FIRST CONFERENCE REPORT

 

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

 

     House Bill No. 4229, entitled

 

     A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2020; and to provide for the expenditure of the appropriations.

 

     Recommends:

 

     First:  That the Senate recede from the Substitute of the Senate as passed by the Senate.

 

 

     Second:  That the House and Senate agree to the Substitute of the House as passed by the House, amended to read as follows:

 

(attached)

 

     Third:  That the House and Senate agree to the title of the bill to read as follows:

 

     A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2020; and to provide for the expenditure of the appropriations.

 

 

 

_______________________                ________________________

Greg VanWoerkom                         Roger Victory

 

_______________________                ________________________

Ann M. Bollin                           Jim Stamas

 

_______________________                ________________________

Sheryl Y. Kennedy                       Sean McCann

 

Conferees for the House                Conferees for the Senate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4229

 

 

 

 

 

 

 

 

 

 

 

     A bill to make appropriations for the department of

 

agriculture and rural development for the fiscal year ending

 

September 30, 2020; and to provide for the expenditure of the

 

appropriations.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

     Sec. 101. There is appropriated for the department of

 

agriculture and rural development for the fiscal year ending

 

September 30, 2020, from the following funds:

 

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

 

APPROPRIATION SUMMARY

 

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

 

   Full-time equated classified positions......... 508.0


GROSS APPROPRIATION................................... $    112,637,600

 

   Interdepartmental grant revenues:

 

IDG from LARA (LCC), liquor quality testing fees.....           227,000

 

IDG from MDEGLE, biosolids............................            91,400

 

IDG from MDNR, forest development fund................           997,300

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................         1,315,700

 

ADJUSTED GROSS APPROPRIATION.......................... $    111,321,900

 

   Federal revenues:

 

Department of interior................................           238,900

 

EPA, multiple grants..................................         1,292,300

 

HHS, multiple grants..................................         4,471,200

 

USDA, multiple grants.................................         6,634,000

 

Total federal revenues................................        12,636,400

 

   Special revenue funds:

 

Private - commodity group revenue.....................            80,500

 

Private - slow-the-spread foundation..................            21,300

 

Total private revenues................................           101,800

 

Agricultural preservation fund........................         3,444,900

 

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

 

Agriculture licensing and inspection fees.............         5,066,600

 

Animal welfare fund...................................           150,000

 

Commodity inspection fees.............................           656,000

 

Consumer and industry food safety education fund.....           243,000

 

Dairy and food safety fund............................         6,079,100

 

Feed control fund.....................................         1,318,900

 

Fertilizer control fund...............................         1,103,100


Freshwater protection fund............................         8,501,500

 

Gasoline inspection and testing fund..................         1,455,400

 

Grain dealers fee fund................................           690,400

 

Horticulture fund.....................................            40,000

 

Industrial hemp licensing and registration fund.......           120,000

 

Industry food safety education fund...................           114,100

 

Industry support funds................................           486,000

 

Michigan craft beverage council fund..................           900,300

 

Migratory labor housing fund..........................           169,100

 

Private forestland enhancement fund...................           795,700

 

Refined petroleum fund................................         3,353,200

 

Rural development fund................................         2,006,300

 

Testing fees..........................................           292,600

 

Weights and measures regulation fees..................           730,300

 

Total other state restricted revenues.................        41,383,700

 

State general fund/general purpose.................... $     57,200,000

 

   Sec. 102.  DEPARTMENTAL ADMINISTRATION AND SUPPORT

 

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

 

   Full-time equated classified positions.......... 26.0

 

Unclassified positions--6.0 FTE positions............. $        596,700

 

Accounting service center.............................         1,011,300

 

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

 

Emergency management--4.0 FTE positions...............         1,101,300

 

Executive direction--22.0 FTE positions...............         2,958,700

 

Property management...................................           738,100

 

GROSS APPROPRIATION................................... $      6,429,900

 

    Appropriated from:


   Federal revenues:

 

HHS, multiple grants..................................           440,000

 

   Special revenue funds:

 

Agriculture licensing and inspection fees.............            34,500

 

Dairy and food safety fund............................            30,400

 

Feed control fund.....................................             3,100

 

Freshwater protection fund............................            36,100

 

Industry support funds................................            54,300

 

Michigan craft beverage council fund..................             8,800

 

Private forestland enhancement fund...................            15,600

 

State general fund/general purpose.................... $      5,807,100

 

   Sec. 103.  INFORMATION AND TECHNOLOGY

 

Information technology services and projects.......... $       1,812,800

 

GROSS APPROPRIATION................................... $      1,812,800

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG from LARA (LCC), liquor quality testing fees.....             3,200

