SENATE BILL NO. 357 EXECUTIVE BUDGET BILL February 23, 1999, Introduced by Senators MC MANUS, GAST, HOFFMAN, GOUGEON, STEIL and GOSCHKA and referred to the Committee on Appropriations.A bill to make appropriations for the department of agriculture for the fiscal year ending September 30, 2000; to provide for the expenditure of the appropriations; to create funds; to provide for the imposition of fees; to require reports, audits, and plans; to authorize certain transfers by certain state agencies; and to provide for the disposition of fees and other income received by certain state agencies. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: PART 1 LINE-ITEM APPROPRIATIONS Sec. 101. Subject to the conditions set forth in this bill, the amounts listed in this part are appropriated for the department of agriculture for the fiscal year ending September 30, 2000, from the funds indicated in this part. The following is a summary of the appropriations in this part: DEPARTMENT OF AGRICULTURE APPROPRIATION SUMMARY: Full-time equated unclassified positions . . . . . . .6.0 Full-time equated classified positions . . . . 598.5 GROSS APPROPRIATION . . . . . . . . $ 86,327,100 Interdepartmental grant revenues: Total interdepartmental grants and intradepartmental transfers. . . . . . . 8,571,900 ADJUSTED GROSS APPROPRIATION. . . . . . $ 77,755,200 Federal revenues: . . . . . . Total federal revenues. . . . . . . 5,379,900 Special revenue funds: Total local revenues. . . . . . . . 0 Total private revenues. . . . . . . 741,900 Total other state restricted revenues . . . . . . 30,749,500 State general fund/general purpose. . . . . . . . $ 40,883,900 Sec. 102. EXECUTIVE Full-time equated unclassified positions . . . . . . .6.0 Full-time equated classified positions . . . . . 9.0 Commission and boards . . . . . . . $ 63,300 Unclassified positions. . . . . . . 477,200 Executive direction--4.0 FTE positions. . . . . . 417,700 Statistical reporting service--5.0 FTE positions. . . . . . 450,400 Project GREEEN. . . . . . . . 6,000,000 GROSS APPROPRIATION . . . . . . . . $ 7,408,600 Appropriated from: Interdepartmental grant revenues: IDG-MDCIS nonretail liquor revenue. . . . . . . . 8,800 Special revenue funds: Michigan state fair revenue . . . . . . 75,600 Upper Peninsula state fair revenue. . . . . . . . 9,000 State general fund/general purpose. . . . . . . . $ 7,315,200 . . . . . .Sec. 103. ADMINISTRATIVE SERVICES Full-time equated classified positions . . . . .58.0 Management services--58.0 FTE positions . . . . . . . . $ 4,535,200 Property management charges . . . . . . 1,023,300 Rent . . . . . . . . 289,700 GROSS APPROPRIATION . . . . . . . . $ 5,848,200 Appropriated from: Special revenue funds: Gasoline inspection and testing fund. . . . . . . 51,000 Licensing and inspection fees . . . . . . . . 62,100 Industry support. . . . . . . 5,000 State general fund/general purpose. . . . . . . . $ 5,730,100 Sec. 104. FOOD AND DAIRY Full-time equated classified positions . . . . 112.0 Food safety and quality assurance--112.0 FTE positions. . . . . . . . $ 8,984,300 Local public health operations. . . . . . . . 7,888,300 GROSS APPROPRIATION . . . . . . . . $ 16,872,600 Appropriated from: Interdepartmental grant revenues: IDG-MDCH local public health operations . . . . . . . . 7,888,300 Federal revenues: DAG-AMS, cooperative agreement. . . . . . . . 22,500 HHS-FDA . . . . . . 183,600 Special revenue funds: Civil penalties . . . . . . . 60,000 Food handler licensing fees . . . . . . 1,339,700 Licensing and inspection fees . . . . . . . . 553,200 State general fund/general purpose. . . . . . . . $ 6,825,300 . . . . . .Sec. 105. ANIMAL INDUSTRY Full-time equated classified positions . . . . .26.0 Animal health and welfare--26.0 FTE positions . . . . . . . $ 2,159,600 GROSS APPROPRIATION . . . . . . . . $ 2,159,600 Appropriated from: Federal revenues: HHS-FDA . . . . . . 9,000 Special revenue funds: Licensing and inspection fees . . . . . . . . 33,400 Pseudorabies and swine brucellosis fund . . . . . . . . 87,100 State general fund/general purpose. . . . . . . . $ 2,030,100 . . . . . .Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT Full-time equated classified positions . . . . 131.3 Pesticide and plant pest management--131.3 FTE positions. . . . . . . . $ 11,781,000 Disease and pest intervention fund . . . . . . . . 