FIRST CONFERENCE REPORT

 

     The Committee of Conference on the matters of difference between the two Houses concerning

 

     House Bill No. 5875, entitled

 

     A bill to make appropriations for the department of agriculture for the fiscal year ending September 30, 2011; 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.

 

     Recommends:

 

     First:  That the House and Senate agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:

 

(attached)

 

     Seocnd:  That the House and Senate agree to the title of the bill to read as follows:

 

     A bill to make appropriations for the department of agriculture for the fiscal year ending September 30, 2011; 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.

 

 

 

_______________________                 ________________________

John Espinoza                           Cameron Brown

 

_______________________                 ________________________

Gary McDowell                           Ron Jelinek

 

_______________________                 ________________________

Matt Lori                               Martha G. Scott

 

Conferees for the House                 Conferees for the Senate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 5875

 

 

 

 

 

 

 

 

 

 

 

     A bill to make appropriations for the department of

 

agriculture for the fiscal year ending September 30, 2011; 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, 2011, 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.......... 2.0

 

   Full-time equated classified positions.......... 456.5

 

GROSS APPROPRIATION.................................... $     76,448,300

 

   Interdepartmental grant revenues:

 

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

 

IDG from MDNRE, biosolids..............................            97,200

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................           289,100

 

ADJUSTED GROSS APPROPRIATION........................... $     76,159,200

 

   Federal revenues:

 

USDA, multiple grants..................................        11,028,300

 

EPA, multiple grants...................................         1,728,900

 

HHS-FDA................................................         1,701,500

 

United States department of labor......................           463,900

 

Total federal revenues.................................        14,922,600

 

   Special revenue funds:

 

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

 

Private - slow-the-spread foundation...................           166,400

 

Private - commodity group revenue......................            93,700

 

Total private revenues.................................           260,100

 

Agricultural preservation fund.........................         3,002,700

 

Agriculture equine industry development fund...........         4,476,900

 

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


 

Animal welfare fund....................................           142,400

 

Commodity inspection fees..............................         1,002,000

 

Consumer and industry food safety education fund.......           278,000

 

Dairy and food safety fund.............................         2,885,500

 

Freshwater protection fund.............................         5,127,600

 

Gasoline inspection and testing fund...................         2,752,500

 

Grain dealer fee fund..................................           163,500

 

Horticulture fund......................................            89,300

 

Industry support funds.................................           700,300

 

Licensing and inspection fees..........................         4,117,600

 

Migrant housing inspection fees........................           112,300

 

Migratory labor housing fund...........................            28,600

 

Nonretail liquor fees..................................           718,800

 

Refined petroleum fund.................................         3,870,900

 

State services fee fund................................            53,400

 

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

 

Weights and measures regulation fees...................           722,500

 

Total other state restricted revenues..................        30,679,400

 

State general fund/general purpose..................... $     30,297,100

 

   Sec. 102.  EXECUTIVE

 

   Full-time equated unclassified positions.......... 2.0

 

   Full-time equated classified positions........... 27.5

 

Commissions and boards................................. $         23,800

 

Unclassified positions--2.0 FTE positions..............           213,300

 

Executive direction--8.0 FTE positions.................           996,200

 

Management services--12.0 FTE positions................           928,600

 

Statistical reporting service--1.0 FTE positions.......           148,500


 

Emergency management--6.5 FTE positions................           741,800

 

Accounting service center..............................           878,300

 

GROSS APPROPRIATION.................................... $      3,930,500

 

    Appropriated from:

 

   Federal revenues:

 

HHS-FDA................................................           500,000

 

   Special revenue funds:

 

Private - commodity group revenue......................            82,600

 

Industry support funds.................................            38,400

 

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

 

Refined petroleum fund.................................            57,800

 

State general fund/general purpose..................... $      3,242,900

 

   Sec. 103.  DEPARTMENTWIDE

 

Rent and building occupancy charges.................... $       1,042,200

 

GROSS APPROPRIATION.................................... $      1,042,200

 

    Appropriated from:

 

   Federal revenues:

 

USDA, multiple grants..................................           236,000

 

EPA, multiple grants...................................           182,900

 

HHS-FDA................................................            45,500

 

   Special revenue funds:

 

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

 

Freshwater protection fund.............................            35,200

 

Licensing and inspection fees..........................           177,800

 

Nonretail liquor fees..................................            30,300

 

Refined petroleum fund.................................           257,200

 

State services fee fund................................            53,400


 

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

 

   Sec. 104.  FOOD AND DAIRY

 

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

 

Food safety and quality assurance--81.0 FTE positions.. $      9,744,900

 

Milk safety and quality assurance--26.0 FTE positions..         3,259,200

 

GROSS APPROPRIATION.................................... $     13,004,100

 

    Appropriated from:

 

   Federal revenues:

 

USDA, multiple grants..................................           226,100

 

HHS-FDA................................................           432,600

 

   Special revenue funds:

 

Consumer and industry food safety education fund.......           278,000

 

Dairy and food safety fund.............................         2,885,500

 

State general fund/general purpose..................... $      9,181,900

 

   Sec. 105.  ANIMAL INDUSTRY

 

   Full-time equated classified positions........... 68.0

 

Animal disease prevention and response--68.0 FTE

 

   positions............................................ $       9,474,200

 

GROSS APPROPRIATION.................................... $      9,474,200

 

    Appropriated from:

 

   Federal revenues:

 

USDA, multiple grants..................................         1,215,800

 

HHS-FDA................................................            75,400

 

   Special revenue funds:

 

Animal welfare fund....................................           142,400

 

Licensing and inspection fees..........................           111,400

 

State general fund/general purpose..................... $      7,929,200


 

   Sec. 106.  PESTICIDE AND PLANT PEST MANAGEMENT

 

   Full-time equated classified positions.......... 108.0

 

Pesticide and plant pest management--94.0 FTE

 

   positions............................................ $     11,347,000

 

Emerald ash borer control program--10.0 FTE positions..         2,138,500

 

Producer security/grain dealers--4.0 FTE positions.....           552,600

 

GROSS APPROPRIATION.................................... $     14,038,100

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

   Federal revenues:

 

USDA, multiple grants..................................         3,214,400

 

EPA, multiple grants...................................           838,600

 

HHS-FDA................................................           105,000

 

   Special revenue funds:

 

Private - slow-the-spread foundation...................           166,400

 

Commodity inspection fees..............................         1,002,000

 

Grain dealers fee fund.................................           163,500

 

Horticulture fund......................................            89,300

 

Industry support funds.................................           461,900

 

Licensing and inspection fees..........................         3,670,100

 

State general fund/general purpose..................... $      4,326,900

 

   Sec. 107.  ENVIRONMENTAL STEWARDSHIP

 

   Full-time equated classified positions........... 39.0

 

Environmental stewardship.............................. $         94,400

 

Michigan agriculture environmental assurance program--

 

   3.0 FTE positions....................................           262,000

 

Groundwater and freshwater protection program--15.0


 

   FTE positions........................................         5,354,100

 

Farmland and open space preservation--9.0 FTE

 

   positions............................................           928,600

 

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

 

Local conservation districts...........................               100

 

Migrant labor housing--6.0 FTE positions...............         1,142,800

 

Right-to-farm--3.0 FTE positions.......................           504,300

 

Intercounty drain--3.0 FTE positions...................           416,100

 

GROSS APPROPRIATION.................................... $      9,702,500

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG from MDNRE, biosolids..............................            97,200

 

   Federal revenues:

 

USDA, multiple grants..................................         1,000,000

 

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

 

United States department of labor......................           463,900

 

   Special revenue funds:

 

Agricultural preservation fund.........................           928,600

 

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

 

Freshwater protection fund.............................         5,092,300

 

Migrant housing inspection fees........................          112,300

 

Migratory labor housing fund...........................            28,600

 

State general fund/general purpose..................... $      1,623,300

 

