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, 2026, from the following funds:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
APPROPRIATION SUMMARY
Full-time equated unclassified positions	6.0

Full-time equated classified positions	575.0
GROSS APPROPRIATION		$	159,460,600
Total interdepartmental grants and intradepartmental transfers			336,600
ADJUSTED GROSS APPROPRIATIONS		$	159,124,000
Federal revenues:
Total federal revenues			20,079,600
Special revenue funds:
Total local revenues			0
Total private revenues			0
Total other state restricted revenues			51,972,400
State general fund/general purpose		$	87,072,000
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	6.0
Full-time equated classified positions	31.0
Unclassified salaries--FTE positions	6.0	$	1,064,200
Accounting service center			1,190,900
Commissions and boards			23,800
Emergency management--FTEs	8.0		3,574,100
Emerging contaminants in food and agriculture--FTEs	6.0		2,112,200
Executive direction--FTEs	17.0		2,532,200
Property management			876,300
GROSS APPROPRIATION		$	11,373,700
Appropriated from:
Federal revenues:
HHS, multiple grants			444,800

USDA, multiple grants		600,000
Deferred federal revenue funding		15,000
Special revenue funds:
Agriculture licensing and inspection fees		170,100
Dairy and food safety fund		160,000
Feed control fund		9,000
Fertilizer control fund		10,700
Freshwater protection fund		165,400
Industry support funds		58,300
Michigan craft beverage council fund		8,800
Private forestland enhancement fund		18,100
Refined petroleum fund		21,300
Weights and measures regulation fees		5,000
State general fund/general purpose	$	9,687,200
Sec. 103. INFORMATION TECHNOLOGY
Information technology services and projects	$	2,386,400
GROSS APPROPRIATION	$	2,386,400
Appropriated from:
Interdepartmental grant revenues:
Special revenue funds:
Agriculture licensing and inspection fees		93,800
Dairy and food safety fund		77,000
Feed control fund		15,200
Fertilizer control fund		15,200
Freshwater protection fund		15,200
Gasoline inspection and testing fund		32,600
State general fund/general purpose	$	2,137,400
Sec. 104. FOOD SAFETY AND ANIMAL HEALTH

Full-time equated classified positions	212.0
Animal disease prevention and response--FTEs	63.0	$	11,208,400
Animal feed safety--FTEs	10.0	$	2,127,200
Food safety and quality assurance--FTEs	103.0	$	18,907,500
Indemnification - livestock depredation			15,000
Michigan animal agriculture alliance			3,000,000
Milk safety and quality assurance--FTEs	36.0		6,057,500
GROSS APPROPRIATION		$	41,315,600
Appropriated from:
Federal revenues:
HHS, multiple grants			2,929,800
USDA, multiple grants			1,211,100
Special revenue funds:
Agriculture licensing and inspection fees			73,300
Animal welfare fund			150,000
Consumer and industry food safety education fund			242,500
Dairy and food safety fund			6,545,400
Feed control fund			1,451,500
Industry food safety education fund			114,100
Marihuana regulatory fund			50,600
State general fund/general purpose		$	28,547,300
Sec. 105. PROTECTING MICHIGAN'S FOOD SUPPLY
Full-time equated classified positions	19.0
Protect Michigan food supply--FTEs	19.0	$	4,000,000
GROSS APPROPRIATION		$	4,000,000
Appropriated from:
Special revenue funds:

Dairy and food safety fund			2,000,000
State general fund/general purpose		$	2,000,000
Sec. 106. ENVIRONMENT AND SUSTAINABILITY
Full-time equated classified positions	113.5
Environmental stewardship--FTEs	21.0	$	5,424,600
Pesticide and plant pest management--FTEs	81.0		14,032,300
Right-to-farm--FTEs	6.5		1,060,100
Soil health/regenerative agriculture--FTEs	5.0		2,035,500
GROSS APPROPRIATION		$	22,552,500
Appropriated from:
IDG from MDEGLE, biosolids			97,800
Federal revenues:
Department of interior			96,300
EPA, multiple grants			1,142,700
USDA, multiple grants			2,048,100
Special revenue funds:
Agriculture licensing and inspection fees			4,228,600
Fertilizer control fund			1,396,000
Freshwater protection fund			3,360,100
Horticulture fund			70,000
Industrial hemp fund			688,900
Industry support funds			228,100
State general fund/general purpose		$	9,195,900
Sec. 107. MAEAP AND CONSERVATION DISTRICT SUPPORT
Full-time equated classified positions	6.0
MAEAP and conservation district support--FTEs	6.0	$	9,700,000
GROSS APPROPRIATION		$	9,700,000

