Bill Text: MI SB0758 | 2023-2024 | 102nd Legislature | Engrossed

Michigan Senate Bill 758 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Appropriations: department of agriculture and rural development; appropriations for fiscal year 2024-2025; provide for. Creates appropriation act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2024-06-11 - Referred To Conference Committee [SB0758 Detail]

Download: Michigan-2023-SB0758-Engrossed.html

Substitute For

SENATE BILL NO. 758

A bill to make appropriations for the department of agriculture and rural development for the fiscal year ending September 30, 2025; and to provide for the expenditure of the appropriations.

the people of the state of michigan enact:

part 1

line-item appropriations

Sec. 101. There is appropriated for the department of agriculture and rural development for the fiscal year ending September 30, 2025, from the following funds:

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

Full-time equated classified positions	546.0
GROSS APPROPRIATION		$	163,219,000
Total interdepartmental grants and intradepartmental transfers			332,400
ADJUSTED GROSS APPROPRIATION		$	162,886,600
Federal revenues:
Total federal revenues			20,357,900
Special revenue funds:
Total local revenues			0
Total private revenues			21,300
Total other state restricted revenues			61,950,900
State general fund/general purpose		$	80,556,500
Sec. 102. DEPARTMENTAL ADMINISTRATION AND SUPPORT
Full-time equated unclassified positions	6.0
Full-time equated classified positions	37.0
Unclassified salaries--FTE positions	6.0	$	1,033,200
Accounting service center			1,177,400
Commissions and boards			23,800
Emergency management--FTEs	8.0		3,553,100
Emerging contaminants in food and agriculture--FTEs	6.0		2,109,900
Executive direction--FTEs	23.0		3,354,600
Property management			785,000
GROSS APPROPRIATION		$	12,037,000
Appropriated from:
Federal revenues:
HHS, multiple grants			439,000

USDA, multiple grants		600,000
Deferred federal revenue funding		15,000
Special revenue funds:
Agriculture licensing and inspection fees		158,300
Dairy and food safety fund		219,600
Feed control fund		8,100
Fertilizer control fund		10,600
Freshwater protection fund		175,700
Gasoline inspection and testing fund		26,400
Industry support funds		57,000
Michigan craft beverage council fund		8,800
Private forestland enhancement fund		16,300
Refined petroleum fund		21,000
Weights and measures regulation fees		5,000
State general fund/general purpose	$	10,276,200
Sec. 103. INFORMATION TECHNOLOGY
Information technology services and projects	$	2,366,400
GROSS APPROPRIATION	$	2,366,400
Appropriated from:
Interdepartmental grant revenues:
Special revenue funds:
Agriculture licensing and inspection fees		93,000
Dairy and food safety fund		76,400
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	$	2,119,600

Sec. 104. FOOD SAFETY AND ANIMAL HEALTH
Full-time equated classified positions	212.0
Animal disease prevention and response--FTEs	63.0	$	11,103,000
Animal feed safety--FTEs	10.0		2,100,800
Food safety and quality assurance--FTEs	103.0		18,833,700
Indemnification - livestock depredation			15,000
Michigan animal agriculture alliance			3,000,000
Milk safety and quality assurance--FTEs	36.0		5,999,300
GROSS APPROPRIATION		$	41,051,800
Appropriated from:
Federal revenues:
HHS, multiple grants			3,244,200
USDA, multiple grants			1,209,500
Special revenue funds:
Agriculture licensing and inspection fees			72,900
Animal welfare fund			150,000
Consumer and industry food safety education fund			242,500
Dairy and food safety fund			5,506,700
Feed control fund			1,431,200
Industry food safety education fund			114,100
Marihuana regulatory fund			350,000
Marihuana regulation fund			349,900
State general fund/general purpose		$	28,380,800
Sec. 105. ENVIRONMENT AND SUSTAINABILITY
Full-time equated classified positions	120.5
Agriculture climate resiliency		$	1,000,000
Environmental stewardship - MAEAP--FTEs	27.0		10,825,300

