FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
Senate Bill No. 760, entitled
Recommends:
First: That the House recede from the Substitute of the House as passed by the House.
Second: That the Senate and House agree to the Substitute of the Senate as passed by the Senate, amended to read as follows:
(attached)
Third: That the Senate and House agree to the title of the bill to read as follows:
A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2015; and to provide for the expenditure of the appropriations.
_______________________ ________________________
Mike Green Phil Potvin
_______________________ ________________________
Roger Kahn Nancy E. Jenkins
_______________________ ________________________
Hoon-Yung Hopgood Terry L. Brown
Conferees for the Senate Conferees for the House
SUBSTITUTE FOR
SENATE BILL NO. 760
A bill to make appropriations for the department of
agriculture and rural development for the fiscal year ending
September 30, 2015; 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 department of
agriculture and rural development for the fiscal year ending
September 30, 2015, from the following funds:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
APPROPRIATION SUMMARY
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions.......... 446.0
GROSS APPROPRIATION.................................... $ 84,462,200
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 318,100
ADJUSTED GROSS APPROPRIATION........................... $ 84,144,100
Federal revenues:
Total federal revenues................................. 10,126,200
Special revenue funds:
Total private revenues................................. 98,300
Total other state restricted revenues.................. 28,003,400
State general fund/general purpose..................... $ 45,916,200
Sec. 102. DEPARTMENTWIDE
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions........... 27.0
Commissions and boards................................. $ 23,800
Unclassified positions--6.0 FTE positions.............. 524,700
Executive direction--9.0 FTE positions................. 1,392,800
Operational services--15.0 FTE positions............... 1,065,700
Statistical reporting service--1.0 FTE position........ 150,900
Emergency management--2.0 FTE positions................ 601,900
Accounting service center.............................. 968,100
Building occupancy charges............................. 622,500
GROSS APPROPRIATION.................................... $ 5,350,400
Appropriated from:
Federal revenues:
HHS-FDA................................................ 325,000
Special revenue funds:
Private - commodity group revenue...................... 77,600
Agricultural preservation fund......................... 15,000
Agriculture licensing and inspection fees.............. 112,100
Freshwater protection fund............................. 22,200
Industry support funds................................. 53,500
Nonretail liquor fees.................................. 27,800
Refined petroleum fund................................. 220,300
State general fund/general purpose..................... $ 4,496,900
Sec. 103. INFORMATION AND TECHNOLOGY
Information technology services and projects........... $ 1,460,000
GROSS APPROPRIATION.................................... $ 1,460,000
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees....... 3,200
Special revenue funds:
Agricultural preservation fund......................... 200
Agriculture equine industry development fund........... 84,800
Agriculture licensing and inspection fees.............. 32,400
Freshwater protection fund............................. 100
Gasoline inspection testing fund....................... 31,400
Nonretail liquor fees.................................. 500
State general fund/general purpose..................... $ 1,307,400
Sec. 104. FOOD AND DAIRY
Full-time equated classified positions.......... 113.0
Food safety and quality assurance--83.0 FTE positions.. $ 12,378,200
Milk safety and quality assurance--30.0 FTE positions.. 4,219,200
GROSS APPROPRIATION.................................... $ 16,597,400
Appropriated from:
Federal revenues:
HHS-FDA................................................ 1,175,800
USDA, multiple grants.................................. 134,200
Special revenue funds:
Consumer and industry food safety education fund....... 318,700
Dairy and food safety fund............................. 3,366,500
State general fund/general purpose..................... $ 11,602,200
Sec. 105. ANIMAL INDUSTRY
Full-time equated classified positions........... 60.0
Animal disease prevention and response--60.0 FTE
positions............................................ $ 8,836,600
Indemnification - livestock depredation................ 50,000
GROSS APPROPRIATION.................................... $ 8,886,600
Appropriated from:
Federal revenues:
HHS-FDA................................................ 45,900
USDA, multiple grants.................................. 519,500
Special revenue funds:
Agriculture licensing and inspection fees.............. 40,400
Animal welfare fund.................................... 217,400
State general fund/general purpose..................... $ 8,063,400
Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT
Full-time equated classified positions........... 86.0
Pesticide and plant pest management--81.0 FTE
positions............................................ $ 12,181,800
Producer security/grain dealers--5.0 FTE positions..... 646,700
GROSS APPROPRIATION.................................... $ 12,828,500
Appropriated from:
Federal revenues:
Department of interior................................. 222,600
EPA, multiple grants................................... 525,700
HHS-FDA................................................ 320,700
USDA, multiple grants.................................. 832,100
Special revenue funds:
Private - slow-the-spread foundation................... 20,700
Agriculture licensing and inspection fees.............. 3,818,700
Commodity inspection fees.............................. 437,100