Appropriated from:
Special revenue funds:
Freshwater protection fund			5,200,000
State general fund/general purpose		$	4,500,000
Sec. 108. AGRICULTURE DEVELOPMENT
Full-time equated classified positions	74.0
Agricultural preservation easement grants		$	1,900,000
Agricultural support--FTEs	5.0		1,005,000
Agriculture development--FTEs	16.0		4,882,500
Fair food network - double up food bucks			5,000,000
Farm to family--FTEs	6.0		3,014,300
Farmland and open space preservation--FTEs	10.0		1,613,800
Food and agriculture investment program			2,474,800
Food and agricuture supply chain--FTE	1.0		805,100
Fruit and vegetable inspections--FTEs	8.0		1,313,300
Intercounty drain--FTEs	5.0		897,800
Michigan craft beverage council--FTE	1.0		1,346,600
Migrant labor housing--FTEs	9.0		1,410,000
Producer security/grain dealers--FTEs	6.0		1,044,500
Qualified forest program--FTEs	4.0		8,126,500
Rural development fund grant program--FTEs	3.0		4,009,500
GROSS APPROPRIATION		$	38,843,700
Appropriated from:
Federal revenues:
USDA, multiple grants			8,089,900
Special revenue funds:
Agricultural preservation fund			3,513,800
Agriculture licensing and inspection fees			5,100

Commodity inspection fees			705,500
Grain dealers fee fund			885,700
Industry support funds			223,600
Michigan craft beverage council fund			1,316,600
Migratory labor housing fund			145,100
Private forestland enhancement fund			1,080,100
Rural development fund			4,009,500
State general fund/general purpose		$	18,868,800
Sec. 109. LABORATORY AND CONSUMER PROTECTION
Full-time equated classified positions	115.5
Integrated solutions--FTEs	25.0	$	3,724,100
Consumer protection program--FTEs	39.0		6,988,800
Laboratory services--FTEs	40.5		8,667,700
USDA monitoring--FTEs	11.0		1,743,800
GROSS APPROPRIATION		$	21,124,400
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees			238,800
Federal revenues:
EPA, multiple grants			180,600
HHS, multiple grants			1,576,300
USDA, multiple grants			1,745,000
Special revenue funds:
Agriculture licensing and inspection fees			835,500
Agriculture preservation fund			44,600
Dairy and food safety fund			709,600
Feed control fund			193,000

Fertilizer control fund			23,500
Freshwater protection fund			78,900
Gasoline inspection and testing fund			1,964,300
Grain dealers fee fund			8,400
Industrial hemp fund			322,200
Migratory labor housing fund			29,900
Refined petroleum fund			3,563,700
Testing fees			361,700
Weights and measures regulation fees			763,100
State general fund/general purpose		$	8,485,300
Sec. 110. AGRICULTURE DIAGNOSTICS
Full-time equated classified positions	4.0
Plant, soil, and pest diagnostics--FTEs	4.0	$	900,000
GROSS APPROPRIATION		$	900,000
Appropriated from:
Special revenue funds:
State general fund/general purpose		$	900,000
Sec. 111. FAIRS AND EXPOSITIONS
County fairs, shows, and expositions		$	500,000
Fairs and racing			258,600
Horse racing advisory commmission			125,000
Purses and supplements - fairs/licensed tracks			2,073,600
Standardbred breeders' awards			345,900
Standardbred purses and supplements - licensed tracks			991,100
Standardbred sire stakes			720,000
GROSS APPROPRIATION		$	5,014,200
Appropriated from:

Special revenue funds:
Agriculture equine industry development fund		4,514,200
State general fund/general purpose	$	500,000
Sec. 112. ONE-TIME APPROPRIATIONS
Farm to family - new farmer support grants	$	800,000
Plant, soil, and pest diagnostics		700,000
Agriculture flooding and water control infrastructure		400,000
Tariff impacts monitoring and evaluation		250,000
Horticulture education programs		99,900
Small farm tariff relief grants		100
Ice storm relief for maple syrup and other agriculture industries		100
GROSS APPROPRIATION	$	2,250,100
Appropriated from:
Special revenue funds:
State general fund/general purpose	$	2,250,100

part 2

provisions concerning appropriations

for fiscal year 2025-2026

general sections

Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, for the fiscal year ending September 30, 2026, total state spending from state sources under part 1 is $139,044,400.00 and state spending under part 1 from state sources to be paid to local units of government is $14,400,000.00. The following itemized statement 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
MAEAP and conservation district support		8,100,000
Qualified forest program		1,400,000
Rural development fund grant program		3,000,000
TOTAL	$	14,400,000

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

(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) "Standard report recipients" means the senate and house appropriations subcommittees on agriculture and rural development the senate and house fiscal agencies, the senate and house policy offices, and the state budget office.