   Sec. 108.  LABORATORY PROGRAM

 

   Full-time equated classified positions........... 97.0

 

Laboratory services--45.0 FTE positions................ $      6,085,600

 

USDA monitoring--13.0 FTE positions....................         2,259,000


 

Consumer protection program--39.0 FTE positions........         5,498,100

 

GROSS APPROPRIATION.................................... $     13,842,700

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

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

 

   Federal revenues:

 

USDA, multiple grants..................................         2,281,000

 

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

 

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

 

   Special revenue funds:

 

Agriculture equine industry development fund...........           541,700

 

Gasoline inspection and testing fund...................         2,639,400

 

Licensing and inspection fees..........................            79,500

 

Refined petroleum fund.................................         3,555,900

 

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

 

Weights and measures regulation fees...................           722,500

 

State general fund/general purpose..................... $      2,504,900

 

   Sec. 109.  AGRICULTURE DEVELOPMENT

 

   Full-time equated classified positions............ 7.0

 

Agriculture development--4.0 FTE positions............. $      2,056,700

 

Grape and wine program--3.0 FTE positions..............           736,800

 

GROSS APPROPRIATION.................................... $      2,793,500

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

   Federal revenues:

 

USDA, multiple grants..................................         1,605,000

 

   Special revenue funds:


 

Private - commodity group revenue......................            11,100

 

Industry support funds.................................           200,000

 

Nonretail liquor fees..................................           679,200

 

State general fund/general purpose..................... $        298,200

 

   Sec. 110.  FAIRS AND EXPOSITIONS

 

   Full-time equated classified positions............ 3.0

 

Fairs and racing--3.0 FTE positions.................... $        394,400

 

Purses and supplements - fairs/licensed tracks.........           764,300

 

Licensed tracks - light horse racing...................            42,600

 

Standardbred breeders' awards..........................           312,500

 

Standardbred purses and supplements - licensed tracks..           577,000

 

Standardbred sire stakes...............................           261,200

 

Standardbred training and stabling.....................            11,600

 

Thoroughbred owners' awards............................            39,900

 

Thoroughbred supplements - licensed tracks.............           387,000

 

Thoroughbred breeder's awards..........................           387,000

 

Thoroughbred sire stakes...............................           267,600

 

Distribution of outstanding winning tickets............           375,000

 

GROSS APPROPRIATION.................................... $      3,820,100

 

    Appropriated from:

 

   Special revenue funds:

 

Agriculture equine industry development fund...........         3,820,100

 

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

 

   Sec. 111.  INFORMATION AND TECHNOLOGY

 

Information technology services and projects........... $       1,500,400

 

GROSS APPROPRIATION.................................... $      1,500,400

 

    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...........           115,100

 

Gasoline inspection testing fund.......................           113,100

 

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

 

Licensing and inspection fees..........................            78,800

 

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

 

State general fund/general purpose..................... $      1,189,800

 

   Sec. 112.  CAPITAL OUTLAY

 

Farmland and open space development acquisition........ $       3,300,000

 

GROSS APPROPRIATION.................................... $      3,300,000

 

    Appropriated from:

 

   Federal revenues:

 

USDA, multiple grants..................................         1,250,000

 

   Special revenue funds:

 

Agriculture preservation fund..........................         2,050,000

 

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

 

 

 

 

 

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 2010-2011 is $60,976,500.00 and state


 

spending from state resources to be paid to local units of

 

government for fiscal year 2010-2011 is $1,500,000.00. 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

 

TOTAL.................................................. $      1,500,000

 

     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) "Department" means the department of agriculture.

 

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

 

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

 

agency.

 

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

 

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

 

human services - food and drug administration.

 

     (f) "IDG" means interdepartmental grant.

 

     (g) "MDELEG" means the Michigan department of energy, labor,

 

and economic growth.

 

     (h) "MDNRE" means the Michigan department of natural resources

 

and environment.

 

     (i) "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 charges

 

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 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 shall be given to

 

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

 

businesses, if they are competitively priced and of comparable

 

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

 

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

 

businesses owned and operated by veterans, if they are

 

competitively priced and of comparable quality.

