SB-0288,As Passed House,Jun 12, 2003                                        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                               HOUSE SUBSTITUTE FOR                             

                                                                                

                               SENATE BILL NO. 288                              

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to make appropriations for the department of agriculture                   

                                                                                

    for the fiscal year ending September 30, 2004; 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:                    

                                                                                

1                                   PART 1                                      

                                                                                

2                          LINE-ITEM APPROPRIATIONS                             

                                                                                

3       Sec. 101.  Subject to the conditions set forth in this act, the             

                                                                                

4   amounts listed in this part are appropriated for the department of          

                                                                                

5   agriculture for the fiscal year ending September 30, 2004, from the         

                                                                                

6   funds indicated in this part.  The following is a summary of the            

                                                                                

7   appropriations in this part:                                                

                                                                                


                                                                                

1   DEPARTMENT OF AGRICULTURE                                                   

                                                                                

2   APPROPRIATION SUMMARY:                                                      

                                                                                

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

                                                                                

4       Full-time equated classified positions........557.0                     

                                                                                

5     GROSS APPROPRIATION................................. $     100,700,700    

                                                                                

6       Interdepartmental grant revenues:                                       

                                                                                

7     IDG from MDCIS (LCC), nonretail liquor license fees.           508,800    

                                                                                

8     IDG from MDCH, local public health operations.......         8,878,700    

                                                                                

9     IDG from MDEQ, biosolids............................            80,000    

                                                                                

10    IDG from MDEQ, type II well survey..................            15,000    

                                                                                

11    IDG from MDNR, district forestry and wildlife                             

                                                                                

12      program...........................................         1,000,000    

                                                                                

13    IDG from MDEQ, right to farm........................           105,000    

                                                                                

14    IDG from MDCIS (LCC), liquor quality testing fees...           171,100    

                                                                                

15    Total interdepartmental grants and intradepartmental                      

                                                                                

16      transfers.........................................        10,758,600    

                                                                                

17    ADJUSTED GROSS APPROPRIATION........................ $      89,942,100    

                                                                                

18      Federal revenues:                                                       

                                                                                

19    HHS-FDA.............................................           106,700    

                                                                                

20    DAG, multiple grants................................        10,116,100    

                                                                                

21    EPA, multiple grants................................         3,828,900    

                                                                                

22    Total federal revenues..............................        14,051,700    

                                                                                

23      Special revenue funds:                                                  

                                                                                

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

                                                                                

25    Private - slow-the-spread foundation................           130,000    

                                                                                

26    Private - oil company overcharge settlement.........           997,600    

                                                                                

27    Total private revenues..............................         1,127,600    


                                                                                

1     Agricultural enhancement fund.......................         2,600,000    

                                                                                

2     Agricultural pollution prevention fund..............               100    

                                                                                

3     Agricultural preservation fund......................           727,300    

                                                                                

4     Agriculture equine industry development fund........        11,441,900    

                                                                                

5     Civil penalties.....................................            40,300    

                                                                                

6     Commodity inspection fees...........................           991,500    

                                                                                

7     Gasoline inspection and testing fund................         1,565,800    

                                                                                

8     Groundwater and freshwater protection fund..........         4,756,500    

                                                                                

9     Groundwater management fund.........................               100    

                                                                                

10    Horticulture fund...................................            70,000    

                                                                                

11    Industry support funds..............................           260,000    

                                                                                

12    Licensing and inspection fees.......................         5,825,500    

                                                                                

13    Michigan state fair revenue.........................         5,372,500    

                                                                                

14    Michigan strategic fund.............................           500,000    

                                                                                

15    Pseudorabies and swine brucellosis fund.............            20,000    

                                                                                

16    State services fee fund.............................         4,864,100    

                                                                                

17    Testing fees........................................           357,500    

                                                                                

18    Upper Peninsula state fair revenue..................         1,224,300    

                                                                                

19    Weights and measures regulation fees................           518,400    

                                                                                

20    Total other state restricted revenues...............        41,135,800    

                                                                                

21    State general fund/general purpose.................. $      33,627,000    

                                                                                

22      Sec. 102.  EXECUTIVE                                                        

                                                                                

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

                                                                                

24      Full-time equated classified positions.........48.5                     

                                                                                

25    Commissions and boards.............................. $          63,300    

                                                                                

26    Unclassified positions--6.0 FTE positions...........           428,500    

                                                                                

27    Executive direction--7.0 FTE positions..............           752,000    


                                                                                

1     Management services--37.5 FTE positions.............         2,833,100    

                                                                                

2     Statistical reporting service--4.0 FTE positions....           326,500    

                                                                                

3     GROSS APPROPRIATION................................. $       4,403,400    

                                                                                

4         Appropriated from:                                                    

                                                                                

5       Interdepartmental grant revenues:                                       

                                                                                

6     IDG from MDCIS (LCC), nonretail liquor license fees.             8,800    

                                                                                

7       Special revenue funds:                                                  

                                                                                

8     Gasoline inspection and testing fund................            47,800    

                                                                                

9     Licensing and inspection fees.......................            10,000    

                                                                                

10    Michigan state fair revenue.........................            80,500    

                                                                                

11    State services fee fund.............................           160,500    

                                                                                

12    Upper Peninsula state fair revenue..................             9,000    

                                                                                

13    State general fund/general purpose.................. $       4,086,800    

                                                                                

14      Sec. 103.  DEPARTMENTWIDE                                                   

                                                                                

15    Employee turnover savings........................... $        (100,000)   

                                                                                

16    Rent and building occupancy charges.................         1,700,700    

                                                                                

17    GROSS APPROPRIATION................................. $       1,600,700    

                                                                                

18        Appropriated from:                                                    

                                                                                

19      Interdepartmental grant revenues:                                       

                                                                                

20    IDG from MDCIS (LCC), nonretail liquor license fees.             6,600    

                                                                                

21      Federal revenues:                                                       

                                                                                

22    DAG, multiple grants................................           115,000    

                                                                                

23    EPA, multiple grants................................            70,000    

                                                                                

24    HHS-FDA.............................................            15,000    

                                                                                

25      Special revenue funds:                                                  

                                                                                

26    Agricultural preservation fund......................            27,300    

                                                                                

27    Groundwater and freshwater protection fund..........            10,900    


                                                                                

1     Licensing and inspection fees.......................            55,200    

                                                                                

2     State services fee fund.............................           304,600    

                                                                                

3     State general fund/general purpose.................. $         996,100    

                                                                                

4       Sec. 104.  FOOD AND DAIRY                                                   

                                                                                

5       Full-time equated classified positions........108.0                     

                                                                                

6     Food safety and quality assurance--108.0 FTE                              

                                                                                

