SB-0760, As Passed Senate, April 29, 2014
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.......... 447.0
GROSS APPROPRIATION.................................... $ 82,596,900
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees....... 216,700
IDG from MDEQ, biosolids............................... 101,400
Total interdepartmental grants and intradepartmental
transfers............................................ 318,100
ADJUSTED GROSS APPROPRIATION........................... $ 82,278,800
Federal revenues:
USDA, multiple grants.................................. 5,431,400
EPA, multiple grants................................... 1,000,200
HHS-FDA................................................ 2,438,100
Department of interior................................. 343,200
Total federal revenues................................. 9,212,900
Special revenue funds:
Total local revenues................................... 0
Private – slow-the-spread foundation................... 20,700
Private - commodity group revenue...................... 77,600
Total private revenues................................. 98,300
Agriculture preservation fund.......................... 599,200
Agriculture equine industry development fund........... 3,863,800
Animal welfare fund.................................... 217,400
Commodity inspection fees.............................. 437,100
Consumer and industry food safety education fund....... 318,700
Dairy and food safety fund............................. 3,366,500
Freshwater protection fund............................. 5,187,200
Gasoline inspection and testing fund................... 2,593,700
Grain dealer's fee fund................................ 606,400
Horticulture fund...................................... 38,300
Industry support funds................................. 428,400
Agriculture licensing and inspection fees.............. 4,081,000
Migratory labor housing fund........................... 164,600
Nonretail liquor fees.................................. 811,700
Renewable fuels fund................................... 51,800
Testing fees........................................... 288,400
Weights and measures regulation fees................... 1,002,200
Private forestland enhancement fund.................... 35,000
Total other state restricted revenues.................. 24,091,400
State general fund/general purpose..................... $ 48,876,200
State general fund/general purpose schedule:
Ongoing state general fund/general purpose 46,876,200
One-time state general fund/general purpose 2,000,000
Sec. 102. DEPARTMENTWIDE
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions........... 27.0
Commissions and boards................................. $ 23,800
Unclassified positions................................. 724,700
Executive direction--9.0 FTE positions................. 1,392,800
Management services--15.0 FTE positions................ 1,065,700
Statistical reporting service--1.0 FTE position........ 150,900
Emergency management--2.0 FTE positions................ 559,500
Accounting service center.............................. 968,100
Building occupancy charges............................. 622,500
GROSS APPROPRIATION.................................... $ 5,508,000
Appropriated from:
Federal revenues:
HHS-FDA................................................ 282,600
Special revenue funds:
Private - commodity group revenue...................... 77,600
Agriculture preservation fund.......................... 15,000
Freshwater protection fund............................. 22,200
Industry support funds................................. 53,500
Agriculture licensing and inspection fees.............. 112,100
Nonretail liquor fees.................................. 27,800
State general fund/general purpose..................... $ 4,917,200
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:
Agriculture preservation fund.......................... 200
Agriculture equine industry development fund........... 84,800
Freshwater protection fund............................. 100
Gasoline inspection testing fund....................... 31,400
Agriculture licensing and inspection fees.............. 32,400
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:
USDA, multiple grants.................................. 134,200
HHS-FDA................................................ 1,175,800
Special revenues 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:
USDA, multiple grants.................................. 519,500
HHS-FDA................................................ 45,900
Special revenue funds:
Animal welfare fund.................................... 217,400
Agriculture licensing and inspection fees.............. 40,400
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:
USDA, multiple grants.................................. 832,100
EPA, multiple grants................................... 525,700
Department of interior................................. 222,600
HHS-FDA................................................ 320,700
Special revenue funds:
Private - slow-the-spread foundation................... 20,700
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
Agriculture licensing and inspection fees.............. 3,818,700
State general fund/general purpose..................... $ 5,611,300
Sec. 107. ENVIRONMENTAL STEWARDSHIP
Full-time equated classified positions........... 55.0
Environmental stewardship - Michigan agriculture
environmental assurance program--23.0 FTE positions.. $ 7,704,000
Farmland and open space preservation--7.0 FTE
positions............................................ 584,000
Qualified forest program--9.0 FTE positions............ 2,535,000
Commercial forestry audit program...................... 150,000
Local conservation districts........................... 100
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.................................... $ 13,231,500
Appropriated from:
Interdepartmental grant revenues:
IDG from MDEQ, biosolids............................... 101,400
Federal revenues:
USDA, multiple grants.................................. 917,000
Department of interior................................. 120,600
EPA, multiple grants................................... 305,600
Special revenue funds:
Agriculture preservation fund.......................... 584,000
Freshwater protection fund............................. 5,013,000
Private forestland enhancement fund.................... 35,000
Migratory labor housing fund........................... 164,600
State general fund/general purpose..................... $ 5,990,300
Sec. 108. LABORATORY PROGRAM
Full-time equated classified positions........... 91.0
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........ 5,831,100
Engine oil inspection and enforcement --1.0 FTE position 190,000
GROSS APPROPRIATION.................................... $ 13,028,900
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees....... 213,500
Federal revenues:
USDA, multiple grants.................................. 1,599,500
EPA, multiple grants................................... 168,900
HHS-FDA................................................ 613,100
