuberculosis

 

eradication program shall be reduced proportionally to the decline

 

in the agriculture equine industry development fund revenue.


 

 

 

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.


 

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

 

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.

 

     Sec. 711. In accordance with chapter 8B of 1984 PA 270, MCL

 

125.2089 to 125.2089d, it is the intent of the legislature that the

 

Michigan strategic fund, its employees, contract employees, and

 

individuals working on its behalf collaborate with the Michigan

 

department of agriculture to promote business development of

 

Michigan agricultural products to achieve outcomes that include,

 

but are not limited to, increases in export sales, increases in the

 

number of retailers carrying Michigan commodities both within and

 

outside of this state, and increased sales of Michigan products at

 

chain grocers.

 

     Sec. 712. In making applications for grants under the United

 

States department of agriculture specialty crop block grant

 

program, the department shall seek to obtain 20% of federal funds

 

received through the specialty crop block grant program for the

 

support of specialty crop sales at farm markets and for

 

agricultural tourism activities.

 

 

 

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. On November 1, 2008 and 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 the spending targets or budgeted

 

amounts from the agriculture equine industry development fund by

 

line item for the fiscal year ending September 30, 2009. The report

 

shall compare the spending targets to the appropriated amounts for

 

each line item.

 

     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

 

distribution order to be issued by the office of racing

 

commissioner in 2009 that delineates distribution between the

 

thoroughbred meet that has been held at Great Lakes Downs and the

 

joint thoroughbred/quarterhorse meet held in Mt. Pleasant shall be

 

the same distribution formula as issued in 2008, with the

 

thoroughbred portion being held in escrow.

 

     Sec. 903. From the funds appropriated in part 1, the office of

 

racing commissioner shall conduct a financial audit of all licensed

 

pari-mutuel tracks and certified horsemen's organizations and shall

 

submit a report of the audit findings to the senate and house

 

standing committees on agricultural issues, the senate and house

 

appropriations subcommittees on agriculture, the senate and house

 

fiscal agencies, and the state budget director by February 18,

 

2009.