HB 4706 — Appropriations: omnibus; appropriations for multiple departments and branches for the fiscal year 2025-2026 and supplemental appropriations for fiscal year 2024-2025; provide for. Creates appropriation act.

Special revenue funds:

Agriculture equine industry development fund 6,532,100 State general fund/general purpose $ 500,000 PART 2 PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026 GENERAL SECTIONS Sec.

201.

In accordance with section 30 of article IX of the state constitution of 1963, for the fiscal year ending September 30, 2026, total state spending under part 1 from state sources is $88,843,100.00 and total state spending under part 1 from state sources to be paid to local units of government is $8,480,100.00.

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 1,080,100 Rural development fund grant program 1,400,000 TOTAL $ 8,480,100 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 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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) "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 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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 because the employee communicates 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 outside the state by classified and unclassified employees 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 the following information:

(a) The dates of each travel occurrence.

(b) The total transportation and related costs of each travel occurrence and the proportions funded with state general fund/general purpose revenues, state restricted revenues, federal revenues, local revenues, and private revenues, including specific sources of state restricted, federal, local, and private revenues.

ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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 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.

Amounts appropriated 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.

Amounts appropriated 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 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s contingency authorization.

Amounts appropriated 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.

(1) 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.

(2) The department shall cooperate with the department of technology, management, and budget to update the searchable website on a quarterly basis.

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.

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 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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 standard report recipients and to the senate and house appropriations committees.

Sec.

218.

The department shall receive and retain copies of all reports funded from appropriations in part 1.

The department shall follow federal and state guidelines for short-term and long- term retention of records.

The department may electronically retain copies of reports unless otherwise required by federal and state guidelines.

Sec.

221.

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

Sec.

222.

The department shall submit a quarterly report that summarizes all work project accounts.

The report must include all of the following:

(a) A list of all work project accounts.

(b) The status of all work project accounts, including amounts expended, amounts encumbered, and available balances for each account.

(c) The amount of funds that lapsed from any previously designated work project accounts, the name and description of the work project account, and the funds that received the lapsed amounts.

Sec.

223.

If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under part 1, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, intertransfer funds within part 1 for the ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s particular department, board, commission, officer, or institution.

Sec.

224.

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 report must include reference to the public act number.

The department shall submit the report to the standard report recipients, the senate and house appropriations committees, and the joint committee on administrative rules.

Sec.

225.

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

(a) Report to the standard report recipients and to the senate and house appropriations committees 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, deputy director, or official is signed.

The name of the director, deputy 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 prior fiscal year and the total number of former department employees that were remitted severance pay during the prior fiscal year.

(2) As used in this section, "severance pay" means compensation to which both of the following apply:

(a) The compensation is payable or paid upon the termination of employment.

(b) The compensation is paid in addition to wages or benefits earned during the course of employment or generally applicable ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s retirement benefits.

Sec.

226.

(1) The department shall maximize the efficiency of the state workforce.

The department shall prioritize working in- person 5 days per week for each division within the department.

Employees with job responsibilities that require the employees to serve in their capacities outside of the office must report to the office before beginning field work.

Field service employees include, but are not limited to, protective services workers, parole and probation officers, conservation officers, state troopers assigned to road patrol, inspectors, and construction and trade workers.

(2) The department shall establish a policy and process for verifying that all employees are working their jobs during normal business hours.

(3) The department shall provide information on employee badge scanning when requested by a member of the legislature.

Sec.

227.

(1) Funds appropriated in part 1 that are used for grants or grant programs are subject to the following conditions:

(a) Grant funds must be provided only to an entity that has been established or is operating in this state or another state for at least 36 months before approval or disbursement of grant funds.

(b) Grant funds must be provided only to an entity that has had an office within this state or in the service area covered under the grant for at least 12 months before approval or disbursement of grant funds.

