SB-0169, As Passed Senate, April 26, 2011

SUBSTITUTE FOR

SENATE BILL NO. 169

A bill to make appropriations for the department of

agriculture and rural development for the fiscal year ending

September 30, 2012; to provide for the expenditure of the

appropriations; to provide anticipated appropriations for the

fiscal year ending September 30, 2013; to create funds; to provide

for the imposition of fees; to require reports, audits, and plans;

to authorize certain transfers by certain state agencies; and to

provide for the disposition of fees and other income received by

certain state agencies.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

FOR FISCAL YEAR 2011-2012

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

amounts listed in this part are appropriated for the department of

agriculture and rural development for the fiscal year ending

September 30, 2012, from the funds indicated in this part. The

following is a summary of the appropriations in this part:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

APPROPRIATION SUMMARY

Full-time equated unclassified positions.......... 2.0

Full-time equated classified positions.......... 433.0

GROSS APPROPRIATION.................................... $ 71,819,300

Interdepartmental grant revenues:

IDG-MDELEG (LCC), liquor quality testing fees.......... 197,600

IDG-MDEQ, biosolids.................................... 100,000

Total interdepartmental grants and intradepartmental

transfers............................................ 297,600

ADJUSTED GROSS APPROPRIATION........................... $ 71,521,700

Federal revenues:

USDA, multiple grants.................................. 10,873,300

EPA, multiple grants................................... 1,635,700

HHS-FDA................................................ 1,203,900

United States department of labor...................... 471,800

Total federal revenues................................. 14,184,700

Special revenue funds:

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

Private - slow the spread foundation................... 83,300

Private - commodity group revenue...................... 88,000

Total private revenues................................. 171,300

Agriculture preservation fund.......................... 2,031,100

Agriculture equine industry development fund........... 3,773,300

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

Animal welfare fund.................................... 144,500

Commodity inspection fees.............................. 832,400

Consumer and industry food safety education fund....... 290,200

Dairy and food safety fund............................. 3,006,600

Freshwater protection fund............................. 5,094,100

Gasoline inspection and testing fund................... 2,747,800

Horticulture fund...................................... 72,800

Industry support funds................................. 535,300

Licensing and inspection fee........................... 4,188,800

Migrant housing inspection fee......................... 114,200

Migrant labor housing fund............................. 29,000

Nonretail liquor fees.................................. 716,800

Refined petroleum fund................................. 3,870,900

Testing fees........................................... 447,500

Grain dealer's fee fund................................ 522,500

Weights and measures regulation fees................... 745,100

Total other state restricted revenues.................. 29,163,000

State general fund/general purpose..................... $ 28,002,700

Sec. 102. EXECUTIVE

Full-time equated unclassified positions.......... 2.0

Full-time equated classified positions........... 10.0

Commissions and boards................................. $ 23,700

Unclassified positions................................. 213,400

Executive direction--8.0 FTE positions................. 1,050,400

Emergency management--2.0 FTE positions................ 243,700

GROSS APPROPRIATION.................................... $ 1,531,200

Appropriated from:

Special revenue funds:

Industry support funds................................. 40,500

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

State general fund/general purpose..................... $ 1,481,900

Sec. 103. DEPARTMENTWIDE

Full-time equated classified positions............. 16.0

Rent and building occupancy charges.................... $ 991,800

Operational services--15.0 FTE positions............... 981,200

Statistical reporting service--1.0 FTE positions....... 158,200

Accounting service center.............................. 878,400

GROSS APPROPRIATION.................................... $ 3,009,600

Appropriated from:

Federal revenues:

USDA - multiple grants................................. 224,600

EPA - multiple grants.................................. 174,100

HHS-FDA................................................ 43,300

Special revenue funds:

