AGRICULTURE AND RURAL DEVELOPMENT · Analyst: William E. Hamilton Funding FY 2017-18 Phone: 373-8080 Source Year-To-Date EXECUTIVE HOUSE SENATE ENACTED EXECUTIVE HOUSE SENATE ENACTED

AGRICULTURE AND RURAL DEVELOPMENT BOILERPLATE DECISION DOCUMENT

FY 2018-19 APPROPRIATIONS

Mary Ann Cleary, Director William E. Hamilton, Senior Fiscal Analyst 373-8080 Printed March 22, 2018

House Appropriations Subcommittee on Agriculture and Rural Development

Rep. Victory, Chair Rep. Whiteford, Vice-Chair Rep. Pagel Rep. LaSata Rep. Hoadley, Minority Vice-Chair Rep. LaGrand

FY 2017-18 Boilerplate per Article I, PA 107of 2017 Compared to FY 2018-19:

Executive Recommendation House Bill 5568 (H-1) Draft1, as amended

Senate Bill 850

Executive House Senate EnactedFY 2016-17 House Change From Change From Change From Change From

YTD (1) Executive Subcommittee (2) Senate Enacted FY 2016-17 FY 2016-17 FY 2016-17 FY 2016-17

FTEs 499.5 506.5 508.5 7.0 9.0

GROSS $ 114,698,600 $ 102,888,100 $ 102,968,100 $(11,810,500) $(11,730,500)

IDG/IDT 310,300 313,900 313,900 3,600 3,600 ADJUSTED GROSS $ 114,138,300 $ 102,574,200 $ 102,654,200 $(11,814,100) $(11,484,100)

FEDERAL 11,373,900 11,695,200 11,775,200 321,300 401,300

LOCAL - - - 0 0

PRIVATE 101,600 101,800 101,800 200 200

RESTRICTED 36,661,000 37,072,000 37,072,000 411,000 411,000

GF/GP $ 66,251,800 $ 53,705,200 $ 53,705,200 $(12,546,600) $(12,546,600)

(1). FY 2017-18 YTD as of Executive budget presentation, February 8, 2018.(2). House Bill 5568 (H-1), Draft 1, as amended, 3/22/2018.

FISCAL YEAR 2017-18

AGRICULTURE AND RURAL DEVELOPMENTLINE ITEM DECISION DOCUMENT

FY 2017-18 YTD Compared to FY 2018-19 Budget Proposal

William E. Hamilton 3/22/2018

Analyst: William E. Hamilton Funding FY 2017-18Phone: 373-8080 Source Year-To-Date EXECUTIVE HOUSE SENATE ENACTED EXECUTIVE HOUSE SENATE ENACTED

1. Commission and Boards FTE 0.0 0.0 0.0 0.0 0.0 Executive: No change from current year. Gross $23,800 $23,800 $23,800 $0 $0 House: Concurs with Executive. Restricted 8,800 8,800 8,800 0 0

GF/GP $15,000 $15,000 $15,000 $0 $0

2. Unclassified Positions FTE 6.0 6.0 6.0 0.0 0.0 Executive: Economic increase. Gross $562,300 $573,500 $573,500 $11,200 $11,200 House: Concurs with Executive. GF/GP $562,300 $573,500 $573,500 $11,200 $11,200

3. Executive Direction FTE 20.0 20.0 20.0 0.0 0.0 Executive: Economic increase, $37,900 GF/GP. Gross $2,216,900 $2,561,900 $2,561,900 $345,000 $345,000

Restricted 54,300 54,300 54,300 0 $0 GF/GP $2,162,600 $2,507,600 $2,507,600 $345,000 $345,000

House: Concurs with Executive.

6. Emergency Management FTE 4.0 4.0 4.0 0.0 0.0 Executive: Economic increase. Gross $1,079,600 $1,093,300 $1,093,300 $13,700 $13,700 House: Concurs with Executive. Federal 434,400 438,100 438,100 3,700 3,700

GF/GP $645,200 $655,200 $655,200 $10,000 $10,000

7. Accounting Service Center Gross $1,150,400 $1,164,200 $1,164,200 $13,800 $13,800 Executive: Economic increase. GF/GP $1,150,400 $1,164,200 $1,164,200 $13,800 $13,800 House: Concurs with Executive.

Increase of $307,100 GF/GP would support two data management staff positions currently working in the department's Office of Organizational Innovation. These positions have been cross-funded through the Information Technology Investment Fund in the DTMB budget. Funding increase is provided from various GF/GP reductions within budget, as described below.

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT Change From FY 2017-18 Y-T-D

Sec. 102. DEPARTMENT ADMINISTRATION AND SUPPORT.

Proposed FY 2018-19 Budget

House Fiscal Agency MDARD Part 1, Departmentwide - 1 3/22/2018


DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT Change From FY 2017-18 Y-T-DProposed FY 2018-19 Budget

8. Property Management Gross $709,000 $705,700 $705,700 ($3,300) ($3,300)Executive: Economic adjustment. Restricted 191,700 190,800 190,800 (900) (900)House: Concurs with Executive. GF/GP $517,300 $514,900 $514,900 ($2,400) ($2,400)

FTE 30.0 30.0 30.0 0.0 0.0 0.0 0.0 0.0 0.0 Gross $5,742,000 $6,122,400 $6,122,400 $0 $0 $380,400 $380,400 $0 $0 IDG 0 0 0 0 0 0 0 0 0 Federal 434,400 438,100 438,100 0 0 3,700 3,700 0 0 Local 0 0 0 0 0 0 0 0 0 Private 0 0 0 0 0 0 0 0 0 Restricted 254,800 253,900 253,900 0 0 (900) (900) 0 0 GF/GP $5,052,800 $5,430,400 $5,430,400 $0 $0 $377,600 $377,600 $0 $0

APPROPRIATION UNIT TOTAL

House Fiscal Agency MDARD Part 1, Departmentwide - 2 3/22/2018


1. Information Technology Services and Projects FTE 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Executive: Economic increase. Gross $1,778,500 $1,794,500 $1,794,500 $0 $0 $16,000 $16,000 House: Concurs with Executive. IDG 3,200 3,200 3,200 0 0

Restricted 187,600 187,600 187,600 0 0 GF/GP $1,587,700 $1,603,700 $1,603,700 $16,000 $16,000

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

Sec. 103. INFORMATION AND TECHNOLOGY

Change From FY 2017-18 Y-T-DProposed FY 2018-19 Budget

House Fiscal Agency MDARD Part 1 - Information Technology 3 3/22/2018


1. Food Safety and Quality Assurance FTE 94.0 96.0 96.0 2.0 2.0 Executive: Economic increase, $204,500. Gross $16,798,400 $16,602,900 $16,602,900 ($195,500) ($195,500)