Local conservation districts			6,000,000
Pesticide and plant pest management--FTEs	82.0		14,506,900
Right-to-farm--FTEs	6.5		1,042,100
Soil health/regenerative agriculture--FTEs	5.0		1,024,900
GROSS APPROPRIATION		$	34,399,200
Appropriated from:
IDG from MDEGLE, biosolids			95,600
Federal revenues:
Department of interior			96,300
EPA, multiple grants			1,142,700
USDA, multiple grants			2,046,100
Special revenue funds:
Private - slow-the-spread foundation			21,300
Agriculture licensing and inspection fees			4,626,800
Fertilizer control fund			1,372,700
Freshwater protection fund			8,528,400
Horticulture fund			70,000
Industrial hemp fund			685,700
Industry support funds			228,100
State general fund/general purpose		$	15,485,500
Sec. 106. AGRICULTURE DEVELOPMENT
Full-time equated classified positions	68.0
Agricultural preservation easement grants		$	1,900,000
Agricultural support--FTEs	5.0		1,000,000
Agriculture development--FTEs	15.0		4,848,700
Fair food network - double up food bucks			2,000,000
Farm to family--FTEs	3.0		2,000,000
Farmland and open space preservation--FTEs	10.0		1,638,000

Food and agriculture investment program			2,474,800
Food and agriculture supply chain--FTE	1.0		804,900
Fruit and vegetable inspections--FTEs	8.0		1,308,100
Intercounty drain--FTEs	5.0		883,800
Michigan craft beverage council--FTE	1.0		1,341,500
Migrant labor housing--FTEs	9.0		1,389,500
Producer security/grain dealers--FTEs	6.0		1,033,400
Qualified forest program--FTEs	4.0		8,107,000
Rural development fund grant program--FTE	1.0		2,008,200
GROSS APPROPRIATION		$	32,737,900
Appropriated from:
Federal revenues:
USDA, multiple grants			8,085,600
Special revenue funds:
Agricultural preservation fund			3,538,000
Agriculture licensing and inspection fees			5,100
Commodity inspection fees			700,300
Grain dealers fee fund			874,600
Industry support funds			223,600
Michigan craft beverage council fund			1,311,500
Migratory labor housing fund			145,100
Private forestland enhancement fund			1,080,100
Rural development fund			2,008,200
State general fund/general purpose		$	14,765,800
Sec. 107. LABORATORY AND CONSUMER PROTECTION
Full-time equated classified positions	108.5
Central licensing and customer call center--FTEs	13.0	$	1,553,500

Consumer protection program--FTEs	42.0		7,179,900
Laboratory services--FTEs	42.5		8,873,900
USDA monitoring--FTEs	11.0		1,725,100
GROSS APPROPRIATION		$	19,332,400
Appropriated from:
Interdepartmental grant revenues:
IDG from LARA (LCC), liquor quality testing fees			236,800
Federal revenues:
EPA, multiple grants			180,600
HHS, multiple grants			1,572,600
USDA, multiple grants			1,726,300
Special revenue funds:
Agriculture licensing and inspection fees			356,400
Dairy and food safety fund			532,500
Feed control fund			194,900
Fertilizer control fund			25,500
Freshwater protection fund			48,500
Gasoline inspection and testing fund			1,932,500
Grain dealers fee fund			8,200
Industrial hemp fund			323,200
Migratory labor housing fund			31,200
Refined petroleum fund			3,520,700
Testing fees			358,700
Weights and measures regulation fees			755,300
State general fund/general purpose		$	7,528,500
Sec. 108. FAIRS AND EXPOSITIONS
County fairs, shows, and expositions		$	500,000

Fairs and racing		258,600
Fruit and vegetable prescription program		100
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
GROSS APPROPRIATION	$	4,294,300
Appropriated from:
Special revenue funds:
Agriculture equine industry development fund		3,794,200
State general fund/general purpose	$	500,100
Sec. 109. ONE-TIME APPROPRIATIONS
Animal welfare grants	$	500,000
Farmers market upgrades		100
Craft beverage council wine/agri-tourism promotion		100
Minority-owned food and agriculture ventures		500,000
Soil health workshops and education		249,900
Study on funding and role of conservation districts		249,900
Cost sharing for no-till adoption in western Lake Erie Basin		9,000,000
Risk mitigation costs of no-till adoption in western Lake Erie Basin		4,000,000
Soil health education in western Lake Erie Basin		2,500,000

GROSS APPROPRIATION	$	17,000,000
Appropriated from:
Special revenue funds:
Work project lapse funds		15,500,000
State general fund/general purpose	$	1,500,000

part 2

provisions concerning appropriations

for fiscal year 2024-2025

general sections

Sec. 201. In accordance with section 30 of article IX of the state constitution of 1963, for the fiscal year ending September 30, 2025, total state spending from state sources under part 1 is $142,507,400.00 and state spending under part 1 from state sources to be paid to local units of government is $8,800,000.00. The following itemized statement identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
Agriculture preservation easement grants	$	1,900,000
Environmental stewardship/MAEAP		1,100,000
Local conservation districts		3,000,000
Qualified forest program		1,400,000
Rural development fund grant program		1,400,000
TOTAL	$	8,800,000

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

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

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

development.

