FIRST CONFERENCE REPORT
The Committee of Conference on the matters of difference between the two Houses concerning
House Bill No. 5268, entitled
Recommends:
First: That the Senate recede from the Substitute of the Senate as passed by the Senate.
Second: That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:
(attached)
Third: That the House and Senate agree to the title of the bill to read as follows:
A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2017; and to provide for the expenditure of the appropriations.
_______________________ ________________________
Nancy E. Jenkins Mike Green
_______________________ ________________________
Roger Victory Jim Stamas
_______________________ ________________________
Jon Hoadley Hoon-Yung Hopgood
Conferees for the House Conferees for the Senate
SUBSTITUTE FOR
HOUSE BILL NO. 5268
A bill to make appropriations for the department of
agriculture and rural development for the fiscal year ending
September 30, 2017; 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, 2017, from the following funds:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
APPROPRIATION SUMMARY
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions.......... 473.0
GROSS APPROPRIATION.................................... $ 94,101,300
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees....... 220,100
IDG from MDEQ, biosolids............................... 103,100
Total interdepartmental grants and intradepartmental
transfers............................................ 323,200
ADJUSTED GROSS APPROPRIATION........................... $ 93,778,100
Federal revenues:
Department of Interior................................. 273,800
EPA, multiple grants................................... 1,313,100
HHS, multiple grants................................... 2,520,600
USDA, multiple grants.................................. 6,363,700
Total federal revenues................................. 10,471,200
Special revenue funds:
Private - commodity group revenue...................... 109,600
Private - slow-the-spread foundation................... 21,100
Total private revenues................................. 130,700
Agricultural preservation fund......................... 1,109,800
Agriculture equine industry development fund........... 3,667,200
Agriculture licensing and inspection fees.............. 4,107,400
Animal welfare fund.................................... 193,300
Commodity inspection fees.............................. 516,000
Consumer and industry food safety education fund....... 355,400
Dairy and food safety fund............................. 5,103,800
Feed control fund...................................... 1,135,200
Fertilizer control fund................................ 762,600
Freshwater protection fund............................. 6,401,300
Gasoline inspection and testing fund................... 1,990,200
Grain dealers fee fund................................. 615,000
Horticulture fund...................................... 38,800
Industry support funds................................. 433,300
Migratory labor housing fund........................... 167,800
Nonretail liquor fees.................................. 904,200
Private forestland enhancement fund.................... 288,200
Refined petroleum fund................................. 2,373,200
Rural development fund................................. 2,000,000
Testing fees........................................... 293,100
Weights and measures regulation fees................... 793,500
Total other state restricted revenues.................. 33,249,300
State general fund/general purpose..................... $ 49,926,900
State general fund/general purpose schedule:
Ongoing state general fund/general
purpose.................................. $47,536,900
One-time state general fund/general
purpose................................... $2,390,000
Sec. 102. DEPARTMENTWIDE
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions........... 32.0
Commissions and boards................................. $ 23,800
Unclassified positions--6.0 FTE positions.............. 545,900
Executive direction--9.0 FTE positions................. 1,413,500
Operational services--19.0 FTE positions............... 1,882,700
Statistical reporting service--1.0 FTE position........ 153,600
Emergency management--3.0 FTE positions................ 614,600
Accounting service center.............................. 1,141,600
Building occupancy charges............................. 631,200
GROSS APPROPRIATION.................................... $ 6,406,900
Appropriated from:
Federal revenues:
HHS, multiple grants................................... 331,900
Special revenue funds:
Private - commodity group revenue...................... 79,100
Agricultural preservation fund......................... 15,200
Agriculture licensing and inspection fees.............. 263,900
Commodity inspection fees.............................. 1,100
Dairy and food safety fund............................. 416,900
Feed control fund...................................... 38,900
Fertilizer control fund................................ 24,000
Freshwater protection fund............................. 67,500
Gasoline inspection and testing fund................... 80,000
Grain dealers fee fund................................. 7,900
Industry support funds................................. 54,300
Migratory housing fund................................. 28,600