Federal 2,326,500 2,343,600 2,343,600 17,100 17,100 Restricted 5,510,000 5,554,000 5,554,000 44,000 44,000 GF/GP 8,961,900 8,705,300 8,705,300 (256,600) (256,600)


2. Milk Safety and Quality Assurance FTE 31.0 36.0 38.0 5.0 7.0 Executive: Economic increase, $69,600. Gross $4,510,300 $5,359,900 $5,739,900 $849,600 $1,229,600

Federal 111,300 112,100 192,100 800 80,800 Restricted 219,700 224,000 224,000 4,300 4,300 GF/GP 4,179,300 5,023,800 5,323,800 844,500 1,144,500

FTE 125.0 132.0 134.0 0.0 0.0 7.0 9.0 Gross $21,308,700 $21,962,800 $22,342,800 $0 $0 $654,100 $1,034,100 IDG 0 0 0 0 0 0 0 Federal 2,437,800 2,455,700 2,535,700 0 0 17,900 97,900 Local 0 0 0 0 0 0 0 Private 0 0 0 0 0 0 0 Restricted 5,729,700 5,778,000 5,778,000 0 0 48,300 48,300 GF/GP $13,141,200 $13,729,100 $14,029,100 $0 $0 587,900 887,900


FOOD AND DAIRY SUBTOTAL

Sec. 104. FOOD AND DAIRY


Eliminates $150,000 GF/GP that had been added to current year for draft beer delivery system program. Reduces baseline GF/GP support by $250,000. Department indicates this reduction will not affect program activities; restricted funding in the line is sufficient to fully support programs, including education and outreach programs related to the federal Food Safety Modernization Act (FSMA). Increases authorized FTE positions to reflect program staffing.

Increase of $780,000 GF/GP with 5.0 additional FTE positions in dairy inspection program reflects increased workload due to increase in dairy production and processing in Michigan. Funding increase is provided from various GF/GP reductions within budget.

House: $1.1million GF/GP increase, $300,000 more than the Executive; authorizes 38.0 FTE positions, 7.0 more than current year and 2.0 more than the Executive. Includes an additional $80,000 in federal spending authority to reflect FDA grant awards.

House Fiscal Agency MDARD Part 1 - Food/Dairy - 4 3/22/2018


1. Animal Disease Prevention and Response FTE 61.0 61.0 61.0 0.0 0.0 Gross $9,267,300 $9,356,900 $9,356,900 $89,600 $89,600 Federal 616,000 618,000 618,000 2,000 2,000 Private 30,500 30,500 30,500 0 0 Restricted 263,000 220,300 220,300 (42,700) (42,700)GF/GP 8,357,800 8,488,100 8,488,100 130,300 130,300

2. Indemnification - Livestock Depredation FTE 0.0 0.0 0.0 0.0 0.0 Executive: No change from current year. Gross $50,000 $50,000 $50,000 $0 $0

GF/GP $50,000 $50,000 $50,000 $0 $0

3. Animal agriculture initiative Gross $0 $0 $400,000 $0 $400,000 GF/GP $0 $0 $400,000 $0 $400,000

House: Includes at $400,000 GF/GP.

FTE 61.0 61.0 61.0 0.0 0.0 0.0 0.0 Gross $9,317,300 $9,406,900 $9,806,900 $0 $0 $89,600 $489,600 IDG 0 0 0 0 0 0 0 Federal 616,000 618,000 618,000 0 0 2,000 2,000 Local 0 0 0 0 0 0 0 Private 30,500 30,500 30,500 0 0 0 0 Restricted 263,000 220,300 220,300 0 0 (42,700) (42,700)GF/GP $8,407,800 $8,538,100 $8,938,100 $0 $0 $130,300 $530,300

ANIMAL INDUSRTY SUBTOTAL


Sec. 105. ANIMAL INDUSTRY


Executive: Economic increase of $132,900; reduces restricted Animal welfare fund by $43,300 to match available revenue.

Executive: N/A (The Governor's budget eliminates one-time funding).

House Fiscal Agency MDARD Part 1 - Animal Industry - 5 3/22/2018


1. Pesticide and Plant Pest Management FTE 88.0 87.0 87.0 (1.0) (1.0)Gross $14,073,800 $14,172,700 $13,772,700 $98,900 ($301,100)Federal 1,678,500 1,686,900 1,686,900 8,400 8,400 Private 21,100 21,300 21,300 200 200 Restricted 6,548,400 6,737,900 6,737,900 189,500 189,500 GF/GP $5,825,800 $5,726,600 $5,326,600 ($99,200) ($499,200)

House reduces GF.GP support by $400,000; the House budget is $200,000 GF/GP less than Executive.

2. Producer Security/Grain Dealers FTE 6.0 6.0 6.0 0.0 0.0 Executive: Economic increase. Gross $618,500 $628,200 $628,200 $9,700 $9,700 House: Concurs with Executive. Restricted 600,400 610,100 610,100 9,700 9,700

GF/GP $18,100 $18,100 $18,100 $0 $0

FTE 94.0 93.0 93.0 0.0 0.0 (1.0) (1.0)Gross $14,692,300 $14,800,900 $14,400,900 $0 $0 $108,600 ($291,400)Federal 1,678,500 1,686,900 1,686,900 0 0 8,400 8,400 Private 21,100 21,300 21,300 0 0 200 200 Restricted 7,148,800 7,348,000 7,348,000 0 0 199,200 199,200 GF/GP $5,843,900 $5,744,700 $5,344,700 $0 $0 ($99,200) ($499,200)

Change From FY 2017-18 Y-T-D


PPPM SUBTOTAL

Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT


Executive: Economic increase, $174,300; internal restricted fund shifts net to $24,600; $200,000 reduction in GF/GP support is offset by increase in restricted Fertilizer Control Fund revenue. Shifts $100,000 Ag. licensing fee revenue to Laboratory program.

