SB-0237, As Passed Senate, June 11, 2009

SUBSTITUTE FOR

SENATE BILL NO. 237

A bill to make appropriations for the department of

agriculture for the fiscal year ending September 30, 2010; 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 act, the

amounts listed in this part are appropriated for the department of

agriculture for the fiscal year ending September 30, 2010, 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.......... 3.0

Full-time equated classified positions.......... 592.5

GROSS APPROPRIATION.................................... $ 86,427,800

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 1,362,300

ADJUSTED GROSS APPROPRIATION........................... $ 85,065,500

Federal revenues:

Total federal revenues................................. 14,231,100

Special revenue funds:

Total local revenues................................... 0

Total private revenues................................. 243,200

Total other state restricted revenues.................. 40,002,800

State general fund/general purpose..................... $ 30,588,400

Sec. 102. EXECUTIVE

Full-time equated unclassified positions.......... 3.0

Full-time equated classified positions........... 41.5

Commission and boards.................................. $ 23,800

Director............................................... 124,300

Racing commissioner.................................... 81,400

Special projects coordinator........................... 78,300

Executive direction--10.0 FTE positions................ 973,800

Management services--24.0 FTE positions................ 1,851,900

Agricultural statistics--1.0 FTE positions............. 79,700

Emergency management--6.5 FTE positions................ 747,100

GROSS APPROPRIATION.................................... $ 3,960,300

Appropriated from:

Federal revenues:

HHS-FDA................................................ 500,000

Private funds:

Private - commodity group.............................. 79,700

Special revenue funds:

Gasoline inspection and testing fund................... 66,300

Industry support funds................................. 36,500

Nonretail liquor fees.................................. 8,800

Refined petroleum fund................................. 54,700

State services fee fund................................ 220,000

State general fund/general purpose..................... $ 2,994,300

Sec. 103. DEPARTMENTWIDE

Rent and building occupancy charges.................... $ 421,100

GROSS APPROPRIATION.................................... $ 421,100

Appropriated from:

Federal revenues:

DAG, multiple grants................................... 79,400

EPA, multiple grants................................... 60,900

HHS-FDA................................................ 13,100

Special revenue funds:

Agricultural preservation fund......................... 23,900

Freshwater protection fund............................. 9,500

Licensing and inspection fees.......................... 59,100

Nonretail liquor fees.................................. 7,800

Refined petroleum fund................................. 114,000

State services fee fund................................ 53,400

State general fund/general purpose..................... $ 0

Sec. 104. FOOD AND DAIRY

Full-time equated classified positions.......... 115.0

Food safety and quality assurance--115.0 FTE positions. $ 12,539,700

GROSS APPROPRIATION.................................... $ 12,539,700

Appropriated from:

Federal revenues:

DAG, multiple grants................................... 58,300

HHS-FDA................................................ 412,200

Special revenue funds:

Consumer and industry food safety education fund....... 264,800

Dairy and food safety fund............................. 2,874,300

State general fund/general purpose..................... $ 8,930,100

Sec. 105. ANIMAL INDUSTRY

Full-time equated classified positions........... 70.0

Animal health and welfare--21.5 FTE positions.......... $ 2,152,800

Bovine tuberculosis program--48.5 FTE positions........ 7,732,900

GROSS APPROPRIATION.................................... $ 9,885,700

Appropriated from:

Interdepartmental grant revenues:

IDG from DNR, cervid fees.............................. 75,000

Federal revenues:

DAG, multiple grants................................... 1,178,200

HHS-FDA................................................ 73,000

Special revenue funds:

Licensing and inspection fees.......................... 108,000

State general fund/general purpose..................... $ 8,451,500

Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT

Full-time equated classified positions.......... 134.5

Pesticide and plant pest management--110.0 FTE

positions............................................ $ 12,138,300

Emerald ash borer control program--24.5 FTE positions.. 3,034,200

GROSS APPROPRIATION.................................... $ 15,172,500

Appropriated from:

Federal revenues:

DAG, multiple grants................................... 4,568,300

EPA, multiple grants................................... 919,200

HHS-FDA................................................ 96,300

Special revenue funds:

Private - slow-the-spread foundation................... 152,600

Commodity inspection fees.............................. 1,117,700

Horticulture fund...................................... 82,000

Industry support funds................................. 351,600

Licensing and inspection fees.......................... 3,660,500

State general fund/general purpose..................... $ 4,224,300

Sec. 107. ENVIRONMENTAL STEWARDSHIP

Full-time equated classified positions........... 52.0

Environmental stewardship--28.0 FTE positions.......... $ 2,172,500

Groundwater and freshwater protection program--15.0

FTE positions........................................ 5,255,100

Farmland and open space preservation--9.0 FTE

positions............................................ 1,006,900

Technical assistance match............................. 236,800

Agriculture pollution prevention program............... 1,000,100

Migrant labor housing.................................. 425,100

GROSS APPROPRIATION.................................... $ 10,096,500

Appropriated from:

Interdepartmental grant revenues:

IDG from MDEQ, biosolids............................... 93,800

IDG from MDEQ, MAEAP................................... 351,600

Federal revenues:

DAG, multiple grants................................... 1,000,000

EPA, multiple grants................................... 255,000

United States department of labor...................... 400,000

Special revenue funds:

Agricultural preservation fund......................... 875,900

Agriculture pollution prevention fund.................. 100

Freshwater protection fund............................. 5,221,000

Migratory labor housing................................ 25,000

State general fund/general purpose..................... $ 1,874,100

Sec. 108. LABORATORY PROGRAM

Full-time equated classified positions.......... 131.0

Laboratory services--63.0 FTE positions................ $ 5,943,100

USDA monitoring program--17.0 FTE positions............ 2,171,700

Consumer protection program--51.0 FTE positions........ 5,237,400

GROSS APPROPRIATION.................................... $ 13,352,200

Appropriated from:

Interdepartmental grant revenues:

IDG from MDELEG (LCC), liquor quality testing fees..... 189,100

Federal revenues:

DAG, multiple grants................................... 2,193,700

EPA, multiple grants................................... 351,200

HHS-FDA................................................ 543,000

Special revenue funds:

Gasoline inspection and testing fund................... 2,562,500

Licensing and inspection fees.......................... 76,300

Refined petroleum fund................................. 3,286,200

State services fee fund................................ 519,700

Testing fees........................................... 434,500

Weights and measures regulation fees................... 688,300

State general fund/general purpose..................... $ 2,507,700

Sec. 109. AGRICULTURE DEVELOPMENT

Full-time equated classified positions............ 9.0

Agriculture development--6.0 FTE positions............. $ 1,077,000

Grape and wine program--3.0 FTE positions.............. 722,200

Export market development program...................... 150,000

Michigan agricultural surplus system................... 150,100

GROSS APPROPRIATION.................................... $ 2,099,300

Appropriated from:

Interdepartmental grant revenues:

IDG from MDELEG........................................ 500,000

IDG from MDHS, food bank............................... 150,000

Federal revenues:

DAG, multiple grants................................... 279,300

Special revenue funds:

Private - commodity group.............................. 10,900

Industry support funds................................. 316,000

Nonretail liquor fees.................................. 665,700

State general fund/general purpose..................... $ 177,400

Sec. 110. FAIRS AND EXPOSITIONS

Full-time equated classified positions............ 9.5

Fairs, racing and producer security--9.5 FTE positions. $ 1,168,900

Building and track improvements - county fairs......... 480,000

Premiums - county fairs................................ 1,375,400

Purses and supplements - fairs/licensed tracks......... 1,839,400

Licensed tracks - light horse racing................... 102,500

Standardbred breeders' awards.......................... 752,100

Standardbred purses and supplements - licensed tracks.. 1,388,800

Standardbred sire stakes............................... 628,600

Standardbred training and stabling..................... 27,900

Thoroughbred owners' awards............................ 96,300

Thoroughbred program................................... 1,862,800

Thoroughbred sire stakes............................... 644,200

Distribution of outstanding winning tickets............ 543,300

GROSS APPROPRIATION.................................... $ 10,910,200

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund........... 7,918,200

Industry support funds................................. 20,600

Licensing and inspection fees.......................... 163,500

State services fee fund................................ 2,506,900

State general fund/general purpose..................... $ 301,000

Sec. 111. OFFICE OF RACING COMMISSIONER

Full-time equated classified positions........... 30.0

Office of racing commissioner--30.0 FTE positions...... $ 2,700,000

GROSS APPROPRIATION.................................... $ 2,700,000

Appropriated from:

Special revenue funds:

State services fee fund................................ 2,700,000

State general fund/general purpose..................... $ 0

Sec. 112. INFORMATION TECHNOLOGY

Information technology services and projects........... $ 1,540,300

GROSS APPROPRIATION.................................... $ 1,540,300

Appropriated from:

Interdepartmental grant revenues:

IDG from MDELEG (LCC), liquor quality testing fees..... 2,800

Special revenue funds:

Agricultural preservation fund......................... 200

Agriculture equine industry development fund........... 226,800

Gasoline inspection and testing fund................... 107,000

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

Licensing and inspection fees.......................... 74,900

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

State general fund/general purpose..................... $ 1,128,000

Sec. 113. CAPITAL OUTLAY

Farmland and open space development acquisition........ $ 3,750,000

GROSS APPROPRIATION.................................... $ 3,750,000

Appropriated from:

Federal revenues:

DAG, multiple grants................................... 1,250,000

Special revenue funds:

Agricultural preservation fund......................... 2,500,000

State general fund/general purpose..................... $ 0

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

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 2009-2010 is $70,591,200.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2009-2010 is $1,500,000.00. The itemized

statement below identifies appropriations from which spending to

local units of government will occur:

DEPARTMENT OF AGRICULTURE

Groundwater and freshwater protection program.......... $ 1,500,000

TOTAL.................................................. $ 1,500,000

Sec. 202. The appropriations authorized under this act are

subject to the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594.

Sec. 203. As used in this act:

(a) "DAG" means the United States department of agriculture.

(b) "Department" means the department of agriculture.

(d) "EPA" means the United States environmental protection

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) "MAEAP" means the Michigan agriculture environmental

assurance program.

(i) "MDCH" means the Michigan department of community health.

(j) "MDELEG" means the Michigan department of energy, labor,

and economic growth.

(k) "MDELEG (LCC)" means the Michigan department of energy,

labor, and economic growth - liquor control commission.

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

quality.

(m) "MDHS" means the Michigan department of human services.

(n) "USDA" means the United States department of agriculture.

Sec. 204. The civil service commission shall bill departments

and agencies at the end of the first fiscal quarter for the charges

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. 205. (1) 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 1 position

to another within a department.

(2) The state budget director may 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, causes loss of revenue to the

state, would result in the inability of the state to receive

federal funds, or would necessitate additional expenditures that

exceed any savings from maintaining a vacancy. The state budget

director shall report quarterly to the chairpersons of the senate

and house standing committees on appropriations the number of

exceptions to the hiring freeze approved during the previous

quarter and the reasons to justify the exception.

Sec. 208. Unless otherwise specified, the department shall use

the Internet to fulfill the reporting requirements of this act.

This requirement shall include transmission of reports via

electronic mail to the recipients identified for each reporting

requirement and shall 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 should 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 should 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. The

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. (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 287.745, not

to exceed $100,000.00 per order from any line item for the fiscal

year ending September 30, 2010. Before the department provides for

an indemnification under this section, the department shall report

the reason for the indemnification, the amount of the

indemnification, and to whom the indemnification is to be paid. The

report shall be given to each member of the senate and house

appropriations subcommittees on agriculture and to the senate and

house fiscal agencies and the state budget director.

(2) The department of agriculture 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 287.745. In addition to the funds appropriated in part

1, the department of agriculture is authorized to expend the funds

received from the department of natural resources to reimburse the

department of agriculture for all indemnification payments made

pursuant to this subsection.

Sec. 214. Of the funds appropriated in part 1 that are other

than line-item grants, the department shall not provide grants to

local government agencies, institutions of higher education, or

nonprofit organizations unless the department provides notice of

the grant to the senate and house appropriations subcommittees on

agriculture 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. 219. From the funds appropriated in part 1 for

information technology, the department shall pay user fees to the

department of information technology for technology-related

services and projects. The user fees shall be subject to provisions

of an interagency agreement between the department and the

department of information technology.