7       positions......................................... $       9,815,700    

                                                                                

8     Local public health operations......................         8,878,700    

                                                                                

9     GROSS APPROPRIATION................................. $      18,694,400    

                                                                                

10        Appropriated from:                                                    

                                                                                

11      Interdepartmental grant revenues:                                       

                                                                                

12    IDG from MDCH, local public health operations.......         8,878,700    

                                                                                

13      Federal revenues:                                                       

                                                                                

14    DAG, multiple grants................................            22,700    

                                                                                

15    HHS-FDA.............................................           186,700    

                                                                                

16      Special revenue funds:                                                  

                                                                                

17    Civil penalties.....................................            40,300    

                                                                                

18    Licensing and inspection fees.......................         2,740,200    

                                                                                

19    State general fund/general purpose.................. $       6,825,800    

                                                                                

20      Sec. 105.  ANIMAL INDUSTRY                                                  

                                                                                

21      Full-time equated classified positions.........50.0                     

                                                                                

22    Animal health and welfare--50.0 FTE positions....... $       6,723,300    

                                                                                

23    GROSS APPROPRIATION................................. $       6,723,300    

                                                                                

24        Appropriated from:                                                    

                                                                                

25      Federal revenues:                                                       

                                                                                

26    DAG, multiple grants................................           150,000    

                                                                                

27    HHS-FDA.............................................             9,000    


                                                                                

1       Special revenue funds:                                                  

                                                                                

2     Agricultural enhancement fund.......................           750,000    

                                                                                

3     Agriculture equine industry development fund........            50,000    

                                                                                

4     Licensing and inspection fees.......................           178,200    

                                                                                

5     Michigan strategic fund.............................           500,000    

                                                                                

6     Pseudorabies and swine brucellosis fund.............            20,000    

                                                                                

7     State general fund/general purpose.................. $       5,066,100    

                                                                                

8       Sec. 106.  PESTICIDE AND PLANT PEST MANAGEMENT                              

                                                                                

9       Full-time equated classified positions........121.8                     

                                                                                

10    Pesticide and plant pest management--121.8 FTE                            

                                                                                

11      positions......................................... $      12,107,800    

                                                                                

12    Emerald ash borer control program...................         7,250,000    

                                                                                

13    Michigan State University...........................           210,000    

                                                                                

14    GROSS APPROPRIATION................................. $      19,567,800    

                                                                                

15        Appropriated from:                                                    

                                                                                

16      Federal revenues:                                                       

                                                                                

17    DAG, multiple grants................................         9,264,400    

                                                                                

18    EPA, multiple grants................................         1,510,000    

                                                                                

19    HHS-FDA.............................................            60,000    

                                                                                

20      Special revenue funds:                                                  

                                                                                

21    Private - slow-the-spread foundation................           130,000    

                                                                                

22    Commodity inspection fees...........................           991,500    

                                                                                

23    Horticulture fund...................................            70,000    

                                                                                

24    Licensing and inspection fees.......................         2,779,800    

                                                                                

25    State general fund/general purpose.................. $       4,762,100    

                                                                                

26      Sec. 107.  ENVIRONMENTAL STEWARDSHIP                                        

                                                                                

27      Full-time equated classified positions.........47.0                     


                                                                                

1     Environmental stewardship--32.7 FTE positions....... $       2,640,200    

                                                                                

2     Groundwater and freshwater protection program--8.3                        

                                                                                

3       FTE positions.....................................         4,924,100    

                                                                                

4     Farmland and open space preservation--6.0 FTE                             

                                                                                

5       positions.........................................           699,800    

                                                                                

6     Agriculture pollution prevention program............               100    

                                                                                

7     Cooperative resources management initiative program.         1,000,000    

                                                                                

8     Energy conservation program.........................           138,000    

                                                                                

9     Local conservation districts........................         1,861,200    

                                                                                

10    Migrant labor housing...............................           855,000    

                                                                                

11    GROSS APPROPRIATION................................. $      12,118,400    

                                                                                

12        Appropriated from:                                                    

                                                                                

13      Interdepartmental grant revenues:                                       

                                                                                

14    IDG from MDEQ, biosolids............................            80,000    

                                                                                

15    IDG from MDEQ, type II well survey..................            15,000    

                                                                                

16    IDG from MDNR, district forestry and wildlife                             

                                                                                

17      program...........................................         1,000,000    

                                                                                

18    IDG from MDEQ, right to farm........................           105,000    

                                                                                

19      Federal revenues:                                                       

                                                                                

20    EPA, multiple grants................................           400,000    

                                                                                

21      Special revenue funds:                                                  

                                                                                

22    Private - oil company overcharge settlement.........           193,900    

                                                                                

23    Agricultural enhancement fund.......................           800,000    

                                                                                

24    Agricultural pollution prevention fund..............               100    

                                                                                

25    Agricultural preservation fund......................           699,800    

                                                                                

26    Groundwater and freshwater protection fund..........         4,745,500    

                                                                                

27    Groundwater management fund.........................               100    


                                                                                

1     State general fund/general purpose.................. $       4,079,000    

                                                                                

2       Sec. 108.  LABORATORY PROGRAM                                               

                                                                                

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

                                                                                

4     Laboratory analysis program--61.5 FTE positions..... $       5,012,200    

                                                                                

5     USDA monitoring--18.0 FTE positions.................         1,828,500    

                                                                                

6     Consumer protection program--35.5 FTE positions.....         3,046,500    

                                                                                

7     GROSS APPROPRIATION................................. $       9,887,200    

                                                                                

8         Appropriated from:                                                    

                                                                                

9       Interdepartmental grant revenues:                                       

                                                                                

10    IDG from MDCIS (LCC), liquor quality testing fees...           161,500    

                                                                                

11      Federal revenues:                                                       

                                                                                

12    DAG, multiple programs..............................         1,848,900    

                                                                                

13    EPA, multiple programs..............................           300,000    

                                                                                

14      Special revenue funds:                                                  

                                                                                

15    Private - oil company overcharge settlement.........           803,700    

                                                                                

16    Agriculture equine industry development fund........           443,900    

                                                                                

17    Gasoline inspection and testing fund................         1,491,800    

                                                                                

18    Testing fees........................................           357,500    

                                                                                

19    Weights and measures regulation fees................           518,400    

                                                                                

20    State general fund/general purpose.................. $       3,961,500    

                                                                                

21      Sec. 109.  MARKET DEVELOPMENT                                               

                                                                                

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

                                                                                

23    Marketing and emergency management--9.0 FTE                               

                                                                                

24      positions......................................... $       1,817,000    

                                                                                

25    Agriculture development--5.0 FTE positions..........         1,907,000    

                                                                                

26    Export market development program...................           100,000    

                                                                                