House Fiscal Agency MDARD Part 1 - Pesticide/Plant Pest Management - 6 3/22/2018


1. Environmental Stewardship/MAEAP FTE 25.0 25.0 25.0 0.0 0.0 Gross $10,236,600 $10,191,300 $10,191,200 ($45,300) ($45,400)Federal 1,381,000 1,479,100 1,479,100 98,100 98,100 Restricted 7,785,800 7,714,900 7,714,900 (70,900) (70,900)GF/GP $1,069,800 $997,300 $997,200 ($72,500) ($72,600)

1b. Groundwater mapping - NEWExecutive: N/A. Gross $0 $0 $100 $0 $100 House: Concurs adds new line item with $100 GF/GP $0 $0 $100 $0 $100

2. Farmland and Open Space Preservation FTE 10.0 10.0 10.0 0.0 0.0 Gross $1,623,100 $1,545,000 $1,545,000 ($78,100) ($78,100)Restricted 1,410,600 1,425,700 1,425,700 15,100 15,100 GF/GP $212,500 $119,300 $119,300 ($93,200) ($93,200)


3. Intercounty Drain FTE 6.0 6.0 6.0 0.0 0.0 Executive: Economic increase, $9,000. Gross $802,900 $811,900 $811,900 $9,000 $9,000 House: Concurs with Executive. GF/GP $802,900 $811,900 $811,900 $9,000 $9,000

4. Migrant Labor Housing FTE 9.0 9.0 9.0 0.0 0.0 Executive: Economic increase, $900. Gross $1,206,800 $1,231,100 $1,231,100 $24,300 $24,300 House: Concurs with Executive. Restricted 139,200 140,100 140,100 900 900

GF/GP $1,067,600 $1,091,000 $1,091,000 $23,400 $23,400

5. Qualified Forest Program FTE 9.0 9.0 9.0 0.0 0.0 Gross $2,697,300 $2,590,000 $2,190,000 ($107,300) ($507,300)Restricted 480,200 481,500 481,500 1,300 1,300

House: Concurs with Executive. GF/GP $2,217,100 $2,108,500 $1,708,500 ($108,600) ($508,600)


Executive: Economic increase. Reduces GF/GP support by $100,000. The department indicates this reduction will not affect program activities; restricted funding in the line is sufficient to fully support programs.

Executive: Economic increase, $1,300; Reduces GF/GP support by $130,000.

Sec. 107. ENVIRONMENTAL STEWARDSHIP


Executive: Economic increase, $21,800;.reduces GF/GP support by $99,900. The department indicates that a backlog in processing applications will soon be cleared allowing for a reduction in temporary employees.

House: Concurs with Executive except for $100 GF/GP shift to create a new Groundwater mapping line item.

House Fiscal Agency MDARD Part 1 - Environmental Stewardship - 7 3/22/2018



6. Right-To-Farm Program FTE 6.5 6.5 6.5 0.0 0.0 Executive: Economic increase, $13,200. Gross $950,800 $964,000 $964,000 $13,200 $13,200 House: Concurs with Executive. IDG 88,500 90,200 90,200 1,700 1,700

GF/GP $862,300 $873,800 $873,800 $11,500 $11,500

7. Watershed Phosphorus Removal Pilot Project - NEWExecutive: N/A Gross $0 $0 $120,000 $0 $120,000

GF/GP $0 $0 120,000 $0 $120,000

ENVIRONMENTAL STEWARDSHIP SUBTOTAL FTE 65.5 65.5 65.5 0.0 0.0 0.0 0.0 0.0 0.0 Gross $17,517,500 $17,333,300 $17,053,300 $0 $0 ($184,200) ($464,200) $0 $0 IDG 88,500 90,200 90,200 0 0 1,700 1,700 0 0 Federal 1,381,000 1,479,100 1,479,100 0 0 98,100 98,100 0 0 LocalPrivateRestricted 9,815,800 9,762,200 9,762,200 0 0 (53,600) (53,600) 0 0 GF/GP $6,232,200 $6,001,800 $5,721,800 $0 $0 ($230,400) ($510,400) $0 $0

House includes funding for pilot project related to removal of phosphorus from lakes and other waterways.

House Fiscal Agency MDARD Part 1 - Environmental Stewardship - 8 3/22/2018


1. Laboratory Services FTE 42.0 42.0 42.0 0.0 0.0 Gross $6,829,000 $7,141,500 $7,141,500 $312,500 $312,500 IDG 218,600 220,500 220,500 1,900 1,900 Federal 800,100 1,106,900 1,106,900 306,800 306,800 Restricted 1,272,300 1,217,700 1,217,700 (54,600) (54,600)GF/GP $4,538,000 $4,596,400 $4,596,400 $58,400 $58,400


2. USDA Monitoring Program FTE 13.0 13.0 13.0 0.0 0.0 Executive: Economic increase. Gross $1,622,100 $1,637,300 $1,637,300 $15,200 $15,200 House: Concurs with Executive. Federal 1,622,100 1,637,300 1,637,300 15,200 15,200

GF/GP $0 $0 $0 $0 $0

3. Consumer Protection Program FTE 41.0 41.0 41.0 0.0 0.0 Executive: Economic increase. Gross $6,711,200 $6,790,600 $6,790,600 $79,400 $79,400 House: Concurs with Executive. Restricted 4,601,800 4,657,900 4,657,900 56,100 56,100

GF/GP $2,109,400 $2,132,700 $2,132,700 $23,300 $23,300

4. Central Licensing/Customer Call Center - NEW FTE 11.0 12.0 12.0 1.0 1.0 Gross $1,218,000 $1,338,200 $1,338,200 $120,200 $120,200 Restricted 795,700 908,500 908,500 112,800 112,800

House: Concurs with Executive. GF/GP $422,300 $429,700 $429,700 $7,400 $7,400

LABORATORY PROGRAM SUBTOTAL FTE 107.0 108.0 108.0 0.0 0.0 1.0 1.0 0.0 0.0 Gross $16,380,300 $16,907,600 $16,907,600 $0 $0 $527,300 $527,300 $0 $0 IDG 218,600 220,500 220,500 0 0 1,900 1,900 0 0 Federal 2,422,200 2,744,200 2,744,200 0 0 322,000 322,000 0 0 Restricted 6,669,800 6,784,100 6,784,100 0 0 114,300 114,300 0 0 GF/GP $7,069,700 $7,158,800 $7,158,800 $0 $0 $89,100 $89,100 $0 $0

Executive: Economic increase, $80,100; reduces Testing fees by $67,600 to better align with available revenue; recognizes increase in anticipated federal FDA grants for specialized lab equipment. Department is requesting a transfer for current year as well.

Executive: Economic increase, $20,200; increases restricted Commodity inspection fee revenue, $100,000.