Private - commodity group.............................. 88,000

Agriculture preservation fund.......................... 22,700

Freshwater protection fund............................. 33,500

Licensing and inspection fees.......................... 156,800

Nonretail liquor fees.................................. 28,800

Refined petroleum fund................................. 315,000

State general fund/general purpose..................... $ 1,922,800

Sec. 104. FOOD AND DAIRY

Full-time equated classified positions............ 101.0

Food safety and quality assurance--81.0 FTE positions.. $ 9,931,500

Milk safety and quality assurance--20.0 FTE positions.. 3,037,900

GROSS APPROPRIATION.................................... $ 12,969,400

Appropriated from:

Federal revenues:

USDA - multiple grants................................. 234,900

HHS-FDA................................................ 451,600

Special revenues funds:

Consumer and industry food safety education fund....... 290,200

Dairy and food safety fund............................. 3,006,600

State general fund/general purpose..................... $ 8,986,100

Sec. 105. ANIMAL INDUSTRY

Full-time equated classified positions........... 64.0

Animal disease prevention and response--64.0 FTE

positions............................................ $ 9,039,500

GROSS APPROPRIATION.................................... $ 9,039,500

Appropriated from:

Federal revenues:

USDA - multiple grants................................. 1,233,500

HHS-FDA................................................ 40,600

Special revenue funds:

Animal welfare fund.................................... 144,500

Licensing and inspection fees.......................... 113,100

State general fund/general purpose..................... $ 7,507,800

Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT

Full-time equated classified positions........... 99.0

Pesticide and plant pest management--88.0 FTE

positions............................................ $ 10,612,700

Emerald ash borer control program--7.0 FTE positions... 1,822,500

Producer security/grain dealers--4.0 FTE positions..... 543,400

GROSS APPROPRIATION.................................... $ 12,978,600

Appropriated from:

Federal revenues:

USDA - multiple grants................................. 2,942,100

EPA - multiple grants.................................. 738,800

HHS-FDA................................................ 109,200

Special revenue funds:

Private - slow the spread foundation................... 83,300

Commodity inspection fees.............................. 832,400

Horticulture fund...................................... 72,800

Industry support funds................................. 336,300

Grain dealer's fee fund................................ 522,500

Licensing and inspection fees.......................... 3,808,700

State general fund/general purpose..................... $ 3,532,500

Sec. 107. ENVIRONMENTAL STEWARDSHIP

Full-time equated classified positions........... 39.0

Michigan agricultural environmental assurance program--3.0 FTE

positions............................................... $ 264,700

Groundwater and freshwater protection program--18.0

FTE positions........................................ 5,421,600

Farmland and open space preservation--9.0 FTE

positions............................................ 958,300

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

Local conservation districts........................... 100

Migrant labor housing--6.0 FTE positions............... 1,162,400

Right-to-farm--3.0 FTE positions....................... 518,900

GROSS APPROPRIATION.................................... $ 9,326,000

Appropriated from:

Interdepartmental grant revenues:

IDG-MDEQ, biosolids.................................... 100,000

Federal revenues:

USDA - multiple grants................................. 1,000,000

EPA - multiple grants.................................. 361,200

United states department of labor...................... 471,800

Special revenue funds:

Agriculture preservation fund.......................... 958,200

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

Freshwater protection fund............................. 5,060,500

Migrant housing inspection fees........................ 114,200

Migratory labor housing fund........................... 29,000

State general fund/general purpose..................... $ 1,231,000

Sec. 108. LABORATORY PROGRAM

Full-time equated classified positions........... 94.0

Laboratory services--42.0 FTE positions................ $ 5,564,700

USDA monitoring program--13.0 FTE positions............ 2,451,900

Consumer protection program--39.0 FTE positions........ 5,571,400

GROSS APPROPRIATION.................................... $ 13,588,000

Appropriated from:

Interdepartmental grant revenues:

IDG-MDELEG (LCC), liquor quality testing fees.......... 194,800

Federal revenues:

USDA - multiple grants................................. 2,474,700

EPA - multiple grants.................................. 361,600

HHS-FDA................................................ 559,200

Special revenue funds:

Agriculture equine industry development fund........... 557,800

Gasoline inspection and testing fund................... 2,720,400

Licensing and inspection fees.......................... 81,900

Refined petroleum fund................................. 3,555,900

Testing fees........................................... 447,500

Weights and measures regulation fees................... 745,100

State general fund/general purpose..................... $ 1,889,100

Sec. 109. AGRICULTURAL DEVELOPMENT

Full-time equated classified positions............ 7.0

Agricultural development--4.0 FTE positions............ $ 1,915,200

Grape and wine program--3.0 FTE positions.............. 736,400

GROSS APPROPRIATION.................................... $ 2,651,600

Appropriated from:

Federal revenues:

USDA - multiple grants................................. 1,513,500

Special revenue funds:

Industry support funds................................. 158,500

Nonretail liquor fees.................................. 678,700

State general fund/general purpose..................... $ 300,900

Sec. 110. FAIRS AND EXPOSITIONS

Full-time equated classified positions............ 3.0

Fairs and racing--3.0 FTE positions.................... $ 331,200

Purses - fairs/licensed tracks......................... 611,500

Licensed tracks - light horse racing................... 34,000

Standardbred breeders' awards.......................... 250,100

Standardbred supplements - licensed tracks............. 461,500

Standardbred sire stakes............................... 209,100

Standardbred training and stabling..................... 9,200

Thoroughbred owners' awards............................ 32,000

Thoroughbred supplements - licensed tracks............. 309,500

Thoroughbred breeders' awards.......................... 309,700

Thoroughbred sire stakes............................... 214,000

Distribution of outstanding winning tickets............ 350,100

GROSS APPROPRIATION.................................... $ 3,121,900

Appropriated from:

Special revenue funds:

Agriculture equine industry development fund........... 3,121,900

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

Sec. 111. INFORMATION AND TECHNOLOGY

Information technology services and projects........... $ 1,303,500

GROSS APPROPRIATION.................................... $ 1,303,500

Appropriated from:

Interdepartmental grant revenues:

IDG-DELEG (LCC), liquor quality testing fee............ 2,800

Special revenue funds:

Agriculture preservation fund.......................... 200

Agriculture equine industry development fund........... 93,600

Gasoline inspection testing fund....................... 27,400

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

Licensing and inspection fees.......................... 28,300

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

State general fund/general purpose..................... $ 1,150,600

Sec. 112. CAPITAL OUTLAY

Farmland and open space development acquisition........ $ 2,300,000

GROSS APPROPRIATION.................................... $ 2,300,000

Appropriated from:

Federal revenues:

USDA - multiple grants................................. 1,250,000

Special revenue funds:

Agriculture preservation fund.......................... 1,050,000

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

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2011-2012

GENERAL SECTIONS

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

constitution of 1963, total state spending from state resources

under part 1 for fiscal year 2011-2012 is $57,165,700.00 and state

spending from state resources to be paid to local units of

government for fiscal year 2011-2012 is $1,500,000.00. The itemized

statement below identifies appropriations from which spending to

local units of government will occur:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

Environmental protection............................... $ 1,500,000

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

Sec. 202. The appropriations authorized under this act are

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

to 18.1594.

Sec. 203. As used in this act:

(a) "Department" means the department of agriculture and rural

development.

(b) "Director" means the director of the department.

agency.

(d) "FTE" means full-time equated.

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

human services - food and drug administration.

(f) "IDG" means interdepartmental grant.

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

and economic growth.

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

quality.

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

Sec. 204. The civil service commission shall bill departments

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

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

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

the end of the second fiscal quarter.

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

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

competitively priced and of comparable quality American goods or

services, or both, are available. Preference shall be given to

goods or services, or both, manufactured or provided by Michigan

businesses, if they are competitively priced and of comparable

quality. In addition, preference shall be given to goods or

services, or both, that are manufactured or provided by Michigan

businesses owned and operated by veterans, if they are

competitively priced and of comparable quality.

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

department may provide for indemnity as provided for pursuant to

the animal industry act, 1988 PA 466, MCL 287.701 to 287.746, not

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

year ending September 30, 2012. Before the department provides for

an indemnification under this section, the department shall report

the reason for the indemnification, the amount of the

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

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

appropriations subcommittees on agriculture and to the senate and

house fiscal agencies and to the state budget director.