(i) "Subcommittees" means all members of the subcommittees of the house and senate appropriations committees with jurisdiction over the budget for the department.

(j) "TB" means tuberculosis.

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

Sec. 204. A department or agency shall use the internet to fulfill the reporting requirements of this part. This requirement includes transmitting reports to the standard report recipients and any other required recipients by email and posting the reports on an internet site.

Sec. 205. To the extent permissible under section 261 of the management and budget act, 1984 PA 431, MCL 18.1261, all of the following apply to the expenditure of funds appropriated in part 1:

(a) The funds must 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.

(b) Preference must be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality.

(c) Preference must 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.

(d) Preference must be given to goods or services, or both, that are manufactured in facilities that employ union members.

Sec. 206. The department shall not take disciplinary action against an employee of the department for communicating with a member of the legislature or legislative staff, unless the communication is prohibited by law and the department is exercising its authority as provided by law.

Sec. 207. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, each department and agency

receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1. The report must list all travel by classified and unclassified employees outside this state in the previous fiscal year that was funded in whole or in part with funds appropriated in the department's or agency's budget. The department or agency shall submit the report to the standard report recipients and to the senate and house appropriations committees. The report must include all of the following information:

(a) The dates of each travel occurrence.

(b) The total transportation and related expenses of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, and other revenues.

Sec. 208. A principle executive department, state agency, or authority shall not use funds appropriated in part 1 to hire a person to provide legal services that are the responsibility of the attorney general. This section does not apply to legal services for bonding activities or to outside legal services that the attorney general authorizes.

Sec. 209. Not later than December 15, the state budget office shall prepare and submit a report that provides estimates of the total general fund/general purpose appropriation lapses at the close of the previous fiscal year. The report must summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The state budget office shall submit the report to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

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 authorization. Amounts appropriated under this section 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 authorization. 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 authorization. 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 authorization. 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. A department or agency 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. Not later than 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the previous 2 fiscal years. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 214. (1) To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director shall take all reasonable steps to ensure geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. The director shall strongly encourage firms with which the department contracts to subcontract with certified geographically disadvantaged business enterprises for services, supplies, or both.

(2) As used in this section, "geographically disadvantaged business enterprises" means that term as defined in Executive Directive No. 2023-01.

Sec. 215. On a quarterly basis, the department or agency receiving appropriations in part 1 shall report on the number of

full-time equated positions in pay status by civil service classification, including a comparison by line item of the number of full-time equated positions authorized from funds appropriated in part 1 to the actual number of full-time equated positions employed by the department or agency at the end of the reporting period. The report must be submitted to the senate and house appropriations committees and to the standard report recipients.

Sec. 218. The department shall receive and retain copies of all reports funded from appropriations in part 1. The department shall follow federal and state guidelines for short-term and long-term retention of records. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec. 221. To the extent possible, the department shall not expend appropriations under part 1 until all existing authorized work project funds available for the same purposes are exhausted.

Sec. 222. (1) Funds appropriated in part 1 must not be used to restrict or impede a marginalized community's access to government resources, programs, or facilities.

(2) From the funds appropriated in part 1, local governments shall report any action or policy that attempts to restrict or interfere with the duties of the local health officer.

Sec. 223. (1) The state budget director shall take steps to ensure that all state fiscal recovery funds allocated to this state under the American rescue plan act of 2021, Public Law 117-2, are expended by December 31, 2026, as required by law.

(2) A department or agency receiving an appropriation under this part or part 1 shall notify the standard report recipients if an appropriation of funds described under this section is projected

to lapse.

Sec. 250. (1) For any grant program or project funded in part 1 intended for a single recipient organization or unit of local government, the grant program or project is for a public purpose and the department shall follow procurement statutes of this state, including any bidding requirements, unless the department can fully validate, through information detailed in this part or public supporting documents, both of the following:

(a) The specific organization or unit of local government that will receive or administer the funds.

(b) How the funds will be administered and expended.

(2) To be eligible to receive a grant described in subsection (1), both of the following must occur:

(a) A recipient must submit the application under subsection (3) not later than 60 days after the? effective date of this act.

(b) A recipient must be? 1 of the following:

(i) A unit of local government, as that term is defined? in section 115 of the management and budget act, 1984 PA 431, MCL 18.1115.