27    Food bank...........................................           630,500    


                                                                                

1     Northwest Michigan horticultural research station...            29,700    

                                                                                

2     Southwestern Michigan tourist council - taste of                          

                                                                                

3       Michigan..........................................            10,000    

                                                                                

4     Future farmers of America...........................           110,000    

                                                                                

5     GROSS APPROPRIATION................................. $       4,605,100    

                                                                                

6         Appropriated from:                                                    

                                                                                

7       Interdepartmental grant revenues:                                       

                                                                                

8     IDG from MDCIS (LCC), nonretail liquor license fees.           500,000    

                                                                                

9       Federal revenues:                                                       

                                                                                

10    DAG, multiple grants................................           100,000    

                                                                                

11      Special revenue funds:                                                  

                                                                                

12    Agricultural enhancement fund.......................         1,050,000    

                                                                                

13    Industry support funds..............................           260,000    

                                                                                

14    Licensing and inspection fees.......................            62,100    

                                                                                

15    State general fund/general purpose.................. $       2,633,000    

                                                                                

16      Sec. 110.  FAIRS AND EXPOSITIONS                                            

                                                                                

17      Full-time equated classified positions.........21.0                     

                                                                                

18    Michigan state fair operations--9.0 FTE positions... $       5,110,300    

                                                                                

19    Upper Peninsula state fair--7.0 FTE positions.......         1,214,400    

                                                                                

20    Fairs and racing--5.0 FTE positions.................           612,600    

                                                                                

21    Building and track improvement - county and state                         

                                                                                

22      fairs.............................................           963,200    

                                                                                

23    Distribution of outstanding winning tickets.........         1,500,000    

                                                                                

24    Licensed tracks - light horse racing................            67,200    

                                                                                

25    Premiums - county and state fairs...................         1,614,100    

                                                                                

26    Purses and supplements - fairs/licensed tracks......         2,137,800    

                                                                                

27    Quarterhorse programs...............................            34,900    


                                                                                

1     Standardbred breeders' awards.......................         1,082,400    

                                                                                

2     Standardbred Fedele Fauri futurity..................            70,900    

                                                                                

3     Standardbred Michigan futurity......................            70,700    

                                                                                

4     Standardbred purses and supplements - licensed                            

                                                                                

5       tracks............................................           242,300    

                                                                                

6     Standardbred sire stakes............................           906,900    

                                                                                

7     Standardbred training and stabling..................            38,200    

                                                                                

8     Thoroughbred owners' awards.........................           136,600    

                                                                                

9     Thoroughbred program................................         1,586,800    

                                                                                

10    Thoroughbred sire stakes............................           906,700    

                                                                                

11    GROSS APPROPRIATION................................. $      18,296,000    

                                                                                

12        Appropriated from:                                                    

                                                                                

13      Special revenue funds:                                                  

                                                                                

14    Agriculture equine industry development fund........         8,781,500    

                                                                                

15    Michigan state fair revenue.........................         5,203,200    

                                                                                

16    State services fee fund.............................         3,096,900    

                                                                                

17    Upper Peninsula state fair revenue..................         1,214,400    

                                                                                

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

                                                                                

19      Sec. 111.  OFFICE OF RACING COMMISSIONER                                    

                                                                                

20      Full-time equated classified positions.........31.7                     

                                                                                

21    Office of racing commissioner--31.7 FTE positions... $       3,342,500    

                                                                                

22    GROSS APPROPRIATION................................. $       3,342,500    

                                                                                

23        Appropriated from:                                                    

                                                                                

24      Special revenue funds:                                                  

                                                                                

25    Agriculture equine industry development fund........         2,042,500    

                                                                                

26    State services fee fund.............................         1,300,000    

                                                                                

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


                                                                                

1       Sec. 112.  INFORMATION AND TECHNOLOGY                                       

                                                                                

2     Information technology services and projects........ $       1,461,900    

                                                                                

3     GROSS APPROPRIATION................................. $       1,461,900    

                                                                                

4         Appropriated from:                                                    

                                                                                

5       Interdepartmental grant revenues:                                       

                                                                                

6     IDG from MDCIS (LCC), liquor quality testing fees...             2,500    

                                                                                

7     IDG from MDCIS (LCC), nonretail liquor license fees.               500    

                                                                                

8       Special revenue funds:                                                  

                                                                                

9     Groundwater and freshwater protection fund..........               100    

                                                                                

10    Agriculture equine industry development fund........           124,000    

                                                                                

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

                                                                                

12    State services fee fund.............................             2,100    

                                                                                

13    Upper Peninsula state fair revenue..................               900    

                                                                                

14    Michigan state fair revenue.........................            88,800    

                                                                                

15    Gasoline inspection testing fund....................            26,200    

                                                                                

16    State general fund/general purpose.................. $       1,216,600    

                                                                                

                                                                                

                                                                                

                                                                                

17                                    PART 2                                    

                                                                                

18                     PROVISIONS CONCERNING APPROPRIATIONS                     

                                                                                

19  GENERAL SECTIONS                                                            

                                                                                

20      Sec. 201.  Pursuant to section 30 of article IX of the state                

                                                                                

21  constitution of 1963, total state spending from state resources under       

                                                                                

22  part 1 for fiscal year 2003-2004 is $74,762,800.00 and state spending       

                                                                                

23  from state resources to be paid to local units of government for            

                                                                                

24  fiscal year 2003-2004 is $3,661,200.00.  The itemized statement below       

                                                                                

25  identifies appropriations from which spending to local units of             

                                                                                


                                                                                

1   government will occur:                                                      

                                                                                

2   DEPARTMENT OF AGRICULTURE                                                   

                                                                                

3     Groundwater and freshwater protection program....... $       1,800,000    

                                                                                

4     Local conservation districts........................         1,861,200    

                                                                                

5     TOTAL............................................... $       3,661,200    

                                                                                

6       Sec. 202.  The appropriations authorized under this act are                 

                                                                                

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

                                                                                

8   18.1594.                                                                    

                                                                                

9       Sec. 203.  As used in this act:                                             

                                                                                

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

                                                                                

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

                                                                                

12      (c)  "Director" means the director of the department.                       

                                                                                

13      (d)  "EPA" means the United States environmental protection agency.         

                                                                                

14      (e)  "FTE" means full-time equated.                                         

                                                                                

15      (f)  "HHS-FDA" means the United States department of health and             

                                                                                

16  human services - food and drug administration.                              

                                                                                

17      (g)  "IDG" means interdepartmental grant.                                   

                                                                                

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

                                                                                

19      (i)  "MDCIS (LCC)" means the Michigan department of consumer and            

                                                                                

20  industry services - liquor control commission.                              

