Substitute For

HOUSE BILL NO. 4289

A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2024; and to provide for the expenditure of the appropriations.

the people of the state of michigan enact:


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part 1

line-item appropriations

Sec. 101. There is appropriated for the department of agriculture and rural development for the fiscal year ending September 30, 2024, from the following funds:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

 

 

 

APPROPRIATION SUMMARY

 

 

 

Full-time equated unclassified positions

6.0

 

 


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Full-time equated classified positions

537.0

 

 

GROSS APPROPRIATION

 

$

150,933,100

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

327,000

ADJUSTED GROSS APPROPRIATION

 

$

150,606,100

Federal revenues:

 

 

 

Department of Interior

 

 

96,300

Total federal revenues

 

 

19,660,400

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

21,300

Total other state restricted revenues

 

 

48,819,300

State general fund/general purpose

 

$

82,105,100

Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT

 

 

 

Full-time equated unclassified positions

6.0

 

 

Full-time equated classified positions

31.0

 

 

Unclassified salaries--FTEs

6.0

$

664,900

Accounting service center

 

 

1,156,800

Commissions and boards

 

 

23,800

Emergency management--FTEs

8.0

 

2,918,000

Executive direction--FTEs

23.0

 

3,271,800

Property management

 

 

768,100

GROSS APPROPRIATION

 

$

8,803,400

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Deferred federal revenue funding

 

 

15,000


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HHS, multiple grants

 

 

432,300

Special revenue funds:

 

 

 

Agriculture licensing and inspection fees

 

 

46,200

Dairy and food safety fund

 

 

103,400

Feed control fund

 

 

8,100

Fertilizer control fund

 

 

10,200

Freshwater protection fund

 

 

63,200

Gasoline inspection and testing fund

 

 

25,600

Industry support funds

 

 

57,000

Michigan craft beverage council fund

 

 

8,800

Private forestland enhancement fund

 

 

16,300

Refined petroleum fund

 

 

20,500

Weights and measures regulation fees

 

 

5,000

State general fund/general purpose

 

$

7,991,800

Sec. 103. INFORMATION AND TECHNOLOGY

 

 

 

Information technology services and projects

 

$

2,333,800

GROSS APPROPRIATION

 

$

2,333,800

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Agriculture licensing and inspection fees

 

 

91,400

Dairy and food safety fund

 

 

74,800

Feed control fund

 

 

15,000

Fertilizer control fund

 

 

15,000

Freshwater protection fund

 

 

15,000

Gasoline inspection and testing fund

 

 

32,400

State general fund/general purpose

 

$

2,090,200

Sec. 104. FOOD AND DAIRY

 

 

 

Full-time equated classified positions

139.0

 

 


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Food safety and quality assurance--FTEs

103.0

$

18,472,000

Milk safety and quality assurance--FTEs

36.0

 

5,861,400

GROSS APPROPRIATION

 

$

24,333,400

Appropriated from:

 

 

 

Federal revenues:

 

 

 

HHS, multiple grants

 

 

2,781,700

USDA, multiple grants

 

 

137,100

Special revenue funds:

 

 

 

Consumer and industry food safety education fund

 

 

242,500

Dairy and food safety fund

 

 

5,476,800

Industry food safety education fund

 

 

114,100

Marihuana regulatory fund

 

 

350,000

Marihuana regulation fund

 

 

349,800

State general fund/general purpose

 

$

14,881,400

Sec. 105. ANIMAL INDUSTRY

 

 

 

Full-time equated classified positions

62.0

 

 

Animal disease prevention and response--FTEs

62.0

$

10,496,900

Indemnification - livestock depredation

 

 

15,000

Michigan animal agriculture alliance

 

 

3,000,000

GROSS APPROPRIATION

 

$

13,511,900

Appropriated from:

 

 

 

Federal revenues:

 

 

 

HHS, multiple grants

 

 

15,100

USDA, multiple grants

 

 

1,066,900

Special revenue funds:

 

 

 

Agriculture licensing and inspection fees

 

 

71,800

Animal welfare fund

 