(c) Before awarding or disbursing grant funds, all grant recipients must provide a spending plan that specifies the scope of service, the program goals, the measurement for meeting program goals, and how all grant funds will be used and must indicate if ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s any grant funds will be provided to a third party or subrecipient.

(d) Up to 20% of grant funds may be spent on administrative costs and salaries.

Up to 10% is authorized for contingencies.

(e) Each department or agency responsible for awarding or disbursing grant funds must annually audit the entity's use of the grant funds for each fiscal year in which the grant is active.

Each entity must submit information requested by the department to confirm compliance.

(f) Each department and agency shall work with the office of the auditor general to conduct an audit of the grant according to generally accepted accounting practices and audit standards.

The office of the auditor general must be given access to all internal and external records.

All contracts or agreements between a department or agency and a grant recipient or between a grant recipient and a third party must include a clause granting the office of the auditor general access to all internal and external records.

(g) Grant recipients and their immediate family members are prohibited from being employed by the executive branch or legislative branch of this state.

In addition, grant recipients are prohibited from serving on any state board that has direct or indirect responsibility for approving of or auditing grant funds awarded or disbursed by any department or agency.

(h) Full and complete audits of grant funds issued by the department or an agency of this state, without redaction unless required by law, must be posted to the department's website in a conspicuous place for public review.

(2) On a quarterly basis, the department shall submit a report to the standard report recipients on legislatively sponsored grant ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s funds that includes, but is not limited to, all of the following:

(a) The name of each grant recipient and the status of each grant.

(b) The amount distributed to each grant recipient.

(c) The remaining amount to be distributed to each grant recipient.

(d) Any changes to scope or costs of program.

(3) The report under subsection (2) must include the following statements made by the department:

(a) A statement that confirms the department reviewed and affirmed compliance by each grant recipient to program scope and expenditure of grant funding.

(b) A statement that confirms the department reviewed applicable program reports and requests for reimbursement.

Sec.

228.

(1) The department shall require as a condition of each contract or subcontract that the prequalified contractor or prequalified subcontractor agree to use the E-Verify system to verify that all persons hired during the contract term by the contractor or subcontractor are legally present and authorized to work in the United States.

(2) The department may verify this information directly or may require contractors and subcontractors to verify the information and submit a certification to the department.

The department shall submit a report to the standard report recipients by March 1 of each year that describes the processes it has developed and implemented under provisions of this section.

(3) The department shall not contract with any foreign entities that are known or suspected to be enemies of the United States or known foreign adversaries.

Foreign adversaries include ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s all of the following:

(a) The People's Republic of China.

(b) The Russian Federation.

(c) The Islamic Republic of Iran.

(d) The Democratic People's Republic of Korea.

(e) The Republic of Cuba.

(f) The Venezuelan regime of Nicolás Maduro.

(g) The Syrian Arab Republic.

(h) An agency or other entity under significant control of a country described in subdivisions (a) to (g).

(4) As used in this section, "E-Verify" means an internet- based system operated by the Department of Homeland Security, United States Citizenship and Immigration Services in partnership with the Social Security Administration.

Sec.

229.

Funds appropriated in part 1 from state or federal sources are prohibited from being used to provide services, grants, or programming to an individual who is not a citizen of the United States, unless the individual is a qualified alien as that term is defined in 8 USC 1641.

This section does not prohibit the department, political subdivision, state university, or other state agency from expending funds for the purpose of detaining individuals who are not citizens of the United States, including any costs associated with housing such individuals in county jails or state correctional facilities.

Sec.

234.

Total authorized appropriations from all sources under part 1 for legacy costs for the fiscal year ending September 30, 2026 are estimated at $8,872,800.00.

From this amount, total appropriations for pension-related legacy costs for the department are estimated at $8,002,700.00.

Total appropriations for retiree ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s health care legacy costs for the department are estimated at $870,100.00.

Sec.

235.

(1) The department shall maintain, on a publicly accessible website, a department scorecard that identifies, tracks, and updates on a quarterly basis key metrics that are used to monitor and improve the department's performance.

