HB-5875, As Passed Senate, May 12, 2010

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.................................... $ 76,183,300

Interdepartmental grant revenues:

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

IDG-MDNRE, biosolids................................... 97,200

Total interdepartmental grants and intradepartmental

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

ADJUSTED GROSS APPROPRIATION........................... $ 75,894,200

Federal revenues:

DAG, multiple grants................................... 10,863,300

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

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

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

Total federal revenues................................. 14,757,600

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

Agriculture 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............................. 2,785,500

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

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

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

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

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

Migrant housing inspection fee......................... 112,300

Migrant 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

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

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

Total other state restricted revenues.................. 30,579,400

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................................. 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:

DAG-multiple grants.................................... 236,000

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

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

Special revenue funds:

Agriculture 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.. $ 9,579,900

Milk safety and quality assurance--26.0 FTE positions.. 3,159,200

GROSS APPROPRIATION.................................... $ 12,739,100

Appropriated from:

Federal revenues:

DAG-multiple grants.................................... 61,100

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

Special revenues funds:

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

Dairy and food safety fund............................. 2,785,500

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:

DAG-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:

Federal revenues:

DAG-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

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

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

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

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 agricultural 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 drains--3.0 FTE positions.................. 416,100

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

Appropriated from:

Interdepartmental grant revenues:

IDG-MDNRE, biosolids................................... 97,200

Federal revenues:

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

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

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

Special revenue funds:

Agriculture 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 program--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-MDELEG (LCC), liquor quality testing fees.......... 189,100

Federal revenues:

DAG-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. AGRICULTURAL DEVELOPMENT

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

Agricultural 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:

Federal revenues:

DAG-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 - fairs/licensed tracks......................... 764,300

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

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

Standardbred 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 breeders' 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-MDELEG (LCC), liquor quality testing fee........... 2,800

Special revenue funds:

Agriculture 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:

DAG-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 $60,876,500.00 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.

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.

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.

(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.

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.

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 agricultural equine

industry development fund shall be reduced proportionately if

revenues to the agricultural equine industry development fund

decline during the fiscal year ending September 30, 2011 to a level

lower than the amount appropriated in part 1.

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.

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.