Sec. 108. LABORATORY PROGRAM


House Fiscal Agency MDARD Part 1 - Laboratory - 9 3/22/2018


1. Agriculture Development FTE 12.0 13.0 13.0 1.0 1.0 Gross $4,019,800 $4,250,500 $4,253,100 $180,700 $183,300 Federal 2,307,700 2,273,200 2,273,200 (34,500) (34,500)Private 50,000 50,000 Restricted 97,200 135,000 135,000 37,800 37,800 GF/GP $1,614,900 $1,792,300 $1,794,900 $177,400 $180,000

2. Grape and Wine Council FTE 3.0 3.0 3.0 0.0 0.0 Executive: Economic increase. Gross $927,000 $934,800 $934,800 $7,800 $7,800 House: Concurs with Executive. Restricted 923,300 931,100 931,100 7,800 7,800

GF/GP $3,700 $3,700 $3,700 $0 $0

4. Rural Development Fund FTE 1.0 1.0 1.0 0.0 0.0 Executive: Economic increase. Gross $2,000,000 $2,004,600 $2,004,600 $4,600 $4,600 House: Concurs with Executive. Restricted 2,000,000 2,004,600 2,004,600 4,600 4,600

GF/GP $0 $0 $0 $0 $0

5. Food and Agriculture Investment Grant Program FTE 0.0 0.0 Executive: Reduces GF/GP support. Gross $4,743,900 $3,300,000 $3,000,000 ($1,443,900) ($1,743,900)House: Concurs with Executive. Restricted 0 0 0 0 0

GF/GP $4,743,900 $3,300,000 $3,000,000 ($1,443,900) ($1,743,900)


Sec. 109. AGRICULTURE DEVELOPMENT


Executive: Economic increase; $26,000; Statistical reporting service rolled up into this line; $204,700 Gross increase, $157,700 GF/GP.

House Fiscal Agency MDARD Part 1 - Agriculture Development - 10 3/22/2018



6. Statistical Reporting Service FTE 1.0 1.0 0.0 0.0 (1.0)Gross $204,700 $2,600 $0 ($202,100) ($204,700)Private 50,000 0 0 (50,000) (50,000)

House: Movied to Ag. Development GF/GP $154,700 $2,600 $0 ($152,100) ($154,700)

7 ACRE Agriculture IncubatorExecutive: N/A Gross $0 $0 $260,000 $0 $260,000

GF/GP $0 $0 $260,000 $0 $260,000

AGRICULTURE DEVELOPMENT SUBTOTAL FTE 17.0 18.0 17.0 0.0 0.0 1.0 0.0 0.0 0.0 Gross $11,895,400 $10,492,500 $10,452,500 $0 $0 ($1,452,900) ($1,492,900) $0 $0 IDGFederal 2,307,700 2,273,200 2,273,200 0 0 (34,500) (34,500) 0 0 LocalPrivate 50,000 50,000 50,000 0 0 (50,000) (50,000) 0 0 Restricted 3,020,500 3,070,700 3,070,700 0 0 50,200 50,200 0 0 GF/GP 6,517,200 5,098,600 5,058,600 0 0 (1,418,600) (1,458,600) 0 0

House includes funding for program to assist agriculture-related business with new technology.

Executive: Economic increase. (Should be moved to Ag. Development.)

House Fiscal Agency MDARD Part 1 - Agriculture Development - 11 3/22/2018


1. County Fairs, Shows, Expositions Gross $649,300 $400,000 $419,900 ($249,300) ($229,400)Executive: Reduces GF/GP support. Restricted 0 0 0 0 0

GF/GP $649,300 $400,000 $419,900 ($249,300) ($229,400)

1b. Michigan Festivals - NEW Gross $0 $0 $100 $0 $100 Executive: N/A Restricted 0 0 0 0 0

GF/GP $0 $0 $100 $0 $100

2. Fairs and Racing FTE 0.0 0.0 0.0 0.0 0.0 Executive: No change from current year. Gross $256,600 $256,600 $256,600 $0 $0 House: Concurs with Executive. Restricted 256,600 256,600 256,600 0 0

GF/GP $0 $0 $0 $0 $0

3. Licensed Tracks - Light Horse Racing Gross $40,300 $40,300 $40,300 $0 $0 Executive: No change from current year. Restricted 40,300 40,300 40,300 0 0 House: Concurs with Executive. GF/GP $0 $0 $0 $0 $0

5. Light Horse Racing - Breeders' Awards Gross $20,000 $20,000 $20,000 $0 $0 Executive: No change from current year. Restricted 20,000 20,000 20,000 0 0 House: Concurs with Executive. GF/GP $0 $0 $0 $0 $0

6. Purses and Supplements - Fairs/Licensed Tracks Gross $708,300 $708,300 $708,300 $0 $0 Executive: No change from current year. Restricted 708,300 708,300 708,300 0 0 House: Concurs with Executive. GF/GP $0 $0 $0 $0 $0

House: Creates new line item with $100 placeholder.

House: Increases funding by $19,900 and rolls out a new lineitem, Michigan festivals, with $100 placeholder.

Sec. 110. FAIRS AND EXPOSITIONS


House Fiscal Agency ARD Part 1 - Fairs/Expositions - 12 3/22/2018



6. Standardbred Breeders' Awards Gross $345,900 $345,900 $345,900 $0 $0 Executive: No change from current year. Restricted 345,900 345,900 345,900 0 0 House: Concurs with Executive. GF/GP $0 $0 $0 $0 $0

7. Standardbred Purses and Supplements-Licensed Tracks Gross $671,800 $671,800 $671,800 $0 $0 Executive: No change from current year. Restricted 671,800 671,800 671,800 0 0 House: Concurs with Executive. GF/GP $0 $0 $0 $0 $0 House: Concurs with Executive.

8. Standardbred Sire Stakes Gross $275,000 $275,000 $275,000 $0 $0 Executive: No change from current year. Restricted 275,000 275,000 275,000 0 0 House: Concurs with Executive. GF/GP $0 $0 $0 $0 $0

10. Thoroughbred Breeders Awards Gross $368,600 $368,600 $368,600 $0 $0 Executive: No change from current year. Restricted 368,600 368,600 368,600 0 0 House: Concurs with Executive. GF/GP $0 $0 $0 $0 $0

11. Thoroughbred Sire Stakes Gross $378,800 $378,800 $378,800 $0 $0 Executive: No change from current year. Restricted 378,800 378,800 378,800 0 0 House: Concurs with Executive. GF/GP $0 $0 $0 0 0

9. Thoroughbred Supplements - Licensed Tracks Gross $601,900 $601,900 $601,900 $0 $0 Executive: No change from current year. Restricted 601,900 601,900 601,900 0 0 House: Concurs with Executive. GF/GP $0 $0 $0 0 0