 

     Sec. 210. The director shall take all reasonable steps to

 

ensure businesses in deprived and depressed communities compete for

 

and perform contracts to provide services or supplies, or both. The

 

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 287.746, not

 

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

 

year ending September 30, 2011. 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 senate and house

 

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 and environment. 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 and environment 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 senate and house 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. 215. From the funds appropriated in part 1, the

 

department shall use an amount not to exceed $10,000.00 to develop,

 

post, and maintain, on a publicly accessible Internet site, all

 

expenditures made by the agency within a fiscal year. The posting

 

must include the purpose for which each expenditure is made. The

 

department shall not be required to hire additional employees to

 

comply with this section.

 

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


 

information technology, departments and agencies shall pay user

 

fees to the department of technology, management, and budget 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 technology, management, and

 

budget.

 

     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 technology, management, and budget. 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) 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 senate and house appropriations committees, the

 

senate and house 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. 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, 2011 on each specific policy change made to implement a public


 

act affecting the department that took effect during the prior

 

calendar year to the senate and house 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. 237. Not later than September 30, 2011, the department

 

shall prepare and transmit a report that provides for estimates of

 

the total general fund/general purpose appropriation lapses at the

 

close of the fiscal year. This report shall summarize the projected

 

year-end general fund/general purpose appropriation lapses by major

 

departmental program or program areas. The report shall be

 

transmitted to the office of the state budget, the chairpersons of

 

the senate and house appropriations committees, and the senate and

 

house fiscal agencies.

 

 

 

EXECUTIVE

 

     Sec. 302. (1) Pursuant to the appropriations in part 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, 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 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

 

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 1915 PA 91, MCL

 

285.35.

 

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

 

a report to the senate and house 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. 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. 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.

 

     Sec. 402. Not later than April 1, 2011, the department shall

 

provide a report to the senate and house appropriations

 

subcommittees on agriculture and the senate and house fiscal

 

agencies describing significant food-borne outbreaks and

 

emergencies, including any enforcement actions taken related to

 

food safety during the 2009-2010 fiscal year.

 

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

 

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

 

consumer and industry food safety education fund shall be expended

 

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

 

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

 

education to consumers on food safety and the training and

 

education on food safety to food service establishment employees

 

and department employees and agents who enforce section 4117 of the

 

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

 

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

 

department is authorized to fill open positions in the food and

 

dairy inspection program.

 

 

 

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 and environment 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 and environment 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. 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, 2010, 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. Of the appropriation in section 105 for animal

 

health and welfare, budgetary reductions for the fiscal year ending

 

September 30, 2011 shall not be taken from the aquaculture program,

 

but shall be taken from other programs funded in the animal health

 

and welfare appropriation line item.

 

 

 

PESTICIDE AND PLANT PEST MANAGEMENT

 

     Sec. 551. It is the intent of the legislature that the

 

department work with the fruit and vegetable industry to ensure the

 

development of a sustainable system of third-party inspections of

 

fruits and vegetables.

 

     Sec. 552. The department shall evaluate methods for limiting

 

the transport of invasive species in or on pallets. The evaluation

 

shall include an assessment for the costs and benefits of using

 

commercially available treatments for mitigating infestation and

 

preventing reinfestation of pallets. The department shall report to

 

the legislature on the findings of the evaluations and make

 

recommendations for limiting the transport of invasive species in

 

pallets.

 

     Sec. 553. From the funds appropriated in part 1 for pesticide

 

and plant pest management, not less than $200,000.00 shall be used

 

for the purpose to ensure that Michigan commodities receive

 

departmental inspections required by other governments to ship

 

commodities out of Michigan. The department shall devise a plan to


 

provide these required government inspections in a timely manner.