(2) The department shall notify the standard report recipients when the quarterly updates to the department scorecard are available on a publicly accessible website.

Sec.

236.

(1) Unless specifically authorized elsewhere in this part or part 1, funds appropriated in part 1 must not be used to pay for a state obligation that exceeds $200,000.00 for a court- approved judgment, settlement, award, or claim without prior legislative approval.

(2) If a state obligation for a court-approved judgment, settlement, award, or claim results in a change from current statute, the department shall notify the legislature.

(3) This section does not apply to compensation and other relief to individuals wrongfully imprisoned as required under the wrongful imprisonment compensation act, 2016 PA 343, MCL 691.1751 to 691.1757.

Sec.

237.

Not later than November 15, the department shall disclose on a publicly accessible website private and other third- party funds received by the department in the previous fiscal year.

The report must include the amount of funding received, the specific source of funding received, the purpose for which funding was expended, and the amount of any remaining funds.

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

ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s Sec.

238.

State funds must not be used for diversity, equity, and inclusion, or DEI, initiatives or programs or as outlined in Exec.

Order No.

14151, 90 Fed.

Reg.

8339 (Jan.

29, 2025) "Ending Radical and Wasteful Government DEI Programs and Preferencing", Exec.

Order No.

14168, 90 Fed.

Reg.

8615 (Jan.

30, 2025) "Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government", or Exec.

Order No.

14173, 90 Fed.

Reg.

8633 (Jan.

31, 2025) "Ending Illegal Discrimination and Restoring Merit-Based Opportunity".

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.

ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s (3) The department shall notify the subcommittees, the fiscal agencies, and the state budget office 30 days before proposing changes in fees authorized under this section or under section 5 of 1915 PA 91, MCL 285.35.

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

Sec.

302.

(1) The department may contract with or provide grants to local units of government, institutions of higher education, or nonprofit organizations to support activities authorized by appropriations in part 1.

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

(3) As used in this section:

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

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

Sec.

303.

From the funds appropriated in part 1 for emerging contaminants in food and agriculture the department shall support ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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.

BUREAU OF FOOD SAFETY AND ANIMAL HEALTH Sec.

401.

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

The report must include information on activities and outcomes of the dairy safety and inspection program, the food safety inspection program, the 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.

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

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

ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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.

BUREAU OF 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.

505.

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.

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.

From the appropriations in part 1 for local conservation districts, $3,000,000.00 must be distributed equally through a grant program to local conservation districts in this state that were in operation in the previous fiscal year.

LABORATORY AND CONSUMER PROTECTION BUREAU ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s Sec.

601.

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

Sec.

602.

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

AGRICULTURE DEVELOPMENT BUREAU 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.

(c) Develop local and regional food systems.

(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.

ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s (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 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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, 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.

(c) Infrastructure development.

(d) Other economic assistance.

(e) Program administration.

(f) Export assistance.

(8) The department shall expend no more than 3% from the funds appropriated in part 1 for the food and agriculture investment program for administrative purposes.

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 95% 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.

ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s (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, 2023.

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

The report must highlight counties and vendors added to the program since May 1, 2023.

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

Sec.

706.

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

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

(a) The name of the grantee.

(b) The amount of the grant.

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

ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s (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.

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 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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 324.36116 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.

(c) The provision of a clear and understood timeline for the issuance of any tax credits.

Sec.

710.

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

In awarding grants from the rural development fund, the department shall give priority to projects promoting land-based industries and supporting infrastructure in this state's prosperity region 1.

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 may be expended for non-equine-related purposes without prior approval of the legislature.

Sec.

802.

From the funds appropriated in part 1 from ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s agriculture equine industry development funds, available revenue must be allocated in the following priority order:

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

(b) Any remaining funds collected through September 30, 2025, after the obligations in subdivision (a) have been met, must be prorated 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.

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

Sec.

805.