 

   Special revenue funds:

 

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

 

Agriculture licensing and inspection fees.............            93,800

 

Dairy and food safety fund............................            61,200

 

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

 

Gasoline inspection and testing fund..................            31,800

 

Michigan craft beverage council fund..................               500

 

State general fund/general purpose.................... $      1,622,000

 

   Sec. 104.  FOOD AND DAIRY

 

   Full-time equated classified positions......... 134.0


Food safety and quality assurance--98.0 FTE positions $     17,124,500

 

Milk safety and quality assurance--36.0 FTE positions         5,510,700

 

GROSS APPROPRIATION................................... $     22,635,200

 

    Appropriated from:

 

   Federal revenues:

 

HHS, multiple grants..................................         2,714,200

 

USDA, multiple grants.................................           137,200

 

   Special revenue funds:

 

Consumer and industry food safety education fund.....           243,000

 

Dairy and food safety fund............................         5,484,000

 

Industry food safety education fund...................           114,100

 

State general fund/general purpose.................... $     13,942,700

 

   Sec. 105.  ANIMAL INDUSTRY

 

   Full-time equated classified positions.......... 61.0

 

Michigan animal agriculture alliance.................. $      3,000,000

 

Animal disease prevention and response--61.0 FTE

 

   positions............................................         9,065,100

 

Indemnification - livestock depredation...............            25,000

 

GROSS APPROPRIATION................................... $     12,090,100

 

    Appropriated from:

 

   Federal revenues:

 

Department of interior................................            40,800

 

HHS, multiple grants..................................            46,600

 

USDA, multiple grants.................................           531,600

 

   Special revenue funds:

 

Private - commodity group revenue.....................            30,500

 

Agriculture licensing and inspection fees.............            70,300


Animal welfare fund...................................           150,000

 

State general fund/general purpose.................... $     11,220,300

 

   Sec. 106.  PESTICIDE AND PLANT PEST MANAGEMENT

 

   Full-time equated classified positions.......... 88.0

 

Pesticide and plant pest management--80.0 FTE

 

   positions............................................ $     12,109,200

 

Animal feed safety--8.0 FTE positions.................         1,752,900

 

GROSS APPROPRIATION................................... $     13,862,100

 

    Appropriated from:

 

   Federal revenues:

 

Department of interior................................           101,800

 

EPA, multiple grants..................................           554,800

 

HHS, multiple grants..................................           327,900

 

USDA, multiple grants.................................           719,000

 

   Special revenue funds:

 

Private - slow-the-spread foundation..................            21,300

 

Agriculture licensing and inspection fees.............         4,520,700

 

Commodity inspection fees.............................           656,000

 

Feed control fund.....................................         1,125,000

 

Fertilizer control fund...............................         1,079,000

 

Freshwater protection fund............................           156,600

 

Horticulture fund.....................................            40,000

 

Industry support funds................................           228,100

 

State general fund/general purpose.................... $      4,331,900

 

   Sec. 107.  ENVIRONMENTAL STEWARDSHIP

 

   Full-time equated classified positions.......... 65.5

 

Agricultural preservation easement grants............. $      1,900,000


Environmental stewardship - MAEAP--25.0 FTE positions        10,739,000

 

Farmland and open space preservation--10.0 FTE

 

   positions............................................         1,566,600

 

Intercounty drain--6.0 FTE positions..................           822,000

 

Migrant labor housing--9.0 FTE positions..............         1,298,600

 

Qualified forest program--9.0 FTE positions...........         2,681,100

 

Right-to-farm--6.5 FTE positions......................           974,700

 

GROSS APPROPRIATION................................... $     19,982,000

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG from MDEGLE, biosolids............................            91,400

 

IDG from MDNR, forest development fund................           997,300

 

   Federal revenues:

 

Department of interior................................            96,300

 

EPA, multiple grants..................................           561,600

 

USDA, multiple grants.................................         1,322,300

 

   Special revenue funds:

 

Agricultural preservation fund........................         3,444,700

 

Freshwater protection fund............................         8,263,000

 

Migratory labor housing fund..........................           140,100

 

Private forestland enhancement fund...................           780,100

 

State general fund/general purpose.................... $      4,285,200

 

   Sec. 108.  LABORATORY PROGRAM

 

   Full-time equated classified positions......... 107.0

 

Central licensing and customer call center--12.0 FTE

 

   positions............................................ $      1,355,600

 

Consumer protection program--42.0 FTE positions.......         6,868,300


Laboratory services--41.0 FTE positions...............         7,226,900

 

USDA monitoring--12.0 FTE positions...................         1,647,900

 