341,800 Michigan State University . . . . . . . 210,000 GROSS APPROPRIATION . . . . . . . . $ 12,332,800 Appropriated from: Federal revenues: DAG-AMS, cooperative agreement. . . . . . . . 35,300 DAG-APHIS, plant and animal disease and pest control. . . . . . . 34,600 DAG-FS, multiple grants . . . . . . 2,011,200 EPA-OECA, pesticides enforcement program grants . . . . . . . 974,000 HHS-FDA . . . . . . 15,400 Special revenue funds: Commodity inspection fees . . . . . . . 991,500 Licensing and inspection fees . . . . . . . . 2,053,000 State general fund/general purpose. . . . . . . . $ 6,217,800 . . . . . .Sec. 107. ENVIRONMENTAL STEWARDSHIP Full-time equated classified positions . . . . .40.0 Environmental stewardship--30.0 FTE positions. . . . . . . . $ 2,702,600 Groundwater and freshwater protection program --10.0 FTE positions . . . . . . . 5,152,000 Energy conservation program . . . . . . 138,000 Forest stewardship program. . . . . . . 100,000 Local soil conservation districts . . . . . . 1,400,000 Migrant labor housing . . . . . . . 300,000 GROSS APPROPRIATION . . . . . . . . $ 9,792,600 Appropriated from: Interdepartmental grant revenues: IDG-MDEQ sewage sludge fund . . . . . . 70,000 IDG-MDEQ type II well survey. . . . . . 15,000 Federal revenues: DAG-NRCS. . . . . . 250,000 DAG-FS, multiple grants . . . . . . 100,000 EPA-OW. . . . . . . 236,300 EPA-RCRA. . . . . . 165,000 Special revenue funds: Private - oil company overcharge settlement . . . . . . 193,900 Industry support. . . . . . . 40,000 Groundwater and freshwater protection fund. . . . . . . 4,902,000 State general fund/general purpose. . . . . . . . $ 3,820,400 . . . . . .Sec. 108. LABORATORY PROGRAM Full-time equated classified positions . . . . 127.0 Laboratory analysis program--71.5 FTE positions . . . . . . $ 5,498,100 Pesticide data program--11.0 FTE positions. . . . . . . 1,096,500 Consumer protection program--44.5 FTE positions . . . . . . 3,304,000 GROSS APPROPRIATION . . . . . . . . $ 9,898,600 Appropriated from: Interdepartmental grant revenues: IDG-MDCIS (LCC) liquor quality testing fees . . . . . . 155,300 Federal revenues: DAG-AMS, cooperative agreement. . . . . . . . 1,096,500 DAG-APHIS, plant and animal disease and pest . . . . . . . control . . . . . . 20,400 Special revenue funds: Private - oil company overcharge settlement . . . . . . 548,000 Agriculture equine industry development fund. . . . . . . . 500,000 Gasoline inspection and testing fund. . . . . . . 1,918,000 Testing fees. . . . . . . 167,100 Weights and measures regulation fees. . . . . . . 323,400 State general fund/general purpose. . . . . . . . $ 5,169,900 . . . . . .Sec. 109. MARKET DEVELOPMENT Full-time equated classified positions . . . . .20.5 Marketing and emergency management--15.5 FTE positions. . . . . . . . $ 2,199,200 Agriculture development--5.0 FTE positions. . . . . . . 907,900 Food bank . . . . . . . . 725,000 Grown in Michigan . . . . . . 100,000 Michigan festivals. . . . . . 50,000 Northwest Michigan horticultural research station. . . . . . . 41,800 Southwestern Michigan tourist council - taste of Michigan. . . . . . . 60,400 Future farmers of America . . . . . . . 40,000 GROSS APPROPRIATION. . . . . . . . $ 4,124,300 Appropriated from: Interdepartmental grant revenues: IDG-MDCIS (LCC) nonretail liquor license fees . . . . . . . . 434,500 Federal revenues: DAG-ERS-ARED. . . . . . . 126,100 DAG, federal/state marketing improvement program. . . . . . . 100,000 Special revenue funds: Industry support funds. . . . . . . 225,000 State general fund/general purpose. . . . . . . . $ 3,238,700 . . . . . .Sec. 110. FAIRS AND EXPOSITIONS . . . . . . Full-time equated classified positions . . . . . 35.0 State fair operations--22.0 FTE positions . . . . . . . $ 6,276,600 Fairs and racing--5.0 FTE positions . . . . . . . 507,200 Upper Peninsula state fair--8.0 FTE positions . . . . . . . 1,122,000 Building and track improvements--county and state fairs. . . . . . . 416,400 Premiums--county and state fairs. . . . . . . 1,611,200 Purses and supplements--fairs and licensed tracks . . . . . . . . 1,536,900 Standardbred Fedele Fauri futurity. . . . . . . . 51,000 Standardbred Michigan futurity. . . . . . . . 51,000 Standardbred breeders' awards . . . . . . . . 785,300 Standardbred purses and supplements--licensed tracks . . . . . . . 