(ii) An institution of higher education.

(iii) A state agency, as that term is defined in section 115 of the management and budget act, 1984 PA 431, MCL 18.1115.

(iv) An entity registered with the department of licensing and regulatory affairs or the department of attorney general that has been in existence for at least the 12 months preceding the effective date of this act.

(v) Another entity that can demonstrate, through state or federal tax filings or other state or federal government records, that it has been in existence for at least the 12 months preceding

the effective date of this act.

(3) Notwithstanding any other conditions or requirements for direct appropriation grants, the department shall work with the state budget office to perform at least all of the following activities to administer the grants described in subsection (1):

(a) Develop a standard application process using the electronic submission portal developed by the state budget office, grantee reporting requirements, and any other necessary documentation, including sponsorship information as specified under subsection (4). If the electronic submission portal identified in this subdivision is not fully functional by 60 days after the effective date of this act, the state budget office shall ensure that the standard application process and form are available promptly and paper submission is acceptable. The state budget office shall promptly submit application material received to the department for departmental review.

(b) Establish a process to review, complete, and execute a grant agreement with a grant recipient. The department shall not execute a grant agreement unless all necessary documentation has been submitted and reviewed.

(c) Verify to the extent possible that a grant recipient will use funds for a public purpose that serves the economic prosperity, health, safety, or general welfare of the residents of this state.

(d) Review and verify all necessary information to ensure the grant recipient is reasonably able to execute the grant agreement, perform its fiduciary duty, and comply with all applicable state and federal statutes. The department may deduct the cost of background checks and any other efforts performed as part of this verification from the amount of the designated grant award.

(e) Establish a standard timeline to review all documents submitted by grant recipients and provide a response within 45 business days stating whether submitted documents by a grant recipient are sufficient or in need of additional information. If additional information is needed, the 60-day deadline in subsection (2) is considered to have been met if a sponsor has been identified for that grant. If a grant recipient does not provide information sufficient to execute a grant agreement not later than 60 days after being notified by the department of grant approval, the department shall return funds associated with the grant to the state treasury.

(f) Make an initial disbursement of up to 50% of the grant to the grant recipient not later than 60 days after a grant agreement has been executed. Disbursements must be consistent with part II, chapter 10, section 200 of the Financial Management Guide.

(g) Disburse the funds remaining after the initial disbursement under subdivision (f) per the grant disbursement schedule in the executed grant agreement on a reimbursement basis after the grantee has provided sufficient documentation, as determined by the department, to verify that expenditures were made in accordance with the project purpose.

(4) The process for the identification and sponsorship of a grant described in subsection (1) is as follows:

(a) Not later than the effective date of this act, the state budget office shall provide an initial list of grants that require legislative sponsorship to the legislature and shall make public an initial list of grants that likely will be sponsored by the department or by the state budget office.

(b) A sponsor of a grant described in subsection (1) must be a

legislator, the department, or the state budget office.

(c) A legislative sponsor must be identified through a letter submitted by that legislator's office to the department and state budget director containing the name of the grant recipient, the intended amount of the grant, a certification from that legislator that the grant is for a public purpose, and specific citation of the section and subsection of the public act that authorizes the grant, as applicable.

(d) Within 10 business days after the effective date of this act, the senate and house of representatives shall compile an initial list of legislative grant sponsors for their respective chambers and submit those compiled lists to the state budget office and the department, and the state budget office shall identify department- or state budget office-sponsored grants. The state budget director may grant an extension of this deadline of not more than 30 days on a case-by-case basis. The state budget office shall make the compiled lists public within 14 business days after the effective date of this act.

(e) Not later than 60 days after the effective date of this act, the state budget office shall publish a final list of grants requiring sponsorship. If a legislative sponsor is not identified within 60 days after the effective date of this act, the department shall do 1 of the following:

(i) Identify the department or the state budget office as the sponsor.

(ii) Decline to execute the grant agreement and lapse the associated funds at the end of the fiscal year.

(f) At any point during the fiscal year, legislative grant sponsors may be added to a grant request.

(5) An executed grant agreement under this section between the department and a grant recipient must include at least all of the following:

(a) All necessary identifying information for the grant recipient, including any tax and financial information for the department to administer funds under this section.

(b) A description of the project for which the grant funds will be expended, including tentative timelines and the estimated budget. The department shall not reimburse expenditures that are outside of the project purpose, as stated in the executed grant agreement, from appropriations in part 1. The grantee shall return to the treasury any interest in excess of $1,000.00 earned on the grant funds while unexpended and in possession of the grantee.