(1) From the funds appropriated in part 1 for county fairs, shows, and expositions, the department shall establish and administer a county fairs, shows, and expositions grant program.

The program must have the following objectives:

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

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

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

Grantees will be required to provide a 50% cash match with grant awards and ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s 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 project will be accomplished by utilizing state employees or contracts with service providers, or both.

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

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

(8) The department shall provide a year-end report on the county fairs, shows, and expositions grants no later than December 1, 2026 that includes a listing of the grantees, award amounts, match funding, project outcomes, and department costs of grant administration.

ARTICLE 2 DEPARTMENT OF CORRECTIONS PART 1 LINE-ITEM APPROPRIATIONS Sec.

101.

There is appropriated for the department of corrections for the fiscal year ending September 30, 2026, from the following funds:

DEPARTMENT OF CORRECTIONS APPROPRIATION SUMMARY Full-time equated unclassified positions 16.0 Full-time equated classified positions 12,436.0 GROSS APPROPRIATION $ 2,118,858,500 Interdepartmental grant revenues:

ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s Total interdepartmental grants and intradepartmental transfers 0 ADJUSTED GROSS APPROPRIATION $ 2,118,858,500 Federal revenues:

Total federal revenues 5,192,100 Special revenue funds:

Total local revenues 275,000 Total private revenues 0 Total other state restricted revenues 30,064,000 State general fund/general purpose $ 2,083,327,400 Sec.

102.

DEPARTMENTAL ADMINISTRATION AND SUPPORT Full-time equated unclassified positions 16.0 Full-time equated classified positions 345.0 Unclassified salaries--FTEs 16.0 $ 2,058,500 Administrative hearings officers 4,029,100 Budget and operations administration--FTEs 255.0 37,842,600 County jail reimbursement program 14,814,600 Employee wellness programming--FTEs 8.0 2,386,900 Executive direction--FTEs 22.0 4,637,800 Judicial data warehouse user fees 50,600 New custody staff training 23,514,500 Pay increases for corrections officers 50,000,000 Prison industries operations--FTEs 60.0 10,249,000 Property management 2,558,600 Prosecutorial and detainer expenses 2,801,000 Worker's compensation 8,770,900 GROSS APPROPRIATION $ 163,714,100 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s Appropriated from:

Federal revenues:

DOJ, prison rape elimination act grant 674,700 Special revenue funds:

Correctional industries revolving fund 10,249,000 Correctional industries revolving fund 110 721,600 Jail reimbursement program fund 5,900,000 State general fund/general purpose $ 146,168,800 Sec.

103.

OFFENDER SUCCESS ADMINISTRATION Full-time equated classified positions 343.9 Community corrections comprehensive plans and services $ 14,198,100 Education/skilled trades/career readiness programs--FTEs 259.9 39,089,800 Enhanced food technology program--FTEs 11.0 1,696,000 Higher education in prison 1,250,000 Offender success community partners 19,175,000 Offender success federal grants 751,000 Offender success programming 15,742,200 Offender success services--FTEs 73.0 15,829,600 Probation residential services 14,575,500 GROSS APPROPRIATION $ 122,307,200 Appropriated from:

Federal revenues:

DOJ, prisoner reintegration 751,000 Federal education revenues 1,627,200 State general fund/general purpose $ 119,929,000 Sec.

104.

FIELD OPERATIONS ADMINISTRATION ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s Full-time equated classified positions 1,530.5 Field operations--FTEs 1,499.5 $ 188,223,700 Parole board operations--FTEs 31.0 4,032,400 Parole/probation services 940,000 GROSS APPROPRIATION $ 193,196,100 Appropriated from:

Special revenue funds:

Community tether program reimbursement 275,000 Reentry center offender reimbursements 10,000 Supervision fees 6,630,500 Supervision fees set-aside 940,000 State general fund/general purpose $ 185,340,600 Sec.

105.