GROSS APPROPRIATION................................... $     17,098,700

 

    Appropriated from:

 

   Interdepartmental grant revenues:

 

IDG from LARA (LCC), liquor quality testing fees.....           223,800

 

   Federal revenues:

 

EPA, multiple grants..................................           175,900

 

HHS, multiple grants..................................           942,500

 

USDA, multiple grants.................................         1,649,100

 

   Special revenue funds:

 

Agriculture licensing and inspection fees.............           342,200

 

Dairy and food safety fund............................           503,500

 

Feed control fund.....................................           190,800

 

Fertilizer control fund...............................            24,100

 

Freshwater protection fund............................            45,700

 

Gasoline inspection and testing fund..................         1,423,600

 

Grain dealers fee fund................................             7,900

 

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

 

Refined petroleum fund................................         3,353,200

 

Testing fees..........................................           202,600

 

Weights and measures regulation fees..................           730,300

 

State general fund/general purpose.................... $      7,254,500

 

   Sec. 109.  AGRICULTURE DEVELOPMENT

 

   Full-time equated classified positions.......... 22.0

 

Agriculture development--13.0 FTE positions........... $      4,323,900

 

Fair food network - double up food bucks..............         1,000,000


Food and agriculture investment program...............         4,000,000

 

Michigan craft beverage council--3.0 FTE positions...           940,100

 

Producer security/grain dealers--5.0 FTE positions...           729,300

 

Rural development fund grant program--1.0 FTE

 

   position.............................................         2,006,300

 

GROSS APPROPRIATION................................... $     12,999,600

 

    Appropriated from:

 

   Federal revenues:

 

USDA, multiple grants.................................         2,274,800

 

   Special revenue funds:

 

Private - commodity group revenue.....................            50,000

 

Agriculture licensing and inspection fees.............             5,100

 

Grain dealers fee fund................................           682,500

 

Industry support funds................................           203,600

 

Michigan craft beverage council fund..................           891,000

 

Rural development fund................................         2,006,300

 

State general fund/general purpose.................... $      6,886,300

 

   Sec. 110.  FAIRS AND EXPOSITIONS

 

County fairs, shows, and expositions.................. $      1,000,000

 

Fairs and racing......................................           256,600

 

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

 

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

 

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

 

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

 

Standardbred purses and supplements - licensed tracks           671,800

 

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

 

Thoroughbred breeders' awards.........................           368,600


Thoroughbred sire stakes..............................           378,800

 

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

 

GROSS APPROPRIATION................................... $      4,667,200

 

    Appropriated from:

 

   Special revenue funds:

 

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

 

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

 

   Sec. 111.  ONE-TIME BASIS ONLY APPROPRIATIONS

 

   Full-time equated classified positions........... 4.5

 

Farm stress program................................... $        500,000

 

Industrial hemp program--4.5 FTE positions............           360,000

 

Local conservation districts - pilot project..........           200,000

 

GROSS APPROPRIATION................................... $      1,060,000

 

    Appropriated from:

 

   Special revenue funds:

 

Industrial hemp licensing and registration fund.......           120,000

 

Testing fees..........................................            90,000

 

State general fund/general purpose.................... $        850,000

 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

FOR FISCAL YEAR 2019-2020

 

GENERAL SECTIONS

 

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

 

constitution of 1963, total state spending from state sources under

 

part 1 for fiscal year 2019-2020 is $98,583,700.00 and state

 


spending from state sources to be paid to local units of government

 

for fiscal year 2019-2020 is $9,650,000.00. The itemized statement

 

below identifies appropriations from which spending to local units

 

of government will occur:

 

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

 

Agriculture preservation easement grants.............. $      1,900,000

 

Environmental stewardship/MAEAP.......................         4,250,000

 

Qualified forest program..............................         1,500,000

 

Rural development fund grant program..................         2,000,000

 

TOTAL................................................. $       9,650,000

 

     Sec. 202. The appropriations authorized under part 1 and this

 

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

 

18.1101 to 18.1594.

 

     Sec. 203. As used in part 1 and this part:

 

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

 

development.

 

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

 

     (c) "EPA" means the United States Environmental Protection

 

Agency.

 

     (d) "FDA" means the United States Food and Drug

 

Administration.

 

     (e) "Fiscal agencies" means the Michigan house fiscal agency

 

and the Michigan senate fiscal agency.

 

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

 

     (g) "HHS" means the United States Department of Health and

 

Human Services.

 

     (h) "IDG" means interdepartmental grant.


     (i) "LARA" means the Michigan department of licensing and

 

regulatory affairs.

 

     (j) "LCC" means the Michigan liquor control commission.