Freshwater protection fund............................. 151,900
Grain dealers fee fund................................. 606,400
Horticulture fund...................................... 38,300
Industry support funds................................. 243,000
State general fund/general purpose..................... $ 5,611,300
Sec. 107. ENVIRONMENTAL STEWARDSHIP
Full-time equated classified positions........... 55.0
Environmental stewardship--8.0 FTE positions........... $ 1,246,100
Michigan agriculture environmental assurance program--
15.0 FTE positions................................... 4,284,100
Farmland and open space preservation--7.0 FTE
positions............................................ 905,700
Qualified forest program--9.0 FTE positions............ 2,535,000
Commercial forestry audit program...................... 150,000
Local conservation districts........................... 2,173,800
Migrant labor housing--9.0 FTE positions............... 1,214,300
Right-to-farm--3.0 FTE positions....................... 569,000
Intercounty drain--4.0 FTE positions................... 475,100
GROSS APPROPRIATION.................................... $ 13,553,100
Appropriated from:
Interdepartmental grant revenues:
IDG from MDEQ, biosolids............................... 101,400
Federal revenues:
Department of interior................................. 120,600
EPA, multiple grants................................... 305,600
USDA, multiple grants.................................. 917,000
Special revenue funds:
Agricultural preservation fund......................... 584,000
Freshwater protection fund............................. 5,013,000
Migratory labor housing fund........................... 164,600
Private forestland enhancement fund.................... 35,000
State general fund/general purpose..................... $ 6,311,900
Sec. 108. LABORATORY PROGRAM
Full-time equated classified positions........... 90.0
Laboratory services--36.0 FTE positions................ $ 5,409,200
USDA monitoring--13.0 FTE positions.................... 1,598,600
Consumer protection program--41.0 FTE positions........ 6,083,100
GROSS APPROPRIATION.................................... $ 13,090,900
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees....... 213,500
Federal revenues:
EPA, multiple grants................................... 168,900
HHS-FDA................................................ 613,100
USDA, multiple grants.................................. 1,599,500
Special revenue funds:
Agriculture equine industry development fund........... 611,700
Agriculture licensing and inspection fees.............. 77,400
Gasoline inspection and testing fund................... 2,562,300
Refined petroleum fund................................. 3,691,700
Renewable fuels fund................................... 51,800
Testing fees........................................... 288,400
Weights and measures regulation fees................... 1,002,200
State general fund/general purpose..................... $ 2,210,400
Sec. 109. AGRICULTURE DEVELOPMENT
Full-time equated classified positions........... 14.0
Agriculture development--11.0 FTE positions............ $ 3,579,500
Food and agriculture industry growth initiative........ 1,000,000
Grape and wine program--3.0 FTE positions.............. 828,500
Rural development value-added grants................... 1,050,000
GROSS APPROPRIATION.................................... $ 6,458,000
Appropriated from:
Federal revenues:
USDA, multiple grants.................................. 2,300,000
Special revenue funds:
Industry support funds................................. 131,900
Nonretail liquor fees.................................. 783,400
State general fund/general purpose..................... $ 3,242,700
Sec. 110. FAIRS AND EXPOSITIONS
Full-time equated classified positions............ 1.0
Fairs and racing--1.0 FTE position..................... $ 356,700
Shows and expositions.................................. 50,000
County fairs capital improvement grants................ 320,000
Purses and supplements - fairs/licensed tracks......... 708,300
Licensed tracks - light horse racing................... 40,300
Light horse racing - breeders' awards.................. 20,000
Standardbred breeders' awards.......................... 285,900
Standardbred purses and supplements - licensed tracks.. 527,800
Standardbred sire stakes............................... 239,000
Thoroughbred supplements - licensed tracks............. 385,900
Thoroughbred breeders' awards.......................... 358,600
Thoroughbred sire stakes............................... 244,800
GROSS APPROPRIATION.................................... $ 3,537,300
Appropriated from:
Special revenue funds:
Agriculture equine industry development fund........... 3,167,300
State general fund/general purpose..................... $ 370,000
Sec. 111. ONE-TIME BASIS ONLY
Food and agriculture industry growth initiative........ $ 2,000,000
Muskegon farmers market................................ 200,000
Ottawa County agriculture incubator.................... 500,000
GROSS APPROPRIATION.................................... $ 2,700,000
Appropriated from:
State general fund/general purpose..................... $ 2,700,000
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2014-2015
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 2014-2015 is $73,919,600.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2014-2015 is $4,750,000.00. The itemized
statement below identifies appropriations from which spending to
local units of government will occur:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
Environmental stewardship.............................. $ 209,000
Michigan agriculture environment assurance program..... 2,000,000
Local conservation districts........................... 1,041,000
Qualified forest program............................... 1,500,000
TOTAL.................................................. $ 4,750,000
Sec. 202. The appropriations authorized under part 1 and this
part are subject to the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594.