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

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

(e) "IDG" means interdepartmental grant.

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

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

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

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

(j) "TB" means tuberculosis.

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

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

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

(a) The funds must not be used for the purchase of foreign goods or services, or both, if competitively priced and of

comparable quality American goods or services, or both, are available.

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

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

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

Sec. 207. Consistent with section 217 of the management and budget act, 1984 PA 431, MCL 18.1217, the department shall prepare a report on out-of-state travel expenses not later than January 1. The report must list all travel by classified and unclassified employees outside this state in the previous fiscal year that was funded in whole or in part with funds appropriated in the department's budget. The department shall submit the report to the standard report recipients and to the senate and house appropriations committees. The report must include all of the following information:

(a) The dates of each travel occurrence.

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

Sec. 208. (1) The department shall not use funds appropriated in part 1 to hire a person to provide legal services that are the responsibility of the attorney general. This section does not apply to legal services for bonding activities or to outside legal services that the attorney general authorizes.

(2) The department shall make timely reimbursement to the department of the attorney general for legal services provided by the department of the attorney general to the department. If the department fails to make timely reimbursement, the department of the attorney general may increase the amount billed to include a penalty for late reimbursement. As used in this section, "timely reimbursement" means reimbursement not later than 60 days after the department receives a bill for the legal services from the department of the attorney general.

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

Sec. 210. (1) In addition to the funds appropriated in part 1, there is appropriated an amount not to exceed $3,000,000.00 for federal contingency authorization. Amounts appropriated under this section are not available for expenditure until they have been transferred to another line item in part 1 under section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

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

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

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

Sec. 211. 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 the department:

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

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

(c) Fiscal year-to-date payments to a selected vendor, including the vendor name, payment date, payment amount, and payment description.

(d) The number of active department employees by job classification.

(e) Job specifications and wage rates.

Sec. 212. Not later than 14 days after the release of the executive budget recommendation, the department shall cooperate with the state budget office to provide an annual report on estimated state restricted fund balances, state restricted fund projected revenues, and state restricted fund expenditures for the previous 2 fiscal years. The report must be submitted to the standard report recipients and to the chairpersons of the senate and house appropriations committees.

Sec. 213. The department shall maintain, on a publicly accessible website, information that identifies, tracks, and regularly updates key metrics that are used to monitor and improve the department's performance.

Sec. 214. To the extent permissible under the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, the director shall take all reasonable steps to ensure geographically disadvantaged business enterprises compete for and perform contracts to provide services or supplies, or both. The director shall strongly encourage firms with which the department contracts to subcontract with certified geographically disadvantaged business enterprises for services, supplies, or both. As used in this section, "geographically disadvantaged business enterprises" means that term as defined in Executive Directive No. 2019-08.

Sec. 215. On a quarterly basis, the department shall report on the number of full-time equated positions in pay status by civil service classification, including a comparison by line item of the number of full-time equated positions authorized from funds appropriated in part 1 to the actual number of full-time equated positions employed by the department at the end of the reporting

period. The report must be submitted to the senate and house appropriations committees and to the standard report recipients.

Sec. 216. It is the intent of the legislature that the department maximize the efficiency of the state workforce and, if possible, prioritize in-person work, and post its in-person, remote, or hybrid work policy on its website.

Sec. 217. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this part or part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, inter-transfer funds within this part or part 1 for the particular department, board, commission, officer, or institution.

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

Sec. 219. Not later than April 1, the department shall report on each specific policy change made to implement a public act affecting the department that took effect during the previous calendar year. The department shall submit the report to the standard report recipients, to the senate and house appropriations committees, and to the joint committee on administrative rules.

Sec. 220. (1) From the funds appropriated in part 1, the department shall do the following:

(a) Report any amounts 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 director or official and the amount of severance pay must be included in the report required by this subdivision.

(b) Not later than February 1, report on the total amount of severance pay remitted to former department employees during the previous fiscal year and the total number of former department employees that were remitted severance pay during the previous fiscal year.

