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HB-5407, As Passed Senate, April 29, 2010

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5407

A bill to make, supplement, and adjust appropriations for

various state departments and agencies for the fiscal year ending

September 30, 2010; and to provide for the expenditure of the

appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the various state

departments and agencies to supplement appropriations for the

fiscal year ending September 30, 2010, from the following funds:

APPROPRIATION SUMMARY

GROSS APPROPRIATION.................................. $ (1,385,850)

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 0

ADJUSTED GROSS APPROPRIATION........................... $ (1,385,850)

Federal revenues:

Total federal revenues................................. 0

Special revenue funds:

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

Total private revenues................................. 0

Total state restricted revenues........................ (1,385,850)

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

Sec. 102. DEPARTMENT OF AGRICULTURE

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION.................................... $ (1,668,494)

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 0

ADJUSTED GROSS APPROPRIATION........................... $ (1,668,494)

Federal revenues:

Total federal revenues................................. 0

Special revenue funds:

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

Total private revenues................................. 0

Total other state restricted revenues.................. (1,668,494)

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

(2) FAIRS AND EXPOSITIONS

Fairs and racing....................................... $ (34,755)

Purses and supplements-fairs/licensed tracks........... (203,820)

Licensed tracks - light horse racing................... (52,256)

Standardbred breeders' awards.......................... (285,642)

Standardbred purses and supplements - licensed tracks.. (462,568)

Standardbred sire stakes............................... (69,660)

Standardbred training and stabling..................... (3,100)

Thoroughbred owners' awards............................ (10,660)

Thoroughbred program................................... (397,244)

Thoroughbred sire stakes............................... (71,380)

Distribution of outstanding winning tickets............ (56,089)

GROSS APPROPRIATION.................................... $ (1,647,174)

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund........... (1,647,174)

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

(3) INFORMATION AND TECHNOLOGY

Information technology services and projects........... $ (21,320)

GROSS APPROPRIATION.................................... $ (21,320)

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund........... (21,320)

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

Sec. 103. DEPARTMENT OF TREASURY

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION.................................... $ 282,644

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 0

ADJUSTED GROSS APPROPRIATION........................... $ 282,644

Federal revenues:

Total federal revenues................................. 0

Special revenue funds:

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

Total private revenues................................. 0

Total other state restricted revenues.................. 282,644

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

(2) CASINO GAMING

Racing commissioner.................................... 306,684

GROSS APPROPRIATION.................................... $ 306,684

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund........... 282,684

Industry support funds................................. 24,000

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

(3) INFORMATION AND TECHNOLOGY

Information technology services and projects........... $ (24,040)

GROSS APPROPRIATION.................................... $ (24,040)

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund........... (24,040)

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

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. In accordance with the provisions of section 30 of

article IX of the state constitution of 1963, total state spending

from state resources in this appropriation act for the fiscal year

ending September 30, 2010 is $(1,385,850.00) and state

appropriations paid to local units of government are $0.

Sec. 202. The appropriations made and expenditures authorized

under this act and the departments, commissions, boards, offices,

and programs for which appropriations are made under this act are

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

to 18.1594.

Sec. 203. The departments described in this act shall fulfill

reporting requirements of this act by use of the Internet. Reports

identified for each reporting requirement shall be placed on the

Internet.

DEPARTMENT OF AGRICULTURE

Sec. 210. If the agriculture equine industry development fund

revenue exceeds appropriations for the year ending September 30,

2010, up to $308,688.00 shall be allocated to standardbred purses

and supplements, up to $202,302.00 shall be allocated to

standardbred breeders' awards, up to $40,896.00 shall be allocated

to licensed tracks – light horse racing, and up to $190,844.00

shall be allocated to thoroughbred programs for the year ending

September 30, 2011 because standardbred purses and supplements,

standardbred breeders' awards, licensed tracks – light horse

racing, and thoroughbred programs are receiving larger cuts in the

current fiscal year than other appropriations to ensure the

continuation of races. Contingency fund transfers shall be used as

necessary to allow for spending of any additional revenue.

DEPARTMENT OF TREASURY

Sec. 250. The appropriations in part 1 to the racing

commissioner are intended to ensure that 217 total racing dates

occur at Michigan's 5 licensed horse racetracks for the fiscal year

ending September 30, 2010. The appropriations in part 1, in

combination with 2009 PA 119, 2009 PA 140, Executive Order No.

2009-45, and Executive Order No. 2009-54, are necessary to allow 62

race dates at Hazel Park, 11 race dates at Mount Pleasant Meadows,

32 race dates at Northville Downs, 35 race dates at Northville

Racing Corp, 43 race dates at Pinnacle Race Course, and 34 race

dates at Sports Creek Raceway for the fiscal year ending September

30, 2010. In order to allow 31 of the 43 race dates at Pinnacle

Race Course, the Michigan thoroughbred owners and breeders

association and the horsemen's benevolent and protection

association shall enter into an agreement to fund the Michigan bred

programs and the Michigan gaming control board's regulatory

expenses. From the amount appropriated in part 1 to the racing

commissioner, the Michigan gaming control board shall provide all

regulatory functions necessary for the conduct of horse racing

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

431.336.

Sec. 251. The Michigan gaming control board, with the

assistance of the Michigan department of agriculture and each

certified horsemen's organization, shall report to the legislature

on the status and ongoing efforts to transfer the function of the

office of racing commissioner to the Michigan gaming control board

pursuant to Executive Order Nos. 2009-45 and 2009-54. The report

shall be submitted on or before September 1, 2010 to the house and

senate appropriations subcommittees on agriculture and general

government and the house and senate fiscal agencies. The report

shall include, at a minimum, the following:

(a) Efforts to utilize the most efficient and effective

methods of regulating and promoting the horse racing industry.

(b) Efforts to promote and support the horse racing industry

with the goal of increasing employment and expanded economic

activity associated with the horse racing industry.

regulation and promotion of the horse racing industry.

Sec. 252. 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 house

and senate appropriations subcommittees on agriculture and general

government and the house and senate 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.