169,200 Standardbred training and stabling. . . . . . . . 23,400 Thoroughbred program. . . . . . . . 1,019,500 Thoroughbred owners' awards . . . . . . 83,500 Sire stakes program . . . . . . . . 1,130,700 Quarterhorse programs . . . . . . . 21,200 Licensed tracks - light horse racing. . . . . . . 41,100 Draft horse show. . . . . . . 43,600 GROSS APPROPRIATION . . . . . . . . $ 14,889,800 Appropriated from: Special revenue funds: Agriculture equine industry development funds . . . . . . . 6,984,000 State fair revenue. . . . . . 6,364,100 Upper Peninsula state fair revenue. . . . . . . . 1,005,300 State general fund/general purpose. . . . . . . . $ 536,400 . . . . Sec. 111. OFFICE OF RACING COMMISSIONER Full-time equated classified positions . . . . .39.7 Office of racing commissioner--39.7 FTE positions . . . . . . . . $ 3,000,000 GROSS APPROPRIATION . . . . . . . . $ 3,000,000 Appropriated from: Special revenue funds: Agriculture equine industry development fund. . . . . . . . 3,000,000 State general fund/general purpose. . . . . . . . $ 0PART 2 PROVISIONS CONCERNING APPROPRIATIONS GENERAL SECTIONS Sec. 201. (1) Pursuant to section 30 of article IX of the state constitution of 1963, total state spending under part 1 for fiscal year 1999-2000 is $71,633,400.00 and state appropriations to be paid to local units of government are as follows: DEPARTMENT OF AGRICULTURE Local soil conservation districts . . . . . . $ 1,400,000 Total . . . . . . . $ 1,400,000 (2) If it appears to the principal executive officer of a department or branch that state spending to local units of government will be less than the amount that was projected to be expended under subsection (1), the principal executive officer shall immediately give notice of the approximate shortfall to the state budget director. Sec. 202. The expenditures and funding sources authorized under this bill are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594. Sec. 203. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $4,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. (2) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $6,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. (3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. (4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in this bill pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393. Sec. 204. (1) Beginning October 1, 1999 a hiring freeze is imposed on the state classified civil service. State departments and agencies are prohibited from hiring any new full-time state classified civil service employees and prohibited from filling any vacant state classified civil service positions. This hiring freeze does not apply to internal transfers of classified employees from one position to another within a department or to positions that are funded with 80% or more federal or restricted funds. (2) The state budget director shall grant exceptions to this hiring freeze when the state budget director believes that the hiring freeze will result in rendering a state department or agency unable to deliver basic services. Sec. 205. The department of civil service shall bill departments and agencies at the end of the first fiscal quarter for the 1% charge authorized by section 5 of article XI of the state constitution of 1963. Payments shall be made for the total amount of the billing by the end of the second fiscal quarter. Sec. 206. As used in this bill: (a) "DAG" means the United States department of agriculture. (b) "DAG-AMS" means the DAG agriculture marketing service. (c) "DAG-APHIS" means the DAG animal and plant health inspection service. (d) "DAG-ERS-ARED" means the DAG economic research service - agriculture and rural economy division. (e) "DAG-FS" means the DAG forest service. (f) "Department" means the Michigan department of agriculture. (g) "Director" means the director of the department. (h) "EPA" means the United States environmental protection agency. (I) "EPA-OECA" means the EPA office of enforcement and compliance assistance. (j) "EPA-OW" means the EPA office of water. (k) "EPA-RCRA" means the EPA resource conservation and recovery act. (l) "FTE" means full-time equated position. (m) "GREEEN" means generating research and extension to meet environmental and economic needs. (n) "HHS" means the United States department of health and human services. (o) "HHS-FDA" means the HHS food and drug