(2) Reports required by this section must be submitted to the standard report recipients and to the senate and house appropriations committees.

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

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

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

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

DEPARTMENTAL ADMINISTRATION AND SUPPORT

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

collect fees for the following work activities and services:

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

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

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

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

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

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

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

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

grants to local units of government, institutions of higher education, or nonprofit organizations to support activities authorized by appropriations in part 1. As used in this section:

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

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

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

FOOD safety and animal health

Sec. 401. (1) The department shall report on the previous fiscal year's activities of the bureau of food safety and animal

health. The report must include information on activities and outcomes of the dairy safety and inspection program, the food safety inspection program, the foodborne illness and emergency response program, and the food service program.

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

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

(a) The reason for the indemnification.

(b) The amount of the indemnification.

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

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

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

Sec. 404. From the funds appropriated in part 1 for animal disease prevention and response, the department shall use

$200,000.00 to cover costs associated with testing of registered privately owned cervid facilities as follows:

(a) Required surveillance testing for chronic wasting disease.

(b) Infected herd bovine TB testing.

Sec. 405. (1) On or before October 15 of each year, the department shall provide to the subcommittees, the fiscal agencies, and the state budget office a report on bovine TB status and department activities.

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

Sec. 406. From the funds appropriated in part 1 for Michigan animal agriculture alliance, the department shall work with animal industry representatives and state research universities to continue an animal research grant program.

ENVIRONMENT AND SUSTAINABILITY

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

on or before April 1 of each year.

Sec. 502. (1) From the funds appropriated in part 1 for agricultural climate resiliency and the funds appropriated in part 1 for soil health/regenerative agriculture, the department shall promote the principles of soil health and regenerative agriculture, including maintaining soil cover, minimization of soil disturbance, plant and crop diversity, maintenance of live plants and roots, and integration of livestock into cropping systems.

(2) The department shall promote the goals of soil health and regenerative agriculture, including increasing soil organic matter content, improving soil water infiltration capacity, increasing soil water holding capacity, improving soil biological capacity to break down plant residue and other substances and to maintain soil aggregation, improving soil nutrient sequestration and cycling capacity, reducing nutrient losses, and increasing carbon sequestration capacity of soil.

(3) The department shall promote the practices of soil health and regenerative agriculture, which include the use of no-till farming, intercropping, cover crops, multispecies cover crops, roll cropping managed rotational grazing, and other practices identified that utilize natural biological processes to advance the goals of soil health and regenerative agriculture.

Sec. 503. (1) From the funds appropriated in part 1 for agricultural climate resiliency, the department shall maintain an agricultural climate resiliency program.

(2) The purpose of the agricultural climate resiliency program described in this section is to promote the usage and implementation of best regenerative agricultural 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) Through the program described in this section, the department shall also do all of the following:

(a) Promote the principles of soil health and regenerative agriculture, including maintaining soil cover, minimization of soil disturbance, plant and crop diversity, maintenance of live plants and roots, and integration of livestock into cropping systems.

(b) Promote the goals and principles of soil health and regenerative agriculture, including increasing soil organic matter content, improving soil water infiltration capacity, increasing soil water holding capacity, improving soil biological capacity to break down plant residue and other substances and to maintain soil aggregation, improving soil nutrient sequestration and cycling capacity, reducing nutrient losses, and increasing carbon sequestration capacity of soil.

(4) Program funds described in subsection (1) may not be used for applied research into the precision application of fertilizer, pesticides or herbicides.

(5) Of the funds appropriated in part 1 for agricultural climate resiliency, not less than $1,000,000.00 in ongoing funding must be used by the department to partner with a state land-grant university to develop, implement, and evaluate a soil health, regenerative agriculture, and climate resiliency program. The partnership described in this subsection must be focused on researching and assisting the agricultural industry in implementing climate resiliency, soil health, and regenerative agricultural

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

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

Sec. 504. (1) Subject to subsection (2), from the funds appropriated in part 1 for soil health/regenerative agriculture, the department shall maintain a program with the purpose of advancing the adoption of soil health and regenerative agriculture principles in agriculture in this state.

(2) The department may engage partners to achieve the purposes of the program described in this section, including agriculture extension offices, the national resources conservation service, conservation districts, and nongovernmental organizations to build farmer-to-farmer networks to disseminate practices and information to improve adoption of soil health and regenerative agriculture practices, and other needs that the department identifies to improve adoption of these principles. Program funds under this section may not be used for applied research into precision application of fertilizer, pesticides, or herbicides.