 

150,000


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State general fund/general purpose

 

$

12,208,100

Sec. 106. PESTICIDE AND PLANT PEST MANAGEMENT

 

 

 

Full-time equated classified positions

101.0

 

 

Animal feed safety--FTEs

10.0

$

2,112,000

Pesticide and plant pest management--FTEs

91.0

 

15,567,400

GROSS APPROPRIATION

 

$

17,679,400

Appropriated from:

 

 

 

Federal revenues:

 

 

 

EPA, multiple grants

 

 

578,700

HHS, multiple grants

 

 

396,700

USDA, multiple grants

 

 

721,100

Special revenue funds:

 

 

 

Private - slow-the-spread foundation

 

 

21,300

Agriculture licensing and inspection fees

 

 

4,567,200

Commodity inspection fees

 

 

686,300

Feed control fund

 

 

1,399,600

Fertilizer control fund

 

 

1,347,800

Freshwater protection fund

 

 

156,800

Horticulture fund

 

 

70,000

Industrial hemp licensing and registration fund

 

 

675,300

Industry support funds

 

 

228,100

State general fund/general purpose

 

$

6,830,500

Sec. 107. ENVIRONMENTAL STEWARDSHIP

 

 

 

Full-time equated classified positions

66.5

 

 

Agricultural preservation easement grants

 

$

1,900,000

Environmental stewardship - MAEAP--FTEs

26.0

 

11,744,500

Farmland and open space preservation--FTEs

10.0

 

1,606,500

Intercounty drain--FTEs

6.0

 

859,900


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Local conservation districts

 

 

2,000,000

Migrant labor housing--FTEs

9.0

 

1,351,000

Qualified forest program--FTEs

9.0

 

8,073,900

Right-to-farm--FTEs

6.5

 

1,021,700

USDA reforestation grant program

 

 

 

GROSS APPROPRIATION

 

$

28,557,500

Appropriated from:

 

 

 

Interdepartmental grant revenues:

 

 

 

IDG from MDEGLE, biosolids

 

 

94,400

Federal revenues:

 

 

 

Department of Interior

 

 

96,300

EPA, multiple grants

 

 

564,000

USDA, multiple grants

 

 

6,722,300

Special revenue funds:

 

 

 

Agricultural preservation fund

 

 

3,506,500

Freshwater protection fund

 

 

8,328,900

Migratory labor housing fund

 

 

143,200

Private forestland enhancement fund

 

 

1,080,100

State general fund/general purpose

 

$

8,021,800

Sec. 108. LABORATORY PROGRAM

 

 

 

Full-time equated classified positions

108.5

 

 

Central licensing and customer call center--FTEs

13.0

$

1,528,100

Consumer protection program--FTEs

42.0

 

7,049,300

Laboratory services--FTEs

42.5

 

8,270,600

USDA monitoring--FTEs

11.0

 

1,700,000

GROSS APPROPRIATION

 

$

18,548,000

Appropriated from:

 

 

 


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Interdepartmental grant revenues:

 

 

 

IDG from LARA (LCC), liquor quality testing fees

 

 

232,600

Federal revenues:

 

 

 

EPA, multiple grants

 

 

180,600

HHS, multiple grants

 

 

1,568,700

USDA, multiple grants

 

 

1,701,200

Special revenue funds:

 

 

 

Agriculture licensing and inspection fees

 

 

352,300

Dairy and food safety fund

 

 

524,200

Feed control fund

 

 

193,200

Fertilizer control fund

 

 

24,900

Freshwater protection fund

 

 

47,900

Gasoline inspection and testing fund

 

 

1,420,700

Grain dealers fee fund

 

 

8,200

Industrial hemp licensing and registration fund

 

 

321,000

Migratory labor housing fund

 

 

29,900

Refined petroleum fund

 

 

3,447,200

Testing fees

 

 

355,900

Weights and measures regulation fees

 

 

748,000

State general fund/general purpose

 

$

7,391,500

Sec. 109. AGRICULTURE DEVELOPMENT

 

 

 