 

 

 

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. 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. 706. Not later than April 1, 2011, the department shall

 

provide a report to the senate and house appropriations

 

subcommittees on agriculture and the senate and house 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. 709. (1) Not later than April 1, 2011, the department

 

shall provide a report to the senate and house appropriations

 

subcommittees on agriculture and the senate and house 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. 711. In accordance with chapter 8B of the Michigan

 

strategic fund act, 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.

 

 

 

FAIRS AND EXPOSITIONS

 

     Sec. 801. All appropriations from the agricultural equine

 

industry development fund shall be spent on equine related

 

purposes. No funds from the agriculture equine industry development

 

fund shall be expended for nonequine related purposes without prior


 

approval of the legislature.

 

     Sec. 802. All appropriations from the agriculture equine

 

industry development fund, except for the racing commission and

 

laboratory analysis program appropriations, shall be reduced

 

proportionately if revenues to the agriculture equine industry

 

development fund decline during the fiscal year ending September

 

30, 2011 to a level lower than the amounts appropriated in section

 

108.

 

     Sec. 803. In the event there is no live thoroughbred race meet

 

in 2010 or 2011, all purse money and program money appropriated for

 

the thoroughbred industry in fiscal year 2009-2010 and fiscal year

 

2010-2011 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 Michigan gaming control board. In the event

 

there is no thoroughbred meet in 2010 or 2011, the purse pool

 

distribution order to be issued by the Michigan gaming control

 

board in 2011 that delineates distribution between the thoroughbred

 

meet that has been held at pinnacle race course and the joint

 

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

 

same distribution formula as issued in 2010, with the thoroughbred

 

portion being held in escrow.

 

     Sec. 804. The Michigan gaming control board shall use actual

 

expenditure data in determining the actual regulatory costs of

 

conducting racing dates and shall provide that data to the senate

 

and house of representatives appropriations subcommittees on

 

agriculture and general government and the senate and house fiscal

 

agencies. The Michigan gaming control board shall not be reimbursed


 

for more than the actual regulatory cost of conducting race dates.

 

If a certified horsemen's organization funds more than the actual

 

regulatory cost, the balance shall remain in the agriculture equine

 

industry development fund to be used to fund subsequent race dates

 

conducted by race meeting licensees with which the certified

 

horsemen's organization has contracts. If a certified horsemen's

 

organization funds less than the actual regulatory costs of the

 

additional horse racing dates, the Michigan gaming control board

 

shall reduce the number of future race dates conducted by race

 

meeting licensees with which the certified horsemen's organization

 

has contracts. Prior to the reduction in the number of authorized

 

race dates due to budget deficits, the executive director of the

 

Michigan gaming control board shall provide notice to the certified

 

horsemen's organizations with an opportunity to respond with

 

alternatives. In determining actual costs, the Michigan gaming

 

control board shall take into account that each specific breed may

 

require different regulatory mechanisms.

 

 

 

CAPITAL OUTLAY

 

     Sec. 1001. Of the amounts appropriated in part 1 for farmland

 

and open space development acquisition, the funds shall be used for

 

the purchase of development rights and the awarding of grants by

 

the agriculture preservation fund board under the natural resources

 

and environmental protection act, 1994 PA 451, MCL 324.101 to

 

324.90106.

 

     Sec. 1002. (1) The director shall allocate lump-sum

 

appropriations made in this act consistent with statutory


 

provisions and the purposes for which funds were appropriated.

 

Lump-sum allocations shall address priority program or facility

 

needs and may include, but are not limited to, design,

 

construction, remodeling and addition, special maintenance, major

 

special maintenance, energy conservation, and demolition.

 

     (2) The state budget director may authorize that funds

 

appropriated for lump-sum appropriations shall be available for no

 

more than 3 fiscal years following the fiscal year in which the

 

original appropriation was made. Any remaining balance from

 

allocations made in this section shall lapse to the fund from which

 

it was appropriated pursuant to the lapsing of funds as provided in

 

the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

 

     Sec. 1003. The appropriations in part 1 for capital outlay

 

shall be carried forward at the end of the fiscal year consistent

 

with the provisions of section 248 of the management and budget

 

act, 1984 PA 431, MCL 18.1248.