CORRECTIONAL FACILITIES ADMINISTRATION Full-time equated classified positions 656.0 Body-worn cameras--FTEs 8.0 $ 3,811,700 Central records--FTEs 43.0 5,078,100 Contraband prevention 1,000,000 Correctional facilities administration--FTEs 35.0 6,642,200 Housing inmates in federal institutions 511,000 Intelligence unit--FTEs 30.0 4,045,100 Prison food service--FTEs 299.0 73,484,400 Prison store operations--FTEs 32.0 3,606,600 Transportation--FTEs 209.0 32,889,900 GROSS APPROPRIATION $ 131,069,000 Appropriated from:

Federal revenues:

DOJ-BOP, federal prisoner reimbursement 411,000 SSA-SSI, incentive payment 272,000 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s Special revenue funds:

Correctional industries revolving fund 110 880,500 Resident stores 3,606,600 State general fund/general purpose $ 125,898,900 Sec.

106.

HEALTH CARE Full-time equated classified positions 1,425.3 Clinical complexes--FTEs 933.3 $ 161,311,400 Health care administration--FTEs 18.0 3,746,800 Healthy Michigan plan administration--FTEs 12.0 1,057,100 Hepatitis C treatment 10,499,100 Interdepartmental grant to health and human services, eligibility specialists 120,200 Mental health and substance use disorder treatment services--FTEs 462.0 67,446,200 Prisoner health care services 117,540,700 Vaccination program 691,200 GROSS APPROPRIATION $ 362,412,700 Appropriated from:

Federal revenues:

Federal revenues and reimbursements 421,400 Special revenue funds:

Prisoner health care co-payments 257,200 State general fund/general purpose $ 361,734,100 Sec.

107.

CORRECTIONAL FACILITIES Full-time equated classified positions 8,135.3 Alger Correctional Facility - Munising--FTEs 259.0 $ 34,505,300 Baraga Correctional Facility - Baraga--FTEs 295.8 40,611,700 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s Bellamy Creek Correctional Facility - Ionia-- FTEs 403.9 52,607,100 Carson City Correctional Facility - Carson City--FTEs 411.9 54,403,300 Central Michigan Correctional Facility - St.

Louis--FTEs 385.1 52,789,100 Charles E.

Egeler Correctional Facility - Jackson--FTEs 372.8 49,980,900 Chippewa Correctional Facility - Kincheloe-- FTEs 427.8 56,252,900 Cooper Street Correctional Facility - Jackson-- FTEs 245.2 32,088,900 Earnest C.

Brooks Correctional Facility - Muskegon--FTEs 246.0 34,588,000 G.

Robert Cotton Correctional Facility - Jackson--FTEs 378.0 48,768,000 Gus Harrison Correctional Facility - Adrian-- FTEs 296.9 40,343,100 Ionia Correctional Facility - Ionia--FTEs 288.8 39,015,400 Kinross Correctional Facility - Kincheloe--FTEs 240.5 34,663,100 Lakeland Correctional Facility - Coldwater-- FTEs 267.6 36,817,700 Macomb Correctional Facility - New Haven--FTEs 307.2 42,160,600 Marquette Branch Prison - Marquette--FTEs 319.7 42,617,500 Muskegon Correctional Facility - Muskegon--FTEs 216.3 31,162,600 Newberry Correctional Facility - Newberry--FTEs 197.4 27,681,200 Oaks Correctional Facility - Eastlake--FTEs 287.5 40,037,800 Parnall Correctional Facility - Jackson--FTEs 258.5 33,289,700 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s Richard A.

Handlon Correctional Facility - Ionia--FTEs 262.4 35,963,800 Saginaw Correctional Facility - Freeland--FTEs 273.3 37,686,200 Special Alternative Incarceration Program - Jackson--FTEs 26.2 4,104,300 St.

Louis Correctional Facility - St.