Sec. 203. As used in part 1 and this part:
(a) "Department" means the department of agriculture and rural
development.
(b) "Director" means the director of the department.
(c) "EPA" means the United States environmental protection
agency.
(d) "Fiscal agencies" means the Michigan house fiscal agency
and the Michigan senate fiscal agency.
(e) "FTE" means full-time equated.
(f) "HHS-FDA" means the United States department of health and
human services - food and drug administration.
(g) "IDG" means interdepartmental grant.
(h) "LARA" means the Michigan department of licensing and
regulatory affairs.
(i) "LCC" means the Michigan liquor control commission.
(j) "MDEQ" means the Michigan department of environmental
quality.
(k) "MDNR" means the Michigan department of natural resources.
(l) "MOU" means memorandum of understanding.
(m) "Subcommittees" means all members of the subcommittees of
the house and senate appropriations committees with jurisdiction
over the budget for the department.
(n) "TB" means tuberculosis.
(o) "USDA" means the United States department of agriculture.
Sec. 205. (1) For each new program or program expansion for
which funds in excess of $500,000.00 are appropriated in part 1,
the department shall identify specific benchmarks intended to
measure the performance or return on taxpayer investment of the
program and its associated expenditures. Not later than November 1,
2014, the department shall report the proposed benchmarks to the
house and senate appropriations subcommittees for that department,
the house and senate fiscal agencies, and the state budget
director. The department shall provide an update on its progress in
achieving those benchmarks at an appropriations subcommittee
meeting called for the purpose of discussing benchmarks and their
status.
(2) It is the intent of the legislature that, beginning with
the budget for the fiscal year ending September 30, 2016, any
proposal for a new program or an expansion of an existing program
in excess of $500,000.00 initiated by the executive branch or the
legislature shall include, as part of the original proposal or
budget request, a list of benchmarks intended to measure the
performance or return on taxpayer investment of the program or
spending increase.
Sec. 206. (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 part 1 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 part 1 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 part 1
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 part 1
under section 393(2) of the management and budget act, 1984 PA 431,
MCL 18.1393.
Sec. 207. The department shall cooperate with the department
of technology, management, and budget to maintain a searchable
website accessible by the public at no cost that includes, but is
not limited to, all of the following:
(a) Fiscal year-to-date expenditures by category.
(b) Fiscal year-to-date expenditures by appropriation unit.
(c) Fiscal year-to-date payments to a selected vendor,
including the vendor name, payment date, payment amount, and
payment description.
(d) The number of active department employees by job
classification.
(e) Job specifications and wage rates.
Sec. 208. The departments and agencies receiving
appropriations in part 1 shall use the Internet to fulfill the
reporting requirements of this part. This requirement may include
transmission of reports via electronic mail to the recipients
identified for each reporting requirement, or it may 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.
Each director shall strongly encourage firms with which the
department contracts to subcontract with certified businesses in
depressed and deprived communities for services, supplies, or both.
Sec. 212. The department and agencies receiving appropriations
in part 1 shall receive and retain copies of all reports funded
from appropriations in part 1. Federal and state guidelines for
short-term and long-term retention of records shall be followed.
The department may electronically retain copies of reports unless
otherwise required by federal and state guidelines.