administration. (p) "IDG" means interdepartmental grant. (q) "MDCH" means the Michigan department of community health. (r) "MDCIS" means the Michigan department of consumer and industry services. (s) "MDCIS (LCC)" means the MDCIS liquor control commission. (t) "MDEQ" means the Michigan department of environmental quality. (u) "NRCS" means the natural resources conservation service. EXECUTIVE Sec. 301. The appropriations in section 102 may be used for per diem payments to members of boards, committees, and commissions for a full day's board, committee, or commission work at which a quorum is present; for attending a hearing as authorized by the respective board, committee, or commission; or for performing official business as authorized by the respective board, committee, or commission. The per diem payments shall be at a rate as follows: (a) Commission of agriculture. . . . . . . . $ 75.00 per day (b) Upper Peninsula state fair board . . . . . . . $ 50.00 per day (c) Agricultural marketing and bargaining board. . . . . . . $ 35.00 per day (d) Michigan state fair council. . . . . . . $ 50.00 per day (e) Grape and wine industry council. . . . . . . . $ 50.00 per day Sec. 302. The department may receive and expend revenue to cover necessary expenses related to publications, audit and licensing functions, livestock sales, certification of nursery stock, bean inspection services, and laboratory analyses as specified in the following: (a) Management services publications. (b) Management services audit and licensing functions. (c) Upper Peninsula state fair livestock sales. (d) Pesticide and plant pest management propagation and certification of virus free foundation stock. (e) Pesticide and plant pest management, bean inspection, and grading services. (f) Laboratory support testing for testing horses in draft horse pulling contests at county fairs when local jurisdictions request state assistance. (g) Laboratory support analyses to determine foreign substances in horses engaged in racing or pulling contests at tracks. (h) Laboratory support analysis of food, livestock, and agricultural products for disease, foreign products for disease, toxic materials, foreign substances, and quality standards. (i) Laboratory support test samples for other agencies and organizations. (j) Fruit and vegetable inspection at shipping and termination points and processing plants. Sec. 303. (1) From the appropriation in section 102 for project GREEEN, $6,000,000.00 is allocated for a grant to an institution of higher education for the purpose of research and/or extension programs designed to address critical regulatory, food safety, economic, and environmental problems faced by Michigan's plant-based agriculture, forestry, and processing industries. (2) A consortium of interested parties consisting of, but not limited to, representatives from the department, institutions of higher education, and agricultural commodity groups shall develop the research and/or extension program priorities described in subsection (1). (3) Any unexpended balance of the appropriation in part 1 of this bill is considered a work project appropriation. The projects will be accomplished by the use of contractual services with an estimated completion date of September 30, 2001. (4) Not later than November 1, 2000, the grantee under subsection (1) shall submit to the house and senate appropriations subcommittees on agriculture and to the house and senate fiscal agencies a report for the immediately preceding fiscal year regarding project GREEEN projects. The report shall include, but is not limited to, the dollar amount of each project and a review of each project's performance and accomplishments. (5) Indirect costs shall not be charged by an administering agency against a grant funded under the allocation in subsection (1). PESTICIDE AND PLANT PEST MANAGEMENT Sec. 401. Of the funds appropriated in section 106 to the pesticide and plant pest management division, up to $100,000.00 may be made available to the Michigan cooperative extension service for the purpose of training of applicators. Reimbursement shall be based on actual expenditures and revenue availability. Sec. 402. From the appropriation in section 106 for the disease and pest intervention fund program, the department shall utilize these funds as needed to respond to exotic or regulatory pests