Full-time equated classified positions

23.0

 

 

Agriculture development--FTEs

13.0

$

4,796,700

Fair food network - double up food bucks

 

 

900,000

Food and agriculture investment program

 

 

2,472,200

Michigan craft beverage council--FTEs

3.0

 

1,335,300

Office of rural development--FTE

1.0

 

678,500


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Producer security/grain dealers--FTEs

5.0

 

904,300

Rural development fund grant program--FTE

1.0

 

2,004,400

GROSS APPROPRIATION

 

$

13,091,400

Appropriated from:

 

 

 

Federal revenues:

 

 

 

USDA, multiple grants

 

 

2,682,700

Special revenue funds:

 

 

 

Agriculture licensing and inspection fees

 

 

5,100

Grain dealers fee fund

 

 

860,500

Industry support funds

 

 

223,600

Michigan craft beverage council fund

 

 

1,305,300

Rural development fund

 

 

2,004,400

State general fund/general purpose

 

$

6,009,800

Sec. 110. FAIRS AND EXPOSITIONS

 

 

 

County fairs, shows, and expositions

 

$

1,500,000

Fairs and racing

 

 

258,600

Horse racing advisory commission

 

 

125,000

Purses and supplements - fairs/licensed tracks

 

 

1,353,600

Standardbred breeders' awards

 

 

345,900

Standardbred purses and supplements - licensed tracks

 

 

991,100

Standardbred sire stakes

 

 

720,000

County fair premiums

 

 

1,600,000

Equine veterinary research grants

 

 

1,000,000

GROSS APPROPRIATION

 

$

7,894,200

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Agriculture equine industry development fund

 

 

7,394,200


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State general fund/general purpose

 

$

500,000

Sec. 111. ONE-TIME APPROPRIATIONS

 

 

 

Full-time equated classified positions

6.0

 

 

Food and agriculture supply chain investment

 

$

2,000,000

Northern Michigan herd protection and management

 

 

100

Emerging contaminants in food and agriculture--FTEs

6.0

 

6,180,000

Michigan craft beverage council

 

 

1,000,000

SEEDSS

 

 

7,000,000

GROSS APPROPRIATION

 

$

16,180,100

Appropriated from:

 

 

 

Agriculture licensing and inspection fees

 

 

100

State general fund/general purpose

 

$

16,180,000

 

part 2

provisions concerning appropriations

for fiscal year

general sections

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for fiscal year 2023-2024 is $130,94,400.00 and state spending from state sources to be paid to local units of government for fiscal year 2022-2023 is $12,300,000.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

 

 

 

Agriculture preservation easement grants

 

$

1,900,000


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Environmental stewardship/MAEAP

 

 

4,100,000

Local conservation districts

 

 

2,000,000

Office of rural development

 

 

1,500,000

Qualified forest program

 

 

1,400,000

Rural development fund grant program

 

 

1,400,000

TOTAL

 

$

12,300,000

Sec. 202. The appropriations authorized under part 1 and this part are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

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

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

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

(c) "Fiscal agencies" means the Michigan house fiscal agency and the Michigan senate fiscal agency.

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

(e) "IDG" means interdepartmental grant.

(f) "MAEAP" means the Michigan agriculture environmental assurance program.

(g) "MDEGLE" means the Michigan department of environment, Great Lakes, and energy.

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

(i) "TB" means tuberculosis.

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

Sec. 204. (1) The departments and agencies receiving appropriations in part 1 shall use the internet to fulfill the reporting requirements of this part. This requirement shall include


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transmission of reports via email to the recipients identified for each reporting requirement, and shall include placement of reports on an internet site.

(2) In fulfilling the reporting requirements of this part, the department shall notify report recipients when reports are posted to the department website.

Sec. 205. 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 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.

Sec. 206. 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. 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


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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 December 15, 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 standing committees on appropriations and the senate and house


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fiscal agencies.

Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $3,000,000.00 for federal contingency 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.

(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. 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:


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(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, 2023 and September 30, 2024 .