Special revenue funds:
Agriculture equine industry development fund........... 611,700
Gasoline inspection and testing fund................... 2,562,300
Agriculture licensing and inspection fees.............. 77,400
Renewable fuels fund................................... 51,800
Testing fees........................................... 288,400
Weights and measures regulation fees................... 1,002,200
State general fund/general purpose..................... $ 5,840,100
Sec. 109. AGRICULTURAL DEVELOPMENT
Full-time equated classified positions........... 14.0
Agricultural development--11.0 FTE positions........... $ 2,728,600
Grape and wine program--3.0 FTE positions.............. 808,500
Food and agriculture industry growth initiative........ 1,000,000
Rural development value-added grants................... 1,050,000
GROSS APPROPRIATION.................................... $ 5,587,100
Appropriated from:
Federal revenues:
USDA, multiple grants.................................. 1,429,100
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 position............. 1.0
Fairs and racing--1.0 FTE position..................... $ 356,700
County fairs capital improvement grants................ 301,600
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.................................... $ 3,468,900
Appropriated from:
Special revenue funds:
Agriculture equine industry development fund........... 3,167,300
State general fund/general purpose..................... $ 301,600
Sec. 111. ONE-TIME BASIS ONLY APPROPRIATIONS
Food and agriculture industry growth initiative........ $ 2,000,000
GROSS APPROPRIATION.................................... $ 2,000,000
Appropriated from:
State general fund/general purpose..................... $ 2,000,000
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 $72,967,600.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2014-2015 is $5,000,000.00. The itemized
statement below identifies appropriations from which spending to
local units of government will occur:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
Environmental stewardship.............................. $ 3,500,000
Qualified forest program............................... 1,500,000
TOTAL.................................................. $ 5,000,000
Sec. 202. The appropriations authorized under this part and
part 1 are subject to the management and budget act, 1984 PA 431,
MCL 18.1101 to 18.1594.
Sec. 203. As used in this part and part 1:
(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) "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) "LARA" means the Michigan department of licensing and
regulatory affairs.
(h) "LCC" means the Michigan liquor control commission.
(i) "MDEQ" means the Michigan department of environmental
quality.
(j) "MDNR" means the Michigan department of natural resources.
(k) "MOU" means memorandum of understanding.
(l) "TB" means tuberculosis.
(m) "USDA" means the United States department of agriculture.
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. Unless otherwise specified, the department 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 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 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 are $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 senate and house
appropriations subcommittees on agriculture and rural development
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 rural development 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. 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 senate and house appropriations subcommittees on
agriculture and rural development 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 senate and house appropriations subcommittees on
agriculture and rural development 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 2013-2014 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 fiscal
year ending September 30, 2014. 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 rural development
and to the senate and house fiscal agencies and to the state budget
director.
(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 house and senate appropriations subcommittees on agriculture
and rural development, and the house and senate fiscal agencies, on
costs incurred in the 2012-2013 and 2013-2014 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 senate and house
appropriations subcommittees on agriculture and rural development,
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;
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.
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. 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 of natural resources,
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 year-end report no
later than September 30 of the current fiscal year to the senate
and house appropriations subcommittees on agriculture and rural
development and the senate and house fiscal agencies, including the
grantees, award amount, match funding, and project outcomes.
(7) Notwithstanding 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 senate and house
appropriations subcommittees on agriculture and rural development
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 of the current fiscal
year, the department shall provide a report to the senate and house
appropriations subcommittees on agriculture and rural development
and the senate and house fiscal agencies describing the activities
of the grape and wine industry council established under section
303 of the Michigan liquor control act of 1998, 1998 PA 58, MCL
436.1303.
(2) The report shall include all of the following:
(a) Council activities and accomplishments for the previous
fiscal year.
(b) Council expenditures for the previous fiscal year by
category of administration, industry support, research and
education grants, and promotion and consumer education.
(c) Grants awarded during the prior fiscal year and the
results of research grant projects completed during the prior
fiscal year.
Sec. 711. (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, $390,000.00 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 racing commission and
laboratory analysis program appropriations, shall be reduced
proportionately if revenues to the agriculture equine industry
development fund decline during the fiscal year ending September
30, 2014 to a level lower than the amounts appropriated in section
110.
Sec. 804. The Michigan gaming control board shall use actual
expenditure data in determining the actual regulatory costs of
conducting racing dates and shall provide that data to the senate
and house of representatives appropriations subcommittees on
agriculture and rural development and general government and the
senate and house 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 September 30 of the current fiscal year to the senate and
house appropriations subcommittees on agriculture and rural
development and the senate and house fiscal agencies, including the
grantees, award amount, match funding, and project outcomes.
ONE-TIME BASIS ONLY APPROPRIATIONS
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.