FAIRS AND EXPOSITIONS SUBTOTAL FTE 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Gross $4,316,500 $4,067,200 $4,087,200 $0 $0 ($249,300) ($229,300) $0 $0 Restricted 3,667,200 3,667,200 3,667,200 0 0 0 0 0 0 GF/GP $649,300 $400,000 $420,000 $0 $0 ($249,300) ($229,300) $0 $0

House Fiscal Agency ARD Part 1 - Fairs/Expositions - 13 3/22/2018


1. Drinking water declaration of emergency Gross $100 $0 $0 ($100) ($100)Executive: End of one-time placeholder. Restricted $100 $0 $0 ($100) ($100)House: Concurs with Executive. GF/GP $0 $0 $0 $0 $0

2. Enhanced wildlife risk mitigation project Gross $1,000,000 $0 $0 ($1,000,000) ($1,000,000)GF/GP $1,000,000 $0 $0 ($1,000,000) ($1,000,000)


3. Intercounty drain Gross $250,000 $0 $0 ($250,000) ($250,000)GF/GP $250,000 $0 $0 ($250,000) ($250,000)


4. Agriculture industry research and development Gross $8,400,000 $0 $0 ($8,400,000) ($8,400,000)GF/GP $8,400,000 $0 $0 ($8,400,000) ($8,400,000)


5. Food Bank Council of Michigan Gross $2,000,000 $0 $0 ($2,000,000) ($2,000,000)Executive: End of one-time funding for quick freeze unit. GF/GP $2,000,000 $0 $0 ($2,000,000) ($2,000,000)House: Concurs with Executive.

6. Campground development grant Gross $100,000 $0 $0 ($100,000) ($100,000)Executive: End of one-time funding for grant earmark. GF/GP $100,000 $0 $0 ($100,000) ($100,000)House: Concurs with Executive.

ONE-TIME BASIS ONLY SUBTOTAL Gross $11,750,100 $0 $0 $0 $0 ($11,750,100) ($11,750,100) $0 $0 Restricted $100 $0 $0 $0 $0 ($100) ($100) $0 $0 GF/GP $11,750,000 $0 $0 $0 $0 ($11,750,000) ($11,750,000) $0 $0


Executive: End of one-time funding for cost-share program to assist producers mitigate risk of Bovine TB.

Executive: End of one-time funding for MSU/Industry partnership.

Change From FY 2017-18 Y-T-D

Sec. 111. ONE-TIME APPROPRIATIONS


Executive: End of one-time funding for intercountry drain mapping tool.

House Fiscal Agency MDARD Part 1 - One-Time Basis Only - 14 3/22/2018

House Fiscal Agency MDARD Boilerplate - 1 3/22/2018


FY 2017-18 CURRENT LAW

FY 2018-19 EXECUTIVE HOUSE SENATE CONFERENCE

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2017-2018 is $102,912,800.00 and state spending from state resources to be paid to local units of government for fiscal year 2017-2018 is $7,350,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur: DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT Environmental stewardship/MAEAP ........................................................ $ 4,250,000 Enhanced wildlife risk management project .......................... 1,000,000 Qualified forest program .................... 1,500,000 Rural development fund grant program ....................................... 600,000 TOTAL ............................................ $ 7,350,000

GENERAL SECTIONS

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state resources under part 1 for fiscal year 2018-2019 is $90,777,200.00 and state spending from state resources to be paid to local units of government for fiscal year 2018-2019 is $6,350,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur: DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT Environmental stewardship/MAEAP .................................................... $ 4,250,000 Qualified forest program ................ 1,500,000 Rural development fund grant program ................................... 600,000 TOTAL ........................................ $ 6,350,000

GENERAL SECTIONS Adjusted to Reflect Part 1

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.

No change from current law.






Sec. 203. As used in part 1 and this part: (a) “Department” means the department of agriculture and rural development. (b) “Director” means the director of the department. (c) “EPA” means the United States Environmental Protection Agency. (d) “FDA” means the United States Food and Drug Administration. (e) “Fiscal agencies” means the Michigan house fiscal agency and the Michigan senate fiscal agency. (f) “FTE” means full-time equated. (g) “HHS” means the United States Department of Health and Human Services. (h) “IDG” means interdepartmental grant. (i) “LARA” means the Michigan department of licensing and regulatory affairs. (j) “LCC” means the Michigan liquor control commission. (k) “MAEAP” means the Michigan agriculture environmental assurance program. (l) “MDEQ” means the Michigan department of environmental quality. (m) “MDNR” means the Michigan department of natural resources. (n) “MOU” means memorandum of understanding. (o) “Subcommittees” means all members of the subcommittees of the house and senate appropriations committees with jurisdiction over the budget for the department. (p) “TB” means tuberculosis. (q) “USDA” means the United States Department of Agriculture.

Sec. 203. As used in part 1 and this part: (a) “Department” means the department of agriculture and rural development. (b) “Director” means the director of the department.

(c) “EPA” means the United States Environmental Protection Agency. (d) “FDA” means the United States Food and Drug Administration. (e) “Fiscal agencies” means the Michigan house fiscal agency and the Michigan senate fiscal agency.

(f) “FTE” means full-time equated. (g) “HHS” means the United States Department of Health and Human Services. (h) “IDG” means interdepartmental grant. (i) “LARA” means the Michigan department of licensing and regulatory affairs. (j) “LCC” means the Michigan liquor control commission.

(k) “MAEAP” means the Michigan agriculture environmental assurance program. (l) “MDEQ” means the Michigan department of environmental quality. (m) “MDNR” means the Michigan department of natural resources. (n) “MOU” means memorandum of understanding. (o) “Subcommittees” means all members of the subcommittees of the house and senate appropriations committees with jurisdiction over the budget for the department.

(p) “TB” means tuberculosis. (q) “USDA” means the United States Department of Agriculture.






Sec. 204. The departments and agencies receiving appropriations in part 1 shall use the internet to fulfill the reporting requirements of this part. This requirement may include transmission of reports via electronic mail to the recipients identified for each reporting requirement, or it may include placement of reports on an internet or intranet site.



Sec. 205. Funds appropriated in part 1 shall not be used for the purchase of foreign goods or services, or both, if competitively priced and of comparable quality American goods or services, or both, are available. Preference shall be given to goods or services, or both, manufactured or provided by Michigan businesses, if they are competitively priced and of comparable quality. In addition, preference shall be given to goods or services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality.



Sec. 206. The director shall take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts to provide services or supplies, or both. Each director shall strongly encourage firms with which the department contracts to subcontract with certified businesses in depressed and deprived communities for services or supplies, or both.