Sec. 220. Amounts appropriated in part 1 for information

technology may be designated as work projects and carried forward

to support technology projects under the direction of the

department of information technology. Funds designated in this

manner are not available for expenditure until approved as work

projects under section 451a of the management and budget act, 1984

PA 431, MCL 18.1451a.

Sec. 223. (1) Due to the current budgetary problems in this

state, out-of-state travel shall be limited to situations in which

1 or more of the following conditions apply:

(a) The travel is required by legal mandate or court order or

for law enforcement purposes.

(b) The travel is necessary to protect the health or safety of

Michigan citizens or visitors or to assist other states in similar

circumstances.

increase state revenues, including protecting existing federal

funds or securing additional federal funds.

(d) The travel is necessary to comply with federal

requirements.

(e) The travel is necessary to secure specialized training for

staff that is not available within this state.

(f) The travel is financed entirely by federal or nonstate

funds.

(2) Not later than January 1 of each year, each department

shall prepare a travel report listing 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 senate and house appropriations committees, the

senate and house fiscal agencies, and the state budget director.

The report shall include the following information:

(a) The name of each person receiving reimbursement for travel

outside this state or whose travel costs were paid by this state.

(b) The destination of each travel occurrence.

(d) A brief statement of the reason for each travel

occurrence.

(e) 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.

(f) A total of all out-of-state travel funded for the

immediately preceding fiscal year.

Sec. 224. The department shall not take disciplinary action

against an employee for truthfully to the best of his or her

knowledge communicating with a member of the legislature or his or

her staff.

Sec. 228. (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 this act 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 this act 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 this act

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 this act

under section 393(2) of the management and budget act, 1984 PA 431,

MCL 18.1393.

Sec. 229. (1) The department shall report no later than April

1, 2010 on each specific policy change made to implement a public

act affecting the department that took effect during the prior

calendar year to the senate and house appropriations subcommittees

on the budget for the department, the joint committee on

administrative rules, and the senate and house fiscal agencies.

(2) Funds appropriated in part 1 shall not be used by the

department to adopt a rule that will apply to a small business and

that will have a disproportionate economic impact on small

businesses because of the size of those businesses if the

department fails to reduce the disproportionate economic impact of

the rule on small businesses as provided under section 40 of the

administrative procedures act of 1969, 1969 PA 306, MCL 24.240.

(3) As used in this section:

(a) "Rule" means that term as defined under section 7 of the

administrative procedures act of 1969, 1969 PA 306, MCL 24.207.

(b) "Small business" means that term as defined under section

7a of the administrative procedures act of 1969, 1969 PA 306, MCL

24.207a.

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 activities that the

attorney general authorizes.

Sec. 231. From the funds appropriated in part 1 for salaries

and benefits, the department shall provide funding in the pesticide

and plant pest management, food and dairy, animal industry,

environmental stewardship and laboratory divisions for not less

than 315 employees who provide direct service to the public or

substantially support the work of those who provide direct service.

Expenditures shall be made so that these divisions continue to

provide service to protect the public health, safety, and welfare

and environment.

Sec. 232. From the funds appropriated in part 1, the director

shall implement continuous improvement efficiency mechanisms in the

programs administered by the department. The continuous improvement

efficiency mechanisms shall identify changes made in programs to

increase efficiency and reduce expenditures in the programs. On

March 31, 2010 and September 30, 2010, the director shall submit a

report to the state budget director, the senate and house

appropriations subcommittees, and the senate and house fiscal

agencies on the progress made toward increased efficiencies in

departmental programs. At a minimum, each report shall include

information on the program review process, the type of improvement

mechanisms implemented, and actual and projected expenditure

savings as a result of the increased program efficiencies.

Sec. 234. The department shall not approve the travel of more

than 1 departmental employee to a specific professional development

conference or training seminar that is located outside of this

state unless the professional development conference or training

seminar is funded by a federal or private funding source and

requires more than 1 person from a department to attend, or the

conference or training seminar includes multiple issues in which 1

employee from the department does not have expertise.

