Substitute For
SENATE BILL NO. 77
A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2022; and to provide for the expenditure of the appropriations.
the people of the state of michigan enact:
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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, 2022, from the following funds:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT |
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APPROPRIATION SUMMARY |
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Full-time equated unclassified positions |
6.0 |
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Full-time equated classified positions |
440.1 |
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GROSS APPROPRIATION |
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$ |
122,277,300 |
Total interdepartmental grants and intradepartmental transfers |
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320,000 |
ADJUSTED GROSS APPROPRIATIONS |
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$ |
121,957,300 |
Federal revenues: |
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Total federal revenues |
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13,599,800 |
Special revenue funds: |
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Total local revenues |
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0 |
Total private revenues |
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71,300 |
Total other state restricted revenues |
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44,152,300 |
State general fund/general purpose |
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$ |
64,133,900 |
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT |
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Full-time equated unclassified positions |
6.0 |
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Full-time equated classified positions |
25.4 |
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Unclassified salaries--FTE positions |
6.0 |
$ |
599,900 |
Accounting service center |
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1,029,200 |
Commissions and boards |
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23,800 |
Emergency management--FTEs |
6.6 |
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1,320,700 |
Executive direction--FTEs |
18.8 |
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3,222,200 |
Property management |
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735,700 |
GROSS APPROPRIATION |
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$ |
6,931,500 |
Appropriated from: |
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Federal revenues: |
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HHS, multiple grants |
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447,400 |
Special revenue funds: |
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Agriculture licensing and inspection fees |
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44,400 |
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Dairy and food safety fund |
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100,300 |
Feed control fund |
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8,100 |
Fertilizer control fund |
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10,000 |
Freshwater protection fund |
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61,000 |
Gasoline inspection and testing fund |
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25,000 |
Industry support funds |
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55,600 |
Michigan craft beverage council fund |
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8,800 |
Private forestland enhancement fund |
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15,600 |
Refined petroleum fund |
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20,000 |
Weights and measures regulation fees |
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5,000 |
State general fund/general purpose |
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$ |
6,130,300 |
Sec. 103. INFORMATION AND TECHNOLOGY |
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Information technology services and projects |
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$ |
2,312,800 |
GROSS APPROPRIATION |
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$ |
2,312,800 |
Appropriated from: |
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Special revenue funds: |
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Agriculture licensing and inspection fees |
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91,400 |
Dairy and food safety fund |
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74,800 |
Feed control fund |
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15,000 |
Fertilizer control fund |
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15,000 |
Freshwater protection fund |
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15,000 |
Gasoline inspection and testing fund |
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32,400 |
State general fund/general purpose |
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$ |
2,069,200 |
Sec. 104. FOOD AND DAIRY |
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Full-time equated classified positions |
124.7 |
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Food safety and quality assurance--FTEs |
85.3 |
$ |
18,103,300 |
Milk safety and quality assurance--FTEs |
39.4 |
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5,752,100 |
GROSS APPROPRIATION |
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$ |
23,855,400 |
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Appropriated from: |
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Federal revenues: |
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HHS, multiple grants |
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2,741,600 |
USDA, multiple grants |
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137,100 |
Special revenue funds: |
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Consumer and industry food safety education fund |
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242,500 |
Dairy and food safety fund |
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5,411,600 |
Industry food safety education fund |
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114,100 |
Marihuana regulatory fund |
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350,000 |
Marihuana regulation fund |
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350,000 |
State general fund/general purpose |
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$ |
14,508,500 |
Sec. 105. ANIMAL INDUSTRY |
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Full-time equated classified positions |
51.8 |
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Animal disease prevention and response--FTEs |
51.8 |
$ |
9,623,100 |
Indemnification - livestock depredation |
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15,000 |
Michigan animal agriculture alliance |
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3,000,000 |
GROSS APPROPRIATION |
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$ |
12,638,100 |
Appropriated from: |
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Federal revenues: |
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HHS, multiple grants |
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15,100 |
USDA, multiple grants |
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567,400 |
Special revenue funds: |
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Agriculture licensing and inspection fees |
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71,800 |
Animal welfare fund |
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150,000 |
State general fund/general purpose |
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$ |
11,833,800 |
Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT |
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Full-time equated classified positions |
79.9 |
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Animal feed safety--FTEs |
10.0 |
$ |
2,089,200 |
Pesticide and plant pest management--FTEs |
69.9 |
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14,172,100 |
GROSS APPROPRIATION |
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$ |
16,261,300 |
Appropriated from: |
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Federal revenues: |
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EPA, multiple grants |
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564,200 |
HHS, multiple grants |
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389,900 |
USDA, multiple grants |
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716,900 |
Special revenue funds: |
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Private - slow-the-spread foundation |
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21,300 |
Agriculture licensing and inspection fees |
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4,498,800 |
Commodity inspection fees |
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671,400 |
Feed control fund |
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1,387,500 |
Fertilizer control fund |
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1,336,700 |
Freshwater protection fund |
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157,500 |
Horticulture fund |
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70,000 |
Industrial hemp licensing and registration fund |
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670,600 |
Industry support funds |
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228,100 |
State general fund/general purpose |
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$ |
5,548,400 |
Sec. 107. ENVIRONMENTAL STEWARDSHIP |