(c) Unless otherwise specified in department policy, a requirement that funds appropriated for the grants described in subsection (1) may be used only for expenditures that occur on or after the effective date of this act.

(d) A requirement for reporting by the grant recipient to the department and the legislative sponsor that provides the status of the project and an accounting of all funds expended by the grant recipient, as determined by the department.

(e) A claw-back provision that allows the department of treasury to recoup or otherwise collect any funds that are declined, unspent, or otherwise misused.

(f) The signed legislative sponsorship letter required under subsection (4), incorporated into the grant agreement and included as an appendix or attachment.

(g) If a grant recipient has provided information sufficient to execute a grant agreement, the? state budget office shall

promptly transmit that information to the department for the department's review of the grant application. If a grant recipient has provided information sufficient to execute a grant agreement within 60 days after the effective date of this act, but the grant application needs technical fixes or additional legislative action, as identified by the state budget office, the 60-day deadline in this subdivision is considered to have been met, if a sponsor has been identified for that grant. If a grant recipient does not provide information sufficient to execute a grant agreement not later than 60 days after being notified by the department of grant approval, the department shall return funds associated with the grant to the state treasury.

(6) If appropriate to improve the administration or oversight of a grant described in subsection (1), the department may adopt a memorandum of understanding with another state department to perform the required duties under this section.

(7) A grant recipient shall respond to all reasonable information requests from the department related to grant expenditures and retain grant records for not less than 7 years, and the grant may be subject to monitoring, site visits, and audits as determined by the department. The grant agreement required under this section must include signed assurance by the chief executive officer or other executive officer of the grant recipient that the requirements of this subsection will be met.

(8) The grant recipient shall expend all funds awarded and complete all projects not later than September 30, 2030. If at that time any unexpended funds remain, the grant recipient shall return those funds to the state treasury.

(9) Any funds that are granted to a state department are

appropriated in that department for the purpose of the intended grant.

(10) The state budget director may, on a case-by-case basis, extend the deadline in subsection (8) on request by a grant recipient if a sponsor has been identified for the grant. The state budget director shall notify the chairs of the senate and house of representatives appropriations committees not later than 5 days after an extension is granted.

(11) By March 1 of the current fiscal year, the state budget office shall post a report in a publicly accessible location on its website. The report must list the grant recipient, project purpose, and location of the project for each grant described in subsection (1), the status of funds allocated and disbursed under the grant agreement, and the legislative sponsor, if applicable. After March 1, the state budget office shall update the report monthly and shall post the updated report each month. The state budget office shall include in the report the most comprehensive information the office has available at the time of posting for grants awarded. The state budget office may compile the information required in this report across all departments. The department shall assist the state budget office with the compilation of the report required under this subsection.

(12) On request, beginning 75 days after the effective date of this act, the state budget office shall release information received for grant applications.

(13) As applicable, the legislative sponsor of a grant described in subsection (1) shall not sponsor a grant, or ask another legislator to sponsor a grant, if there is a conflict of interest related to the grant recipient.

(14) If the department reasonably determines that the funds allocated for an executed grant agreement under this section were misused or that use of the funds was misrepresented by the grant recipient, the department shall not award any additional funds under the executed grant agreement and shall refer the grant for review following internal audit protocols.

Sec. 251. (1) General fund appropriations in part 1 shall not be expended for items if federal funding or private grant funding is available for the same expenditures.

(2) If the department is required to make a reduction in expenditures under section 395(1) or (2) of the management and budget act, 1984 PA 431, MCL 18.1395, for any appropriation under this part or part 1, the department must notify the standard report recipients not later than 10 days after the reduction. The notification must include, but not be limited to, the following:

(a) A description of the fund source that is insufficient to support the expenditures being reduced and the amount of the reduction.

(b) A description of the cause for the reduction, if any such cause is known.

Sec. 252. (1) Within 10 days after the effective date of this act, the department must provide a report to the standard report recipients containing the following information:

(a) A list of any sections in this act that the department determines to be unenforceable, with a detailed legal rationale for those determinations, as applicable.

(b) If a determination under subdivision (a) would affect the

operations of a program or programs within the department, the department must report the estimated difference in cost between the policy outlined in the section determined to be unenforceable and the policy the department intends to pursue.

(2) The department may coordinate with the executive office of the governor or other state departments or agencies to compile a statewide report for any departments or agencies required to submit a report substantially similar to the report described under subsection (1).

Sec. 253. The department must provide a quarterly report to the standard report recipients detailing federal policy changes that do, or are expected to do, any of the following:

(a) Affect the operations of the department.