Louis-- FTEs 304.0 43,069,200 Thumb Correctional Facility - Lapeer--FTEs 291.5 40,633,700 Women's Huron Valley Correctional Complex - Ypsilanti--FTEs 486.0 64,482,600 Woodland Correctional Facility - Whitmore Lake- -FTEs 293.7 41,797,100 Northern region administration and support-- FTEs 41.4 4,476,100 Southern region administration and support-- FTEs 50.9 19,273,800 GROSS APPROPRIATION $ 1,115,870,700 Appropriated from:

Federal revenues:

DOJ, state criminal assistance program 1,034,800 Special revenue funds:

State restricted fees, revenues, and reimbursements 102,100 State general fund/general purpose $ 1,114,733,800 Sec.

108.

INFORMATION TECHNOLOGY Information technology services and projects $ 26,842,300 GROSS APPROPRIATION $ 26,842,300 Appropriated from:

ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s Special revenue funds:

Correctional industries revolving fund 110 155,500 Supervision fees set-aside 611,000 State general fund/general purpose $ 26,075,800 Sec.

109.

ONE-TIME APPROPRIATIONS Correctional facility count and callout process automation $ 3,446,400 GROSS APPROPRIATION $ 3,446,400 Appropriated from:

State general fund/general purpose $ 3,446,400 PART 2 PROVISIONS CONCERNING APPROPRIATIONS FOR FISCAL YEAR 2025-2026 GENERAL SECTIONS Sec.

201.

In accordance with section 30 of article IX of the state constitution of 1963, for the fiscal year ending September 30, 2026, total state spending under part 1 from state sources is $2,113,391,400.00 and total state spending under part 1 from state sources to be paid to local units of government is $119,542,400.00.

The following itemized statement identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF CORRECTIONS Community corrections comprehensive plans and services $ 14,198,100 County jail reimbursement program 14,814,600 Field Operations 73,153,200 Probation residential services 14,575,500 ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s Prosecutorial and detainer expenses 2,801,000 TOTAL $ 119,542,400 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 this part and part 1:

(a) "Administrative segregation" means confinement for maintenance of order or discipline to a cell or room apart from accommodations provided for inmates who are participating in programs of the facility.

(b) "Department" means the department of corrections.

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

(d) "DOJ" means the United States Department of Justice.

(e) "DOJ-BOP" means the DOJ Bureau of Prisons.

(f) "Evidence-based" means a decision-making process that integrates the best available research, clinician expertise, and client characteristics.

(g) "FTE" means full-time equated position in the classified service of this state.

(h) "Goal" means the intended or projected result of a comprehensive corrections plan or community corrections program to reduce repeat offending, criminogenic and high-risk behaviors, prison commitment rates, the length of stay in a jail, or to improve the utilization of a jail.

(i) "Jail" means a facility operated by a local unit of government for the physical detention and correction of individuals charged with or convicted of criminal offenses.

(j) "OCC" means the office of community corrections.

(k) "Offender success" means that an offender has, with the ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s support of the community, intervention of the field agent, and benefit of any participation in programs and treatment, made an adjustment while at liberty in the community such that the offender has not been sentenced to or returned to prison for the conviction of a new crime or the revocation of probation or parole.

(l) "Recidivism" means that term as defined in section 1 of 2017 PA 5, MCL 798.31.

(m) "Serious emotional disturbance" means that term as defined in section 100d(3) of the mental health code, 1974 PA 258, MCL 330.1100d.

(n) "Serious mental illness" means that term as defined in section 100d(4) of the mental health code, 1974 PA 258, MCL 330.1100d.

(o) "SSA" means the United States Social Security Administration.

(p) "SSA-SSI" means SSA supplemental security income.

(q) "Standard report recipients" means the senate and house appropriations subcommittees on corrections and judiciary, the senate and house fiscal agencies, the senate and house policy offices, the legislative corrections ombudsman, and the state budget office.

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:

ERE H03740'25 (H-1)_HB4706_APH_1 4k0f8s (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.