Sec. 207. The departments and agencies receiving appropriations in part 1 shall prepare a report on out-of-state travel expenses not later than January 1 of each year. The travel report shall be a listing of all travel by classified and unclassified employees outside this state in the immediately preceding fiscal year that was funded in whole or in part with funds appropriated in the department’s budget. The report shall be submitted to the house and senate appropriations committees, the house and senate fiscal agencies, and the state budget director. The report shall include the following information: (a) The dates of each travel occurrence. (b) The transportation and related costs of each travel occurrence, including the proportion funded with state general fund/general purpose revenues, the proportion funded with state restricted revenues, the proportion funded with federal revenues, and the proportion funded with other revenues.







Sec. 208. Funds appropriated in part 1 shall not be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. This prohibition does not apply to legal services for bonding activities and for those outside services that the attorney general authorizes.



Sec. 209. Not later than November 30, the state budget office shall prepare and transmit a report that provides for estimates of the total general fund/general purpose appropriation lapses at the close of the prior fiscal year. This report shall summarize the projected year-end general fund/general purpose appropriation lapses by major departmental program or program areas. The report shall be transmitted to the chairpersons of the senate and house of representatives standing committees on appropriations and the senate and house fiscal agencies.



Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $5,000,000.00 for federal contingency funds. These funds are not available for expenditure until they have been transferred to another line item in 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 $6,000,000.00 for state restricted contingency funds. These funds are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.



(3) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for local contingency funds. These funds are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.



(4) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $100,000.00 for private contingency funds. These funds are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.







Sec. 211. The department shall cooperate with the department of technology, management, and budget to maintain a searchable website accessible by the public at no cost that includes, but is not limited to, all of the following for each department or agency: (a) Fiscal year-to-date expenditures by category. (b) Fiscal year-to-date expenditures by appropriation unit. (c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description. (d) The number of active department employees by job classification. (e) Job specifications and wage rates.



Sec. 212. Within 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide the senate and house appropriations chairs, the subcommittees, respectively, and the senate and house fiscal agencies with an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the fiscal years ending September 30, 2017 and September 30, 2018.

No change from current law other than date references.

No change from current law other than date references.





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, 2018 is $12,400,000.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $6,381,100.00. Total agency appropriations for retiree health care legacy costs are estimated at $6,018,900.00.

Sec. 214. Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2019 is $12,428,400.00. From this amount, total agency appropriations for pension-related legacy costs are estimated at $5,729,700.00. Total agency appropriations for retiree health care legacy costs are estimated at $6,698,700.00.

Concurs with Executive,

Sec. 215. The department shall not take disciplinary action against an employee for communicating with a member of the legislature or his or her staff.

Not included.


Sec. 234. The department and agencies receiving appropriations in part 1 shall receive and retain copies of all reports funded from appropriations in part 1. Federal and state guidelines for short-term and long-term retention of records shall be followed. The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Not included.






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 testing for testing horses in draft horse pulling contests at county fairs when local jurisdictions request state assistance. (d) Laboratory support analyses to determine foreign substances in horses engaged in racing or pulling contests at tracks. (e) Laboratory support analyses of food, livestock, and agricultural products for disease, foreign products for disease, toxic materials, foreign substances, and quality standards. (f) Laboratory support test samples for other state and local agencies and public or private organizations.

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 testing for testing horses in draft horse pulling contests at county fairs when local jurisdictions request state assistance. (d) Laboratory support analyses to determine foreign substances in horses engaged in racing or pulling contests at tracks. (e) Laboratory support analyses of food, livestock, and agricultural products for disease, foreign products for disease, toxic materials, foreign substances, and quality standards. (f) Laboratory support test samples for other state and local agencies and public or private organizations.

DEPARTMENTAL ADMINISTRATION AND SUPPORT Concurs with Executive.





(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.

No change from current law. No change from current law.

(3) The department shall notify the subcommittees, the fiscal agencies, and the state budget office 30 days prior to proposing changes in fees authorized under this section or under section 5 of 1915 PA 91, MCL 285.35.


(4) On or before February 1 of each year, the department shall provide a report to the subcommittees, the fiscal agencies, and the state budget office detailing all the fees charged by the department under the authorization provided in this section, including, but not limited to, rates, number of individuals paying each fee, and the revenue generated by each fee in the previous fiscal year.






Sec. 302. (1) The department may contract with or provide grants to local units of government, institutions of higher education, or nonprofit organizations to support activities authorized by appropriations in part 1. As used in this section, contracts and grants include, but are not limited to, contracts for delivery of groundwater/freshwater programs, MAEAP technical assistance, forest management, invasive species monitoring, wildlife risk mitigation, grants promoting proper pesticide disposal, and research grants for the purpose of enhancing the agricultural industries in this state.

No change from current law No change from current law.

(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 calendar 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.

FOOD AND DAIRY No change from current law other than to change “calendar year” to “fiscal year.”

FOOD AND DAIRY No change from current law.

(2) The report shall include information on significant foodborne outbreaks and emergencies, including any enforcement actions taken related to food safety during the prior calendar year.

No change from current law other than to add the word “significant” to the phrase “including any [significant] enforcement actions…’






(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.


Sec. 402. From the funds appropriated in part 1 for food safety and quality assurance, the department shall issue a grant of $150,000.00 to a third-party entity for the purposes of providing education and training as it relates to proper management of draft beer delivery systems. The grant issued under this section shall be focused on providing education and training to the new entities that were given the ability by 2016 PA 514 to fill growlers for off-premises consumption under section 537 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1537.

Not included. Not included.





Sec. 403. It is the intent of the legislature that the department work with the FDA and representatives of agriculture producers to develop on-farm food safety education and training programs to assist producers in implementing the food safety modernization act, Public Law 111-353, requirements. The department may receive and expend federal revenues in excess of the federal revenue appropriated in part 1, section 104, for food safety modernization act, Public Law 111 353, education and training program activities. The department shall notify the subcommittees and the fiscal agencies prior to expending federal revenues authorized under this section.

Not included.






ANIMAL INDUSTRY Sec. 451. From the funds appropriated in part 1 for bovine tuberculosis, the department shall pay for all whole herd testing costs and individual animal testing costs in the modified accredited zone to maintain split-state status requirements. These costs include indemnity and compensation for injury causing death or downer to animals.

ANIMAL INDUSTRY Not included.

ANIMAL INDUSTRY No change from current law.

Sec. 452. 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 information: (a) the reason for the indemnification. (b) the amount of the indemnification (c) the person for whom the indemnification was paid.