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. 215. The department shall not take disciplinary action against an employee of the department or departmental agency in the state classified civil service because the employee communicates with a member of the senate or house or a member's staff, unless the communication is prohibited by law and the department or agency taking disciplinary action is exercising its authority as provided by law.

Sec. 216. On a quarterly basis, the department shall report to the senate and house appropriations committees, the senate and


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house appropriations subcommittees on the department budget, the senate and house fiscal agencies and the state budget office a comparison by line item of the number of FTEs authorized from funds appropriated in part 1 to the actual number of FTEs employed by the department at the end of the reporting period.

Sec. 217. Appropriations in part 1 shall, to the extent possible by the department, not be expended until all existing work project authorization available for the same purposes is exhausted.

Sec. 219. 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.

Sec. 220. The department shall report no later than April 1 on each specific policy change made to implement a public act affecting the department that took effect during the prior calendar year to the senate and house appropriations committees, the senate and house subcommittees on agriculture and rural development, the joint committee on administrative rules, and the senate and house fiscal agencies.

Sec. 221. (1) From the funds appropriated in part 1, the department shall do all of the following:

(a) Report to the house and senate appropriations committees, the house and senate fiscal agencies, the house and senate policy offices, and the state budget office any amount of severance pay for a department director, deputy director, or other high-ranking department official not later than 14 days after a severance agreement with the director or official is signed. The name of the


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director or official and the amount of severance pay must be included in the report required by this subdivision.

(b) By February 1, report to the house and senate appropriations subcommittees on the department budget, the house and senate fiscal agencies, the house and senate policy offices, and the state budget office on the total amount of severance pay remitted to former department employees during the fiscal year ending September 30, 2023 and the total number of former department employees that were remitted severance pay during the fiscal year ending September 30, 2023 .

(2) As used in this section, "severance pay" means compensation that is both payable or paid upon the termination of employment and in addition to either wages or benefits earned during the course of employment or generally applicable retirement benefits.

Sec. 224. It is the intent of the legislature that departments maximize the efficiency of the state workforce and, where possible, prioritize in-person work. Each executive branch department, agency, board, or commission that receives funding under part 1 must post its in-person, remote, or hybrid work policy on its website.

Sec. 225. (1) No money appropriated in part 1 shall be used to restrict or interfere with actions related to diversity, equity and inclusion (DEI); to restrict or impede a marginalized community's access to government resources, programs or facilities; or to diminish, interfere with, or restrict an individual's ability to exercise the right to reproductive freedom.

(2) From the funds appropriated in part 1, local governments shall report any action or policy that attempts to restrict or


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interfere with the duties of the local health officer.

 

DEPARTMENTAL ADMINISTRATION AND SUPPORT

Sec. 301. (1) The department may establish a fee schedule and collect fees for the following work activities and services:

(a) Pesticide and plant pest management propagation and certification of virus-free foundation stock.

(b) Fruit and vegetable inspection and grading services at shipping and termination points and processing plants.

(c) Laboratory support analyses of food, livestock, and agricultural products for disease, foreign products for disease, toxic materials, foreign substances, and quality standards.

(d) Laboratory support test samples for other state and local agencies and public or private organizations.

(2) The department may receive and expend revenue from the fees authorized under subsection (1), subject to appropriation, for the purpose of recovering expenses associated with the work activities and services described in subsection (1). Fee revenue collected by the department under subsection (1) shall not lapse to the state general fund at the end of the fiscal year but shall carry forward for appropriation by the legislature in the subsequent fiscal year.

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

(4) On or before February 1 of each year, the department shall provide a report to the subcommittees, the fiscal agencies, and the state budget office detailing all the fees charged by the


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department under the authorization provided in this section, including, but not limited to, rates, number of individuals paying each fee, and the revenue generated by each fee in the previous fiscal year.

(5) To the extent possible, the department will work with vendors supplying testing for certification of commercial pesticide applicators, private pesticide applicators, registered pesticide applicators, and approved trainers for use with pesticide applicators to ensure adequate testing capacity, statewide access to testing sites, and cost structures comparable to neighboring states.