Sec. 215. The department shall not take disciplinary action
against an employee for communicating with a member of the
legislature or his or her staff.
Sec. 218. The departments and agencies receiving
appropriations in part 1 shall prepare a report on out-of-state
travel expenses not later than January 1 of each year. The travel
report shall be a listing of 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 house and senate appropriations committees, the
house and senate fiscal agencies, and the state budget director.
The report shall include the following information:
(a) The dates of each travel occurrence.
(b) 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.
Sec. 228. Not later than November 30, the state budget office
shall prepare and transmit a report that provides for estimates of
the total general fund/general purpose appropriation lapses at the
close of the prior 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 chairpersons of the senate and house of
representatives standing committees on appropriations and the
senate and house fiscal agencies.
Sec. 229. Within 14 days after the release of the executive
budget recommendation, the department shall cooperate with the
state budget office to provide the senate and house appropriations
chairs, the senate and house appropriations subcommittees on
agriculture and rural development, respectively, and the senate and
house fiscal agencies with an annual report on estimated state
restricted fund balances, state restricted fund projected revenues,
and state restricted fund expenditures for the fiscal years ending
September 30, 2014 and September 30, 2015.
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 outside services that
the attorney general authorizes.
Sec. 231. The department shall maintain, on a publicly
accessible website, a department scorecard that identifies, tracks,
and regularly updates key metrics that are used to monitor and
improve the agency's performance.
Sec. 232. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2015 is $11,651,400.00. From this amount, total agency
appropriations for pension-related legacy costs are estimated at
$6,512,000.00. Total agency appropriations for retiree health care
legacy costs are estimated at $5,139,400.00.
DEPARTMENTWIDE
Sec. 301. (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 subcommittees and the
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 subcommittees and the 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. 302. 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 subcommittees and fiscal agencies 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.
FOOD AND DAIRY
Sec. 402. Not later than April 1, the department shall provide
a report to the subcommittees and the fiscal agencies describing
significant food-borne outbreaks and emergencies, including any
enforcement actions taken related to food safety during the
immediately preceding fiscal year.
ANIMAL INDUSTRY
Sec. 451. From the funds appropriated in part 1 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. 453. (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 current
fiscal year. 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 the
subcommittees and the fiscal agencies.
(2) The department of agriculture and rural development shall
make an indemnification payment for the fair market value of
livestock killed by a wolf, coyote, or cougar, if the kill is
verified by the department of natural resources. The fair market
value of the livestock shall be determined pursuant to the
indemnification procedures prescribed in the animal industry act,
1988 PA 466, MCL 287.701 to 287.746.
(3) The funds appropriated in part 1 for indemnification -
livestock depredation are appropriated for indemnification payments
and related department costs under subsection (2). On or before
March 1 of the current fiscal year, the department shall report to
the subcommittees and the fiscal agencies on costs incurred in the
previous 2 fiscal years for indemnification payments to producers
made under subsection (2) and related department costs.
Sec. 454. The department shall use its resources to
collaborate with the USDA 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. The department shall
also convene a workgroup to 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 of the current fiscal year
and on a quarterly basis thereafter, the department shall report to
the senate and house agriculture committees, the subcommittees, and
the 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; 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 part 1 for animal
industry, the department shall provide inspection and testing of
aquaculture facilities and aquaculture researchers as provided
under section 7 of 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. It is the intent of the legislature that the
department shall not conduct whole herd bovine TB testing on any 1
herd in a TB-free zone more often than every 4 years or re-test
until all other herds in their county have been tested, unless
involved in an epidemiological investigation, there is an outbreak
within a 10 radius mile area, or is not on a verified wildlife risk
mitigated premises. If there is an outbreak within a 10 radius mile
area, protocols outlined by the current memorandum of understanding
with the USDA shall be used.
ENVIRONMENTAL STEWARDSHIP
Sec. 601. The part 1 appropriation line item environmental
stewardship shall be used to support department agriculture
pollution prevention programs, including groundwater and freshwater
protection programs under part 87 of the Michigan natural resources
and environmental protection act, 1994 PA 451, MCL 324.8701 to
324.8717, and technical assistance in implementing conservation
grants available under the federal farm bill of 2014.