(2) The department of agriculture and rural development shall

make an indemnification payment for the fair market value of

livestock killed by a wolf, coyote, or cougar, if the kill is

verified by the department of natural resources. The fair market

value of the livestock shall be determined pursuant to the

indemnification procedures prescribed in the animal industry act,

1988 PA 466, MCL 287.701 to 287.745. In addition to the funds

appropriated in part 1, the department of agriculture and rural

development is authorized to expend the funds received from the

department of natural resources to reimburse the department of

agriculture and rural development for all indemnification payments

made pursuant to this subsection.

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

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

local government agencies, institutions of higher education, or

nonprofit organizations unless the department provides notice of

the grant to the senate and house appropriations subcommittees on

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

shall be used to support research or other related activities for

the purpose of enhancing the agricultural industries in this state.

Sec. 215. From the funds appropriated in part 1, the

department shall use an amount not to exceed $10,000.00 to develop,

post, and maintain, on a publicly accessible Internet site, all

expenditures made by the agency within a fiscal year. The posting

must include the purpose for which each expenditure is made. The

department shall not be required to hire additional employees to

comply with this section.

Sec. 220. Amounts appropriated in part 1 for information

technology may be designated as work projects and carried forward

to support technology projects under the direction of the

department of technology, management, and budget. Funds designated

in this manner are not available for expenditure until approved as

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

1984 PA 431, MCL 18.1451a.

Sec. 228. (1) In addition to the funds appropriated in part 1,

there is appropriated an amount not to exceed $5,000,000.00 for

federal contingency funds. These funds are not available for

expenditure until they have been transferred to another line item

in this act under section 393(2) of the management and budget act,

1984 PA 431, MCL 18.1393.

(2) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $6,000,000.00 for state

restricted contingency funds. These funds are not available for

expenditure until they have been transferred to another line item

in this act under section 393(2) of the management and budget act,

1984 PA 431, MCL 18.1393.

(3) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $100,000.00 for local

contingency funds. These funds are not available for expenditure

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

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

MCL 18.1393.

(4) In addition to the funds appropriated in part 1, there is

appropriated an amount not to exceed $100,000.00 for private

contingency funds. These funds are not available for expenditure

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

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

MCL 18.1393.

EXECUTIVE

Sec. 302. (1) Pursuant to the appropriations in part 1, the

department may receive and expend revenue and use that revenue to

cover necessary expenses related to publications, audit and

licensing functions, livestock sales, certification of nursery

stock, and laboratory analyses as specified in the following:

(a) Management services publications.

(b) Management services audit and licensing functions.

certification of virus-free foundation stock.

(d) Pesticide and plant pest management grading services.

(e) Laboratory support testing for testing horses in draft

horse pulling contests at county fairs when local jurisdictions

request state assistance.

(f) Laboratory support analyses to determine foreign

substances in horses engaged in racing or pulling contests at

tracks.

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

agricultural products for disease, foreign products for disease,

toxic materials, foreign substances, and quality standards.

(h) Laboratory support test samples for other agencies and

organizations.

(i) Fruit and vegetable inspection at shipping and termination

points and processing plants.

(2) The department shall notify the senate and house

appropriations subcommittees on agriculture and the senate and

house fiscal agencies 30 days prior to proposing changes in fees

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

285.35.

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

a report to the senate and house appropriations subcommittees on

agriculture and the senate and house fiscal agencies detailing all

the fees charged by the department under the authorization provided

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

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

in the previous fiscal year.

FOOD AND DAIRY

Sec. 401. The department shall monitor restaurant inspection

and licensing functions carried out by local health departments to

ensure uniform application and enforcement of minimum program

requirements.

Sec. 402. Not later than April 1, 2012, the department shall

provide a report to the senate and house appropriations

subcommittees on agriculture and the senate and house fiscal

agencies describing significant food-borne outbreaks and

emergencies, including any enforcement actions taken related to

food safety during the 2009-2010 fiscal year.