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

(2) The department shall provide notice of contracts or grants authorized under this section to the subcommittees, the fiscal agencies, and the state budget office not later than 7 days before the department notifies contract or grant recipients.

Sec. 303. From the funds appropriated in part 1 for emerging contaminants in food and agriculture the department will support efforts to identify and respond to the impacts of emerging contaminants to the food and agriculture sector, help address and


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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.

Sec. 304. The department shall maintain on a publicly accessible website registered agricultural businesses and shall regularly update the website to include key contact information. In carrying out the requirements of this section, the department shall partner with Michigan State University's Michigan Market Maker.

 

FOOD and DAIRY

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

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

(3) The report shall be transmitted to the subcommittees, the fiscal agencies, and the state budget office and posted to the department's website on or before April 1 of each year.

 

ANIMAL INDUSTRY


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Sec. 451. 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. 452. (1) The department shall report on the previous calendar year's activities of the animal industry division. The report shall be transmitted to the subcommittees, the fiscal agencies, and the state budget office and posted to the department's website on or before April 1 of each year.

(2) The department shall include in the report all indemnification payments for livestock depredation made in the previous calendar year and shall include all of the following:

(a) The reason for the indemnification.

(b) The amount of the indemnification.

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

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

Sec. 455. From the funds appropriated in part 1 for animal disease prevention and response, $200,000.00 shall be used to cover costs associated with testing of registered privately owned cervid facilities as follows: for required surveillance testing for chronic wasting disease and for infected herd bovine TB testing.

Sec. 457. (1) On or before October 15 of each year, the department shall provide to the subcommittees, the fiscal agencies,


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and the state budget office a report on bovine TB status and department activities.

(2) For each fiscal quarter following the report required in subsection (1), the department shall provide an update to the subcommittees, the fiscal agencies, and the state budget office. The quarterly update reports shall identify significant impacts to the program, including new incidence of bovine TB in this state, department activity associated with specific new incidence of bovine TB, any changes in USDA requirements or movement orders, and information and data on wildlife risk mitigation plan implementation in the modified accredited zone; implementation of a movement certificate process; progress toward annual surveillance test requirements; efforts to work with slaughter facilities in this state, as well as those that slaughter a significant number of animals from this state; and educational programs and information for this state's livestock community.

Sec. 458. From the funds appropriated in part 1 for Michigan animal agriculture alliance, the department shall work with animal industry representatives and state research universities to continue an animal research grant program.

 

PESTICIDE AND PLANT PEST MANAGEMENT

Sec. 501. The department shall report on the previous calendar year's activities of the pesticide and plant pest management division. The report shall be transmitted to the subcommittees, the fiscal agencies, and the state budget office and posted to the department's website on or before April 1 of each year.

Sec. 502. From the funds appropriated in part 1 for pesticide and plant pest management, $1,170,000.00 shall be used for staffing


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and operational support for education and compliance assistance efforts to ensure uniform application of pesticide regulations.

 

ENVIRONMENTAL STEWARDSHIP

Sec. 601. The funds appropriated in part 1 for environmental stewardship/MAEAP shall be used to support department agriculture pollution prevention programs, including groundwater and freshwater protection programs under part 87 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.8701 to 324.8717, and technical assistance in implementing conservation grants available under the federal farm bill.

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. 603. In addition to the report required under section 602, by 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 shall contain the following information for agriculture nutrient best management voluntary practices program: number and location of acres enrolled in nutrient management or other best management practices; number of acres enrolled that were not previously verified under the MAEAP; summary of practices implemented and available incentive programs; starting and ending balances of the program; summary of outreach and training efforts; and testing results.


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Sec. 604. The department may receive and expend federal revenues up to a total of $1,000,000.00 in excess of the federal revenue appropriated in section 107 of part 1 for environmental stewardship and MAEAP activities. The department shall notify the subcommittees, the fiscal agencies, and the state budget office prior to expending federal revenues authorized under this section.

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

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

Sec. 609. (1) The appropriations in part 1 for local conservation districts shall be distributed in equal amounts to local conservation districts in this state that were in operation as of April 15, 2021.