Nonretail liquor fees.................................. 28,100
State general fund/general purpose..................... $ 4,969,500
Sec. 103. INFORMATION AND TECHNOLOGY
Information technology services and projects........... $ 1,768,500
GROSS APPROPRIATION.................................... $ 1,768,500
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees....... 3,200
Special revenue funds:
Agricultural preservation fund......................... 200
Agriculture licensing and inspection fees.............. 93,800
Dairy and food safety fund............................. 61,200
Freshwater protection fund............................. 100
Gasoline inspection and testing fund................... 31,800
Nonretail liquor fees.................................. 500
State general fund/general purpose..................... $ 1,577,700
Sec. 104. FOOD AND DAIRY
Full-time equated classified positions.......... 123.0
Food safety and quality assurance--93.0 FTE positions.. $ 14,006,400
Milk safety and quality assurance--30.0 FTE positions.. 4,260,100
GROSS APPROPRIATION.................................... $ 18,266,500
Appropriated from:
Federal revenues:
HHS, multiple grants................................... 1,193,800
USDA, multiple grants.................................. 136,300
Special revenue funds:
Consumer and industry food safety education fund....... 355,400
Dairy and food safety fund............................. 4,554,500
State general fund/general purpose..................... $ 12,026,500
Sec. 105. ANIMAL INDUSTRY
Full-time equated classified positions........... 60.0
Animal disease prevention and response--60.0 FTE
positions............................................ $ 9,054,500
Indemnification - livestock depredation................ 50,000
Animal agriculture initiative - ongoing................ 399,000
GROSS APPROPRIATION.................................... $ 9,503,500
Appropriated from:
Federal revenues:
Department of Interior................................. 50,800
HHS, multiple grants................................... 46,600
USDA, multiple grants.................................. 527,900
Special revenue funds:
Private commodity group revenue........................ 30,500
Agriculture licensing and inspection fees.............. 59,300
Animal welfare fund.................................... 193,300
State general fund/general purpose..................... $ 8,595,100
Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT
Full-time equated classified positions........... 92.0
Pesticide and plant pest management--86.0 FTE
positions............................................ $ 13,672,000
Producer security/grain dealers--6.0 FTE positions..... 653,500
GROSS APPROPRIATION.................................... $ 14,325,500
Appropriated from:
Federal revenues:
Department of Interior................................. 101,700
EPA, multiple grants................................... 533,100
HHS, multiple grants................................... 325,000
USDA, multiple grants.................................. 843,800
Special revenue funds:
Private - slow-the-spread foundation................... 21,100
Agriculture licensing and inspection fees.............. 3,611,600
Commodity inspection fees.............................. 514,900
Feed control fund...................................... 948,600
Fertilizer control fund................................ 738,600
Freshwater protection fund............................. 153,900
Grain dealers fee fund................................. 607,100
Horticulture fund...................................... 38,800
Industry support funds................................. 246,400
State general fund/general purpose..................... $ 5,640,900
Sec. 107. ENVIRONMENTAL STEWARDSHIP
Full-time equated classified positions........... 55.0
Environmental stewardship - MAEAP--23.0 FTE positions.. $ 9,146,800
Farmland and open space preservation--7.0 FTE
positions............................................ 1,422,100
Qualified forest program--9.0 FTE positions............ 2,582,700
Migrant labor housing--9.0 FTE positions............... 1,199,400
Right-to-farm--3.0 FTE positions....................... 577,600
Intercounty drain--4.0 FTE positions................... 484,400
GROSS APPROPRIATION.................................... $ 15,413,000
Appropriated from:
Interdepartmental grant revenues:
IDG from MDEQ, biosolids............................... 103,100
Federal revenues:
Department of Interior................................. 121,300
EPA, multiple grants................................... 608,300
USDA, multiple grants.................................. 922,300
Special revenue funds:
Agricultural preservation fund......................... 1,094,400
Freshwater protection fund............................. 6,179,800
Migratory labor housing fund........................... 139,200
Private forestland enhancement fund.................... 288,200
State general fund/general purpose..................... $ 5,956,400
Sec. 108. LABORATORY PROGRAM
Full-time equated classified positions........... 96.0
Laboratory services--42.0 FTE positions................ $ 6,611,000
USDA monitoring--13.0 FTE positions.................... 1,616,500
Consumer protection program--41.0 FTE positions........ 6,637,400
GROSS APPROPRIATION.................................... $ 14,864,900
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees....... 216,900