                                                                                

21      (j)  "MDEQ" means the Michigan department of environmental quality.         

                                                                                

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

                                                                                

23      Sec. 204.  The department of civil service shall bill departments           

                                                                                

24  and agencies at the end of the first fiscal quarter for the 1% charge       

                                                                                

25  authorized by section 5 of article XI of the state constitution of          

                                                                                

26  1963.  Payments shall be made for the total amount of the billing by        

                                                                                

27  the end of the second fiscal quarter.                                       


                                                                                

1       Sec. 205.  (1) A hiring freeze is imposed on the state classified           

                                                                                

2   civil service.  State departments and agencies are prohibited from          

                                                                                

3   hiring any new state classified civil service employees and prohibited      

                                                                                

4   from filling any vacant state classified civil service positions.           

                                                                                

5   This hiring freeze does not apply to internal transfers of classified       

                                                                                

6   employees from 1 position to another within a department.                   

                                                                                

7       (2) The state budget director shall grant exceptions to this                

                                                                                

8   hiring freeze when the state budget director believes the hiring            

                                                                                

9   freeze will result in rendering a state department or agency unable to      

                                                                                

10  deliver basic services, cause a loss of revenue to the state, result        

                                                                                

11  in the inability of the state to receive federal funds, or would            

                                                                                

12  necessitate additional expenditures that exceed any savings from            

                                                                                

13  maintaining a vacancy.  The state budget director shall report              

                                                                                

14  quarterly to the chairpersons of the senate and house of                    

                                                                                

15  representatives standing committees on appropriations the number of         

                                                                                

16  exceptions to the hiring freeze approved during the previous quarter        

                                                                                

17  and the reasons to justify the exception.                                   

                                                                                

18      (3) The hiring freeze does not apply to the animal industry                 

                                                                                

19  program.                                                                    

                                                                                

20      Sec. 206.  In addition to the funds appropriated in part 1, there           

                                                                                

21  is appropriated an amount not to exceed $15,000,000.00 for federal          

                                                                                

22  contingency funds.  These funds are not available for expenditure           

                                                                                

23  until they have been transferred to another line item in this act           

                                                                                

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

                                                                                

25  MCL 18.1393.                                                                

                                                                                

26      Sec. 207.  At least 60 days before beginning any effort to                  

                                                                                

27  privatize, the department shall submit a complete project plan to the       


                                                                                

1   appropriate senate and house of representatives appropriations              

                                                                                

2   subcommittees and the senate and house fiscal agencies.  The plan           

                                                                                

3   shall include the criteria under which the privatization initiative         

                                                                                

4   will be evaluated.  The evaluation shall be completed and submitted to      

                                                                                

5   the appropriate senate and house of representatives appropriations          

                                                                                

6   subcommittees and the senate and house fiscal agencies within 30            

                                                                                

7   months.                                                                     

                                                                                

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

                                                                                

9   the Internet to fulfill the reporting requirements of this act.  This       

                                                                                

10  may include transmission of reports via electronic mail to the              

                                                                                

11  recipients identified for each reporting requirement, or it may             

                                                                                

12  include placement of reports on an Internet or Intranet site.               

                                                                                

13      Sec. 209.  (1) Funds appropriated in part 1 shall not be used for           

                                                                                

14  the purchase of foreign goods or services, or both, if competitively        

                                                                                

15  priced and of comparable quality American goods or services, or both,       

                                                                                

16  are available.                                                              

                                                                                

17      (2) In addition to the requirements in subsection (1), the                  

                                                                                

18  purchase of goods or services, or both, if competitively priced and of      

                                                                                

19  comparable quality shall be Michigan goods or services, or both, if         

                                                                                

20  available.  The department shall also encourage the use of Michigan         

                                                                                

21  produced agricultural products by all state agencies and departments        

                                                                                

22  if competitively priced and of comparable quality, if available.            

                                                                                

23      Sec. 210.  The director of each department receiving                        

                                                                                

24  appropriations in part 1 shall take all reasonable steps to ensure          

                                                                                

25  businesses in deprived and depressed communities compete for and            

                                                                                

26  perform contracts to provide services or supplies, or both.  Each           

                                                                                

27  director shall strongly encourage firms with which the department           


                                                                                

1   contracts to subcontract with certified businesses in depressed and         

                                                                                

2   deprived communities for services, supplies, or both.                       

                                                                                

3       Sec. 211.  (1) The unexpended and unobligated balance of any                

                                                                                

4   state restricted fund or account remaining at the end of the fiscal         

                                                                                

5   year shall revert back to the state restricted fund or account from         

                                                                                

6   which appropriated and be available for appropriation for the next          

                                                                                

7   fiscal year.  Appropriations that revert to a state restricted fund or      

                                                                                

8   account pursuant to this section shall not revert to the general fund       

                                                                                

9   of this state.                                                              

                                                                                

10      (2) A state restricted revenue fund or account that receives                

                                                                                

11  revenues in excess of expenditures made from that state restricted          

                                                                                

12  revenue fund or account shall not have the excess revenue revert to         

                                                                                

13  the general fund of this state.                                             

                                                                                

14      Sec. 212.  (1) Of the funds appropriated in part 1, the                     

                                                                                

15  department may provide for indemnity as provided for pursuant to the        

                                                                                

16  animal industry act of 1987, 1988 PA 466, MCL 287.701 to 287.745, not       

                                                                                

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

                                                                                

18  ending September 30, 2004.  Before the department provides for an           

                                                                                

19  indemnification under this section, the department shall report the         

                                                                                

20  reason for the indemnification, the amount of the indemnification, and      

                                                                                

21  to whom the indemnification is to be paid.  The report shall be given       

                                                                                

22  to each member of the house and senate appropriations subcommittees on      

                                                                                

23  agriculture and to the senate and house fiscal agencies and the state       

                                                                                

24  budget director.                                                            

                                                                                

25      (2) The department of agriculture shall make an indemnification             

                                                                                

26  payment for the fair market value of an apiarian loss caused by a bear      

                                                                                

27  and payment for the fair market value of livestock killed by a wolf,        


                                                                                

1   if the kill is verified by the department of natural resources.  The        

                                                                                

2   fair market value of the livestock shall be determined pursuant to the      

                                                                                

3   indemnification procedures prescribed in the animal industry act, 1988      

                                                                                

4   PA 466, MCL 287.701 to 287.745.  In addition to the funds appropriated      

                                                                                

5   in part 1, the department of agriculture is authorized to expend the        

                                                                                

6   funds received from the department of natural resources to reimburse        

                                                                                

7   the department of agriculture for all indemnification payments made         

                                                                                

8   pursuant to this subsection.                                                

                                                                                

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

                                                                                

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

                                                                                

11  local government agencies, institutions of higher education, or             

                                                                                

12  nonprofit organizations unless the department provides notice of the        

                                                                                

13  grant to the house and senate appropriations subcommittees on               

                                                                                

14  agriculture at least 10 days before the grant is issued.  The grants        

                                                                                

15  shall be used to support research or other related activities for the       

                                                                                

16  purpose of enhancing the agricultural industries in this state.             

