SB-0222, As Passed Senate, August 22, 2007

SUBSTITUTE FOR

SENATE BILL NO. 222

A bill to make appropriations for the department of

agriculture for the fiscal year ending September 30, 2008; 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, 2008, from the

Senate Bill No. 222 as amended August 22, 2007

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.......... 673.0

GROSS APPROPRIATION.................................... $ <<109,164,700>>

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............................... 92,900

IDG from MDEQ, MAEAP................................... 159,700

IDG from MDEQ, type II well survey..................... 17,200

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

IDG from MDNR, cervid fees............................. 100

IDG from MDNR, district forestry and wildlife program.. 100

Total interdepartmental grants and intradepartmental

transfers............................................ 9,390,600

ADJUSTED GROSS APPROPRIATION........................... $ <<99,774,100>>

Federal revenues:

DAG, multiple grants................................... <<17,277,100>>

EPA, multiple grants................................... 2,356,200

HHS-FDA................................................ 1,079,100

United States department of labor...................... 150,000

Corporation for national and community services........ 253,200

Total federal revenues................................. <<21,115,600>>

Senate Bill No. 222 as amended August 22, 2007

Special revenue funds:

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

Private - commodity group.............................. 40,800

Private - slow-the-spread foundation................... 147,700

Total private revenues................................. 188,500

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

Agriculture equine industry development fund........... 16,552,000

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

Civil penalties........................................ 73,000

Commodity inspection fees.............................. 1,084,700

Gasoline inspection and testing fund................... 2,617,400

Freshwater protection fund............................. 5,111,400

Horticulture fund...................................... 79,500

Industry support funds................................. 695,900

Intercounty drain fund................................. 100

Licensing and inspection fees.......................... 6,319,700

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

Nonretail liquor fees.................................. 678,400

Refined petroleum fund................................. 3,520,400

State services fee fund................................ 9,264,800

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

Upper Peninsula state fair revenue..................... 1,380,600

Consumer and industry food safety education fund....... 260,300

Weights and measures regulation fees................... 674,000

Total other state restricted revenues.................. 49,671,800

State general fund/general purpose..................... $ <<28,798,200>>

Sec. 102. EXECUTIVE

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

Full-time equated classified positions........... 43.0

Commission and boards.................................. $ 17,800

Unclassified positions................................. 354,000

Executive direction--10.0 FTE positions................ 1,157,900

Management services--29.5 FTE positions................ 2,230,800

Agricultural statistics--1.0 FTE position.............. 51,100

Emergency management--2.5 FTE positions................ 242,300

Human resources optimization user charges.............. 41,200

GROSS APPROPRIATION.................................... $ 4,095,100

Appropriated from:

Special revenue funds:

Gasoline inspection and testing fund................... 59,700

Industry support funds................................. 33,500

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

Refined petroleum fund................................. 239,800

State services fee fund................................ 593,800

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

State general fund/general purpose..................... $ 3,150,500

Sec. 103. DEPARTMENTWIDE

Rent and building occupancy charges.................... $ 1,570,100

GROSS APPROPRIATION.................................... $ 1,570,100

Appropriated from:

Federal revenues:

DAG, multiple grants................................... 113,600

EPA, multiple grants................................... 69,300

HHS-FDA................................................ 14,900

Special revenue funds:

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

Freshwater protection fund............................. 10,800

Licensing and inspection fees.......................... 67,500

Nonretail liquor fees.................................. 9,000

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

State services fee fund................................ 335,800

State general fund/general purpose..................... $ 811,300

Sec. 104. FOOD AND DAIRY

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

Food safety and quality assurance--107.0 FTE positions. $ 12,427,600

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

GROSS APPROPRIATION.................................... $ 21,306,300

Appropriated from:

Interdepartmental grant revenues:

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

Federal revenues:

DAG, multiple grants................................... 27,000

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

Special revenue funds:

Civil penalties........................................ 73,000

Consumer and industry food safety education fund....... 260,300

Licensing and inspection fees.......................... 2,479,900

State general fund/general purpose..................... $ 9,207,100

Sec. 105. ANIMAL INDUSTRY

Full-time equated classified positions........... 48.0

Animal health and welfare--21.5 FTE positions.......... $ 2,407,500

Senate Bill No. 222 as amended August 22, 2007

Bovine tuberculosis program--26.5 FTE positions........ 5,707,700

<<Viral hemorrhagic septicemia surveillance............. 125,000>>

GROSS APPROPRIATION.................................... $ 8,115,200

Appropriated from:

Interdepartmental grant revenues:

IDG from DNR, cervid fees.............................. 100

Federal revenues:

DAG, multiple grants................................... <<1,252,300>>

HHS-FDA................................................ 72,800

Special revenue funds:

Agriculture equine industry development fund........... 2,399,100

Licensing and inspection fees.......................... 107,900

State general fund/general purpose..................... $ 4,408,000

Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT

Full-time equated classified positions.......... 229.8

Pesticide and plant pest management--117.8 FTE

positions............................................ $ 13,589,000

Emerald ash borer control program--112.0 FTE positions. 10,176,300

GROSS APPROPRIATION.................................... $ 23,765,300

Appropriated from:

Federal revenues:

DAG, multiple grants................................... 12,460,900

EPA, multiple grants................................... 1,489,500

HHS-FDA................................................ 68,100

Special revenue funds:

Private - slow-the-spread foundation................... 147,700

Commodity inspection fees.............................. 1,084,700

Horticulture fund...................................... 79,500

Senate Bill No. 222 as amended August 22, 2007

Industry support funds................................. 340,300

Licensing and inspection fees.......................... 3,457,500

State general fund/general purpose..................... $ 4,637,100

Sec. 107. ENVIRONMENTAL STEWARDSHIP

Full-time equated classified positions........... 42.0

Environmental stewardship--27.7 FTE positions.......... $ <<2,667,300>>

<<Livestock facility construction certification......... 100>>

Technical assistance match ............................ 100

Groundwater and freshwater protection program--8.3

FTE positions........................................ 5,461,700

Farmland and open space preservation--6.0 FTE

positions............................................ 981,600

Cooperative resources management initiative program.... 100

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

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

Migrant labor housing.................................. 175,100

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

GROSS APPROPRIATION.................................... $ 11,252,900

Appropriated from:

Interdepartmental grant revenues:

IDG from MDEQ, aquifer protection and dispute

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

IDG from MDEQ, biosolids............................... 92,900

IDG from MDEQ, MAEAP................................... 159,700

IDG from MDEQ, type II well survey..................... 17,200

IDG from MDNR, district forestry and wildlife program.. 100

Federal revenues:

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

EPA, multiple grants................................... 446,200

Corporation for national and community services........ 253,200

United States department of labor...................... 150,000

Special revenue funds:

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

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

Freshwater protection fund............................. 5,100,500

Intercounty drain fund................................. 100

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

State general fund/general purpose..................... $ 3,082,000

Sec. 108. LABORATORY PROGRAM

Full-time equated classified positions.......... 147.0

Laboratory services--61.5 FTE positions................ $ 6,336,400

USDA monitoring program--18.0 FTE positions............ 2,126,900

Consumer protection program--67.5 FTE positions........ 5,128,700

GROSS APPROPRIATION.................................... $ 13,592,000

Appropriated from:

Interdepartmental grant revenues:

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

Federal revenues:

DAG, multiple grants................................... 2,148,900

EPA, multiple grants................................... 351,200

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

Special revenue funds:

Gasoline inspection and testing fund................... 2,530,700

Licensing and inspection fees.......................... 75,000

Refined petroleum fund................................. 3,166,600

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

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

Weights and measures regulation fees................... 674,000

State general fund/general purpose..................... $ 2,959,300

Sec. 109. AGRICULTURE DEVELOPMENT

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

Agriculture development--5.0 FTE positions............. $ 1,100,200

Grape and wine program--3.0 FTE positions.............. 716,200

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

Michigan FFA association............................... 80,000

Michigan 4-H foundation................................ 20,000

GROSS APPROPRIATION.................................... $ 2,546,900

Appropriated from:

Federal revenues:

DAG, multiple grants................................... 274,400

Special revenue funds:

Private - commodity group.............................. 40,800

Agriculture equine industry development fund........... 100,000

Industry support funds................................. 311,100

Nonretail liquor fees.................................. 660,100

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

State general fund/general purpose..................... $ 809,800

Sec. 110. FAIRS AND EXPOSITIONS

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

Upper Peninsula state fair--7.0 FTE positions.......... $ 1,370,700

Fairs, racing and producer security--9.5 FTE positions. 1,148,500

Building and track improvement - county and state

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

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

Purses and supplements - fairs/licensed tracks......... 3,031,700

Licensed tracks - light horse racing................... 170,900

Standardbred breeders' awards.......................... 1,273,000

Standardbred purses and supplements - licensed tracks.. 2,305,700

Standardbred sire stakes............................... 1,040,000

Thoroughbred sire stakes............................... 1,063,100

Standardbred training and stabling..................... 44,900

Thoroughbred program................................... 3,092,400

Thoroughbred owners' awards............................ 159,900

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

GROSS APPROPRIATION.................................... $ 17,978,000

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund........... 13,844,800

Industry support funds................................. 11,000

Licensing and inspection fees.......................... 131,900

State services fee fund................................ 2,619,600

Upper Peninsula state fair revenue..................... 1,370,700

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

Sec. 111. OFFICE OF RACING COMMISSIONER

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

Office of racing commissioner--31.7 FTE positions...... $ 3,785,700

GROSS APPROPRIATION.................................... $ 3,785,700

Appropriated from:

Special revenue funds:

Senate Bill No. 222 as amended August 22, 2007

State services fee fund................................ 3,785,700

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

Sec. 112. INFORMATION TECHNOLOGY

Information technology services and projects........... $ 1,571,500

GROSS APPROPRIATION.................................... $ 1,571,500

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........... 208,100

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

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

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

State services fee fund................................ 1,059,500

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

State general fund/general purpose..................... $ 272,400

<< Sec. 113. BUDGETARY SAVINGS

Budgetary savings...................................... $ (539,300)

GROSS APPROPRIATION.................................... $ (539,300)

Appropriated from:

State general fund/general purpose..................... $ (539,300)>>

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 2007-2008 is $79,009,300.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2007-2008 is $2,616,800.00. The itemized

statement below identifies appropriations from which spending to

local units of government will occur:

DEPARTMENT OF AGRICULTURE

Groundwater and freshwater protection program.......... $ 1,700,000

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

TOTAL.................................................. $ 2,616,800

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) "EPA" means the United States environmental protection

agency.

(e) "FFA" means future farmers of America.

(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.

Senate Bill No. 222 as amended August 22, 2007 (1 of 2)

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

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

Sec. 204. The department of civil service 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 employees into the classified state civil

service or unclassified positions within the executive branch of

state government; creating new positions within the classified

state civil service or new unclassified positions; and filling new

or existing vacant positions by external hire from outside of state

government, transfer or promotion between state departments or

agencies, or internal promotions within a department or agency. The

hiring freeze described in this section applies regardless of the

fund source financing the position but does not apply to

appointments required by law.

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

hiring freeze if 1 or more of the following apply:

(a) The creation of a position or filling a vacant position by

any method is required by legal mandate, federal mandate, or court

order.

(b) The creation of a position or filling a vacant position by

any method is necessary to protect the health or safety of Michigan

citizens.

(c) The creation of a position or filling a vacant position by any method is necessary to produce budgetary savings or to protect existing state revenue or secure additional state revenue.

Senate Bill No. 222 as amended August 22, 2007

(d) The creation of a position or filling a vacant position by any method is necessary to provide for the basic daily living requirements of residents of a state institution or facility.

(3) The state budget director shall report quarterly to the chairpersons of the senate and house of representatives standing committees on appropriations and the respective fiscal agencies the number of exceptions to the hiring freeze approved for each state department or agency during the immediately preceding quarter and the reasons to justify the exception.

(4) The attorney general and secretary of state may grant exceptions to the hiring freeze for their respective departments under the same criteria that the state budget director is able to grant exceptions.>>

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

Senate Bill No. 222 as amended August 22, 2007

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, 2008. 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 for the fiscal year ending September 30,

2008 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 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, 2008, the department shall

provide to the senate and house appropriations subcommittees on

agriculture and the senate and house fiscal agencies a summary

report on the real and potential return on investment for each of

the department's programs.

Sec. 228. 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.

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

1, 2008 on each specific policy change made to implement enacted

legislation to the senate and house appropriations subcommittees on

the department budget, the senate and house standing committees on

the department budget, the chairperson of the joint committee on

administrative rules, and the senate and house fiscal agencies and

Senate Bill No. 222 as amended August 22, 2007

policy offices.

(2) Funds appropriated in part 1 shall not be used to prepare

regulatory plans or promulgate rules that fail to reduce the

disproportionate economic impact on small businesses pursuant to

section 40 of the administrative procedures act of 1969, 1969 PA

306, MCL 24.240.