Federal revenues:
EPA, multiple grants................................... 171,700
HHS, multiple grants................................... 623,300
USDA, multiple grants.................................. 1,617,400
Special revenue funds:
Agriculture licensing and inspection fees.............. 78,800
Dairy and food safety fund............................. 71,200
Feed control fund...................................... 147,700
Gasoline inspection and testing fund................... 1,878,400
Refined petroleum fund................................. 2,373,200
Testing fees........................................... 293,100
Weights and measures regulation fees................... 793,500
State general fund/general purpose..................... $ 6,599,700
Sec. 109. AGRICULTURE DEVELOPMENT
Full-time equated classified positions........... 15.0
Agriculture development--11.0 FTE positions............ $ 3,604,300
Grape and wine program--3.0 FTE positions.............. 921,000
Value-added grants - ongoing........................... 500,000
Rural development fund grant program--1.0 FTE
position............................................. 2,000,000
GROSS APPROPRIATION.................................... $ 7,025,300
Appropriated from:
Federal revenues:
USDA, multiple grants.................................. 2,316,000
Special revenue funds:
Industry support funds................................. 132,600
Nonretail liquor fees.................................. 875,600
Rural development fund................................. 2,000,000
State general fund/general purpose..................... $ 1,701,100
Sec. 110. FAIRS AND EXPOSITIONS
Fairs and racing....................................... $ 256,600
County fairs, shows, and exhibitions grants............ 470,000
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.......................... 345,900
Standardbred purses and supplements - licensed tracks.. 671,800
Standardbred sire stakes............................... 275,000
Thoroughbred supplements - licensed tracks............. 601,900
Thoroughbred breeders' awards.......................... 368,600
Thoroughbred sire stakes............................... 378,800
GROSS APPROPRIATION.................................... $ 4,137,200
Appropriated from:
Special revenue funds:
Agriculture equine industry development fund........... 3,667,200
State general fund/general purpose..................... $ 470,000
Sec. 111. ONE-TIME BASIS ONLY
Value-added grants - one-time.......................... $ 1,000,000
Grape and wine council - one-time...................... 170,000
Vital agriculture infrastructure grant program......... 220,000
Tree fruit research grants............................. 500,000
Animal agriculture initiative - one-time............... 500,000
GROSS APPROPRIATION.................................... $ 2,390,000
Appropriated from:
State general fund/general purpose..................... $ 2,390,000
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2016-2017
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 2016-2017 is $83,176,200.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2016-2017 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/MAEAP........................ $ 3,250,000
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) "FDA" means the United States Food and Drug
Administration.
(e) "Fiscal agencies" means the Michigan house fiscal agency
and the Michigan senate fiscal agency.
(f) "FTE" means full-time equated.
(g) "HHS" means the United States Department of Health and
Human Services.
(h) "IDG" means interdepartmental grant.
(i) "LARA" means the Michigan department of licensing and
regulatory affairs.
(j) "LCC" means the Michigan liquor control commission.
(k) "MAEAP" means the Michigan agriculture environmental
assurance program.
(l) "MDEQ" means the Michigan department of environmental
quality.
(m) "MDNR" means the Michigan department of natural resources.
(n) "MOU" means memorandum of understanding.
(o) "Subcommittees" means all members of the subcommittees of
the house and senate appropriations committees with jurisdiction
over the budget for the department.
(p) "TB" means tuberculosis.
(q) "USDA" means the United States Department of Agriculture.
Sec. 204. 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. 205. 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. 206. 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. 207. 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. 208. 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. 209. 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. 210. (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. 211. 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 for each department or agency:
(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. 212. 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 subcommittees, 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, 2016 and September 30, 2017.
Sec. 213. 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. 214. Total authorized appropriations from all sources
under part 1 for legacy costs for the fiscal year ending September
30, 2017 is $11,911,300.00. From this amount, total agency
appropriations for pension-related legacy costs are estimated at
$6,604,500.00. Total agency appropriations for retiree health care
legacy costs are estimated at $5,306,800.00.