(2) On or before March 1, 2024, the department shall report on the previous calendar year's activities of local conservation districts. The report shall include descriptions of local conservation district activities and funding, including uses of appropriations made in part 1. In preparing this report, the department shall coordinate with representatives of local conservation districts. The report shall be transmitted to the subcommittees, the fiscal agencies, and the state budget office and posted to the department's website.

 


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LABORATORY PROGRAM

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

 

AGRICULTURE DEVELOPMENT

Sec. 701. (1) From the funds appropriated in part 1 for the food and agriculture investment program, the department shall establish and administer a food and agriculture investment program.

(2) The food and agriculture investment program shall expand the Michigan food and agriculture sector, promote food security, develop local and regional food systems, grow Michigan exports, promote the development of value-added agricultural production, food hubs, food incubators, and community-based processing facilities with a focus on new and expanding protein processors, and promote the expansion of farm markets, flower markets, and urban agriculture, including promotion of hoop houses, and 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 agricultural heritage and develop agricultural education and interpretation activities. The food and agriculture development fund awards will emphasize Michigan-based small business, nonprofits, and organizations promoting agriculture and food security activities. The food and agriculture development fund awards will emphasize Michigan-based


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small business, nonprofits, and organizations promoting agriculture and food security 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 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, 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 food and agriculture investment program shall be administered by the department.

(7) The unexpended funds appropriated in part 1 for the food and agriculture investment program are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section


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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 estimated cost of this project is identified in the appropriation line item.

(d) The tentative completion date for the work project is September 30, 2026.

(8) The department may expend money from the funds appropriated in part 1 for the food and agriculture investment program, including all of the following activities:

(a) Grants.

(b) Loans or loan guarantees.

(c) Infrastructure development.

(d) Other economic assistance.

(e) Program administration.

(f) Export assistance.

(9) The department shall expend no more than 5% from the funds appropriated in part 1 for the food and agriculture investment program for administrative purposes.

(10) In awarding grants under the program, the department shall identify and encourage applications from beginning, socially disadvantaged, women, and veteran farmers and ranchers.

Sec. 702a. The office of rural development shall act to encourage and enable appropriate community advancements and improvements, including, but not limited to, housing,


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infrastructure, education, workforce development, and other needs uniquely present in rural areas of this state that will assist in expansion of rural agriculture development.

Sec. 703. (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 that 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, 2024 , the department shall submit a report on activities and outcomes of the double up food bucks program to the subcommittees and the fiscal agencies. The report shall contain all of the following:

(a) Counties in this state with participating double up food bucks vendors, the number of vendors by county, and the name and location of vendors, as of May 1, 2022.

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


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bucks vendors, the number of vendors by county, and the name of location of vendors, as of May 1, 2023. The report shall highlight counties and vendors added to the program since May 1, 2022.

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

Sec. 706. (1) The department shall report on the previous calendar year's activities of the agriculture development division. The report shall be transmitted to the subcommittees, the fiscal agencies, and the state budget office and posted to the department's website on or before April 1 of each year.

(2) The report shall include the following information on any grants awarded during the prior fiscal year:

(a) The name of the grantee.

(b) The amount of the grant.

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

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

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

(3) The report shall include the following information on the Michigan craft beverage council established under section 303 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1303:

(a) Council activities and accomplishments for the previous fiscal year.

(b) Council expenditures for the previous fiscal year by category of administration, industry support, research and education grants, and promotion and consumer education.

(c) Grants awarded during the previous fiscal year and the results of research grant projects completed during the previous fiscal year.


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(4) The report shall identify grant recipients who are beginning, socially disadvantaged, women, and veteran farmers and ranchers.

Sec. 707. 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 shall not lapse to the general fund.

 

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 non-equine-related purposes without prior approval of the legislature.

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 this state.

(b) Provide financial support, promotion, prizes, and premiums of equine, livestock, and other agricultural commodity expositions in this state.