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Full-time equated classified positions |
52.7 |
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Agricultural preservation easement grants |
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$ |
1,900,000 |
Local conservation districts |
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3,000,000 |
Environmental stewardship--FTEs |
2.0 |
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450,000 |
Farmland and open space preservation--FTEs |
7.7 |
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1,575,000 |
Intercounty drain--FTEs |
3.9 |
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842,000 |
MAEAP--FTEs |
16.4 |
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11,232,200 |
Migrant labor housing--FTEs |
8.5 |
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1,324,000 |
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Qualified forest program--FTEs |
8.1 |
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2,651,700 |
Right-to-farm--FTEs |
6.1 |
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999,100 |
GROSS APPROPRIATION |
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$ |
23,974,000 |
Appropriated from: |
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Interdepartmental grant revenues: |
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IDG from MDEGLE, biosolids |
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93,100 |
Federal revenues: |
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Department of interior |
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96,300 |
EPA, multiple grants |
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562,100 |
USDA, multiple grants |
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1,322,300 |
Special revenue funds: |
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Agricultural preservation fund |
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3,475,000 |
Freshwater protection fund |
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8,296,900 |
Migratory labor housing fund |
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140,100 |
Private forestland enhancement fund |
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1,080,100 |
State general fund/general purpose |
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$ |
8,908,100 |
Sec. 108. LABORATORY PROGRAM |
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Full-time equated classified positions |
89.3 |
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Central licensing and customer call center--FTEs |
11.0 |
$ |
1,439,500 |
Consumer protection program--FTEs |
38.2 |
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6,934,600 |
Laboratory services--FTEs |
29.4 |
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8,220,900 |
USDA monitoring--FTEs |
10.7 |
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1,677,500 |
GROSS APPROPRIATION |
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$ |
18,272,500 |
Appropriated from: |
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Interdepartmental grant revenues: |
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IDG from LARA (LCC), liquor quality testing fees |
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226,900 |
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Federal revenues: |
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EPA, multiple grants |
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180,600 |
HHS, multiple grants |
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1,549,900 |
USDA, multiple grants |
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1,678,700 |
Special revenue funds: |
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Agriculture licensing and inspection fees |
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346,400 |
Dairy and food safety fund |
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514,300 |
Feed control fund |
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190,900 |
Fertilizer control fund |
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24,600 |
Freshwater protection fund |
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47,000 |
Gasoline inspection and testing fund |
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1,412,400 |
Grain dealers fee fund |
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7,900 |
Industrial hemp licensing and registration fund |
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318,700 |
Migratory labor housing fund |
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29,300 |
Refined petroleum fund |
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3,379,800 |
Testing fees |
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353,200 |
Weights and measures regulation fees |
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737,700 |
State general fund/general purpose |
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$ |
7,274,200 |
Sec. 109. AGRICULTURE DEVELOPMENT |
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Full-time equated classified positions |
16.3 |
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Agriculture development--FTEs |
10.7 |
$ |
4,760,900 |
Food and agriculture investment program |
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3,210,600 |
Michigan craft beverage council--FTEs |
1.2 |
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920,900 |
Producer security/grain dealers--FTEs |
3.5 |
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740,300 |
Rural development fund grant program--FTE |
0.9 |
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2,004,800 |
GROSS APPROPRIATION |
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$ |
11,637,500 |
Appropriated from: |
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Federal revenues: |
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USDA, multiple grants |
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2,630,300 |
Special revenue funds: |
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Private - commodity group revenue |
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50,000 |
Agriculture licensing and inspection fees |
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5,100 |
Grain dealers fee fund |
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696,400 |
Industry support funds |
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223,600 |
Michigan craft beverage council fund |
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890,900 |
Rural development fund |
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2,004,800 |
State general fund/general purpose |
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$ |
5,136,400 |
Sec. 110. FAIRS AND EXPOSITIONS |
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County fairs, shows, and expositions |
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$ |
2,500,000 |
Fairs and racing |
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258,600 |
Licensed tracks - light horse racing |
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40,300 |
Light horse racing - breeders' awards |
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20,000 |
Purses and supplements - fairs/licensed tracks |
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708,300 |
Standardbred breeders' awards |
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345,900 |
Standardbred purses and supplements - licensed tracks |
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671,800 |
Standardbred sire stakes |
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275,000 |
Thoroughbred breeders' awards |
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368,600 |
Thoroughbred sire stakes |
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378,800 |
Thoroughbred supplements - licensed tracks |
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601,900 |
GROSS APPROPRIATION |
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$ |
6,169,200 |
Appropriated from: |
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Special revenue funds: |
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Agriculture equine industry development fund |
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3,669,200 |
State general fund/general purpose |
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$ |
2,500,000 |
Sec. 111. ONE-TIME ONLY APPROPRIATIONS |
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Farm stress program |
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$ |
225,000 |
GROSS APPROPRIATION |
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$ |
225,000 |
Appropriated from: |
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Special revenue funds: |
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State general fund/general purpose |
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$ |
225,000 |
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
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 2021-2022 is $108,286,200.00 and state spending from state sources to be paid to local units of government for fiscal year 2021-2022 is $11,800,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:
DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT |
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Agriculture preservation easement grants |
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$ |
1,900,000 |
Environmental stewardship/MAEAP |
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4,100,000 |
Local conservation districts |
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3,000,000 |
Qualified forest program |
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1,400,000 |
Rural development fund grant program |
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1,400,000 |
TOTAL |
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$ |
11,800,000 |
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.