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. 233. In addition to the metrics required under section
447 of the management and budget act, 1984 PA 431, MCL 18.1447, for
each new program or program enhancement for which funds in excess
of $500,000.00 are appropriated in part 1, the department shall
provide not later than November 1, 2016 a list of program-specific
metrics intended to measure its performance based on a return on
taxpayer investment. The department shall deliver the program-
specific metrics to members of the senate and house subcommittees
that have subject matter jurisdiction for this budget, fiscal
agencies, and the state budget director. The department shall
provide an update on its progress in tracking program-specific
metrics and the status of program success at an appropriations
subcommittee meeting called for by the subcommittee chair.
Sec. 234. 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.
DEPARTMENTWIDE
Sec. 301. (1) The department may establish a fee schedule and
collect fees for the following work activities and services:
(a) Pesticide and plant pest management propagation and
certification of virus-free foundation stock.
(b) Fruit and vegetable inspection and grading services at
shipping and termination points and processing plants.
(c) Laboratory support testing for testing horses in draft
horse pulling contests at county fairs when local jurisdictions
request state assistance.
(d) Laboratory support analyses to determine foreign
substances in horses engaged in racing or pulling contests at
tracks.
(e) Laboratory support analyses of food, livestock, and
agricultural products for disease, foreign products for disease,
toxic materials, foreign substances, and quality standards.
(f) Laboratory support test samples for other state and local
agencies and public or private organizations.
(2) The department may receive and expend revenue from the
fees authorized under subsection (1), subject to appropriation, for
the purpose of recovering expenses associated with the work
activities and services described in subsection (1). Fee revenue
collected by the department under subsection (1) shall not lapse to
the state general fund at the end of the fiscal year but shall
carry forward for appropriation by the legislature in the
subsequent fiscal year.
(3) 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 the market
conditions act, 1915 PA 91, MCL 285.35.
(4) On or before February 1 of each year, 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. (1) The department may contract with or provide
grants to local units of government, institutions of higher
education, or nonprofit organizations to support activities
authorized by appropriations in part 1. As used in this section,
contracts and grants include, but are not limited to, contracts for
delivery of groundwater/freshwater programs, MAEAP technical
assistance, forest management, invasive species monitoring,
wildlife risk mitigation, grants promoting proper pesticide
disposal, and research grants for the purpose of enhancing the
agricultural industries in this state.
(2) The department shall provide notice of contracts or grants
authorized under this section to the subcommittees and the fiscal
agencies not later than 7 days before the department notifies
contract or grant recipients.
Sec. 303. It is the intent of the legislature that the
department use revenue from licensing and inspection fees to
increase the use of technology in licensing and inspection
activities to make licensing and inspection functions, including
reporting, more efficient. The department shall work to ensure that
all license and registration applications can be completed online
through a secure web portal.
FOOD AND DAIRY
Sec. 401. (1) The department shall report on the previous
calendar year's activities of the food and dairy division. The
report shall include information on activities and outcomes of the
dairy safety and inspection program, the food safety inspection
program, the foodborne illness and emergency response program, and
the food service program.
(2) The report shall include information on significant
foodborne outbreaks and emergencies, including any enforcement
actions taken related to food safety during the prior calendar
year.
(3) The report shall be transmitted to the subcommittees and
the fiscal agencies and posted to the department's website on or
before April 1 of each year.
Sec. 403. It is the intent of the legislature that the
department work with the FDA and representatives of agriculture
producers to develop on-farm food safety education and training
programs to assist producers in implementing the food safety
modernization act, Public Law 111-353, requirements. The department
may receive and expend federal revenues in excess of the federal
revenue appropriated in part 1, section 104, for food safety
modernization act, Public Law 111-353, education and training
program activities. The department shall notify the subcommittees
and the fiscal agencies prior to expending federal revenues
authorized under this section.
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. 452. The department shall report on the previous calendar
year's activities of the animal industry division. The report shall
be transmitted to the subcommittees and the fiscal agencies and
posted to the department's website on or before April 1 of each
year.
Sec. 453. (1) From the funds appropriated in part 1 for animal
disease prevention and response, the department may provide for
indemnity pursuant to the animal industry act, 1988 PA 466, MCL
287.701 to 287.746, not to exceed $100,000.00 per order. Any
indemnification agreement between the department and an owner of
livestock that exceeds $100,000.00 shall be subject to specific
appropriation by the legislature.