Sec. 235. Available funds from the appropriation in part 1 may

be provided to the C.S. Mott group for sustainable food systems at

Michigan State University to plan for and coordinate a matched

savings tool for Michigan's emerging farmers and to leverage

federal funds for the purpose of developing and enhancing local

markets for Michigan agricultural products.

Sec. 236. All appropriations in part 1 from the agriculture

equine industry development fund shall be spent for equine-related

purposes.

Sec. 237. Not later than September 30, 2010, the department

shall prepare and transmit a report that provides for estimates of

the total general fund/general purpose appropriation lapses at the

close of the fiscal year. This report shall summarize the projected

year-end general fund/general purpose appropriation lapses by major

departmental program or program areas. The report shall be

transmitted to the office of the state budget, the chairpersons of

the senate and house appropriations committees, and the senate and

house fiscal agencies.

EXECUTIVE

Sec. 302. (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, bean inspection services, 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 bean inspection and

grading services.

(e) Laboratory support testing for testing horses in draft

horse pulling contests at county fairs when local jurisdictions

request state assistance.

(f) Laboratory support analyses to determine foreign

substances in horses engaged in racing or pulling contests at

tracks.

(g) Laboratory support analyses of food, livestock, and

agricultural products for disease, foreign products for disease,

toxic materials, foreign substances, and quality standards.

(h) Laboratory support test samples for other agencies and

organizations.

(i) Fruit and vegetable inspection at shipping and termination

points and processing plants.

(2) The department shall notify the senate and house

appropriations subcommittees on agriculture and the senate and

house fiscal agencies 30 days prior to proposing changes in fees

authorized under this section or under section 5 of 1915 PA 91, MCL

285.35.

(3) Annually, before February 1, the department shall provide

a report to the senate and house appropriations subcommittees on

agriculture and the senate and house fiscal agencies detailing all

the fees charged by the department under the authorization provided

in this section, including, but not limited to, rates, number of

individuals paying each fee, and the revenue generated by each fee

in the previous fiscal year.

Sec. 304. (1) To ensure motor fuel quality and quantity, the

department shall maintain the motor fuel quality program and shall

not reduce program level of effort below that of the 2006-2007

fiscal year. Notwithstanding the provisions of section 205, the

department shall maintain field and laboratory staff for the motor

fuel quality program.

(2) On or before January 1 and every 6 months thereafter, the

department shall report to the senate and house appropriations

subcommittees on agriculture and the senate and house fiscal

agencies the results of both complaint-based and random-based

inspections, including the number of inspections performed, samples

collected, and compliance rates.

Sec. 306. From the funds appropriated in section 102, private

funds for agricultural statistics shall be used to match state

funds at not less than 50% of study costs.

FOOD AND DAIRY

Sec. 401. The department shall monitor restaurant inspection

and licensing functions carried out by local health departments to

ensure uniform application and enforcement of minimum program

requirements.

Sec. 402. Not later than April 1, 2010, the department shall

provide a report to the senate and house appropriations

subcommittees on agriculture and the senate and house fiscal

agencies describing significant food-borne outbreaks and

emergencies including any enforcement actions taken related to food

safety during the 2008-2009 fiscal year.

Sec. 404. From the funds appropriated in section 104 for food

safety and quality assurance, not less than $150,000.00 from the

consumer and industry food safety education fund shall be expended

for purposes required under section 4117 of the food law of 2000,

2000 PA 92, MCL 289.4117, including the statewide training and

education to consumers on food safety and the training and

education on food safety to food service establishment employees

and department employees and agents who enforce section 4117 of the

food law of 2000, 2000 PA 92, MCL 289.4117.

Sec. 406. Notwithstanding the provisions of section 205, the

department is authorized to fill open positions in the food and

dairy inspection program.

Sec. 407. Funds appropriated in part 1 of 2007 PA 128 for food

and dairy, food safety and quality assurance, shall not lapse but

shall continue to be available for completion of the e-inspector

program in accordance with the provisions of section 451a of the

management and budget act, 1984 PA 431, MCL 18.1451a.

ANIMAL INDUSTRY

Sec. 450. From the funds appropriated in section 105 for the

bovine tuberculosis program, the department shall reimburse the

department of natural resources for those costs associated with

monitoring and testing wildlife for bovine tuberculosis that are

necessary to support the department goals and are jointly agreed to

by the department and the department of natural resources to be in

excess of efforts necessary to effectively plan and execute the

eradication of bovine tuberculosis from Michigan's wild free-

ranging deer herd.