Not included. (See Sec. 453, below)





Sec. 453. (1) From the funds appropriated in part 1 for animal disease prevention and response, the department may provide for indemnity pursuant to the animal industry act, 1988 PA 466, MCL 287.701 to 287.746, not to exceed $100,000.00 per order. Any indemnification agreement between the department and an owner of livestock that exceeds $100,000.00 shall be subject to specific appropriation by the legislature.

Not included. No change from current law.

(2) The department shall not make an indemnification payment under the animal industry act, 1988 PA 466, MCL 287.701 to 287.746, until the department provides all of the following information to the subcommittees, the fiscal agencies, and the state budget office: (a) The reason for the indemnification. (b) The amount of the indemnification.


(3) From the funds appropriated in part 1 for indemnification - livestock depredation, the department shall make indemnification payments for livestock killed by a wolf, coyote, or cougar pursuant to the wildlife depredation indemnification act, 2012 PA 487, MCL 285.361 to 285.365.


(4) The department shall include in the annual report required under section 452 of this part all indemnification payments for livestock depredation made in the previous calendar year. The report shall include all of the following information: (a) The reason for the indemnification. (b) The amount of the indemnification. (c) The person to whom the indemnification was paid.






Sec. 454. The department shall use its resources to collaborate with the USDA to monitor bovine TB, consistent with the May 2016 memorandum of understanding between the department and the USDA.



Sec. 457. (1) On or before October 15, 2017, the department shall provide to the subcommittees, the fiscal agencies, and the state budget office a report on bovine TB status and department activities.

Not included.

No change from current law other than date reference.

(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 animal industry, the department shall provide inspection and testing of aquaculture facilities and aquaculture researchers as provided under section 7 of the Michigan aquaculture development act, 1996 PA 199, MCL 286.877.


Sec. 459. It is the intent of the legislature that the department shall not conduct whole herd bovine TB testing on any 1 herd in a TB-free zone more often than every 4 years or re-test until all other herds in their county have been tested, unless involved in an epidemiological investigation, there is an outbreak within a 10-radius-mile area, or is not on a verified wildlife risk mitigated premises. If there is an outbreak within a 10-radius-mile area, protocols outlined by the current memorandum of understanding with the USDA shall be used.






Sec. 461. (1) From the funds appropriated in part 1 for bovine TB risk mitigation, the department shall establish a program to identify and mitigate risks related to the transmission of bovine TB from the wildlife to cattle. Risk mitigation activities shall include grants to livestock producers to implement risk mitigation projects. Grants under this section may be made only for risk mitigation projects identified and approved by the department prior to the start of project activity. The department may work with local conservation districts in implementing the bovine TB risk mitigation program.


(2) From the funds appropriated in part 1 for bovine TB risk mitigation, not to exceed $20,000.00, the department shall establish a grant program to assist in the construction of protective systems for apiaries. The department may make grants under this program to reimburse apiary owners for costs of projects designed to protect apiaries from damage by wildlife, subject to all of the following: (a) Grants may not exceed $250.00 per apiary site. (b) Grants under this subsection may be made only for projects identified and approved by the department prior to the start of project activity.


(3) The department shall report on grants issued under this section as provided in section 302 of this part.






NEW Sec, 462. From the funds appropriated in part 1 for animal disease prevention and response, not to exceed $20,000.00, the department shall establish a grant program to assist in the construction of protective systems for apiaries. The department may make grants under this program to reimburse apiary owners for costs of projects designed to protect apiaries from damage by wildlife, subject to all of the following: (a) Grants may not exceed $250.00 per apiary site. (b) Grants under this subsection may be made only for projects identified and approved by the department prior to the start of project activity.

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.

PESTICIDE AND PLANT PEST MANAGEMENT No change from current law.

PESTICIDE AND PLANT PEST MANAGEMENT No change from current law.





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 Michigan natural resources and environmental protection act, 1994 PA 451, MCL 324.8701 to 324.8717, and technical assistance in implementing conservation grants available under the federal farm bill of 2014.

ENVIRONMENTAL STEWARDSHIP No change from current law.

ENVIRONMENTAL STEWARDSHIP No change from current law.

Sec. 602. The department shall report on the previous calendar year’s activities of the environmental stewardship division. The report shall be transmitted to the subcommittees, the fiscal agencies, and the state budget office and posted to the department’s website on or before April 1 of each year.



Sec. 604. The department may receive and expend federal revenues in excess of the federal revenue appropriated in section 107 of part 1 for environmental stewardship and MAEAP activities. The department shall notify the subcommittees, the fiscal agencies, and the state budget office prior to expending federal revenues authorized under this section .







Sec. 608. (1) The appropriations in part 1 for the qualified forest affidavit program are for the purpose of increasing the knowledge of nonindustrial private forestland owners of sound forest management practices and increasing the amount of commercial timber production from those lands


(2) The department shall work in partnership with stakeholder groups and other state and federal agencies to increase the active management of nonindustrial private forestland to foster the growth of Michigan’s timber product industry.


LABORATORY PROGRAM Sec. 651. The department shall report on the previous calendar year’s activities of the laboratory division. The report shall be transmitted to the subcommittees, the fiscal agencies, and the state budget office and posted to the department’s website on or before April 1 of each year.

LABORATORY PROGRAM No change from current law.

LABORATORY PROGRAM No change from current law.

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.

AGRICULTURE DEVELOPMENT No change from current law.

AGRICULTURE DEVELOPMENT No change from current law.





(2) The food and agriculture investment program shall expand the Michigan food and agriculture sector, grow Michigan exports, promote the development of value-added agricultural production, food hubs, food incubators, and community-based processing facilities, and the expansion of farm markets and urban agriculture, and increase food processing activities within the state by accelerating projects and infrastructure development that support growth in the food and agriculture processing industry.


(3) In addition to the funds appropriated in part 1, the department may receive and expend funds received from outside sources for the food and agriculture investment program.


(4) Before the allocation of funding, all projects shall receive approval from the Michigan commission of agriculture and rural development, except for projects selected through a competitive process by a joint evaluation committee selected by the director and consisting of representatives that have agriculture, business, and economic development expertise. Projects funded through the food and agriculture investment program will be required to have a grant agreement that outlines milestones and activities that must be met in order to receive a disbursement of funds. Projects must also identify measurable project outcomes.






(5) The department shall include in the agriculture development annual report a report on the food and agriculture investment program for the previous fiscal year that includes a listing of the grantees, award amounts, match funding, project locations, and project outcomes.