 

     (k) "MAEAP" means the Michigan agriculture environmental

 

assurance program.

 

     (l) "MDEGLE" means the Michigan department of environment,

 

Great Lakes, and energy.

 

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

 

     (n) "MOU" means memorandum of understanding.

 

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

 

the house and senate appropriations committees with jurisdiction

 

over the budget for the department.

 

     (p) "TB" means tuberculosis.

 

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

 

     Sec. 204. (1) The departments and agencies receiving

 

appropriations in part 1 shall use the internet to fulfill the

 

reporting requirements of this part. This requirement may include

 

transmission of reports via electronic mail to the recipients

 

identified for each reporting requirement, or it may include

 

placement of reports on an internet or intranet site.

 

     (2) In fulfilling the reporting requirements of this part, the

 

department shall notify report recipients when reports are posted

 

to the department website.

 

     Sec. 205. 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. 206. The director shall take all reasonable steps to

 

ensure businesses in deprived and depressed communities compete for

 

and perform contracts to provide services or supplies, or both.

 

Each director shall strongly encourage firms with which the

 

department contracts to subcontract with certified businesses in

 

depressed and deprived communities for services or supplies, or

 

both.

 

     Sec. 207. The departments and agencies receiving

 

appropriations in part 1 shall prepare a report on out-of-state

 

travel expenses not later than January 1 of each year. The travel

 

report shall be a listing of all travel by classified and

 

unclassified employees outside this state in the immediately

 

preceding fiscal year that was funded in whole or in part with

 

funds appropriated in the department's budget. The report shall be

 

submitted to the house and senate appropriations committees, the

 

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

 

The report shall include the following information:

 

     (a) The dates of each travel occurrence.

 

     (b) The transportation and related costs of each travel

 

occurrence, including the proportion funded with state general

 

fund/general purpose revenues, the proportion funded with state


restricted revenues, the proportion funded with federal revenues,

 

and the proportion funded with other revenues.

 

     Sec. 208. Funds appropriated in part 1 shall not be used by a

 

principal executive department, state agency, or authority to hire

 

a person to provide legal services that are the responsibility of

 

the attorney general. This prohibition does not apply to legal

 

services for bonding activities and for those outside services that

 

the attorney general authorizes.

 

     Sec. 209. Not later than November 30, the state budget office

 

shall prepare and transmit a report that provides for estimates of

 

the total general fund/general purpose appropriation lapses at the

 

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

 

projected year-end general fund/general purpose appropriation

 

lapses by major departmental program or program areas. The report

 

shall be transmitted to the chairpersons of the senate and house of

 

representatives standing committees on appropriations and the

 

senate and house fiscal agencies.

 

     Sec. 210. (1) In addition to the funds appropriated in part 1,

 

there is appropriated an amount not to exceed $3,000,000.00 for

 

federal contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item

 

in part 1 under section 393(2) of the management and budget act,

 

1984 PA 431, MCL 18.1393.

 

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

 

appropriated an amount not to exceed $2,000,000.00 for state

 

restricted contingency funds. These funds are not available for

 

expenditure until they have been transferred to another line item


in part 1 under section 393(2) of the management and budget act,

 

1984 PA 431, MCL 18.1393.

 

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

 

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

 

contingency funds. These funds are not available for expenditure

 

until they have been transferred to another line item in part 1

 

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

 

MCL 18.1393.

 

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

 

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

 

contingency funds. These funds are not available for expenditure

 

until they have been transferred to another line item in part 1

 

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

 

MCL 18.1393.

 

     Sec. 211. The department shall cooperate with the department

 

of technology, management, and budget to maintain a searchable

 

website accessible by the public at no cost that includes, but is

 

not limited to, all of the following for each department or agency:

 

     (a) Fiscal year-to-date expenditures by category.

 

     (b) Fiscal year-to-date expenditures by appropriation unit.

 

     (c) Fiscal year-to-date payments to a selected vendor,

 

including the vendor name, payment date, payment amount, and

 

payment description.

 

     (d) The number of active department employees by job

 

classification.

 

     (e) Job specifications and wage rates.

 

     Sec. 212. Within 14 days after the release of the executive


budget recommendation, the department shall cooperate with the

 

state budget office to provide the senate and house appropriations

 

chairs, the subcommittees, respectively, and the senate and house

 

fiscal agencies with an annual report on estimated state restricted

 

fund balances, state restricted fund projected revenues, and state

 

restricted fund expenditures for the fiscal years ending September

 

30, 2019 and September 30, 2020.