or diseases. ENVIRONMENTAL STEWARDSHIP Sec. 501. The funds in section 107 for the energy conservation program shall be distributed on a competitive basis which will be based on statewide energy conservation criteria. Sec. 502. The amount appropriated in section 107 for grants to local soil conservation districts shall be used for providing financial assistance to all soil conservation districts in order to permit the districts to engage in programs that conserve soil resources and prevent and control soil erosion. All grants to local soil conservation districts shall be allocated according to a formula approved by the commission of agriculture. Any soil conservation district that allows payment for expenses to the district associate directors shall be considered ineligible to receive grant money. Sec. 503. (1) The department may expend the amount appropriated in section 107 for migrant labor housing grants for construction of new migrant labor housing. Project grants shall not exceed $2,000.00 per unit. An applicant is not eligible for more than a $10,000.00 grant in any fiscal year. Units shall be equivalent in construction to units approved by the DAG - rural development agency for low interest construction loans and shall be not less than 484 square feet in size and be self-contained with a minimum of 1 bedroom, a kitchen, a flush toilet, a lavatory, and bathing facilities. (2) Any unexpended migrant labor housing funds from the prior year shall be available for grants in the subsequent fiscal year. Sec. 504. (1) From the amounts appropriated in section 107 for migrant labor housing, no less than $100,000.00 shall be allocated to a private, nonprofit entity for the purpose of providing matching grants for the improvement or new construction of migrant labor housing. The terms or requirements imposed on a recipient of a grant awarded for migrant labor housing improvement or new construction by a private, nonprofit entity shall be no less stringent than those imposed by the department on recipients of similar grants awarded by the department. An entity receiving funds under this section shall use no greater than 7% of the state allocation for the administration of this program. (2) A private nonprofit entity that receives an allocation to administer a migrant labor housing construction grant program shall give priority to grant applicants who are on the department's waiting list of applicants for migrant labor housing construction grants. The applicants for migrant labor construction grants administered by a nonprofit entity who are on the department's waiting list shall be served in the order in which they reside on the department's waiting list. MARKET DEVELOPMENT Sec. 601. Within the appropriations in section 109 for market development, $434,500.00 is for the grape and wine industry council, from which the department may provide grants for the purposes as described in section 16b of the Michigan liquor control act, 1933 (Ex Sess) PA 8, MCL 436.16b. Sec. 602. In any given year when insufficient amounts of Michigan surplus products are offered to the food bank council and accepted for distribution, unused funds may be applied by the food bank council for the direct purchase of foods from Michigan growers, manufacturers, or wholesalers. Sec. 603. (1) The $100,000.00 appropriated in section 109 for the grown in Michigan program is to provide competitive grants to Michigan nonprofit organizations to raise in-state consumer awareness of Michigan grown commodities. (2) The grants are to be made by the Michigan commission of agriculture on a competitive basis considering the following order of priority: (a) Cooperative efforts by recognized, statewide, grower funded organizations. (b) The number of consumers made aware of the benefits of Michigan grown commodities. (c) The number of Michigan grown products encompassed in the proposal. (d) The amount of the match. (3) A grant made under this section shall not be less than $5,000.00 or more than $25,000.00. (4) Each grant shall be matched equally with grantees' funds. In-kind contributions shall not be considered as matching funds. Sec. 604. Indirect costs may not be charged against the future farmers of America grant in section 109 by any administering agency. FAIRS AND EXPOSITIONS Sec. 701. A county fair, district fair, 4-H fair, or state fair receiving