(6) The food and agriculture investment program shall be administered by the department and provide support for food and agriculture projects that will enable growth in the industry and this state’s economy.






(7) The unexpended portion of the food and agriculture investment program is a work project appropriation in accordance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a. All of the following apply to the project:

(a) The purpose of the project is to promote and expand the Michigan food and agriculture sector, grow Michigan exports, and increase food processing activities within the state.

(b) The project will be funded in accordance with this section and the project guidelines approved by the Michigan agriculture commission prior to an award.

(c) The estimated cost of this project is identified in the appropriation line item.

(d) The tentative completion date for the work project is September 30, 2020.

(7) (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 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 accomplished by utilizing state employees or contracts with service providers, or both.

(c) The total estimated cost of the project is $3,300,000.00.

(d) The tentative completion date for the work project is September 30, 2020 2021.


(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.

No change from current law other than changing the subsection number.






(9) The department shall expend no more than 10% 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.

Not included.


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 grape and wine industry council established under section 303 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1303: (a) Council activities and accomplishments for the previous fiscal year. (b) Council expenditures for the previous fiscal year by category of administration, industry support, research and education grants, and promotion and consumer education. (c) Grants awarded during the previous fiscal year and the results of research grant projects.

Not included. (See Sec. 709)





Sec. 709. (1) Not later than April 1 of the current fiscal year, the department shall provide a report to the subcommittees, fiscal agencies, and the state budget office describing the activities of the grape and wine industry council established under section 303 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1303.

Not included. (Included in Sec. 708 Ag. Development report)


(2) The report shall include all of the following: (a) Council activities and accomplishments for the previous fiscal year. (b) Council expenditures for the previous fiscal year by category of administration, industry support, research and education grants, and promotion and consumer education. (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.

FAIRS AND EXPOSITIONS No change from current law.

FAIRS AND EXPOSITIONS No change from current law.





Sec. 802. All appropriations from the agriculture equine industry development fund, except for the Michigan gaming control board’s regulatory expenses and the department’s expenses to administer horse racing programs and laboratory analysis, shall be reduced proportionately if revenues to the agriculture equine industry development fund decline during the preceding fiscal year to a level lower than the amounts appropriated in part 1.

No change from current law other than deleting “and laboratory analysis.”

No change from current law other than deleting “and laboratory analysis.”

Sec. 804. It is the intent of the legislature that the Michigan gaming control board shall use actual expenditure data in determining the actual regulatory costs of conducting racing dates and shall provide that data to the senate and house of representatives appropriations subcommittees on agriculture and rural development and general government and the fiscal agencies by November 1 of the current fiscal year. The Michigan gaming control board shall not be reimbursed for more than the actual regulatory cost of conducting race dates. If a certified horsemen’s organization funds more than the actual regulatory cost, the balance shall remain in the agriculture equine industry development fund to be used to fund subsequent race dates conducted by race meeting licensees with which the certified horsemen’s organization has contracts. If a certified horsemen’s organization funds less than the actual regulatory costs of the additional horse racing dates, the Michigan gaming control board shall reduce the number of future race dates conducted by race meeting licensees with which the certified horsemen’s organization has contracts. Prior to the reduction in the number of authorized race dates due to budget deficits, the executive director of the Michigan gaming control board shall provide notice to the certified horsemen’s organizations with an opportunity to respond with alternatives. In determining actual costs, the Michigan gaming control board shall take into account that each specific breed may require different regulatory mechanisms.






Sec. 805. (1) The department shall establish and administer a county fairs, shows, and expositions grant program. The program shall have the following objectives: (a) Assist in the promotion of building improvements or other capital improvements at county fairgrounds of the state. (b) Provide financial support, promotion, prizes, and premiums of equine, livestock, and other agricultural commodity expositions in the state.


(2) The department shall award grants on a competitive basis to county fairs or other organizations from the funds appropriated in part 1 for county fairs, shows, and expositions grants. Grantees will be required to provide a dollar-for-dollar 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 $20,000.00 shall be expended for the purpose of financial support, promotion, prizes, and premiums of equine, livestock, and other agricultural commodity expositions in this state.


(4) All fairs receiving grants under this section shall provide a report to the department on the financial impact resulting from the capital improvement project on both fair and nonfair events. These reports are due for 3 years immediately following the completion of the capital improvement project.


(5) The department shall identify criteria, evaluate applications, and provide recommendations to the director for final approval of grant awards.






(6) The department may expend money from the funds appropriated in part 1 for the county fairs, shows, and expositions grants for administering the program.


(7) The unexpended portion of the county fairs, shows, and expositions grants is considered a work project appropriation in accordance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a. The following apply to the project:

(a) The purpose of the project is to support building improvements or other capital improvements at county fairgrounds of the state.

(b) All grants will be distributed in accordance with this section and the grant guidelines published prior to the request for proposals.

(c) The estimated cost of the project is identified in the appropriation line item.

(d) The tentative completion date for the work project is September 30, 2020

(7) The unexpended funds appropriated in part 1 for county fairs, shows, and expositions grants 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 of the management and budget act, 1984 PA 431, MCL 18.1594:

(a) The purpose of the project is to support building improvements or other capital improvements at county fairgrounds of the state.

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

(c) The total estimated cost of the project is $400,000.00.

(d) The tentative completion date for the work project is September 30, 2020.


(8) The department shall provide a year-end report on the county fairs, shows, and expositions grants no later than December 1, 2018 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.

No change from current law other than date reference.






ONE-TIME APPROPRIATIONS Sec. 901. From the appropriations in part 1 for agriculture industry research and development, funds shall be expended as follows: Animal agriculture initiative ............. $ 2,500,000 Fruit and vegetable campus/mobile labs ........................... 3,200,000 Fruit and vegetable campus/mobile labs workforce development initiative ............................................. 1,200,000 Tree fruit commission ........................ 1,500,000


PART 2A - GENERAL SECTIONS

Sec. 1201. It is the intent of the legislature to provide appropriations for the fiscal year ending on September 30, 2019 for the line items listed in part 1. The fiscal year 2018-2019 appropriations are anticipated to be the same as those for fiscal year 2017-2018, except that the line items will be adjusted for changes in caseload and related costs, federal fund match rates, economic factors, and available revenue. These adjustments will be determined after the January 2018 consensus revenue estimating conference.


Documents

AGRICULTURE AND RURAL DEVELOPMENT · Analyst: William E. Hamilton Funding FY 2017-18 Phone: 373-8080 Source Year-To-Date EXECUTIVE HOUSE SENATE ENACTED EXECUTIVE HOUSE SENATE ENACTED