(2) The department shall award grants on a competitive basis to county fairs or other organizations from the funds appropriated in part 1 for county fairs, shows, and expositions grants. Grantees will be required to provide a 50% cash match with grant awards and identify measurable project outcomes. A county fair organization that received a county fair capital improvement grant in the prior fiscal year shall not receive a grant from the appropriation in


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part 1.

(3) From the amount appropriated in part 1 for county fairs, shows, and expositions, up to $25,000.00 shall be expended for the purpose of financial support, promotion, prizes, and premiums of equine, livestock, and other agricultural commodity expositions in this state, and festivals.

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

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

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

(7) The unexpended portion of the appropriation in part 1 for 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 this state.

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

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


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appropriation line item.

(d) The tentative completion date for the work project is September 30, 2026.

(8) The department shall provide a year-end report on the county fairs, shows, and expositions grants no later than December 1, 2024 to the subcommittees, the fiscal agencies, and the state budget director that includes a listing of the grantees, award amounts, match funding, project outcomes, and department costs of grant administration.

Sec. 806. From the funds appropriated in part 1 for county fair premiums, the department shall establish and administer a county fair premium program in accordance with R 285.811.1 to R 285.811.10 of the Michigan Administrative Code.

 

ONE-TIME APPROPRIATIONS

Sec. 903. (1) From the funds appropriated in part 1 for equine veterinary research, the department shall establish an equine veterinary research grant program. The equine veterinary research grant program shall provide grant funding for research related to equine health, disease prevention, and treatment.

(2) Grants shall be awarded to state agricultural research universities or colleges of veterinary medicine. Projects funded under the equine veterinary research grant program must include work activities carried out by veterinary students.

(3) Each project funded through an equine veterinary research grant must be established through a grant agreement that defines project goals, project milestones, and actions or milestones that must be met in order to receive a disbursement of funds. Projects must identify measurable project outcomes.


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(4) A university or college receiving grants under the equine veterinary research grant program may not charge administrative costs, including the allocation of general administrative burden, to the grant.

(5) In addition to the funds appropriated in part 1, the department may receive and expend funds received from outside sources for the equine veterinary research grant program.

(6) On or before September 30, 2024, the department shall report on grants funded from the equine veterinary research grant program. The report shall be transmitted to the subcommittees, the fiscal agencies, and the state budget office and posted to the department's website. The report shall include all of the following:

(a) Grantee name.

(b) Description of the project purpose, including measurable outcomes.

(c) Amount of the grant, and any additional funds provided for the project from other sources.

Sec. 904. (1) From the funds appropriated in part 1 for SEEDSS, the department shall establish and administer a SEEDSS program.

(2) The purpose of the SEEDSS program is to support the development and implementation of best farming practices and new technologies related to environmental sustainability, including measures to address the impacts of climate change. Program goals include enhancing soil and plant health, soil carbon sequestration, efficient use of water, and protection of water resources.

(3) The department shall work with agriculture industry stakeholders, including state agriculture research colleges and


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universities, in developing and implementing the SEEDSS program.

(4) The department may expend money from the funds appropriated in part 1 for the SEEDSS program for grants in support of SEEDSS program goals.

(5) In addition to the funds appropriated in part 1, the department may receive and expend funds received from other public and private persons for the SEEDSS program.

(6) Each project funded through a SEEDSS grant must be established through a grant agreement that defines project goals, project milestones, and actions or milestones that must be met in order to receive a disbursement of funds. Projects must identify measurable project outcomes.

(7) If grants are awarded to a state agriculture research college or university, the college or university may charge only direct project costs to the grant agreement. Administrative burden or overhead may not be allocated to grant agreement project costs.

(8) On or before September 30, 2024, the department shall report on grants funded from the SEEDSS program. The report shall be transmitted to the subcommittees, the fiscal agencies, and the state budget office and posted to the department's website. The report shall include all of the following:

(a) Grantee name.

(b) Description of the project purpose, including measurable outcomes.

(c) Amount of the grant, and any additional funds provided for the project from other sources.

(9) As used in this act, "SEEDSS" stands for Solving Emerging Environmental Developments and Securing Sustainability.