FIRST CONFERENCE REPORT

The Committee of Conference on the matters of difference between the two Houses concerning

Senate Bill No. 115, entitled

A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2016; and to provide for the expenditure of the appropriations.

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, 2016; and to provide for the expenditure of the appropriations.

_______________________ ________________________

Mike Green Nancy E. Jenkins

_______________________ ________________________

Jim Stamas Roger Victory

_______________________ ________________________

Hoon-Yung Hopgood Jon Hoadley

Conferees for the Senate Conferees for the House

SUBSTITUTE FOR

SENATE BILL NO. 115

A bill to make appropriations for the department of

agriculture and rural development for the fiscal year ending

September 30, 2016; 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, 2016, from the following funds:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

APPROPRIATION SUMMARY

Full-time equated unclassified positions.......... 6.0

Full-time equated classified positions.......... 454.0

GROSS APPROPRIATION.................................... $ 86,594,000

Interdepartmental grant revenues:

IDG from LARA (LCC), liquor quality testing fees....... 216,100

IDG from MDEQ, biosolids............................... 101,200

Total interdepartmental grants and intradepartmental

transfers............................................ 317,300

ADJUSTED GROSS APPROPRIATION........................... $ 86,276,700

Federal revenues:

Department of Interior................................. 342,600

EPA, multiple grants................................... 1,092,900

HHS-FDA................................................ 2,697,700

USDA, multiple grants.................................. 6,294,700

Total federal revenues................................. 10,427,900

Special revenue funds:

Private - commodity group revenue...................... 107,300

Private - Slow-the-Spread Foundation................... 20,800

Total private revenues................................. 128,100

Agricultural preservation fund......................... 598,900

Agriculture equine industry development fund........... 4,277,500

Agriculture licensing and inspection fees.............. 4,345,500

Animal welfare fund.................................... 217,100

Commodity inspection fees.............................. 508,600

Consumer and industry food safety education fund....... 348,800

Dairy and food safety fund............................. 4,870,700

Feed control fund...................................... 971,000

Freshwater protection fund............................. 6,316,600

Gasoline inspection and testing fund................... 2,618,700

Grain dealers fee fund................................. 605,200

Horticulture fund...................................... 38,200

Industry support funds................................. 426,700

Migratory labor housing fund........................... 164,400

Nonretail liquor fees.................................. 839,900

Private forestland enhancement fund.................... 284,900

Refined petroleum fund................................. 3,874,600

Renewable fuels fund................................... 51,800

Testing fees........................................... 287,600

Weights and measures regulations fees.................. 1,000,400

Total other state restricted revenues.................. 32,647,100

State general fund/general purpose..................... $ 43,073,600

State general fund/general purpose schedule:

Ongoing state general fund/general

purpose............................................. $ 41,873,600

One-time state general fund/general

purpose............................................. $ 1,200,000

Sec. 102. DEPARTMENTWIDE

Full-time equated unclassified positions.......... 6.0

Full-time equated classified positions........... 28.0

Commissions and boards................................. $ 23,800

Unclassified positions--6.0 FTE positions.............. 532,600

Executive direction--9.0 FTE positions................. 1,376,100

Operational services--15.0 FTE positions............... 1,736,700

Statistical reporting service--1.0 FTE position........ 150,400

Emergency management--3.0 FTE positions................ 600,300

Accounting service center.............................. 1,115,900

Building occupancy charges............................. 625,300

GROSS APPROPRIATION.................................... $ 6,161,100

Appropriated from:

Federal revenues:

HHS-FDA................................................ 324,100

Special revenue funds:

Private - commodity group revenue...................... 77,400

Agricultural preservation fund......................... 15,100

Agriculture licensing and inspection fees.............. 293,200

Dairy and food safety fund............................. 384,400

Freshwater protection fund............................. 22,300

Gasoline inspection and testing fund................... 74,000

Grain dealers fee fund................................. 7,300

Industry support funds................................. 52,800

Migratory housing fund................................. 26,200

Nonretail liquor fees.................................. 27,900

Refined petroleum fund................................. 220,300

State general fund/general purpose..................... $ 4,636,100

Sec. 103. INFORMATION AND TECHNOLOGY

Information technology services and projects........... $ 1,372,500

GROSS APPROPRIATION.................................... $ 1,372,500

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.............. 32,400

Freshwater protection fund............................. 100

Gasoline inspection and testing fund................... 31,400

Nonretail liquor fees.................................. 500

State general fund/general purpose..................... $ 1,304,700

Sec. 104. FOOD AND DAIRY

Full-time equated classified positions.......... 121.0

Food safety and quality assurance--91.0 FTE positions.. $ 13,537,800

Milk safety and quality assurance--30.0 FTE positions.. 4,170,600

GROSS APPROPRIATION.................................... $ 17,708,400

Appropriated from:

Federal revenues:

HHS-FDA................................................ 1,172,000

USDA, multiple grants.................................. 133,800

Special revenue funds:

Consumer and industry food safety education fund....... 348,800

Dairy and food safety fund............................. 4,486,300

State general fund/general purpose..................... $ 11,567,500

Sec. 105. ANIMAL INDUSTRY

Full-time equated classified positions........... 60.0

Animal disease prevention and response--60.0 FTE

positions............................................ $ 8,881,000

Indemnification - livestock depredation................ 50,000

GROSS APPROPRIATION.................................... $ 8,931,000

Appropriated from:

Federal revenues:

HHS-FDA................................................ 65,600

USDA, multiple grants.................................. 518,600

Special revenue funds:

Private commodity group revenue........................ 29,900

Agriculture licensing and inspection fees.............. 48,900

Animal welfare fund.................................... 217,100

State general fund/general purpose..................... $ 8,050,900

Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT

Full-time equated classified positions........... 85.0

Pesticide and plant pest management--80.0 FTE

positions............................................ $ 13,271,100

Producer security/grain dealers--5.0 FTE positions..... 643,800

GROSS APPROPRIATION.................................... $ 13,914,900

Appropriated from:

Federal revenues:

Department of Interior................................. 222,000

EPA, multiple grants................................... 319,700

HHS-FDA................................................ 524,300

USDA, multiple grants.................................. 829,800

Special revenue funds:

Private - Slow-the-Spread Foundation................... 20,800

Agriculture licensing and inspection fees.............. 3,893,600

Commodity inspection fees.............................. 508,600

Feed control fund...................................... 971,000

Freshwater protection fund............................. 151,400

Grain dealers fee fund................................. 597,900

Horticulture fund...................................... 38,200

Industry support funds................................. 242,300

State general fund/general purpose..................... $ 5,595,300

Sec. 107. ENVIRONMENTAL STEWARDSHIP

Full-time equated classified positions........... 55.0

Environmental stewardship - MAEAP--23.0 FTE positions.. $ 9,128,500

Farmland and open space preservation--7.0 FTE

positions............................................ 905,200

Qualified forest program--9.0 FTE positions............ 2,532,500

Commercial forestry audit program...................... 300,000

Migrant labor housing--9.0 FTE positions............... 1,186,600

Right-to-farm--3.0 FTE positions....................... 567,900

Intercounty drain--4.0 FTE positions................... 474,100

GROSS APPROPRIATION.................................... $ 15,094,800

Appropriated from:

Interdepartmental grant revenues:

IDG from MDEQ, biosolids............................... 101,200

Federal revenues:

Department of Interior................................. 120,600

EPA, multiple grants................................... 604,700

USDA, multiple grants.................................. 916,700

Special revenue funds:

Agricultural preservation fund......................... 583,600

Freshwater protection fund............................. 6,142,800

Migratory labor housing fund........................... 138,200

Private forestland enhancement fund.................... 284,900

State general fund/general purpose..................... $ 6,202,100

Sec. 108. LABORATORY PROGRAM

Full-time equated classified positions........... 90.0

Laboratory services--37.0 FTE positions................ $ 5,322,000

USDA monitoring--13.0 FTE positions.................... 1,596,700

Consumer protection program--40.0 FTE positions........ 6,072,200

GROSS APPROPRIATION.................................... $ 12,990,900

Appropriated from:

Interdepartmental grant revenues:

IDG from LARA (LCC), liquor quality testing fees....... 212,900

Federal revenues:

EPA, multiple grants................................... 168,500

HHS-FDA................................................ 611,700

USDA, multiple grants.................................. 1,597,600

Special revenue funds:

Agriculture equine industry development fund........... 610,300

Agriculture licensing and inspection fees.............. 77,400

Gasoline inspection and testing fund................... 2,513,300

Refined petroleum fund................................. 3,654,300

Renewable fuels fund................................... 51,800

Testing fees........................................... 287,600

Weights and measures regulation fees................... 1,000,400

State general fund/general purpose..................... $ 2,205,100

Sec. 109. AGRICULTURE DEVELOPMENT

Full-time equated classified positions........... 14.0

Agriculture development--11.0 FTE positions............ $ 3,576,700

Grape and wine program--3.0 FTE positions.............. 856,500

Rural development value-added grants................... 800,000

GROSS APPROPRIATION.................................... $ 5,233,200

Appropriated from:

Federal revenues:

USDA, multiple grants.................................. 2,298,200

Special revenue funds:

Industry support funds................................. 131,600

Nonretail liquor fees.................................. 811,500

State general fund/general purpose..................... $ 1,991,900

Sec. 110. FAIRS AND EXPOSITIONS

Full-time equated classified positions............ 1.0

Fairs and racing--1.0 FTE position..................... $ 256,600

Shows and expositions.................................. 20,000

County fairs capital improvement grants................ 300,000

Purses and supplements - fairs/licensed tracks......... 708,300

Licensed tracks - light horse racing................... 40,300

Light horse racing - breeders' awards.................. 20,000

Standardbred purses and supplements - licensed tracks.. 671,800

Standardbred breeders' awards.......................... 345,900

Standardbred sire stakes............................... 275,000

Thoroughbred supplements - licensed tracks............. 601,900

Thoroughbred breeders' awards.......................... 448,600

Thoroughbred sire stakes............................... 298,800

GROSS APPROPRIATION.................................... $ 3,987,200

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund........... 3,667,200

State general fund/general purpose..................... $ 320,000

Sec. 111. ONE-TIME BASIS ONLY

Rural development value-added grants................... $ 400,000

Tree fruit research grants............................. 500,000

Geagley laboratory..................................... 300,000

GROSS APPROPRIATION.................................... $ 1,200,000

Appropriated from:

State general fund/general purpose..................... $ 1,200,000

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2015-2016

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 2015-2016 is $75,720,700.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2015-2016 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

MAEAP environmental stewardship........................ $ 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.

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) "MAEAP" means the Michigan agriculture environmental

assurance program.

(k) "MDEQ" means the Michigan department of environmental

quality.

(l) "MDNR" means the Michigan department of natural resources.

(m) "MOU" means memorandum of understanding.

(n) "Subcommittees" means all members of the subcommittees of

the house and senate appropriations committees with jurisdiction

over the budget for the department.

(o) "TB" means tuberculosis.

(p) "USDA" means the United States Department of Agriculture.

Sec. 205. 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, 2015 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. 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.

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, 2015 and September 30, 2016.

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, 2016 is $12,751,500.00. From this amount, total agency

appropriations for pension-related legacy costs are estimated at

$7,237,000.00. Total agency appropriations for retiree health care

legacy costs are estimated at $5,513,800.00.

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.

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.

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. 402. The department shall provide information on

significant food-borne outbreaks and emergencies, including any

enforcement actions taken related to food safety during the

immediately preceding fiscal year in the food and dairy annual

report and post that report on the department's website no later

than April 1. The department shall provide electronic notification

of where the report can be found on the department's website to the

appropriation subcommittees, fiscal agencies, and state budget

office.

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 monitor bovine TB, consistent with the

May 2014 memorandum of understanding between the department and the

USDA.

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 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. 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. 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. (1) From the appropriation in part 1 for commercial

forestry audit program, the department shall develop an analysis

and audit of forestry best management practices for water quality

and the related forest ecosystem, including native plant and animal

species and wildlife habitat. The analysis and audit shall have a

statewide perspective. 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.

(2) At the close of the fiscal year, the unexpended portion of

the commercial forestry audit program is considered a work project

appropriation in accordance with section 451a of the management and

budget act, 1984 PA 431, MCL 18.1451a.

(3) At the completion of the analysis and audit, the

department shall provide a report to the house and senate

appropriations subcommittees on agriculture and rural development,

and the house and senate fiscal agencies, describing the results of

the analysis and audit.

Sec. 610. Of the amount appropriated in part 1 from the

freshwater protection fund, the department shall use not more than

$500,000.00 for replacement of the data system for the MAEAP

program.

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) 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 rural development

value-added grants.

(3) 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. Grantees will be required to identify measurable

project outcomes.

(4) 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.

(5) The department may expend money from the funds

appropriated in part 1 for the rural development value-added grants

for administering the program.

(6) 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.

(7) 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.

Sec. 706. On or before April 1, the department shall report to

the house and senate appropriations subcommittees on agriculture

and rural development, and the house and senate fiscal agencies, on

the department's agriculture development and export market

development activities. The report shall include the following

information on agriculture industry, rural development, and

strategic growth grants awarded during the prior fiscal year:

(a) The name of the grantee.

(b) The amount of the grant.

(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.

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 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, 2016 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, 2016 to the subcommittees and the fiscal agencies,

including the grantees, award amount, match funding, and project

outcomes.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2016-2017

GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide

appropriations for the fiscal year ending on September 30, 2017 for

the line items listed in part 1. The fiscal year 2016-2017

appropriations are anticipated to be the same as those for fiscal

year 2015-2016, 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 2016 consensus revenue estimating

conference.