                                                                                

17      Sec. 216.  The unexpended and unencumbered balance of revenue               

                                                                                

18  deposited pursuant to section 20 of the horse racing law of 1995, 1995      

                                                                                

19  PA 279, MCL 431.320, for the fiscal year ending September 30, 2004,         

                                                                                

20  shall be appropriated to the Michigan agriculture equine industry           

                                                                                

21  development fund for distribution as set forth in section 20 of the         

                                                                                

22  horse racing law of 1995, 1995 PA 279, MCL 431.320.                         

                                                                                

23      Sec. 219.  The department of information technology shall                   

                                                                                

24  establish a schedule of rates, user fees, and charges or assessments        

                                                                                

25  for standard services and information system support requirements to        

                                                                                

26  be made to departments for technology related services and projects.        

                                                                                

27  This schedule, as well as copies of related interagency agreements,         


                                                                                

1   shall be provided to the state budget office and the house and senate       

                                                                                

2   committees on appropriations before October 15, 2003.  The department       

                                                                                

3   of agriculture shall not process any payments or fund transfers to the      

                                                                                

4   department of information technology until 30 days after the schedule       

                                                                                

5   of rates, user fees, and assessments is provided to the legislature,        

                                                                                

6   pursuant to this section.                                                   

                                                                                

7       Sec. 220.  Amounts appropriated in part 1 for information                   

                                                                                

8   technology may be designated as work projects and carried forward to        

                                                                                

9   support technology projects under the direction of the department of        

                                                                                

10  information technology.  Funds designated in this manner are not            

                                                                                

11  available for expenditure until approved as work projects under             

                                                                                

12  section 451a of the management and budget act, 1984 PA 431, MCL             

                                                                                

13  18.1451a.                                                                   

                                                                                

14      Sec. 221.  At the close of the fiscal year ending September 30,             

                                                                                

15  2004, $2,223,000.00 from the unreserved and unencumbered closing            

                                                                                

16  balance of the agriculture equine industry development fund shall be        

                                                                                

17  transferred to the general fund.  This transfer shall be made as a          

                                                                                

18  result of the funding cuts applied to the various horse racing              

                                                                                

19  appropriations included in this act.                                        

                                                                                

20      Sec. 222.  The negative appropriation for employee turnover                 

                                                                                

21  savings in part 1 shall be satisfied by employee cost savings realized      

                                                                                

22  from the natural delay associated with position posting, recruitment,       

                                                                                

23  and hiring of employees to fill approved vacancies for existing             

                                                                                

24  positions within the department.  Appropriation authorization               

                                                                                

25  adjustments required to implement the negative appropriation shall be       

                                                                                

26  made after the approval of transfers by the legislature under section       

                                                                                

27  393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.          


                                                                                

1       Sec. 223.  In addition to the amounts appropriated in part 1, in            

                                                                                

2   order to encourage administrative efficiencies, there is appropriated       

                                                                                

3   in a special line-item account to be entitled director's                    

                                                                                

4   administrative efficiencies account an amount not to exceed the             

                                                                                

5   unexpended, unreserved general fund portions of the fiscal year             

                                                                                

6   2002-2003 appropriations made to the department for salaries and wages      

                                                                                

7   expenses, contractual services, supplies and materials expenses,            

                                                                                

8   information technology expenses, and program operations costs.  These       

                                                                                

9   funds may be expended 30 days after the director submits an allotment       

                                                                                

10  plan for the director's administrative efficiencies account to the          

                                                                                

11  state budget director and the chairpersons of the house and senate          

                                                                                

12  appropriations committees.                                                  

                                                                                

13      Sec. 224.  (1) Part 1 appropriations include $2,600,000.00 from             

                                                                                

14  the agricultural enhancement fund or, if legislation creating the           

                                                                                

15  agricultural enhancement fund is not enacted before March 30, 2004,         

                                                                                

16  from the Michigan strategic fund casino compact revenue above the fund      

                                                                                

17  balance of $20,000,000.00.  To the extent that revenue is available         

                                                                                

18  from the applicable source, programs, services, and projects are            

                                                                                

19  appropriated in the following amounts and order of priority:                

                                                                                

20      (a) $1,000,000.00 for market development.                                   

                                                                                

21      (b) $750,000.00 for bovine tuberculosis.                                    

                                                                                

22      (c) $600,000.00 for migrant housing.                                        

                                                                                

23      (d) $200,000.00 for local conservation districts.                           

                                                                                

24      (e) $50,000.00 for future farmers of America.                               

                                                                                

25      (2) Expenditures for programs listed in this section shall not be           

                                                                                

26  reduced if funds are appropriated pursuant to this section.                 

                                                                                

27      Sec. 225.  (1) Agricultural enhancement fund revenue in excess of           


                                                                                

1   $2,600,000.00 and casino compact revenue of the Michigan strategic          

                                                                                

2   fund above the fund balance of $20,000,000.00 is appropriated for the       

                                                                                

3   purposes of enhancing the development of agriculture in this state,         

                                                                                

4   including, but not limited to, the following purposes:                      

                                                                                

5       (a) Support of value-added opportunities, including, but not                

                                                                                

6   limited to, market development, export enhancement, and quality and         

                                                                                

7   purity assurance.                                                           

                                                                                

8       (b) Research and diagnostic capabilities for agricultural plants            

                                                                                

9   and animals.                                                                

                                                                                

10      (c) Environmental programs that provide incentives for on-farm              

                                                                                

11  practices or structures to reduce potential impacts on air, water, and      

                                                                                

12  soil.                                                                       

                                                                                

13      (d) Rehabilitation programs for race horses.                                

                                                                                

14      (e) Farmland preservation, including, but not limited to,                   

                                                                                

15  purchase of development rights and land use planning.                       

                                                                                

16      (f) Agricultural production practices that efficiently use water            

                                                                                

17  in the production of feed, food, and fiber.                                 

                                                                                

18      (g) Leadership development or educational programs that directly            

                                                                                

19  support production agriculture, including agriculture-related               

                                                                                

20  activities at county, regional, and state fairs.                            

                                                                                

21      (h) Food security.                                                          

                                                                                

22      (2) These funds may be expended 30 days after the director                  

                                                                                

23  provides a plan for the use of these funds to the state budget              

                                                                                

24  director and the chairpersons of the house and senate appropriations        

                                                                                

25  committees.  Expenditures for programs listed in this section shall         

                                                                                

26  not be reduced if funds are appropriated pursuant to this section.          