 

     Sec. 213. The department shall maintain, on a publicly

 

accessible website, a department scorecard that identifies, tracks,

 

and regularly updates key metrics that are used to monitor and

 

improve the agency's performance.

 

     Sec. 214. Total authorized appropriations from all sources

 

under part 1 for legacy costs for the fiscal year ending September

 

30, 2020 is $12,028,500.00. From this amount, total agency

 

appropriations for pension-related legacy costs are estimated at

 

$5,847,300.00. Total agency appropriations for retiree health care

 

legacy costs are estimated at $6,181,200.00.

 

     Sec. 215. The department shall not take disciplinary action

 

against an employee for communicating with a member of the

 

legislature or his or her staff.

 

     Sec. 234. The department and agencies receiving appropriations

 

in part 1 shall receive and retain copies of all reports funded

 

from appropriations in part 1. Federal and state guidelines for

 

short-term and long-term retention of records shall be followed.

 

The department may electronically retain copies of reports unless

 

otherwise required by federal and state guidelines.

 

 

 


DEPARTMENTAL ADMINISTRATION AND SUPPORT

 

     Sec. 301. (1) The department may establish a fee schedule and

 

collect fees for the following work activities and services:

 

     (a) Pesticide and plant pest management propagation and

 

certification of virus-free foundation stock.

 

     (b) Fruit and vegetable inspection and grading services at

 

shipping and termination points and processing plants.

 

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

 

agricultural products for disease, foreign products for disease,

 

toxic materials, foreign substances, and quality standards.

 

     (d) Laboratory support test samples for other state and local

 

agencies and public or private organizations.

 

     (2) The department may receive and expend revenue from the

 

fees authorized under subsection (1), subject to appropriation, for

 

the purpose of recovering expenses associated with the work

 

activities and services described in subsection (1). Fee revenue

 

collected by the department under subsection (1) shall not lapse to

 

the state general fund at the end of the fiscal year but shall

 

carry forward for appropriation by the legislature in the

 

subsequent fiscal year.

 

     (3) The department shall notify the subcommittees, the fiscal

 

agencies, and the state budget office 30 days prior to proposing

 

changes in fees authorized under this section or under section 5 of

 

1915 PA 91, MCL 285.35.

 

     (4) On or before February 1 of each year, the department shall

 

provide a report to the subcommittees, the fiscal agencies, and the

 

state budget office detailing all the fees charged by the


department under the authorization provided in this section,

 

including, but not limited to, rates, number of individuals paying

 

each fee, and the revenue generated by each fee in the previous

 

fiscal year.

 

     Sec. 302. (1) The department may contract with or provide

 

grants to local units of government, institutions of higher

 

education, or nonprofit organizations to support activities

 

authorized by appropriations in part 1. As used in this section,

 

contracts and grants include, but are not limited to, contracts for

 

delivery of groundwater/freshwater programs, MAEAP technical

 

assistance, forest management, invasive species monitoring,

 

wildlife risk mitigation, grants promoting proper pesticide

 

disposal, and research grants for the purpose of enhancing the

 

agricultural industries in this state.

 

     (2) The department shall provide notice of contracts or grants

 

authorized under this section to the subcommittees, the fiscal

 

agencies, and the state budget office not later than 7 days before

 

the department notifies contract or grant recipients.

 

 

 

FOOD AND DAIRY

 

     Sec. 401. (1) The department shall report on the previous

 

fiscal year's activities of the food and dairy division. The report

 

shall include information on activities and outcomes of the dairy

 

safety and inspection program, the food safety inspection program,

 

the foodborne illness and emergency response program, and the food

 

service program.

 

     (2) The report shall include information on significant

 


foodborne outbreaks and emergencies, including any significant

 

enforcement actions taken related to food safety during the prior

 

calendar year.

 

     (3) The report shall be transmitted to the subcommittees, the

 

fiscal agencies, and the state budget office and posted to the

 

department's website on or before April 1 of each year.

 

 

 

ANIMAL INDUSTRY

 

     Sec. 451. From the funds appropriated in part 1 for bovine

 

tuberculosis, the department shall pay for all whole herd testing

 

costs and individual animal testing costs in the modified

 

accredited zone to maintain split-state status requirements. These

 

costs include indemnity and compensation for injury causing death

 

or downer to animals.

 

     Sec. 452. (1) The department shall report on the previous

 

calendar year's activities of the animal industry division. The

 

report shall be transmitted to the subcommittees, the fiscal

 

agencies, and the state budget office and posted to the

 

department's website on or before April 1 of each year.

 

     (2) The department shall include in the report all

 

indemnification payments for livestock depredation made in the

 

previous calendar year and shall include all of the following:

 

     (a) The reason for the indemnification.

