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SB 1169

Land use: farmland and open space; expenditures for administrative costs in the agriculture preservation fund; modify. Amends sec. 36202 of 1994 PA 451 (MCL 324.36202).

2023-2024 Regular Session Introduced by Sue Shink

Raises the annual admin cap from 1.4M to 2.1M for the Agricultural Preservation Fund and adjusts with CPI each year.

referred to Committee on Government Operations
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Bill Summary · SB 1169

SB 1169 — Summary (Amendment to MCL 324.36202, Agricultural Preservation Fund)

Status: Enacted — Signed by Governor (May 20, 2025); effective immediately
Subject: Land use — farmland and open space preservation; administrative expenditures from Agricultural Preservation Fund

Main purpose

To increase the annual cap on administrative expenditures from the Agricultural Preservation Fund (Part 362 of the Natural Resources and Environmental Protection Act) and to require the cap to be adjusted annually for inflation using the Detroit‑Warren‑Dearborn Consumer Price Index (CPI). The change is intended to allow the Michigan Department of Agriculture and Rural Development (MDARD) and the Preservation Fund Board greater flexibility to seek and receive appropriations for program administration, outreach, education, and system upgrades needed to operate the Farmland Preservation Program.

Key provisions

  • Increases the maximum annual amount that may be expended (upon appropriation) from the Agricultural Preservation Fund for administrative costs of MDARD and the Preservation Fund Board from $1,400,000.00 to $2,100,000.00 (MCL 324.36202(5)(a)).
  • Requires the State Treasurer to adjust that administrative cap for inflation:
    • Beginning with the 2025–2026 state fiscal year and for each state fiscal year thereafter, the Treasurer shall adjust the amount by the percentage change in the Detroit‑Warren‑Dearborn Consumer Price Index for the preceding calendar year relative to the CPI for 2023.
    • If the computed amount is not a multiple of $1,000, it must be rounded to the nearest $1,000.
    • The Department of Treasury must post the adjusted amount on its website by the preceding June 1 each year.
  • Retains existing Fund uses: after administrative expenses and board‑approved grants to local units, remaining funds (if above $5,000,000) may be used (with board approval) to purchase development rights or acquire agricultural conservation easements under Part 361.
  • Confirms fund is administered for audit purposes by the department and remains vested in the Agricultural Preservation Fund (does not lapse to general fund).

Who is affected

  • Michigan Department of Agriculture and Rural Development (MDARD) and the Agricultural Preservation Fund Board — increased authorization to seek higher administrative appropriations.
  • Local units of government and farmers participating in farmland/open space preservation programs — indirect effect via improved program administration and capacity.
  • State budget/appropriations process — appropriations would be needed to utilize the higher cap.

Fiscal impact and implementation

  • FY 2024–25 appropriation for administrative costs was $1.6 million. To use the new statutory cap fully, appropriations would need to be increased to $2.1 million (initially), subject to future CPI adjustments.
  • The bill is not expected to have a fiscal impact on the Department of Treasury beyond posting the adjusted figure.
  • Legal citation amended: MCL 324.36202.

Compiled from official sources — confirm details with the bill’s official record.

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