Sec. 451. From the funds appropriated in section 105 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 apply for all federal and

private funds for which it is eligible that can be used to support

the bovine tuberculosis program.

Sec. 454. The department shall use its resources to

collaborate with the United States department of agriculture to

obtain TB-free status for the area of the Lower Peninsula that is

zoned as modified accredited advanced. The department shall also

aggressively work toward eradicating bovine TB in the modified

accredited zone.

Sec. 455. The department shall prepare a plan to provide for

cattle without official identification that may arrive at a

saleyard. If an animal arrives untagged at a saleyard without

official identification, the saleyard may charge a fee for the tag

and for application. The tag may be purchased by and identified to

the saleyard. The saleyard shall maintain records for all animals

tagged on its premises. The department plan shall be in compliance

with the "Michigan Bovine TB Eradication Program - Application for

TB-Free/Modified Accredited Status", April 2007.

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, 2009, and on a quarterly

basis thereafter, the department shall report to the senate and

house agriculture committees, the senate and house appropriations

subcommittees on agriculture, and the senate and house fiscal

agencies on the department's progress toward meeting the USDA

requirements as outlined in the March 2007 bovine TB program

review. The report shall include, but is not limited to,

information and data on: wildlife risk mitigation plan

implementation in the modified accredited zone; implementation of a

movement certificate process; progress toward annual surveillance

test requirements set out in the June 2007 MOU; compliance efforts

and rates for animals crossing the Mackinac Bridge; 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 section 105 for

animal industry, the department shall provide inspection and

testing of aquaculture facilities and aquaculture researchers as

provided under 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. Notwithstanding the provisions of section 205, the

department is authorized to fill open positions in the bovine

tuberculosis program.

Sec. 460. Of the appropriation in section 105 for animal

health and welfare, budgetary reductions for the fiscal year ending

September 30, 2010 shall not be taken from the aquaculture program,

but shall be taken from other programs funded in the animal health

and welfare appropriation line.

LABORATORY SERVICES

Sec. 501. From the appropriation in part 1 for laboratory

services, a sufficient amount is appropriated from licensing and

inspection fee revenue to maintain the department's animal feed

testing programs.

PESTICIDE AND PLANT PEST MANAGEMENT

Sec. 551. It is the intent of the legislature that the

department work with the fruit and vegetable industry to ensure the

development of a sustainable system of third-party inspections of

fruits and vegetables.

ENVIRONMENTAL STEWARDSHIP

Sec. 603. The department shall apply for all federal funds for

which it is eligible that can be used to support the migrant labor

housing program.

Sec. 604. The appropriation in section 107 for local

conservation districts shall be allocated in the following manner:

(a) Of the total appropriation, each local conservation

district meeting the minimum grant requirements shall receive a

grant of $11,605.00 to support basic operations, unless the

district resides in a county consisting of multiple districts, in

which case a $11,605.00 grant shall be divided equally among the

districts in that county. The amount of money allocated under this

subdivision shall not be used by local conservation districts to

replace any money received from local sources.

(b) Any amount remaining from the appropriation after

distributions under subdivision (a) shall be allocated for local

conservation district training.

Sec. 605. From the appropriation in part 1 for technical

assistance match, not less than $300,000.00 shall be used to fund

local conservation district technical assistance for individuals

with contracts under the 2002 farm bill administered by USDA's

Senate Bill No. 237 as amended June 11, 2009

natural resources conservation service. Increasing the level of

technical assistance will ensure producers can access the federal

money available under their individual contracts and quickly put

that money to work in Michigan.

Sec. 606. The department shall actively search for all

possible funding sources to be used to match federal funds in the

USDA environmental quality incentives program.

Sec. 607. It is the intent of the legislature that the

department continue its activities in support of intercounty

drainage districts as provided in chapter 5 of the drain code of

1956, 1956 PA 40, MCL 280.101 to 280.106.