Sec. 603. The appropriation in part 1 for local conservation
districts shall be allocated in the following manner:
(a) Of the total appropriation, local conservation districts
shall receive funds to carry out the functions of environmental
conservation and protection programs within that district. The
amount of money allocated under this subdivision shall not be used
by local conservation districts to replace any funds received from
local sources.
(b) Any amount remaining from the appropriation after
distributions under subdivision (a) shall be allocated for local
conservation district training.
Sec. 604. (1) Federal revenues authorized by and available
from the federal government in excess of the appropriation in part
1 under section 107 are appropriated and may be received and
expended by the department for purposes authorized under state law
and subject to federal requirements.
(2) The department shall notify the subcommittees and fiscal
agencies prior to expending federal revenues received and
appropriated under subsection (1).
Sec. 605. No funds other than those appropriated in part 1 for
the Michigan agriculture environmental assurance program shall be
expended for administration or implementation of the Michigan
agriculture environmental assurance program.
Sec. 607. (1) 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.
(2) The department shall work with representatives of
intercounty drainage districts to develop a mutually agreeable
method of funding department costs associated with the intercounty
drainage program.
Sec. 608. (1) The appropriations in part 1 for qualified
forest affidavit program are for the purpose of increasing the
knowledge of nonindustrial private forestland owners of sound
forest management practices and increasing the amount of commercial
timber production from those lands.
(2) The department shall work in partnership with stakeholder
groups and other state and federal agencies to increase the active
management of nonindustrial private forestland to foster the growth
of Michigan's timber product industry.
Sec. 609. From the appropriation in part 1 for commercial
forestry audit program, it is the intent of the legislature to
provide grant funding to the qualified nonprofit sustainable
forestry initiative to work with public and private forestland
owners to conduct site visits and prepare an analysis and audit of
statewide best management practices for water quality and the
related forest ecosystem, including native plant and animal species
and wildlife habitat. The best management practices audit shall be
performed by an audit team composed of qualified professionals,
including, but not limited to, the department, the department of
environmental quality, university faculty, and conservation groups.
AGRICULTURE DEVELOPMENT
Sec. 701. (1) The department shall establish and administer a
rural development value-added grant program. The program shall
promote the expansion of value-added agricultural production,
processing, and access within the state.
(2) The department shall award grants on a competitive basis
from the funds appropriated in part 1 for rural development value-
added grants. Grantees will be required to provide a cash match and
identify measurable project outcomes. Eligible grantees may
include, but are not limited to, individuals, partnerships,
cooperatives, private or public corporations, and local units of
government.
(3) A joint evaluation committee shall be selected by the
director with representatives with agriculture, business, and
economic development expertise. The joint evaluation committee
shall identify criteria, evaluate applications, and provide
recommendations to the director for final approval of grant awards.
(4) The department may expend money from the funds
appropriated in part 1 for the rural development value-added grants
for administering the program.
(5) The unexpended portion of the rural development value-
added grant program is considered a work project appropriation in
accordance with the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594.
(6) The department shall provide an interim report no later
than March 15 of the current fiscal year and a year-end report no
later than September 30 of the current fiscal year to the
subcommittees and the fiscal agencies, including the grantees,
award amount, match funding, and project outcomes.
(7) Notwithstanding any other provisions of this section, the
department shall award a $200,000.00 rural development value-added
grant to the Eastern Michigan food bank for completion of its new
food hub facility.
Sec. 706. Not later than April 1 of the current fiscal year,
the department shall provide a report to the subcommittees and the
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 of the current fiscal
year, the department shall provide a report to the subcommittees
and the 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. (1) The department shall establish and administer
the food and agriculture industry growth initiative. The program
shall use a grant process to support research, education, and
technical assistance efforts focused on removing barriers and
leveraging opportunities identified by those in the food and
agriculture industry as critical to business development and growth
within the state.
(2) In addition to the funds appropriated in part 1, the
department of agriculture and rural development may receive and
expend funds received from outside sources for the food and
agriculture industry growth initiative.
(3) The director shall establish a consortium of interested
parties including those involved in the food and agriculture
industry sector to develop the program priorities described in
subsection (1).
(4) The department shall award grants from the funds
appropriated in part 1 or received from outside sources under
subsection (2) for food and agriculture industry growth initiative
grants. Grantees will be required to identify measurable project
outcomes.