ANIMAL INDUSTRY

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

bovine tuberculosis program, the department shall reimburse the

department of natural resources for those costs associated with

monitoring and testing wildlife for bovine tuberculosis that are

necessary to support the department goals and are jointly agreed to

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

excess of efforts necessary to effectively plan and execute the

eradication of bovine tuberculosis from Michigan's wild free-

ranging deer herd.

Sec. 451. From the funds appropriated in section 105 for

bovine tuberculosis, the department shall pay for all whole herd

testing costs and individual animal testing costs in the modified

accredited zone to maintain split-state status requirements. These

costs include indemnity and compensation for injury causing death

or downer to animals.

Sec. 452. The department shall apply for all federal and

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

the bovine tuberculosis program.

Sec. 454. The department shall use its resources to

collaborate with the United States department of agriculture to

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

zoned as modified accredited advanced. The department shall also

aggressively work toward eradicating bovine TB in the modified

accredited zone.

Sec. 456. Of the funds appropriated in part 1, no funds shall

be used to enforce the mandatory electronic animal identification

program for any domestic animals other than cattle until specific

procedures and guidelines for electronic animal identification are

outlined in statute.

Sec. 457. On or before October 15, 2011, and on a quarterly

basis thereafter, the department shall report to the senate and

house agriculture committees, the senate and house appropriations

subcommittees on agriculture, and the senate and house fiscal

agencies on the department's progress toward meeting the USDA

requirements as outlined in the March 2007 bovine TB program

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

information and data on: wildlife risk mitigation plan

implementation in the modified accredited zone; implementation of a

movement certificate process; progress toward annual surveillance

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

and rates for animals crossing the Mackinac Bridge; efforts to work

with slaughter facilities in Michigan, as well as those that

slaughter a significant number of animals from Michigan;

educational programs and information for Michigan's livestock

community; any other item the legislature should be aware of that

will promote or hinder efforts to achieve bovine TB-free status for

Michigan.

Sec. 458. From the funds appropriated in section 105 for

animal industry, the department shall provide inspection and

testing of aquaculture facilities and aquaculture researchers as

provided under the Michigan aquaculture development act, 1996 PA

199, MCL 286.877. It is the intent of the legislature that the

department shall work with aquaculture facilities and aquaculture

researchers to identify, contain, and eradicate viral hemorrhagic

septicemia in this state.

Sec. 459. Notwithstanding the provisions of section 205, the

department is authorized to fill open positions in the bovine

tuberculosis program.

PESTICIDE AND PLANT PEST MANAGEMENT

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

department work with the fruit and vegetable industry to ensure the

development of a sustainable system of third-party inspections of

fruits and vegetables.

Sec. 553. From the funds appropriated in part 1 for pesticide

and plant pest management, not less than $200,000.00 shall be used

for the purpose to ensure that Michigan commodities receive

departmental inspections required by other governments to ship

commodities out of Michigan. The department shall devise a plan to

provide these required government inspections in a timely manner.

ENVIRONMENTAL STEWARDSHIP

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

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

housing program.

Sec. 606. The department shall actively search for all

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

USDA environmental quality incentives program.

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

department continue its activities in support of intercounty

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

1956, 1956 PA 40, MCL 280.101 to 280.106.

AGRICULTURE DEVELOPMENT

Sec. 706. Not later than April 1, 2012, the department shall

provide a report to the senate and house appropriations

subcommittees on agriculture and the senate and house fiscal

agencies describing the department's agriculture development and

export market development activities. The report shall identify

grants awarded during the prior fiscal year, including a

description of federal or private funds made available as a result

of department activities.

Sec. 709. (1) Not later than April 1, 2012, the department

shall provide a report to the senate and house appropriations

subcommittees on agriculture and the senate and house fiscal

agencies describing the activities of the grape and wine industry

council established under section 303 of the Michigan liquor

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

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

(a) Council activities and accomplishments for the previous

fiscal year.

(b) Council expenditures for the previous fiscal year by

category of administration, industry support, research and

education grants, and promotion and consumer education.

results of research grant projects completed during the prior

fiscal year.