                                                                                

                                                                                


                                                                                

1   EXECUTIVE                                                                   

                                                                                

2       Sec. 301.  Per diem rates for commodity committees established in           

                                                                                

3   the agriculture commodities marketing act, 1965 PA 232, MCL 290.651 to      

                                                                                

4   290.674, 1970 PA 29, MCL 290.421 to 290.430, 1964 PA 114, MCL 290.551       

                                                                                

5   to 290.568, and the beef industry commission act, 1972 PA 291, MCL          

                                                                                

6   287.601 to 287.610, will be set based upon levels established in            

                                                                                

7   section 301 of 2002 PA 516.                                                 

                                                                                

8       Sec. 302.  The department may receive and expend revenue and use            

                                                                                

9   that revenue to cover necessary expenses related to publications,           

                                                                                

10  audit and licensing functions, livestock sales, certification of            

                                                                                

11  nursery stock, bean inspection services, and laboratory analyses as         

                                                                                

12  specified in the following:                                                 

                                                                                

13      (a) Management services publications.                                       

                                                                                

14      (b) Management services audit and licensing functions.                      

                                                                                

15      (c) Upper Peninsula state fair livestock sales.                             

                                                                                

16      (d) Pesticide and plant pest management propagation and                     

                                                                                

17  certification of virus free foundation stock.                               

                                                                                

18      (e) Pesticide and plant pest management bean inspection and                 

                                                                                

19  grading services.                                                           

                                                                                

20      (f) Laboratory support testing for testing horses in draft horse            

                                                                                

21  pulling contests at county fairs when local jurisdictions request           

                                                                                

22  state assistance.                                                           

                                                                                

23      (g) Laboratory support analyses to determine foreign substances in          

                                                                                

24  horses engaged in racing or pulling contests at tracks.                     

                                                                                

25      (h) Laboratory support analysis of food, livestock, and                     

                                                                                

26  agricultural products for disease, foreign products for disease, toxic      

                                                                                

27  materials, foreign substances, and quality standards.                       


                                                                                

1       (i) Laboratory support test samples for other agencies and                  

                                                                                

2   organizations.                                                              

                                                                                

3       (j) Fruit and vegetable inspection at shipping and termination              

                                                                                

4   points and processing plants.                                               

                                                                                

5       Sec. 303.  Of the funds appropriated in part 1 for statistical              

                                                                                

6   reporting service, $90,000.00 shall be used for surveys which include,      

                                                                                

7   but are not limited to, fruit, vegetables, and nursery stock, which         

                                                                                

8   encompasses Christmas trees and ornamental plants.  The director of         

                                                                                

9   the Michigan department of agriculture is given authority to include        

                                                                                

10  other agricultural surveys such as turfgrass in the 3- to 5-year            

                                                                                

11  rotation.  The survey shall include information such as existing            

                                                                                

12  plantings/acreage, new plantings/acreage, production, and number of         

                                                                                

13  growers.                                                                    

                                                                                

                                                                                

                                                                                

14  FOOD AND DAIRY                                                              

                                                                                

15      Sec. 401.  (1) The department shall monitor restaurant inspection           

                                                                                

16  and licensing functions carried out by local health departments to          

                                                                                

17  ensure uniform application and enforcement of minimum program               

                                                                                

18  requirements.  On or before April 1, 2004, the department shall report      

                                                                                

19  to the senate and house appropriations subcommittees on agriculture,        

                                                                                

20  the senate and house fiscal agencies, and the state budget director on      

                                                                                

21  local health department conformance with minimum program                    

                                                                                

22  requirements.                                                               

                                                                                

23      (2) If a local unit of government incurs additional costs                   

                                                                                

24  resulting from its efforts to control a significant food-borne              

                                                                                

25  outbreak, the director shall seek additional resources to reimburse         

                                                                                

26  the local unit of government for these additional costs.  The director      


                                                                                

1   shall involve the local health officer of the jurisdiction affected in      

                                                                                

2   all aspects of the control of any food-borne outbreak.                      

                                                                                

3       Sec. 402.  Not later than April 1, 2004, the department shall               

                                                                                

4   provide a report to the house and senate appropriations subcommittees       

                                                                                

5   on agriculture and the house and senate fiscal agencies describing          

                                                                                

6   significant food-borne outbreaks and emergencies including any              

                                                                                

7   enforcement actions taken related to food safety during the 2002-2003       

                                                                                

8   fiscal year.                                                                

                                                                                

9       Sec. 403.  The department, in conjunction with the department of            

                                                                                

10  community health, shall assure that a process is in place that              

                                                                                

11  requires a local unit of government to obtain prior approval from the       

                                                                                

12  department before any reallocation or redistribution of program funds       

                                                                                

13  appropriated in section 104.                                                

                                                                                

                                                                                

                                                                                

14  ANIMAL INDUSTRY                                                             

                                                                                

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

                                                                                

16  bovine tuberculosis program, the department of agriculture shall            

                                                                                

17  reimburse the department of natural resources for those costs               

                                                                                

18  associated with monitoring and testing wildlife for bovine                  

                                                                                

19  tuberculosis that are necessary to support the department of                

                                                                                

20  agriculture goals and are jointly agreed to by the department of            

                                                                                

21  agriculture and the department of natural resources to be in excess of      

                                                                                

22  efforts necessary to effectively plan and execute the eradication of        

                                                                                

23  bovine tuberculosis from Michigan's wild free-ranging deer herd.            

                                                                                

24      Sec. 451.  From the funds appropriated in section 101 for bovine            

                                                                                

25  tuberculosis, the department shall pay for all whole herd testing           

                                                                                

26  costs to achieve and maintain split-state status requirements.  These       


                                                                                

1   costs include producer assistance, indemnity, and compensation for          

                                                                                

2   injury causing death or downer to animals.                                  

                                                                                

3       Sec. 453.  The appropriation in part 1 for animal health includes           

                                                                                

4   $4,669,200.00 for the bovine tuberculosis program.  These funds shall       

                                                                                

5   be expended in a manner that maximizes the use of available federal         

                                                                                

6   funds.  If existing casino compacts are renegotiated, $500,000.00 is        

                                                                                

7   appropriated from the Michigan strategic fund for bovine tuberculosis       

                                                                                

8   mitigation, control, and indemnification payments to affected dairy         

                                                                                

9   and livestock owners.                                                       

                                                                                

                                                                                

                                                                                

10  PESTICIDE AND PLANT PEST MANAGEMENT                                         

                                                                                

11      Sec. 501.  Of the funds appropriated in section 106 to the                  

                                                                                

12  pesticide and plant pest management division, up to $100,000.00 may be      

                                                                                

13  made available to the Michigan cooperative extension service for the        

                                                                                

14  purpose of training of applicators.  Reimbursement shall be based on        

                                                                                

15  actual expenditures and revenue availability.                               