(b) Affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.

(c) Affect regulations that currently protect the public to the extent that the regulations affect an industry, community, population, or other group regulated or served by, or that otherwise engages with, the department.

(d) Create a regulatory gap that could negatively impact the public.

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, to recover expenses associated with the work activities and services described in subsection (1). Fee revenue collected by the department under subsection (1) does not lapse to the state general fund at the end of the fiscal year but carries 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 before 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.

(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.

(3) As used in this section:

(a) "Contracts" includes, but is not limited to, contracts for delivery of groundwater/freshwater programs, MAEAP technical assistance, forest management, invasive species monitoring, and wildlife risk mitigation.

(b) "Grants" includes, but is not limited to, grants promoting proper pesticide disposal and research grants for the purpose of enhancing the agricultural industries in this state.

Sec. 303. (1) From the funds appropriated in part 1 for emerging contaminants in food and agriculture the department shall support efforts to identify and respond to the impacts of emerging contaminants to the food and agriculture sector, help address and mitigate current issues caused by emerging contaminants, and work to prevent and minimize future impacts. The department shall coordinate these efforts with other state agencies, federal agencies, tribal governments, local governments, institutions of higher learning, and the food and agriculture sector. Emerging contaminants include but are not limited to pesticides, dioxins, and per- and polyfluoroalkyl substances.

(2) The unexpended funds appropriated in part 1 for emerging contaminants in food and agriculture are designated as a work project appropriation, and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and are 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 support efforts to identify and respond to the impacts of emerging contaminants to the food and agriculture sector, help address and mitigate current issues caused by emerging contaminants, and work to prevent and minimize future impacts.

(b) The project will be accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date for the work project is September 30, 2030.

FOOD safety and animal health

Sec. 401. (1) The department shall report on the previous calendar year's activities of the bureau of food safety and animal health. The report must include information on activities and outcomes of the dairy safety and inspection program, the food safety inspection program, the animal industry division, the foodborne illness and emergency response program, and the food service program.

(2) The report must 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 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.

(4) The report must be transmitted on or before April 1 of each year.

Sec. 402. From the funds appropriated in part 1, the department shall pay for all whole herd bovine TB testing costs and individual animal testing costs in the modified accredited zone and buffer counties as referenced in the current memorandum of understanding between the department and the USDA to maintain split-state status requirements. These costs include indemnity and compensation for injury causing death or downer to animals.

Sec. 403. The department shall use its resources to collaborate with the USDA to monitor bovine TB, consistent with the current required memorandum of understanding between the department and the USDA.

Sec. 404. From the funds appropriated in part 1 for animal disease prevention and response, the department shall use $200,000.00 to cover costs associated with testing of registered privately owned cervid facilities as follows:

(a) Required surveillance testing for chronic wasting disease.

(b) Infected herd bovine TB testing.

Sec. 405. (1) On or before October 15 of each year, the department shall provide to the standard report recipients 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. The quarterly update reports must 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; and educational programs and information for this state's livestock community.

Sec. 406. 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 continue an animal research grant program.

ENVIRONMENT AND SUSTAINABILITY

Sec. 501. The department shall report on the previous calendar year's activities of the bureau of environment and sustainability on or before April 1 of each year.

Sec. 502. (1) The purpose of the part 1 appropriation for soil health/regenerative agriculture is to promote the usage and implementation of best regenerative agricultural farming practices and new technologies related to environmental sustainability.

(2) The purpose of the part 1 appropriation for soil health/regenerative agriculture is advancing the adoption of soil health and regenerative agriculture principles in agriculture in this state.

(3) From the funds appropriated in part 1 for soil health/regenerative agriculture, the department shall do both of the following:

(a) Promote the principles of soil health and regenerative agriculture through at least the following:

(i) The maintenance of soil cover.

(ii) The minimization of soil disturbance.

(iii) The maximization of plant and crop diversity.

(iv) The maximization of the presence of living roots.

(v) The integration of livestock into the cropping systems.

(b) Ensure that program outcomes include at least the following:

(i) The increase of soil organic matter content.

(ii) The improvement of soil water infiltration capacity.

(iii) The increase in soil water holding capacity.

(iv) The improvement of soil biological capacity to break down plant residue and other substances and to maintain soil aggregation.

(v) The improvement of soil nutrient sequestration and cycling capacity.

(vi) The reduction of nutrient losses.

(vii) The increase of carbon sequestration capacity of soil.