Sec. 608. Of the appropriation in section 107 for

environmental stewardship, budgetary reductions for the fiscal year

ending September 30, 2010 shall not be taken from the right-to-farm

program, but shall be taken from other programs funded in the

environmental stewardship appropriation line.

Sec. 609. From the funds appropriated in section 107 for

environmental stewardship, not less than $483,000.00 shall be

expended for inspection and licensing activities related to migrant

labor housing.

<<Sec. 610. From the appropriation in section 107 for environmental stewardship, the appropriation of $130,000.00 from the general fund for water withdrawal assessment shall be contingent upon the department inputting the data received in compliance with water use reporting requirements as provided for under MCL 324.32708(3).>>

AGRICULTURE DEVELOPMENT

Sec. 702. 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. 705. The appropriation in section 109 for the export

market development program shall be used to coordinate state

participation in the federal market access program and to leverage

federal and private funds for the purpose of developing new and

enhancing existing export markets for Michigan agricultural

products.

Sec. 706. Not later than April 1, 2010, the department shall

provide a report to the senate and house appropriations

subcommittees on agriculture and the senate and house fiscal

agencies describing the department's agriculture development and

export market development activities. The report shall identify

grants awarded during the prior fiscal year, including a

description of federal or private funds made available as a result

of department activities.

Sec. 707. In awarding grants from the agricultural development

fund created under the Julian-Stille value-added act, 2000 PA 322,

MCL 285.301 to 285.304, the department shall give due consideration

to the diversity of Michigan agriculture and its economic

importance.

Sec. 709. (1) Not later than April 1, 2010, the department

shall provide a report to the senate and house appropriations

subcommittees on agriculture and the senate and house fiscal

agencies describing the activities of the grape and wine industry

council established under section 303 of the Michigan liquor

control act of 1998, 1998 PA 58, MCL 436.1303.

(2) The report shall include all of the following:

(a) Council activities and accomplishments for the previous

fiscal year.

(b) Council expenditures for the previous fiscal year by

category of administration, industry support, research and

education grants, and promotion and consumer education.

results of research grant projects completed during the prior

fiscal year.

Sec. 710. The department may match external funding for

domestic and international marketing programs for the purpose of

developing new and enhancing existing export markets for Michigan

agricultural products.

Sec. 711. In accordance with chapter 8B of the Michigan

strategic fund act, 1984 PA 270, MCL 125.2089 to 125.2089d, it is

the intent of the legislature that the Michigan strategic fund, its

employees, contract employees, and individuals working on its

behalf collaborate with the Michigan department of agriculture to

promote business development of Michigan agricultural products to

achieve outcomes that include, but are not limited to, increases in

export sales, increases in the number of retailers carrying

Michigan commodities both within and outside of this state, and

increased sales of Michigan products at chain grocers.

Sec. 712. The funds appropriated in part 1 from MDELEG for

agriculture development and export market development program shall

be used to foster and promote growth in the food and agriculture

sector. By September 30, 2010, the department shall report to the

senate and house appropriations subcommittees on agriculture and

economic development, the senate and house fiscal agencies, and the

state budget director on the use of these funds and how the funds

facilitated growth in the food and agriculture sector.

FAIRS AND EXPOSITIONS

Sec. 801. Within 60 days of the close of each fiscal quarter,

the department shall report to the state budget director, the

senate and house subcommittees on agriculture, and the senate and

house fiscal agencies on the agriculture equine industry

development fund established in section 20 of the horse racing law

of 1995, 1995 PA 279, MCL 431.320. The report shall do all of the

following:

(a) Identify actual revenue through the preceding fiscal

quarter and projected revenue and fund balance through the end of

the fiscal year.

(b) Identify simulcast racing revenue generated by each

licensed track, revenue from license fees, revenue generated from

the casino wagering tax, and revenue from other sources.

fund by line item for the fiscal year and compare the spending

targets to the appropriated amounts for each line item.

Sec. 802. From the amount appropriated in section 110 for

purses and supplements – fairs/licensed tracks, $220,000.00 is to

be used for state purse supplements at state licensed pari-mutuel

tracks 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.