                                                                                

16      Sec. 502.  The appropriation in part 1 includes $7,250,000.00 for           

                                                                                

17  emerald ash borer eradication efforts.  These funds may be provided to      

                                                                                

18  local governmental units to chemically treat threatened trees at the        

                                                                                

19  discretion of the director of the department.                               

                                                                                

                                                                                

                                                                                

20  ENVIRONMENTAL STEWARDSHIP                                                   

                                                                                

21      Sec. 601.  The funds appropriated in section 107 for the energy             

                                                                                

22  conservation program shall be distributed on a competitive basis that       

                                                                                

23  will be based on statewide energy conservation criteria.                    

                                                                                

24      Sec. 602.  The department may expend the amount appropriated for            

                                                                                

25  migrant labor housing grants for construction of new migrant labor          


                                                                                

1   housing.  Project grants shall not exceed $5,000.00 per unit.  An           

                                                                                

2   applicant is not eligible for more than a $20,000.00 grant in any           

                                                                                

3   fiscal year.                                                                

                                                                                

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

                                                                                

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

                                                                                

6   housing program.                                                            

                                                                                

7       Sec. 604.  The appropriation in section 107 for local                       

                                                                                

8   conservation districts shall be allocated in the following manner:          

                                                                                

9       (a) Of the total appropriation, $130,000.00 shall be allocated for          

                                                                                

10  local conservation district training.                                       

                                                                                

11      (b) Of the total appropriation, each local conservation district            

                                                                                

12  meeting the minimum grant requirements shall receive a grant of             

                                                                                

13  $20,000.00 to support basic operations, unless the district resides in      

                                                                                

14  a county consisting of multiple districts, in which case a $20,000.00       

                                                                                

15  grant shall be divided equally among the districts in that county.          

                                                                                

16  The amount of money allocated under this subdivision shall not be used      

                                                                                

17  by local conservation districts to replace any money received from          

                                                                                

18  local sources.                                                              

                                                                                

19      (c) Of the remaining appropriation after distributions under                

                                                                                

20  subdivisions (a) and (b), additional grants, not to exceed $20,000.00       

                                                                                

21  per local conservation district, may be provided based on a formula         

                                                                                

22  approved by the commission of agriculture.  Grants under this               

                                                                                

23  subdivision shall require at least a 100% cash or in-kind local             

                                                                                

24  match.  Criteria used to distribute grants under this subdivision           

                                                                                

25  shall include, but are not limited to, the natural resources need, the      

                                                                                

26  size, and the population of the area served by each local conservation      

                                                                                

27  district.                                                                   


                                                                                

1   MARKET DEVELOPMENT                                                          

                                                                                

2       Sec. 701.  Within the appropriations in part 1 for market                   

                                                                                

3   development, $500,000.00 is for the grape and wine industry council,        

                                                                                

4   from which the department may provide grants for the purposes as            

                                                                                

5   described in section 303 of the Michigan liquor control code of 1998,       

                                                                                

6   1998 PA 58, MCL 436.1303.                                                   

                                                                                

7       Sec. 702.  In any given year when insufficient amounts of                   

                                                                                

8   Michigan surplus products are offered to the food bank council and          

                                                                                

9   accepted for distribution, unused funds may be applied by the food          

                                                                                

10  bank council for the direct purchase of foods from Michigan growers,        

                                                                                

11  manufacturers, or wholesalers.                                              

                                                                                

12      Sec. 704.  Indirect costs may not be charged against the future             

                                                                                

13  farmers of America grant in section 109 by any administering agency.        

                                                                                

14      Sec. 705.  The appropriation in section 109 for the export market           

                                                                                

15  development program shall be used to coordinate state participation in      

                                                                                

16  the federal market access program and to leverage federal funds for         

                                                                                

17  the purpose of developing new and enhancing existing export markets         

                                                                                

18  for Michigan agricultural products.                                         

                                                                                

19      Sec. 706.  In addition to the appropriation in part 1 for the               

                                                                                

20  food bank, $369,500.00 is appropriated from the state general fund for      

                                                                                

21  procurement and distribution of Michigan agricultural products to           

                                                                                

22  emergency food providers.                                                   

                                                                                

23      Sec. 707.  The department is authorized to receive and expend up            

                                                                                

24  to $5,000,000.00 of utility company uncollectible allowance recovery        

                                                                                

25  fund resources which may be deposited into the agricultural                 

                                                                                

26  development fund for the support of grants for value-added                  

                                                                                

27  agricultural processing and agricultural production ventures in             


                                                                                

1   accordance with the Julian-Stille value-added act, 2000 PA 322, MCL         

                                                                                

2   285.301 to 285.304.  The agriculture development fund resources when        

                                                                                

3   certified as available by the department of treasury shall remain           

                                                                                

4   unallotted until such time as the state budget director has reviewed        

                                                                                

5   and approved a department submitted allotment schedule.  Expenditures       

                                                                                

6   for support of agricultural processing and production ventures shall        

                                                                                

7   not exceed revenues received.  Unexpended resources remaining in the        

                                                                                

8   fund at the end of the fiscal year shall remain in the fund and not         

                                                                                

9   lapse to the general fund.                                                  

                                                                                

                                                                                

                                                                                

10  FAIRS AND EXPOSITIONS                                                       

                                                                                

11      Sec. 801.  The department shall submit a report each month to the           

                                                                                

12  state budget director, the senate and house appropriations                  

                                                                                

13  subcommittees on agriculture, and the senate and house fiscal agencies      

                                                                                

14  that states the simulcasting revenues generated in the preceding month      

                                                                                

15  by each licensed track and the amount received from license fees.           

                                                                                

16      Sec. 802.  (1) The appropriation in section 110 for standardbred            

                                                                                

17  purses and supplements - licensed tracks is intended to provide state       

                                                                                

18  purse supplements for 4 races at state licensed pari-mutuel horse           

                                                                                

19  racing tracks.  The purse supplements are to be used for races              

                                                                                

20  comprised only of Michigan-bred horses segregated into a 4-year-old         

                                                                                

21  colt trot division, a 4-year-old filly trot division, a 4-year-old          

                                                                                

22  colt pace division, and a 4-year-old filly pace division.                   