(3) Through the program described in this section, the department shall promote all of the following:

(a) The principles of soil health and regenerative agriculture, which include maintaining soil cover, minimization of soil disturbance, plant/crop diversity, maintenance of continual

live plant/root, and integration of livestock into cropping systems.

(b) The goals of the principles of soil health and regenerative agriculture, which include increasing soil organic matter content, improving soil water infiltration capacity, increasing soil water holding capacity, improving soil biological capacity to break down plant residue and other substances and to maintain soil aggregation, improving soil nutrient sequestration and cycling capacity, reducing nutrient losses, and increasing carbon sequestration capacity of soil.

(c) The practices of soil health and regenerative agriculture, which include the use of no-till farming, intercropping, cover crops, multispecies cover crops, roll cropping, managed rotational grazing, and other practices identified that utilize natural biological processes to advance the goals of soil health and regenerative agriculture.

(4) The program's objectives for the program described in this section must be accomplished by utilizing state employees or contracts with service providers, or both. Any program partners receiving funding shall indicate the conservation outcomes they are intending to achieve and how they will measure achievement of those outcomes and provide a report to the department on the uses of funding received and achievement of any outcomes.

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

Sec. 505. (1) The funds appropriated in part 1 for

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

(2) From the funds appropriated in part 1 for environmental stewardship/MAEAP, $3,000,000.00 must be used to establish a contractual agreement with the Michigan State University extension for the purpose of assisting MAEAP programs. The agreement must reflect negotiated goals, outcomes, and performance standards between the 2 parties.

In negotiating the agreement, the department must:

(a) Prioritize the hiring of existing MAEAP technicians for equivalent positions within extension by considering relevant work experience and years of services in the MAEAP program.

(b) Encourage collaboration between extension and the conservation districts for the use and maintenance of necessary resources including office space, records, or equipment.

(c) Consult with the MAEAP Advisory Council (MCL 324.8708) regarding the standards included in the agreement and provide for continued input from the council.

(3) Prior to confirmation of the contract, the department shall present the agreement to the Michigan commission of agriculture and rural development for input and recommendations.

(4) The contract between the department and extension must be signed and operational no later than March 1, 2025.

(5) By not later than June 1, 2025, the department shall report to the agriculture committees and subcommittees of the

Senate and House of Representatives on the status of the transition of MAEAP technical staff to extension.

Sec. 506. The department may receive and expend federal revenues up to a total of $1,000,000.00 in excess of the federal revenue appropriated in part 1 for environmental stewardship 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. 507. (1) From the appropriations in part 1 for local conservation districts, $3,000,000.00 must be distributed in equal amounts to local conservation districts in this state that were in operation in the previous fiscal year.

(2) From the appropriations in part 1 for local conservation districts, $3,000,000.00 must be distributed to local conservation districts through memoranda of understandings (MOU) between the department and districts, with distribution dependent upon the execution and maintenance of memoranda of understandings (MOU) agreements on the provision of services delivered and appropriate reporting of the provision of services.

(3) On or before March 1, the department shall report on the previous calendar year's activities of local conservation districts. The report must include descriptions of local conservation district activities and the use of funding, including uses of appropriations made in part 1 as provided in subsection (1). The report must also include an accounting of funds spent as provided in subsection (2), including a list of districts that entered into memoranda of understandings (MOU) agreements with the department and the services the districts performed as part of the agreements. In preparing this report, the department shall

coordinate with representatives of local conservation districts.

LABORATORY AND CONSUMER PROTECTION PROGRAM

Sec. 601. The department shall report by April 1 on the previous calendar year's activities of the laboratory division.

Sec. 602. No funds from the appropriations in part 1 may be used for the purpose of consolidating state-run laboratories.

AGRICULTURE DEVELOPMENT

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

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

(a) Expand the Michigan food and agriculture sector.

(b) Promote food security.

(d) Grow Michigan exports.

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

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

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

(h) Increase food processing activities within this state by accelerating investment projects and infrastructure development that support growth in production agriculture and food and agriculture processing, expand opportunity to new agricultural

producers and processors, promote agriculture tourism and agricultural heritage, and develop agricultural education and interpretation activities.