(4) From the funds appropriated in part 1 for soil health/regenerative agriculture, the department shall promote practices of soil health and regenerative agriculture, including the use of no-till farming, intercropping, cover crops, multispecies cover crops, roller crimping, managed rotational grazing, and other practices identified that utilize natural biological processes to advance the goals of soil health and regenerative agriculture.

(5) No funds appropriated in part 1 for soil health/regenerative agriculture may be used for applied research into the precision application of fertilizer, pesticides, or

herbicides.

(6) It is the intention of the legislature that the department engage with program partners to achieve the purposes of the soil health/regenerative agriculture programs through research, education, and outreach. Program partners include, but are not limited to, farmer-to-farmer networks, Michigan State University Extension, Michigan State University AgBioResearch, the USDA Natural Resources Conservation Service, local conservation districts, and other nongovernmental organizations. Agreements with program partners receiving funds through soil health/regenerative agriculture appropriations must describe intended outcomes and how intended outcomes will be measured and require the provision of a report to the department on uses of funding received and a progress report on outcomes.

(7) The department may use state employees or contract service providers, or both, to achieve the purposes of the soil health/regenerative agriculture programs.

(8) In the report required under section 501 of this part, the department shall provide information on the program described in this section, including department activities, uses of program funds by activity or project, contractors, grantees, and a summary of projects and project results.

(9) Of the funds appropriated in part 1 for soil health/regenerative agriculture, not less than $1,000,000.00 must be used by the department to partner with the state land grant university through MSU Extension and AgBioResearch to develop, implement, and evaluate a soil health/regenerative agriculture program. The partnership described in this subsection must be focused on researching and assisting the agricultural industry in

implementing soil health/regenerative agricultural principles and techniques. Partnership goals must include, but are not limited to, establishing program priorities, developing metrics, implementing goals, evaluating outcomes, and engaging with stakeholders.

Sec. 503. No later than April 1, the department shall prepare a report to be posted on the department's website and provided to the relevant house and senate standing committees and appropriations subcommittees as well as to the fiscal agencies and state budget office. The report must contain the following information for agriculture nutrient best management voluntary practices program:

(a) The number and location of acres enrolled in nutrient management or other best management practices.

(b) The number of acres enrolled that were not previously verified under the MAEAP.

(d) The starting and ending balances of the program.

(e) A summary of outreach and training efforts.

(f) Testing results.

Sec. 505. The funds appropriated in part 1 for environmental stewardship must 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.

Sec. 506. 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 part 1 for environmental stewardship activities. The department shall notify the subcommittees, the fiscal agencies, and the state budget office prior to expending federal revenues authorized under this section.

MAEAP AND CONSERVATION DISTRICT SUPPORT

Sec. 601. (1) From the appropriations in part 1 for MAEAP administration and conservation district support, $8,000,000.00 must be distributed through a grant program to local conservation districts in this state that were in operation in the previous fiscal year, based upon criteria established by the department. The department may require local matching funds of up to $2,000,000.00 of the money distributed under this section. Conservation districts may employ technicians directly or through contract with the state land grant university.

(2) On or before April 1, the department shall report on the previous calendar year's activities of local conservation districts. The report must include descriptions of local conservation district activities and the use of funding. In preparing this report, the department shall coordinate with representatives of local conservation districts.

Sec. 603. 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 part 1 for MAEAP administration and conservation district support 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. 604. The funds appropriated in part 1 for MAEAP

administration and conservation district support must 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.

LABORATORY AND CONSUMER PROTECTIOn

Sec. 701. The department shall report by April 1 on the previous calendar year's activities of the laboratory bureau.

Sec. 702. No funds from the appropriations in part 1 may be used for the purpose of consolidating state-run laboratories.

AGRICULTURE DEVELOPMENT

Sec. 801. (1) From the funds appropriated in part 1 for the food and agriculture investment program, the department shall operate a food and agriculture investment program.

(2) The food and agriculture investment program shall do all of the following:

(a) Expand the Michigan food and agriculture sector.

(b) Promote food security.

(d) Grow Michigan exports.

(e) Promote the development of value-added agricultural production.

(f) Support urban farms, food hubs, food incubators, and community-based processing facilities with a focus on new and expanding protein processors.

(g) Promote the expansion of farm markets, flower markets, and urban agriculture, including hoop houses.

(h) Increase food processing activities within this state by accelerating investment projects and infrastructure development that support growth in production agriculture and food and agriculture processing, expand opportunity to new agricultural producers and processors, promote agriculture tourism and agricultural heritage, and develop agricultural education and interpretation activities.

(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 must 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, food security, local and regional food systems, 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 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 do not lapse at the end of the fiscal year and are 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 accomplished by utilizing state employees or contracts with service providers, or both.