Sec. 803. Included in the appropriation made in section 110

for the thoroughbred program is $23,500.00 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. 804. From the funds appropriated in section 110 for

thoroughbred owners' awards, awards shall be distributed pursuant

to section 20 of the horse racing law of 1995, 1995 PA 279, MCL

431.320.

Sec. 805. All appropriations from the agriculture equine

industry development fund shall be reduced proportionately if

revenues to the agriculture equine industry development fund

decline during the fiscal year ending September 30, 2010 to a level

lower than the amount appropriated in part 1.

Sec. 806. 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. 807. 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. 808. Of the amount appropriated in section 110 for

premiums - county and state fairs, $91,400.00 shall be expended to

reimburse up to 75% premiums paid to large livestock and equine

exhibitors in shows or exhibitions held by statewide associations

as defined by the department. Livestock expositions shall be

limited to participation in this program and prohibited from

participation in any state-funded premium programs. The Michigan

horse show association fall youth show shall be included.

Sec. 809. From the appropriations for premiums - county and

state fairs in section 110, $40,000.00 shall be awarded through a

competitive grant program to local, regional, or state fairs or

youth education programs to promote youth involvement and adult

exhibitions in the animal agriculture industry.

Sec. 811. The funds appropriated in section 110 for

distribution of outstanding winning tickets are not available for

expenditure until they are deposited in the Michigan agriculture

equine industry development fund pursuant to section 2 of 1951 PA

90, MCL 431.252. These funds shall be expended in accordance with

section 2 of 1951 PA 90, MCL 431.252. The department shall provide

notice to the senate and house appropriations subcommittees on

agriculture at least 10 days before the funds are expended. This

notice shall include the amount that each program receives from the

outstanding winning ticket revenue deposited in the Michigan

agriculture equine industry development fund.

Sec. 812. The fairs, exhibitions and racing division shall

make payments from the agriculture equine industry development fund

in a timely manner to persons or organizations that are approved

for such payments.

OFFICE OF RACING COMMISSIONER

Sec. 901. 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. 902. In the event there is no live thoroughbred race meet

in 2009 or 2010, all purse money and program money appropriated for

the thoroughbred industry in fiscal year 2008-2009 and fiscal year

2009-2010 shall be held in escrow for a period not to exceed 18

months, or until a thoroughbred race meet license is applied for

and granted by the office of racing commissioner. In the event

there is no thoroughbred meet in 2009 or 2010, the purse pool

distribution order to be issued by the office of racing

commissioner in 2010 that delineates distribution between the

thoroughbred meet that has been held at Great Lakes Downs and the

joint thoroughbred/quarterhorse meet held in Mt. Pleasant shall be

the same distribution formula as issued in 2009, with the

thoroughbred portion being held in escrow.

Sec. 903. The office of racing commissioner shall provide each

certified horsemen's organization a minimum of 30 days' notice

before submitting a request for rule-making with the state office

of administrative hearings and rules. The notice shall include all

information as is required by the request for rule-making with the

state office of administrative hearings and rules.

Sec. 904. It is the intent of the legislature that the office

of racing commissioner no longer be designated as a type I agency

and be administered as part of the department for budgetary

savings.

CAPITAL OUTLAY

Sec. 1001. Of the amounts appropriated in part 1 for farmland

and open space development acquisition, the funds shall be used for

the purchase of development rights and the awarding of grants by

the agriculture preservation fund board under the natural resources

and environmental protection act, 1994 PA 451, MCL 324.101 to

324.90106.

Sec. 1002. (1) The director shall allocate lump-sum

appropriations made in this act consistent with statutory

provisions and the purposes for which funds were appropriated.

Lump-sum allocations shall address priority program or facility

needs and may include, but are not limited to, design,

construction, remodeling and addition, special maintenance, major

special maintenance, energy conservation, and demolition.

(2) The state budget director may authorize that funds

appropriated for lump-sum appropriations shall be available for no

more than 3 fiscal years following the fiscal year in which the

original appropriation was made. Any remaining balance from

allocations made in this section shall lapse to the fund from which

it was appropriated pursuant to the lapsing of funds as provided in

the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 1003. The appropriations in part 1 for capital outlay

shall be carried forward at the end of the fiscal year consistent

with the provisions of section 248 of the management and budget

act, 1984 PA 431, MCL 18.1248.