(5) A joint evaluation committee selected by the director
shall evaluate applications and provide recommendations to the
director for final approval of grant awards.
(6) The department may expend money from the funds
appropriated in part 1 for the food and agriculture industry growth
initiative for administering the program.
(7) Notwithstanding other provisions of this section, of the
funds appropriated in part 1 for food and agriculture industry
growth initiative, $250,000.00 shall be designated for a regional
public private partnership consisting of Michigan Technological
University and at least 1 pulp and paper manufacturing operation
focused on removing existing barriers and leveraging opportunities
directly related to combined heat and power co-located with
sustainable agricultural food processing operations.
FAIRS AND EXPOSITIONS
Sec. 801. All appropriations from the agriculture 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 Michigan gaming control
board's regulatory expenses and the department's expenses to
administer horse racing programs and laboratory analysis, shall be
reduced proportionately if revenues to the agriculture equine
industry development fund decline during the preceding fiscal year
to a level lower than the amounts appropriated in part 1.
Sec. 803. (1) In the event there is no live thoroughbred race
meet in 2014 or 2015, all purse money and program money
appropriated for the thoroughbred industry in fiscal year 2013-2014
and fiscal year 2014-2015 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.
(2) In the event there is no live standardbred race meet in
2014 or 2015, all purse money and program money appropriated for
the standardbred industry in fiscal year 2013-2014 and fiscal year
2014-2015 shall be held in escrow for a period not to exceed 18
months, or until a standardbred race meet license is applied for
and granted by the Michigan gaming control board.
Sec. 804. It is the intent of the legislature that 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
rural development and general government and the fiscal agencies by
November 1 of the current fiscal year. 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.
Sec. 805. (1) The department shall establish and administer a
county fairs capital improvement grant program. The program shall
assist in the promotion of building improvements or other capital
improvements at county fairgrounds of the state.
(2) The department shall award grants on a competitive basis
to county fair organizations from the funds appropriated in part 1
for county fairs capital improvements grants. Grantees will be
required to provide a dollar-for-dollar cash match with grant
awards and identify measurable project outcomes.
(3) The department shall identify criteria, evaluate
applications, and provide recommendations to the director for final
approval of grant awards.
(4) The department may expend money from the funds
appropriated in part 1 for the county fairs capital improvement
grants for administering the program.
(5) The unexpended portion of the county fairs capital
improvement grant program is considered a work project
appropriation in accordance with the management and budget act,
1984 PA 431, MCL 18.1101 to 18.1594.
(6) The department shall provide a year-end report no later
than December 1, 2015 to the subcommittees and the fiscal agencies,
including the grantees, award amount, match funding, and project
outcomes.
Sec. 806. (1) The amount appropriated in part 1 for shows and
expositions shall be expended for the purpose of financial support,
promotion, prizes, and premiums of equine, livestock, and other
agricultural commodity expositions in Michigan.
(2) The department shall award grants for the purposes
stipulated in subsection (1) on a competitive basis to persons
organizing shows and expositions from the funds appropriated in
part 1 for shows and expositions. Grantees will be required to
provide a dollar-for-dollar cash match with grant awards and
identify measurable project outcomes.
(3) The department shall identify criteria, evaluate
applications, and provide recommendations to the director for final
approval of grant awards.
(4) The unexpended portion of the appropriation for shows and
expositions is considered a work project appropriation in
accordance with the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594.
(5) The department shall provide a year-end report no later
than December 1, 2015 to the subcommittees and the fiscal agencies,
including the grantees, award amount, match funding, and project
outcomes.
ONE-TIME BASIS APPROPRIATIONS ONLY
Sec. 1101. The 1-time appropriations in part 1 for food and
agriculture industry growth initiative shall be expended in
accordance with the requirements of section 711 of this part.
PART 2A
PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS
FOR FISCAL YEAR 2015-2016
GENERAL SECTIONS
Sec. 1201. It is the intent of the legislature to provide
appropriations for the fiscal year ending on September 30, 2016 for
the line items listed in part 1. The fiscal year 2015-2016
appropriations are anticipated to be the same as those for fiscal
year 2014-2015, except that the line items will be adjusted for
changes in caseload and related costs, federal fund match rates,
economic factors, and available revenue. These adjustments will be
determined after the January 2015 consensus revenue estimating
conference.