                                                                                

23      (2) The appropriation in part 1 for licensed tracks - light horse           

                                                                                

24  racing shall be allocated as follows:                                       

                                                                                

25    Arabian and Appaloosa horse racing.................. $          16,800    

                                                                                

26    Quarter horse racing................................            50,500    


                                                                                

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

                                                                                

2   the thoroughbred program is $30,500.00 for the Michigan united              

                                                                                

3   thoroughbred breeders and owners association to conduct a thoroughbred      

                                                                                

4   yearling show.  The Michigan united thoroughbred breeders and owners        

                                                                                

5   association shall submit to the department an itemized list of              

                                                                                

6   expenses showing that the expenses of the yearling show were paid.          

                                                                                

7       Sec. 804.  From the funds appropriated in section 110 for                   

                                                                                

8   thoroughbred owners' awards, awards shall be distributed pursuant to        

                                                                                

9   section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320.       

                                                                                

10      Sec. 805.  The department shall notify the senate and house                 

                                                                                

11  appropriations subcommittees and the fiscal agencies of any planned         

                                                                                

12  reductions in appropriations, allocations, or expenditures from the         

                                                                                

13  agriculture equine industry development fund no less than 10 days           

                                                                                

14  before such reductions are implemented.                                     

                                                                                

15      Sec. 806.  A county fair, district fair, 4-H fair, or state fair            

                                                                                

16  receiving funds in section 110 to be used for prizes or awards, in          

                                                                                

17  whole or in part, as a condition precedent to the receiving of the          

                                                                                

18  funds for those purposes, shall publish the rules relative to the           

                                                                                

19  prizes, awards, and deadlines for entries eligible for the funds in         

                                                                                

20  their official premium books or lists relative to the prizes or             

                                                                                

21  awards.  An aggrieved exhibitor may make a written complaint to the         

                                                                                

22  fair within 10 days after the fair ends.  If the fair has not               

                                                                                

23  satisfactorily settled the grievance within 45 days after it is             

                                                                                

24  submitted to the fair, the aggrieved person may file the complaint          

                                                                                

25  with the department and the department shall investigate the complaint      

                                                                                

26  and make a finding of fact regarding the complaint and take                 

                                                                                

27  appropriate action regarding the complaint.                                 


                                                                                

1       Sec. 807.  Of the amount appropriated in section 110 for purses             

                                                                                

2   and supplements - fairs/licensed tracks, a sufficient amount is             

                                                                                

3   appropriated to provide for overnight purse supplements pursuant to         

                                                                                

4   the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336.          

                                                                                

5       Sec. 808.  Of the amount appropriated in section 110 for                    

                                                                                

6   premiums, $11,400.00 shall be expended as a grant for the Michigan          

                                                                                

7   horse show association - fall youth show.                                   

                                                                                

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

                                                                                

9   state fairs in section 110, $120,000.00 shall be awarded through a          

                                                                                

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

                                                                                

11  expositions to promote youth involvement and adult exhibitions in the       

                                                                                

12  animal agriculture industry.  Appropriate exhibition classes for youth      

                                                                                

13  shall be developed that encourage a production exhibit for which            

                                                                                

14  premium awards may be paid.  The age for youth exhibitors shall be          

                                                                                

15  determined by the standards of the association requesting the grant         

                                                                                

16  or, if standards do not exist, the age for youth exhibitors shall be        

                                                                                

17  ages 9 through 21.  Implementation of the latest technologies into the      

                                                                                

18  evaluation of the animals shall be encouraged in the production             

                                                                                

19  exhibit.  Adult exhibitions should focus on the performance or end          

                                                                                

20  product, or both, with the appropriate technologies used to enhance         

                                                                                

21  placings and the awarding of premiums.                                      

                                                                                

22      Sec. 810.  Expenditures for the Michigan state fair operations              

                                                                                

23  from the department shall be limited to the amount appropriated in          

                                                                                

24  section 110.  The department shall not be responsible for any costs         

                                                                                

25  above the appropriated amount unless additional funds are appropriated      

                                                                                

26  for this purpose.                                                           

                                                                                

27      Sec. 811.  The funds appropriated in section 110 for distribution           


                                                                                

1   of outstanding winning tickets are not available for expenditure until      

                                                                                

2   they are deposited in the agriculture equine industry development fund      

                                                                                

3   pursuant to section 2 of 1951 PA 90, MCL 431.252.  These funds shall        

                                                                                

4   be expended in accordance with section 2 of 1951 PA 90, MCL 431.252,        

                                                                                

5   and only after they have been transferred to another line item in this      

                                                                                

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

                                                                                

7   431, MCL 18.1393.                                                           

                                                                                

8       Sec. 812.  An individual or other entity that leases land, a                

                                                                                

9   building, or other property under the Michigan exposition and               

                                                                                

10  fairgrounds act, 1978 PA 361, MCL 285.161 to 285.175a, is not eligible      

                                                                                

11  for a state grant, loan, appropriation, or other state subsidy related      

                                                                                

12  to the leased land, building, or other property.                            

                                                                                

13      Sec. 813.  (1) On or before January 29, 2004, the department,               

                                                                                

14  together with the senate and house fiscal agencies and the department       

                                                                                

15  of management and budget, shall estimate the unreserved and                 

                                                                                

16  unencumbered closing balance of the agriculture equine industry             

                                                                                

17  development fund for the fiscal year ending September 30, 2003.  The        

                                                                                

18  estimate shall consider lapsed appropriations from the fund and any         

                                                                                

19  carryforward amounts designated for appropriation in the fiscal year        

                                                                                

20  ending September 30, 2003.                                                  

                                                                                

21      (2) On or before February 5, 2004, the department shall request a           

                                                                                

22  legislative transfer in accordance with section 393 of the management       

                                                                                

23  and budget act, 1984 PA 431, MCL 18.1393, to appropriate any estimated      

                                                                                

24  unreserved and unencumbered agriculture equine industry development         

                                                                                

25  fund balance in excess of $250,000.00.  The appropriations included in      

                                                                                

26  the transfer request shall be in accordance with the requirements of        

                                                                                

27  section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320.       


                                                                                

1   At the same time the department forwards its transfer request to the        

                                                                                

2   department of management and budget, the department shall submit            

                                                                                

3   copies of the transfer request to the senate and house appropriations       

                                                                                

4   subcommittees on agriculture and the senate and house fiscal                

                                                                                

5   agencies.                                                                   

                                                                                

                                                                                

                                                                                

6   OFFICE OF RACING COMMISSIONER                                               

                                                                                

7       Sec. 901.  The racing commissioner may pay rewards of not more              

                                                                                

8   than $5,800.00 to a person who provides information that results in         

                                                                                

9   the arrest and conviction on a felony or misdemeanor charge for a           

                                                                                

10  crime that involves the horse racing industry.  A reward paid pursuant      

                                                                                

11  to this section shall be paid out of the office of racing commissioner      

                                                                                

12  line item.