funds in section 110 to be used for prizes or awards, in whole or in part, as a condition precedent to the receiving of the funds for those purposes, shall publish the rules relative to the prizes, awards, and deadlines for entries eligible for the funds in their official premium books or lists relative to the prizes or awards. An aggrieved exhibitor may make a written complaint to the fair within 10 days after the fair ends. If the fair has not satisfactorily settled the grievance within 45 days after it is submitted to the fair, the aggrieved person may file the complaint with the department and the department shall investigate the complaint and make a finding of fact regarding the complaint and take appropriate action regarding the complaint. Sec. 702. Of the amount appropriated in section 110 for purses and supplements - fairs/licensed tracks, a sufficient amount is appropriated to provide for overnight purse supplements pursuant to the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336. Sec. 703. From the appropriations for premiums - county and state fairs in section 110 not more than $120,000.00 shall be awarded through a competitive grant program to local, regional, or state fairs or expositions to promote youth involvement and adult exhibitions in the animal agriculture industry. Appropriate exhibition classes for youth shall be developed that encourage a production exhibit for which premium awards may be paid. The age for youth exhibitors shall be determined by the standards of the association requesting the grant or, if standards do not exist, the age for youth exhibitors shall be ages 9 through 21. Implementation of the latest technologies into the evaluation of the animals shall be encouraged in the production exhibit. Adult exhibitions should focus on the performance or end product, or both, with the appropriate technologies used to enhance placings and the awarding of premiums. Sec. 704. The racing commissioner may pay rewards of not more than $5,800.00 to a person who provides information that results in the arrest and conviction on a felony or misdemeanor charge for a crime that involves the horse racing industry. A reward paid pursuant to this section shall be paid out of the office of racing commissioner line item. Sec. 705. The department shall submit a report each month for the fiscal year ending September 30, 2000 to the state budget director, the senate and house standing committees on appropriations, and the senate and house fiscal agencies that sets forth the simulcasting revenues generated in the preceding month by each licensed track and the amount received from license fees. Sec. 706. (1) The appropriation of $169,200.00 in section 110 for standardbred purses and supplements - licensed tracks is intended to provide state purse supplements for 4 races at state licensed pari-mutuel horse racing tracks. The purse supplements are to be used for races comprised only of Michigan-bred horses segregated into a 4-year-old colt trot division, a 4-year-old filly trot division, a 4-year-old colt pace division, and a 4-year-old filly pace division.. . . . . . (2) The appropriation in section 110 for licensed tracks - light horse racing shall be allocated as follows: Arabian and Appaloosa horse racing . . . . . . $ 10,275.00 Quarter horse racing . . . . . . . . $ 30,825.00 Sec. 707. Included in the appropriation made in section 110 for the thoroughbred program is $30,500.00 for the Michigan united thoroughbred breeders and owners association to conduct a thoroughbred yearling show. The Michigan united thoroughbred breeders and owners association shall submit to the department an itemized list of expenses showing that the expenses of the yearling show were paid. Sec. 708. From the funds appropriated in section 110 for thoroughbred owners' awards, the department shall develop a program to provide for thoroughbred owners' awards that will be given to owners of Michigan-bred horses finishing first in nonrestricted races at licensed pari-mutuel tracks in Michigan. Sec. 709. If Michigan state fair revenue is less than $6,439,700.00, there is an appropriation from the state general fund in an amount equal to the difference between $6,439,700.00 and the amount of Michigan state fair revenue received for the fiscal year ending September 30, 2000, not to exceed $1,000,000.00.Final page.