(2) The department shall not make an indemnification payment
under the animal industry act, 1988 PA 466, MCL 287.701 to 287.746,
until the department provides all of the following information to
the subcommittees and the fiscal agencies:
(a) The reason for the indemnification.
(b) The amount of the indemnification.
(c) The person to whom the indemnification is to be paid.
(3) From the funds appropriated in part 1 for indemnification
- livestock depredation, the department shall make indemnification
payments for livestock killed by a wolf, coyote, or cougar pursuant
to the wildlife depredation indemnification act, 2012 PA 487, MCL
285.361 to 285.365.
(4) On or before March 1, 2017, the department shall report to
the subcommittees and the fiscal agencies on indemnification
payments for livestock depredation made in the previous fiscal
year. The report shall include all of the following information:
(a) The reason for the indemnification.
(b) The amount of the indemnification.
(c) The person to whom the indemnification was paid.
Sec. 454. The department shall use its resources to
collaborate with the USDA to monitor bovine TB, consistent with the
May 2014 memorandum of understanding between the department and the
USDA.
Sec. 457. (1) On or before October 15, 2016, the department
shall provide to the subcommittees and the fiscal agencies a report
on bovine TB status and department activities.
(2) For each fiscal quarter following the report required in
subsection (1), the department shall provide an update to the
subcommittees and fiscal agencies. The quarterly update reports
shall identify significant impacts to the program, including new
incidence of bovine TB in this state, department activity
associated with specific new incidence of bovine TB, any changes in
USDA requirements or movement orders, 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; 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.
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.
PESTICIDE AND PLANT PEST MANAGEMENT
Sec. 501. The department shall report on the previous calendar
year's activities of the pesticide and plant pest management
division. The report shall be transmitted to the subcommittees and
the fiscal agencies and posted to the department's website on or
before April 1 of each year.
ENVIRONMENTAL STEWARDSHIP
Sec. 601. The funds appropriated in part 1 for environmental
stewardship/MAEAP 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. 602. The department shall report on the previous calendar
year's activities of the environmental stewardship division. The
report shall be transmitted to the subcommittees and the fiscal
agencies and posted to the department's website on or before April
1 of each year.
Sec. 604. The department may receive and expend federal
revenues in excess of the federal revenue appropriated in part 1,
section 107, for environmental stewardship and MAEAP activities.
The department shall notify the subcommittees and the fiscal
agencies prior to expending federal revenues authorized under this
section.
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.
LABORATORY PROGRAM
Sec. 651. The department shall report on the previous calendar
year's activities of the laboratory division. The report shall be
transmitted to the subcommittees and the fiscal agencies and posted
to the department's website on or before April 1 of each year.
Sec. 652. The laboratory program shall increase turnaround
times in the Geagley laboratory from 30%-50% to 75%-80% and
implement a risk-based inspection program on devices and package
content in the consumer protection program in the current fiscal
year. The purpose of these programs is to ensure the protection of
consumers from economic harm due to labeling or measurement fraud
and to ensure the safety of the food supply. The department will
track the outcome of the program by measuring sample analysis
turnaround times and the percentage of compliant measurement
devices inspected in the fiscal year.
AGRICULTURE DEVELOPMENT
Sec. 701. (1) From the funds appropriated in part 1 for value-
added grants, the department shall do both of the following:
(a) Establish and administer a competitive grant program.
(b) Establish and administer a food and agriculture investment
program.
(2) Both programs established in subsection (1) shall promote
the expansion of value-added agricultural production, processing,
and access within the state.
(3) In addition to the funds appropriated in part 1, the
department may receive and expend funds received from outside
sources for the competitive grant program and the food and
agricultural investment program.
(4) Grantees funded through the competitive grant program 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, and private or public
corporations.
(5) For the competitive grant program, a joint evaluation
committee shall be selected by the director consisting of
representatives that have 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.
(6) The department shall provide a year-end report on the
competitive grant program no later than September 30 of the current
fiscal year to the subcommittees and the fiscal agencies, which
shall include a listing of the grantees, award amounts, match
funding, and project outcomes.
