Bill Text: MI SB0450 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Agriculture; animals; amount charged for livestock dealer license fee; extend sunset. Amends sec. 3 of 1937 PA 284 (MCL 287.123).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2019-10-02 - Assigned Pa 0086'19 With Immediate Effect [SB0450 Detail]
Download: Michigan-2019-SB0450-Introduced.html
SENATE BILL No. 450
August 20, 2019, Introduced by Senator HERTEL and referred to the Committee on Appropriations.
A bill to amend 1937 PA 284, entitled
"An act to prevent the spread of infectious and contagious
diseases of livestock; to require persons, associations,
partnerships and corporations engaged in the buying, receiving,
selling, transporting, exchanging, negotiating, or soliciting
sale, resale, exchange or transportation of livestock to be
licensed and bonded by the department of agriculture; to keep a
producers' proceeds account; to provide for the refusal,
suspension or revocation of such licenses; to provide for
weighmasters; to provide for the inspection and disinfection of
yards, premises and vehicles; and to provide penalties for the
violation of this act,"
by amending section 3 (MCL 287.123), as amended by 2015 PA 69.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 3. (1) A person desiring to obtain a license under this
2 act to act as a dealer, broker, agent, or livestock trucker, or
3 to operate a livestock auction, buying station, or collection
4 point shall submit to the department an application for a
5 license. The application shall must state the nature of the
6 business, the post office address of the applicant, the post
1 office address at or from which the business is to be conducted,
2 and any additional contact information. If the applicant desires
3 to operate a livestock yard where livestock are kept and sold at
4 public or private sale, the application shall must include
that
5 information. The application shall include additional information
6 as requested by the director.
7 (2) Except as otherwise provided in this section, until
8 October 1, 2019, 2023,
the department shall charge the
following
9 nonrefundable fees for initial and renewal license applications:
|
10 |
(a) Class I (livestock auction operator)..... $ 400.00. |
|
11 |
(b) Class II (buying |
|
12 |
station operator)................................. $ 250.00. |
|
13 |
|
|
14 |
(c) Class III (dealer/broker/agent/ |
|
15 |
collection point operator)........................ $ 50.00. |
|
16 |
(d) Class IV (livestock trucker)............. $ 25.00. |
17 (3) Each class of license listed in subsection (2) allows a
18 person to operate at all classes listed below that class without
19 requiring additional licensing. The licensee shall provide to the
20 department a list of all individuals employed by and operating in
21 license classes under his or her license.
22 (4) For each renewal application postmarked or delivered
23 after October 1 of each year, a late fee of an additional $10.00
24 shall be imposed for each business day the application is late.
25 The late fee for a new application submitted after a person is
26 operating as a class I, II, III, or IV operation as described in
27 subsection (2) shall be an additional $10.00 per business day
the
1 application is late. However, the The total late fee shall not
2 exceed $100.00.
3 (5) The department shall deposit administrative and
4 noncriminal fines received under this act and license or other
5 administrative fees received under this section into the
6 agriculture licensing and inspection fees fund created in section
7 9 of the insect pest and plant disease act, 1931 PA 189, MCL
8 286.209, to be used, upon appropriation, by the department in
9 administering and carrying out those its duties
required by law
10 under this act.
11 (6) A licensee who buys or sells livestock by weight shall
12 employ a weighmaster to do all of the weighing. The department
13 shall establish the duties, qualifications, and requirements for
14 registration of weighmasters shall be established by the
15 department by rule in
the rules promulgated under section 9.
16 (7) The department shall must issue an initial or
renewal
17 license under this section not later than 60 days after the
18 applicant submits a completed application. Receipt of the
19 application is considered the date the application is received by
20 the department. If the department
considers the application is
21 considered incomplete, by
the department, the department shall
22 notify the applicant in writing or electronically, within 30 days
23 after receipt of the incomplete application, describing the
24 deficiency and requesting the additional information. The 60-day
25 period is tolled upon notification by the department of a
26 deficiency until the date the requested information is received
27 by the department. The A
determination of the completeness
of an
1 application does not
operate as an approval of the application
2 for the license and does not confer eligibility of an applicant
3 determined otherwise ineligible for issuance of a license.
4 (8) If the department fails to issue or deny a license
5 within the time required by this section, the department shall
6 return the license fee and shall reduce the license fee for the
7 applicant's next renewal application, if any, by 15%. The failure
8 to issue a license within the time required under this subsection
9 does not allow the department to otherwise delay the processing
10 of the application, and that application, upon completion, shall
11 be placed in sequence with other completed applications received
12 at that same time. The department shall not discriminate against
13 an applicant in the processing of the application based upon the
14 fact that the license fee was refunded or discounted under this
15 subsection.
16 (9) The An application for a license or the renewal of a
17 license, and proof of bonding or other security requirements,
18 shall must be submitted to the director on or before October 1
of
19 each year. Each A license issued under this section shall be is
20 valid for a period of 1 year commencing October 1 and ending the
21 following September 30.