(d) The tentative completion date for the work project is September 30, 2028.

(7) 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.

(d) Other economic assistance.

(e) Program administration.

(f) Export assistance.

(8) 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.

(9) In awarding grants under the food and agriculture

investment program, the department shall identify and encourage applications from members of socially disadvantaged groups, women, veterans, and beginning farmers and ranchers. In awarding grants under the food and agriculture investment program, the department must also prioritize Michigan-based small businesses, nonprofits, and organizations promoting agriculture and food security activities.

Sec. 803. (1) From the funds appropriated in part 1 for fair food network ? double up food bucks, the department shall work with the fair food network to ensure that at least 80% of the funds allocated to the double up food bucks program are directly used for the payments to participating vendors.

(2) 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 and that it is administered by the fair food network. Food assistance program recipients shall receive information about the double up food bucks program.

(3) 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.

(4) On or before June 1, the department shall submit a report on activities and outcomes of the double up food bucks program. The report must 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, 2024.

(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, 2024. The report must highlight counties and vendors added to the program since May 1, 2024.

Sec. 804. (1) By not later than April 1, the department shall report on the previous calendar year's activities of the agriculture development bureau.

(2) The report described in subsection (1) must 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.

(d) Additional state, federal, private, or local funds contributed to the grant project.

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

(3) The report must 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.

results of research grant projects completed during the previous fiscal year.

(4) The report must identify grant recipients who are members of socially disadvantaged groups, women, veterans, and beginning farmers and ranchers.

Sec. 805. Unexpended industry support fund revenues at the end of the fiscal year may be carried forward into the industry support fund in the succeeding fiscal year and do not lapse to the general fund.

Sec. 806. (1) The appropriations in part 1 for the qualified forest program are for the purpose of increasing the knowledge of nonindustrial private forestland owners regarding 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 this state's timber product industry.

Sec. 807. From the funds appropriated in part 1, the department shall maintain coordination 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. The improvement of timely processing and issuance, as described in this section, 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.

Sec. 808. The department shall collaborate with the department of labor and economic opportunity's office of rural prosperity on the rural development fund grant program as part of this state's coordinated strategy for achieving rural prosperity across the state.

FAIRS and EXPOSITIONS

Sec. 901. All appropriations from the agriculture equine industry development fund must be spent on equine-related purposes. No funds from the agriculture equine industry development fund must be expended for non-equine-related purposes without prior approval of the legislature.

Sec. 902. From the funds appropriated in part 1 from agriculture equine industry development funds, available revenue must 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) Any remaining funds collected through September 30, 2025, after the obligations in subdivision (a) have been met, must be prorated equally among the county fairs, 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. 903. From the funds appropriated in part 1 from purses

and supplements ? fairs/licensed tracks, $720,000.00 may be spent only if there is no standardbred race meeting in this state that is licensed under the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336, by January 1, 2026.

Sec. 904. (1) From the funds appropriated in part 1 for county fairs, shows, and expositions, the department shall establish and administer a county fairs, shows, and expositions grant program. The program must have the following objectives:

(a) Assist in the financing of building improvements or other 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 must 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 must be expended for the purpose of financial support, promotion, prizes, and premiums of equine, livestock, and other agricultural commodity expositions and festivals in this state.

(4) All fairs receiving grants under this section must 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 for administering the program.

(7) The unexpended portion of the appropriation in part 1 for county fairs, shows, and expositions grants are designated as a work project appropriation and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and are 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 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.

(d) The estimated cost of the project is $500,000.00.

(e) The tentative completion date for the work project is September 30, 2028.

(8) The department shall provide a year-end report on the county fairs, shows, and expositions grants no later than December

1, 2026 that includes a listing of the grantees, award amounts, match funding, project outcomes, and department costs of grant administration.

ONE-TIME APPROPRIATIONS

Sec. 1001. (1) From the funds appropriated in part 1 for tariff economic impact, the department shall utilize the funds to monitor, evaluate, and recommend responses to the economic impact of recently instituted tariffs by the federal government.

(2) The department may utilize funds for any of the following purposes:

(a) Surveying businesses, industry organizations, employee and worker organizations, other state agencies, or academic researchers on the impact of tariffs.

(b) Department activities, including a review of existing programs and how they may be impacted or adjusted to support individuals and businesses harmed by tariffs.

(3) Not later than March 1, the department shall provide a report to the standard recipients on the activities undertaken to monitor and respond to the economic impact of tariffs and any recommendations to support affected business and individuals in this state.