(7) The food and agriculture investment program shall be
administered by the department to provide support for food and
agriculture projects that will help expand food and agriculture
processing in order to enable growth in the industry and Michigan's
economy. The department shall identify specific outcomes and
performance metrics for each project. Prior to the allocation of
funding, all projects shall receive approval from the Michigan
commission of agriculture and rural development.
(8) The unexpended portion of the valued-added grants program
shall be considered a work project appropriation in accordance with
the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
(9) The department may expend money from the funds
appropriated in part 1 for value-added grants for administration of
the program.
Sec. 702. The department shall work with the rural development
fund board to establish a process and criteria for funding projects
as well as establishing metrics and measurable outcomes for the
program. Funds appropriated from the rural development fund shall
be used in accordance with the provisions of 2012 PA 41.
Sec. 706. (1) The department shall report on the previous
calendar year's activities of the agriculture development division.
The report shall be transmitted to the subcommittees and the fiscal
agencies and posted to the department's website on or before April
1 of each year.
(2) The report shall include the following information on any
grants awarded during the prior fiscal year:
(a) The name of the grantee.
(b) The amount of the grant.
(c) The purpose of the grant, including measurable outcomes.
(d) Additional state, federal, private, or local funds
contributed to the grant project.
(e) The completion date of grant-funded 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 code 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 previous fiscal year and the
results of research grant projects completed during the previous
fiscal year.
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. 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, shows, and exhibitions grant program. The program
shall have the following objectives:
(a) Assist in the promotion of building improvements or other
capital improvements at county fairgrounds of the state.
(b) Provide financial support, promotion, prizes, and premiums
of equine, livestock, and other agricultural commodity expositions
in 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, shows, and exhibitions grants. Grantees will be
required to provide a dollar-for-dollar cash match with grant
awards and identify measurable project outcomes. A county fair
organization that received a county fair capital improvement grant
in the prior fiscal year shall not receive a grant from the
appropriation in part 1, unless otherwise designated to receive a
grant within this section.
(3) From the amount appropriated in part 1 for county fairs,
shows, and expositions, up to $20,000.00 shall be expended for the
purpose of financial support, promotion, prizes, and premiums of
equine, livestock, and other agricultural commodity expositions in
this state.
(4) The department shall award grants for the purposes
stipulated in subsection (3) on a competitive basis to persons
organizing shows and expositions. Grantees will be required to
provide a dollar-for-dollar cash match with grant awards and
identify measurable project outcomes.
(5) The department shall identify criteria, evaluate
applications, and provide recommendations to the director for final
approval of grant awards.
(6) From the funds appropriated in part 1, for county fairs,
shows, and exhibitions grants, $60,000.00 shall be used to support
capital improvements to the dairy barn at the Lenawee County fair.
(7) From the funds appropriated in part 1, for county fairs,
shows, and exhibitions grants, $50,000.00 shall be used to make
capital improvements to the horse judging booth at the Tuscola
County fair.
(8) From the funds appropriated in part 1, for county fairs,
shows, and exhibitions grants, $40,000.00 shall be used to make
capital improvements to the streets within the Monroe County
fairgrounds to improve handicap accessibility.
(9) The department may expend money from the funds
appropriated in part 1 for the county fairs, shows, and exhibitions
grants for administering the program.
(10) The unexpended portion of the county fairs, shows, and
exhibitions grants is considered a work project appropriation in
accordance with the management and budget act, 1984 PA 431, MCL
18.1101 to 18.1594.
(11) The department shall provide a year-end report on the
county fairs, shows, and exhibitions grants no later than December
1, 2017 to the subcommittees and the fiscal agencies, which shall
include a listing of the grantees, award amounts, match funding,
and project outcomes.
PART 2A
PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS
FOR FISCAL YEAR 2017-2018
GENERAL SECTIONS
Sec. 1201. It is the intent of the legislature to provide
appropriations for the fiscal year ending on September 30, 2018 for
the line items listed in part 1. The fiscal year 2017-2018
appropriations are anticipated to be the same as those for fiscal
year 2016-2017, 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 2017 consensus revenue estimating
conference.