22 (10) Each A person operating a livestock auction or buying
23 station shall must
file with his or her application for a
license
24 a surety bond effective during the period for which the license
25 is issued or other security. A The surety bond shall must be
26 issued by a surety company registered in this state to indemnify
27 persons from whom livestock is purchased or for whom livestock is
1 sold. The surety bond or other security shall must be
in such
2 amounts, the amount, form, and sufficiency as approved by the
3 director. The amount of the bond or other security shall be equal
4 to the amount of gross dollar volume of livestock business
5 conducted during the average week of the previous licensing year
6 by the applicant, but shall not be less than $1,500.00. If the
7 average gross weekly livestock business conducted by the
8 applicant during the previous licensing year was greater than
9 $25,000.00, the bond shall be increased above $25,000.00, at the
10 rate of $1,000.00 for each $5,000.00 or part thereof above
11 $25,000.00 of average gross dollar volume of weekly livestock
12 business conducted during the previous year. A licensee who owns
13 or operates more than 1 livestock auction or buying station may
14 file 1 bond in an amount determined by the formula described in
15 this subsection. A licensee operating a livestock auction or
16 buying station who has filed a surety bond for the livestock
17 auction or buying station and indemnifies persons from whom
18 livestock is purchased or for whom livestock is sold in
19 accordance with the terms of any federal act is exempt from the
20 bonding requirements of this subsection if the bond is equivalent
21 in amount to that which would be required by this act. The
22 department shall be the obligee on the bond for the benefit and
23 purpose of protecting all persons selling or consigning livestock
24 to the licensee against the licensee's failure to pay amounts due
25 on livestock purchased by or consigned to them.
26 (11) Each A licensee shall keep records and shall furnish,
27 upon request, information concerning his or her purchases and
1 sales as may be required by the director for the purpose of
2 establishing the amount of bond required under subsection (10).
3 The director, in establishing the amount of the bond, shall take
4 into consideration the dollar volume of livestock business and
5 other information furnished by the licensee. If a licensee did
6 not operate a livestock auction the previous licensing year, the
7 bond shall be for an amount established by the director after
8 consideration of all information available on the probable weekly
9 gross dollar volume of business to be conducted by the licensee
10 during the licensing year.
11 (12) If during any a licensing year the bond
filed by a
12 licensee becomes less than required by this act because of an
13 increase in gross dollar volume of livestock sales, or because of
14 a claim outside this state, the director may issue an order
15 requiring the licensee to file an additional bond to cover the
16 increase in gross dollar volume of livestock sales. Failure to
17 comply with the orders of the director is grounds for suspension
18 or revocation of license. A bond or other security shall be
19 conditioned upon the faithful performance of the licensee's
20 duties as a dealer or broker and on the provisions of law
21 relating to the purchase of livestock by the licensee and for the
22 payment by the licensee of all livestock purchased by or
23 consigned to the licensee as a dealer or broker in livestock. If
24 a bond or other security required under this act is canceled, the
25 license that is approved under that bond or other security is
26 considered immediately suspended without notice. An opportunity
27 for a hearing shall be provided to the licensee under the
1 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
2 24.328.
3 (13) A licensee bonded as required under this act shall must
4 submit a notice to the department not later than 60 days prior to
5 before canceling a bond.
6 (14) A license issued under this section allows the holder
7 to conduct the business of dealer or broker at or from the place
8 named in the application. A person engaged in the business of
9 transporting livestock or negotiating or soliciting the
10 transportation or transfer of livestock that is not engaged in
11 the buying, selling, reselling, exchanging, negotiating, or
12 soliciting the sale, resale, or exchange of livestock shall must
13 obtain a license under this section but is not required to comply
14 with the bonding or other security provisions of this section.
15 (15) A dealer, broker, livestock trucker, or agent shall
16 notify the director of a change of address within 5 days after
17 that change.
18 (16) Any A
licensee shall report to the director a change
in
19 ownership of a livestock auction shall be reported to the
20 director within 5 days by
the licensee. Each of that
change.
21 (17) A dealer or broker shall file with the director on
22 January 1 of each year a sworn statement of average weekly sales
23 and a statement showing the number and species of livestock
24 purchased and sold during the previous year.
25 (18) (17) As
used in this section, "completed application"
26 means an application complete on its face and submitted with any
27 the applicable licensing fees as well as any other information,
1 records, approval, security, or similar item required by law or
2 rule of a local unit of government, a federal agency, or a
3 private entity but not of another department or agency of this
4 state.
5 (19) (18) Notwithstanding
any other provision of this
6 section, the department shall waive any fee otherwise required
7 under subsection (2)(c) and or (d) if the individual
responsible
8 for paying the fee is, and provides proof satisfactory to the
9 department that he or she is, an honorably discharged veteran of
10 the armed forces Armed
Forces of the United States.