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(c) "Fiscal agencies" means the Michigan house fiscal agency and the Michigan senate fiscal agency.
(d) "FTE" means full-time equated.
(e) "IDG" means interdepartmental grant.
(f) "MAEAP" means the Michigan agriculture environmental assurance program.
(g) "MDEGLE" means the Michigan department of environment, Great Lakes, and energy.
(h) "Subcommittees" means all members of the subcommittees of the house and senate appropriations committees with jurisdiction over the budget for the department.
(i) "TB" means tuberculosis.
(j) "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 shall include transmission of reports via email to the recipients identified for each reporting requirement, and shall include placement of reports on an internet 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
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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
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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. 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
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fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the fiscal years ending September 30, 2021 and September 30, 2022.
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, 2022 is $11,812,300.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $6,617,900.00. Total agency appropriations for retiree health care legacy costs are estimated at $5,194,400.00.
Sec. 215. The department shall not take disciplinary action against an employee of the department or departmental agency in the state classified civil service because the employee communicates with a member of the senate or house or a member's staff, unless the communication is prohibited by law and the department or agency taking disciplinary action is exercising its authority as provided by law.
Sec. 216. (1) On a quarterly basis, the department shall report to the senate and house appropriations committees, the senate and house appropriations subcommittees on the department budget, and the senate and house fiscal agencies the following information:
(a) The number of FTEs in pay status by type of staff and civil service classification.
(b) A comparison by line item of the number of FTEs authorized from funds appropriated in part 1 to the actual number of FTEs
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employed by the department at the end of the reporting period.
(2) By April 1 of the current fiscal year and semiannually thereafter, the department shall report to the senate and house appropriations committees, the senate and house appropriations subcommittees on the department budget, and the senate and house fiscal agencies the following information:
(a) Number of employees that were engaged in remote work in 2021.
(b) Number of employees authorized to work remotely and the actual number of those working remotely in the current reporting period.
(c) Estimated net cost savings achieved by remote work.
(d) Reduced use of office space associated with remote work.
Sec. 217. Appropriations in part 1 shall, to the extent possible by the department, not be expended until all existing work project authorization available for the same purposes is exhausted.
Sec. 218. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this article, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within this article for the particular department, board, commission, officer, or institution.
Sec. 220. The department shall report no later than April 1 on each specific policy change made to implement a public act affecting the department that took effect during the prior calendar year to the senate and house appropriations committees, the senate and house subcommittees on agriculture and rural development, the joint committee on administrative rules, and the senate and house
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fiscal agencies.
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
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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
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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 TB, 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. 457. (1) On or before October 15 of each year, the department shall provide to the subcommittees, the fiscal agencies,
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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.
Sec. 458. From the funds appropriated in part 1 for Michigan animal agriculture alliance, the department shall work with animal industry representatives and state research universities to establish an animal research grant program.
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.
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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 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 up to a total of $1,000,000.00 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 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.
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Sec. 609. The appropriations in part 1 for local conservation districts shall be distributed in equal amounts to local conservation districts in the state that were in operation as of April 15, 2021.
Sec. 610. From the funds appropriated in part 1, the department shall coordinate with the department of treasury to improve the timely processing and issuance of tax credits under section 36109 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36109, for the Michigan's farmland and open space preservation program under parts 361 and 362 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36101 to 324.3116 and 324.36201 to 324.36207. This includes, but is not limited to:
(a) Timely review of mailed applications and paperwork.
(b) Timely and proactive communications to applicants on the status of their application.
(c) A clear and understood timeline for the issuance of any tax credits.
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.
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(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 with a focus on new and expanding protein processors, 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
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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 commission of agriculture and rural development 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, 2024.
(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.
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(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. 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
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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 $495,000.00 shall be allocated to the purses and supplements – fairs/licensed tracks line item.
(c) Any remaining funds collected through September 30, 2022, 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
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capital improvements at county fairgrounds of this state.
(b) Provide financial support, promotion, prizes, and premiums of equine, livestock, and other agricultural commodity expositions in this 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
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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 this 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, 2024.
(8) The department shall provide a year-end report on the county fairs, shows, and expositions grants no later than December 1, 2022 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.
ONE-TIME BASIS ONLY APPROPRIATIONS
Sec. 902. The one-time 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.