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

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

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

(6) The unexpended funds appropriated in part 1 for the food and agriculture investment program are designated as a work project appropriation, and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and are available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL

18.1451a:

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

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

(d) The tentative completion date for the work project is September 30, 2027.

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

(a) Grants.

(b) Loans or loan guarantees.

(d) Other economic assistance.

(e) Program administration.

(f) Export assistance.

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

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

activities.

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

(3) The department shall work with the fair food network to expand access to the double up food bucks program in each of the state's counties with grocery stores or farmer's markets that meet the program's eligibility requirements.

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

(a) Counties in this state with participating double up food bucks vendors, the number of vendors by county, and the name and location of vendors, as of May 1, 2024.

(b) Counties in this state with participating double up food bucks vendors, the number of vendors by county, and the name of location of vendors, as of May 1, 2025. The report must highlight counties and vendors added to the program since May 1, 2023.

Sec. 706. (1) By not later than April 1, the department shall report on the previous calendar year's activities of the agriculture development division.

(2) The report described in subsection (1) must include the following information on any grants awarded during the prior fiscal year:

(a) The name of the grantee.

(b) The amount of the grant.

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

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

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

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

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

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

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

Sec. 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 do not lapse to the general fund.

Sec. 708. (1) The appropriations in part 1 for the qualified forest program are for the purpose of increasing the knowledge of nonindustrial private forestland owners regarding sound forest management practices and increasing the amount of commercial timber production from those lands.

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

Sec. 709. From the funds appropriated in part 1, the department shall maintain coordination with the department of treasury to improve the timely processing and issuance of tax credits under section 36109 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36109, for the Michigan's farmland and open space preservation program under parts 361 and 362 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.36101 to 324.3116 and 324.36201 to 324.36207. The improvement of timely processing and issuance, as described in this section, includes, but is not limited to:

(a) Timely review of mailed applications and paperwork.

(b) Timely and proactive communications to applicants on the status of their application.

FAIRS and EXPOSITIONS

Sec. 801. All appropriations from the agriculture equine industry development fund must be spent on equine-related purposes. No funds from the agriculture equine industry development fund must be expended for non-equine-related purposes without prior approval of the legislature.

Sec. 802. From the funds appropriated in part 1 from agriculture equine industry development funds, available revenue must be allocated in the following priority order:

(a) To support all administrative, contractual, and regulatory costs incurred by the department and the Michigan gaming control board.

(b) Any remaining funds collected through September 30, 2024, after the obligations in subdivision (a) have been met, must be prorated equally among the county fairs, supplements, breeders' awards, and sire stakes awards to eligible race meeting licensees in accordance with section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320.

Sec. 803. (1) From the funds appropriated in part 1 for county fairs, shows, and expositions, the department shall administer a county fairs, shows, and expositions grant program. The program must have the following objectives:

(a) Assist in the financing of building improvements or other capital improvements at county fairgrounds of this state.

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

(2) The department shall award grants on a competitive basis to county fairs or other organizations from the funds appropriated in part 1 for county fairs, shows, and expositions grants. Grantees

will be required to provide a 50% cash match with grant awards and identify measurable project outcomes. A county fair organization that received a county fair capital improvement grant in the prior fiscal year must not receive a grant from the appropriation in part 1.

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

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

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

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

(7) The unexpended portion of the appropriation in part 1 for county fairs, shows, and expositions grants are designated as a work project appropriation and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and are available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

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

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

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

(e) The tentative completion date for the work project is September 30, 2027.

(8) The department shall provide a year-end report on the county fairs, shows, and expositions grants no later than December 1, 2025 that includes a listing of the grantees, award amounts, match funding, project outcomes, and department costs of grant administration.

ONE-TIME APPROPRIATIONS

Sec. 901. (1) From the 1-time funds appropriated in part 1 for minority-owned food and agriculture ventures, the department shall create a grant program to expand minority businesses in food and agriculture. Grant recipients must be majority minority-owned or ventures that are providing access to predominately majority minority-owned businesses.

(2) The unexpended funds appropriated in part 1 for minority-owned food and agriculture ventures are designated as a work project appropriation, and any unencumbered or unallotted funds do not lapse at the end of the fiscal year and are available for expenditures for projects under this section until projects have

been completed. The following is in compliance with section 451a(1)of the management and budget act, 1984 PA 431, MCL 18.145a18.1451a:

(a) The purpose of the project is the expansion of minority-owned businesses in food and agriculture.

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