<<Sec. 230. Appropriation authorization adjustments required due to negative appropriations for budgetary savings shall be made only after the approval of transfers by the legislature under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.>>

EXECUTIVE

Sec. 301. Per diem rates for commodity committees established

in the agriculture commodities marketing act, 1965 PA 232, MCL

290.651 to 290.674, 1970 PA 29, MCL 290.421 to 290.430, 1965 PA

114, MCL 290.551 to 290.568, and the beef industry commission act,

1972 PA 291, MCL 287.601 to 287.610, will be set based upon levels

established in section 301 of 2002 PA 516.

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) From the funds appropriated in section 108, not

less than $3,800,000.00 shall be used for the motor fuel quality

program to ensure motor fuel quality and quantity. Notwithstanding

the provisions of section 205, the department shall maintain

additional field and laboratory staff for the motor fuel quality

program.

(2) On or before January 1, 2007 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. 305. From the appropriation for statistical reporting

service in part 1, it is the intent of the legislature that the

department, in consultation with representatives of the equine

industry, conduct a survey of the equine industry in Michigan.

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, 2008, 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, 2008, 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 2006-2007 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 the food act, 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 act, 2000 PA 92, MCL 289.4117.

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. 453. It is the legislature's intent that funding in

section 105 from the agriculture equine industry development fund

be consistent with revenue to the fund. Should casino revenue to

the fund during fiscal year 2007-2008 fall below that necessary for

listed appropriations, the expenditures should be decreased

accordingly.

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

Senate Bill No. 222 as amended August 22, 2007 (1 of 2)

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, 2007, 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.>>

LABORATORY SERVICES

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

services, $75,000.00 from the licensing and inspection fees fund

shall be used for feed testing.

PESTICIDE AND PLANT PEST MANAGEMENT

Sec. 502. It is the intent of the legislature that reductions

in the general fund appropriation in section 1 for pesticide and

plant pest management may be partially or completely offset by

Senate Bill No. 222 as amended August 22, 2007

increases in the commodity inspection fees.

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 $100.00 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.

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. 703. From the appropriation in part 1 for agriculture

development, a grant shall be provided to the northwest Michigan

horticultural research station which is limited to an amount equal

to resources provided by the organization not to exceed $30,000.00.

The grant shall not be used by the administering agency to supplant

existing resources dedicated to the northwest Michigan

horticultural research station.

Sec. 704. The grant for FFA in section 109 shall be limited to

an amount equal to resources provided by the organization not to

exceed $80,000.00. The resources provided by the organization shall

not be from existing dollars in the organization's budget. Indirect

costs may not be charged against the FFA grant in section 109 by

any administering agency. The grant shall not be used by the

administering agency to supplant existing resources dedicated to

the FFA organization. The grant only shall be used, awarded, or

expended for additional leadership activities, awards, or training

programs that encourage agriculture as a career.

Sec. 706. Not later than April 1, 2008, 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 285.302, 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, 2008, 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

Senate Bill No. 222 as amended August 22, 2007

domestic and international marketing programs for the purpose of

developing new and enhancing existing export markets for Michigan

agricultural products.

Sec. 711. The grant for 4-H in section 109 shall be limited to

an amount equal to resources provided by the organization not to

exceed $20,000.00. The resources provided by the organization shall

not be from existing dollars in the organization's budget. The

grant shall not be used by the administering agency to supplant

existing resources dedicated to the 4-H organization.

<<Sec. 712. From the appropriation in section 109 for agriculture development, 20% of federal funds received through the specialty crop block grant program of the United States department of agriculture shall be used to support the sale of specialty crops at farm markets and agricultural tourism activities.>>

FAIRS AND EXPOSITIONS

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

the state budget director, the senate and house appropriations

subcommittees on agriculture, and the senate and house fiscal

agencies that states the simulcasting revenues generated in the

preceding month by each licensed track and the amount received from

license fees.

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

purses and supplements – fairs/licensed tracks, $280,000.00 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 $30,500.00 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.

Sec. 812. It is the legislature's intent that funding in

section 110 from the agriculture equine industry development fund

be consistent with revenue to the fund. Should casino revenue to

the fund during fiscal year 2007-2008 fall below that necessary for

listed appropriations, the expenditures should be decreased

accordingly.

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, all purse money and program money appropriated for the

thoroughbred industry in fiscal year 2007-08 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, 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.