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

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

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

employees, contract employees, and individuals working on its

behalf collaborate with the Michigan department of agriculture and

rural development to promote business development of Michigan

agricultural products to achieve outcomes that include, but are not

limited to, increases in export sales, increases in the number of

retailers carrying Michigan commodities both within and outside of

this state, and increased sales of Michigan products at chain

grocers.

FAIRS AND EXPOSITIONS

Sec. 801. All appropriations from the agricultural equine

industry development fund shall be spent on equine-related

purposes. No funds from the agriculture equine industry development

fund shall be expended for nonequine-related purposes without prior

approval of the legislature.

Sec. 802. All appropriations from the agriculture equine

industry development fund, except for the racing commission and

laboratory analysis program appropriations, shall be reduced

proportionately if revenues to the agriculture equine industry

development fund decline during the fiscal year ending September

30, 2011 to a level lower than the amounts appropriated in section

108.

Sec. 803. In the event there is no live thoroughbred race meet

in 2011 or 2012, all purse money and program money appropriated for

the thoroughbred industry in fiscal year 2010-2011 and fiscal year

2011-2012 shall be held in escrow for a period not to exceed 18

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

and granted by the Michigan gaming control board. In the event

there is no thoroughbred meet in 2011 or 2012, the purse pool

distribution order to be issued by the Michigan gaming control

board in 2012 that delineates distribution between the thoroughbred

meet that has been held at pinnacle race course and the joint

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

same distribution formula as issued in 2011, with the thoroughbred

portion being held in escrow.

Sec. 804. The Michigan gaming control board shall use actual

expenditure data in determining the actual regulatory costs of

conducting racing dates and shall provide that data to the senate

and house of representatives appropriations subcommittees on

agriculture and general government and the senate and house fiscal

agencies. The Michigan gaming control board shall not be reimbursed

for more than the actual regulatory cost of conducting race dates.

If a certified horsemen's organization funds more than the actual

regulatory cost, the balance shall remain in the agriculture equine

industry development fund to be used to fund subsequent race dates

conducted by race meeting licensees with which the certified

horsemen's organization has contracts. If a certified horsemen's

organization funds less than the actual regulatory costs of the

additional horse racing dates, the Michigan gaming control board

shall reduce the number of future race dates conducted by race

meeting licensees with which the certified horsemen's organization

has contracts. Prior to the reduction in the number of authorized

race dates due to budget deficits, the executive director of the

Michigan gaming control board shall provide notice to the certified

horsemen's organizations with an opportunity to respond with

alternatives. In determining actual costs, the Michigan gaming

control board shall take into account that each specific breed may

require different regulatory mechanisms.

CAPITAL OUTLAY

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

appropriations made in this act consistent with statutory

provisions and the purposes for which funds were appropriated.

Lump-sum allocations shall address priority program or facility

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

construction, remodeling and addition, special maintenance, major

special maintenance, energy conservation, and demolition.

(2) The state budget director may authorize that funds

appropriated for lump-sum appropriations shall be available for no

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

original appropriation was made. Any remaining balance from

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

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

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

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

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

with the provisions of section 248 of the management and budget

act, 1984 PA 431, MCL 18.1248.

PART 2A

PROVISIONS CONCERNING ANTICIPATED APPROPRIATIONS

FOR FISCAL YEAR 2012-2013

GENERAL SECTIONS

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

appropriations for the fiscal year ending on September 30, 2013 for

the line items listed in part 1. The fiscal year 2012-2013

appropriations are anticipated to be the same as those for fiscal

year 2011-2012, except that the line items will be adjusted for

changes in caseload and related costs, federal fund match rates,

economic factors, and available revenue. These adjustments will be

determined after the January 2012 consensus revenue estimating

conference. The January 2012 consensus revenue estimating

conference shall include estimates for fiscal year 2011-2012,

fiscal year 2012-2013, and fiscal year 2013-2014 for the following:

(a) State revenue.

(b) Prison population and correction expenditures.

foundation allowance.

(d) Medicaid expenditures.

(e) Human service caseloads and expenditures.