 

     (b) The amount of the indemnification.

 

     (c) The person for whom the indemnification was paid.

 

     Sec. 454. The department shall use its resources to

 

collaborate with the USDA to monitor bovine TB, consistent with the

 


May 2016 and April 2019 memoranda of understanding between the

 

department and the USDA.

 

     Sec. 457. (1) On or before October 15, 2019, the department

 

shall provide to the subcommittees, the fiscal agencies, and the

 

state budget office a report on bovine TB status and department

 

activities.

 

     (2) For each fiscal quarter following the report required in

 

subsection (1), the department shall provide an update to the

 

subcommittees, the fiscal agencies, and the state budget office.

 

The quarterly update reports shall identify significant impacts to

 

the program, including new incidence of bovine TB in this state,

 

department activity associated with specific new incidence of

 

bovine TB, any changes in USDA requirements or movement orders, and

 

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; efforts to work with slaughter facilities in

 

this state, as well as those that slaughter a significant number of

 

animals from this state; educational programs and information for

 

this state's livestock community; and any other item the

 

legislature should be aware of that will promote or hinder efforts

 

to achieve bovine TB-free status for this state.

 

 

 

PESTICIDE AND PLANT PEST MANAGEMENT

 

     Sec. 501. The department shall report on the previous calendar

 

year's activities of the pesticide and plant pest management

 

division. The report shall be transmitted to the subcommittees, the

 


fiscal agencies, and the state budget office and posted to the

 

department's website on or before April 1 of each year.

 

 

 

ENVIRONMENTAL STEWARDSHIP

 

     Sec. 601. The funds appropriated in part 1 for environmental

 

stewardship/MAEAP shall be used to support department agriculture

 

pollution prevention programs, including groundwater and freshwater

 

protection programs under part 87 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.8701 to

 

324.8717, and technical assistance in implementing conservation

 

grants available under the federal farm bill of 2014 and the

 

federal farm bill of 2018.

 

     Sec. 602. The department shall report on the previous calendar

 

year's activities of the environmental stewardship division. The

 

report shall be transmitted to the subcommittees, the fiscal

 

agencies, and the state budget office and posted to the

 

department's website on or before April 1 of each year.

 

     Sec. 604. The department may receive and expend federal

 

revenues in excess of the federal revenue appropriated in section

 

107 of part 1 for environmental stewardship and MAEAP activities.

 

The department shall notify the subcommittees, the fiscal agencies,

 

and the state budget office prior to expending federal revenues

 

authorized under this section.

 

     Sec. 608. (1) The appropriations in part 1 for the qualified

 

forest affidavit program are for the purpose of increasing the

 

knowledge of nonindustrial private forestland owners of sound

 

forest management practices and increasing the amount of commercial

 


timber production from those lands.

 

     (2) The department shall work in partnership with stakeholder

 

groups and other state and federal agencies to increase the active

 

management of nonindustrial private forestland to foster the growth

 

of Michigan's timber product industry.

 

 

 

LABORATORY PROGRAM

 

     Sec. 651. The department shall report on the previous calendar

 

year's activities of the laboratory division. The report shall be

 

transmitted to the subcommittees, the fiscal agencies, and the

 

state budget office and posted to the department's website on or

 

before April 1 of each year.

 

 

 

AGRICULTURE DEVELOPMENT

 

     Sec. 701. (1) From the funds appropriated in part 1 for the

 

food and agriculture investment program, the department shall

 

establish and administer a food and agriculture investment program.

 

     (2) The food and agriculture investment program shall expand

 

the Michigan food and agriculture sector, grow Michigan exports,

 

promote the development of value-added agricultural production,

 

food hubs, food incubators, and community-based processing

 

facilities, and the expansion of farm markets and urban

 

agriculture, including promotion of hoop houses, and increase food

 

processing activities within the state by accelerating projects and

 

infrastructure development that support growth in the food and

 

agriculture processing industry.

 

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

 


department may receive and expend funds received from outside

 

sources for the food and agriculture investment program.

 

     (4) Before the allocation of funding, all projects shall

 

receive approval from the Michigan commission of agriculture and

 

rural development, except for projects selected through a

 

competitive process by a joint evaluation committee selected by the

 

director and consisting of representatives that have agriculture,

 

business, and economic development expertise. Projects funded

 

through the food and agriculture investment program will be

 

required to have a grant agreement that outlines milestones and

 

activities that must be met in order to receive a disbursement of

 

funds. Projects must also identify measurable project outcomes.

 

     (5) The department shall include in the agriculture

 

development annual report a report on the food and agriculture

 

investment program for the previous fiscal year that includes a

 

listing of the grantees, award amounts, match funding, project

 

locations, and project outcomes.

 

     (6) The food and agriculture investment program shall be

 

administered by the department and provide support for food and

 

agriculture projects that will enable growth in the industry and

 

this state's economy.

 

     (7) The unexpended funds appropriated in part 1 for the food

 

and agriculture investment program are designated as a work project

 

appropriation, and any unencumbered or unallotted funds shall not

 

lapse at the end of the fiscal year and shall be available for

 

expenditures for projects under this section until the projects

 

have been completed. The following is in compliance with section


451a(1) of the management and budget act, 1984 PA 431, MCL

 

18.1451a:

 

     (a) The purpose of the project is to promote and expand the

 

Michigan food and agriculture sector, grow Michigan exports, and

 

increase food processing activities within the state.

 

     (b) The project will be funded in accordance with this section

 

and the project guidelines approved by the Michigan agriculture

 

commission prior to an award.

 

     (c) The estimated cost of this project is identified in the

 

appropriation line item.

 

     (d) The tentative completion date for the work project is

 

September 30, 2022.

 

     (8) The department may expend money from the funds

 

appropriated in part 1 for the food and agriculture investment

 

program, including all of the following activities:

 

     (a) Grants.

 

     (b) Loans or loan guarantees.

 

     (c) Infrastructure development.

 

     (d) Other economic assistance.

 

     (e) Program administration.

 

     (f) Export assistance.

 

     (9) The department shall expend no more than 5% from the funds

 

appropriated in part 1 for the food and agriculture investment

 

program for administrative purposes.

 

     Sec. 702. The department shall work with the rural development

 

fund board to establish a process and criteria for funding projects

 

as well as establishing metrics and measurable outcomes for the


program. Funds appropriated from the rural development fund shall

 

be used in accordance with the provisions of the rural development

 

fund act, 2012 PA 411, MCL 286.941 to 286.947.

 

     Sec. 703. (1) The department shall work with the department of

 

health and human services to do all of the following:

 

     (a) Notify recipients of food assistance program benefits that

 

food assistance program benefits can be accessed at many farmer's

 

markets in this state with bridge cards.

 

     (b) Notify recipients of food assistance program benefits

 

about the double up food bucks program that is administered by the

 

fair food network. Food assistance program recipients shall receive

 

information about the double up food bucks program, including

 

information that explains that when program recipients spend up to

 

$20.00 at participating farmer's markets and grocery stores, the

 

recipient can receive an additional $20.00 to buy Michigan produce.

 

     (2) The department shall work with the fair food network to

 

expand access to the double up food bucks program in each of the

 

state's counties with grocery stores or farmer's markets that meet

 

the program's eligibility requirements.

 

     (3) On or before June 1, 2020, the department shall submit a

 

report on activities and outcomes of the double up food bucks

 

program to the house and senate appropriations subcommittees on

 

agriculture and rural development and the fiscal agencies. The

 

report shall contain all of the following:

 

     (a) Counties in this state with participating double up food

 

bucks vendors, the number of vendors by county, and the name and

 

location of vendors, as of May 1, 2019.


     (b) Counties in this state with participating double up food

 

bucks vendors, the number of vendors by county, and the name of

 

location of vendors, as of May 1, 2020. The report shall highlight

 

counties and vendors added to the program since May 1, 2019.

 

     (c) Number of individuals participating in the program, by

 

county.

 

     (d) A breakdown of program participation by county and by day

 

of week.

 

     (4) The report required under subsection (3) shall also

 

include a discussion of program evaluation criteria, as well as

 

recommendation of a reporting metric for tracking health outcomes

 

of program participants.

 

     Sec. 706. (1) The department shall report on the previous

 

calendar year's activities of the agriculture development division.

 

The report shall be transmitted to the subcommittees, the fiscal

 

agencies, and the state budget office and posted to the

 

department's website on or before April 1 of each year.

 

     (2) The report shall include the following information on any

 

grants awarded during the prior fiscal year:

 

     (a) The name of the grantee.

 

     (b) The amount of the grant.

 

     (c) The purpose of the grant, including measurable outcomes.

 

     (d) Additional state, federal, private, or local funds

 

contributed to the grant project.

 

     (e) The completion date of grant-funded activities.

 

     (3) The report shall include the following information on the

 

Michigan craft beverage council established under section 303 of


the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1303:

 

     (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.

 

     (c) Grants awarded during the previous fiscal year and the

 

results of research grant projects completed during the previous

 

fiscal year.

 

 

 

FAIRS AND EXPOSITIONS

 

     Sec. 801. All appropriations from the agriculture equine

 

industry development fund shall be spent on equine-related

 

purposes. No funds from the agriculture equine industry development

 

fund shall be expended for nonequine-related purposes without prior

 

approval of the legislature.

 

     Sec. 802. From the funds appropriated in part 1 from

 

agriculture equine industry development funds, available revenue

 

shall be allocated in the following priority order:

 

     (a) To support all administrative, contractual, and regulatory

 

costs incurred by the department and the Michigan gaming control

 

board.

 

     (b) Up to $395,000.00 shall be allocated to the purses and

 

supplements – fairs/licensed tracks line item.

 

     (c) Any remaining funds collected through September 30, 2020,

 

after the obligations in subdivisions (a) and (b) have been met,

 

shall be prorated equally among the supplements, breeders' awards,

 


and sire stakes awards to eligible race meeting licensees in

 

accordance with section 20 of the horse racing law of 1995, 1995 PA

 

279, MCL 431.320.

 

     Sec. 805. (1) The department shall establish and administer a

 

county fairs, shows, and expositions grant program. The program

 

shall have the following objectives:

 

     (a) Assist in the promotion of building improvements or other

 

capital improvements at county fairgrounds of the state.

 

     (b) Provide financial support, promotion, prizes, and premiums

 

of equine, livestock, and other agricultural commodity expositions

 

in the state.

 

     (2) The department shall award grants on a competitive basis

 

to county fairs or other organizations from the funds appropriated

 

in part 1 for county fairs, shows, and expositions grants. Grantees

 

will be required to provide a 50% cash match with grant awards and

 

identify measurable project outcomes. A county fair organization

 

that received a county fair capital improvement grant in the prior

 

fiscal year shall not receive a grant from the appropriation in

 

part 1.

 

     (3) From the amount appropriated in part 1 for county fairs,

 

shows, and expositions, up to $25,000.00 shall be expended for the

 

purpose of financial support, promotion, prizes, and premiums of

 

equine, livestock, and other agricultural commodity expositions in

 

this state, and festivals.

 

     (4) All fairs receiving grants under this section shall

 

provide a report to the department on the financial impact

 

resulting from the capital improvement project on both fair and


nonfair events. These reports are due for 3 years immediately

 

following the completion of the capital improvement project.

 

     (5) The department shall identify criteria, evaluate

 

applications, and provide recommendations to the director for final

 

approval of grant awards.

 

     (6) The department may expend money from the funds

 

appropriated in part 1 for the county fairs, shows, and expositions

 

grants for administering the program.

 

     (7) The unexpended portion of the county fairs, shows, and

 

expositions grants is considered a work project appropriation in

 

accordance with section 451a of the management and budget act, 1984

 

PA 431, MCL 18.1451a. The following apply to the project:

 

     (a) The purpose of the project is to support building

 

improvements or other capital improvements at county fairgrounds of

 

the state.

 

     (b) All grants will be distributed in accordance with this

 

section and the grant guidelines published prior to the request for

 

proposals.

 

     (c) The estimated cost of the project is identified in the

 

appropriation line item.

 

     (d) The tentative completion date for the work project is

 

September 30, 2022.

 

     (8) The department shall provide a year-end report on the

 

county fairs, shows, and expositions grants no later than December

 

1, 2020 to the subcommittees, the fiscal agencies, and the state

 

budget director that includes a listing of the grantees, award

 

amounts, match funding, and project outcomes.


     Sec. 806. From the funds appropriated in part 1 for county

 

fairs, shows, and expositions, $50,000.00 shall be used to promote

 

festivals and events in this state.

 

 

 

ONE-TIME BASIS ONLY APPROPRIATIONS

 

     Sec. 901. The appropriation in part 1 for the farm stress

 

program shall be used to respond to the mental stress and fatigue

 

of Michigan farmers and agricultural producers and their families

 

through utilizing existing services that offer behavioral health

 

specialists in the agriculture industry.

 

     Sec. 902. The funds appropriated in part 1 for local

 

conservation districts - pilot project shall be used for the

 

development of a conservation district natural resources assessment

 

model. The assessment model shall be designed for the purposes of

 

assisting the department and conservation districts in creating a

 

standardized report that would provide a description of each of the

 

conservation districts in the state, identify, at a minimum, the

 

top 5 natural resources needs for each conservation district, and

 

provide a business plan on how each conservation district will

 

implement programs and services necessary to meet the top 5

 

resources needs in a district. A status update on the progress

 

toward completion of a conservation district natural resources

 

assessment model shall be presented to the department and the

 

subcommittees no later than May 1, 2020, with a final completion

 

deadline of no later than September 9, 2020.