SB-0386,As Passed Senate, June 12, 2003                                     

SUBSTITUTE FOR

SENATE BILL NO. 386

                                                                             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).                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 3.  (1)  Each A person desiring to act as a dealer,                   

2   broker, or agent  engaged in such business for the purposes                 

3   aforesaid  shall file an application with the department for a              

4   license to  transact such engage in that business.  The                    

5   application shall state the nature of the business, the                     

6   postoffice post-office address of the applicant, and the                  

1   postoffice post-office address at or from which the business is           

2   to be conducted.  If the applicant  shall desires to operate a             

3   livestock yard where livestock is kept and sold at public or                

4   private sale, the application shall so state.  The application              

5   may state  such  additional information as requested by the                 

6   director.  of agriculture shall require.  The application for               

7   license to engage in the business of dealer, broker or agent as             

8   herein defined shall be accompanied by a license fee of $5.00               

9   payable to the director of agriculture and deposited to the                 

10  general fund.  When any livestock is purchased or sold by weight,           

11  such licensees

12  (2) Beginning October 1, 2003 through September 30, 2007, the               

13  departments shall charge and collect the following fees for                 

14  initial and renewal license applications, which shall be                    

15  deposited into the general fund:                                            

16       (a) Class I (livestock auction).................... $400.00.           

17       (b) Class II (collection point/buying station)..... $250.00.           

18       (c) Class III (horse auction)...................... $150.00.           

19       (d) Class IV (dealer/broker/agent).................. $50.00.           

20      (3) Through September 30, 2003 or after September 30, 2007,                 

21  the only fee the department shall charge and collect for the                

22  issuance and renewal of licenses under this section is a fee of             

23  $5.00 for a dealer, broker, or agent license.                               

24      (4) A licensee who buys or sells livestock by weight shall                  

25  employ a registered weighmaster  who shall be required  to do all           

26  the weighing.  The duties, qualifications, and requirements for             

27  registration of weighmasters shall be established by the director           

1   of agriculture  under  the provisions of  section 9.  of this              

2   act.

3   (5) The application for  such that license and bond shall be               

4   made submitted to the director  of agriculture  on or before              

5   October  first 1 of each year.  Each license issued under this             

6   section shall be for a period of 1 year commencing October 1 and            

7   ending the following September 30.                                          

8   (6) Each dealer, broker, or agent operating or conducting a                 

9   livestock auction shall file with his or her application for a              

10  license  and for a surety bond effective during the period for             

11  which  such the license  shall be is issued.  a The surety               

12  bond shall be issued by a surety company registered in  the this

13  state  of Michigan  to indemnify persons from whom livestock is             

14  purchased or for whom livestock is sold  ;  or  with such                   

15  sureties other security and in such amounts, form, and                     

16  sufficiency as  shall be  approved by the director.  of                     

17  agriculture.  The amount of the bond shall be an amount equal to            

18  the amount of gross dollar volume of livestock business conducted           

19  during the average week of the previous licensing year by the               

20  applicant, but in no case less than $1,500.00.  If the average              

21  gross weekly livestock business conducted by the applicant during           

22  the previous licensing year was greater than $25,000.00, the bond           

23  shall be increased above $25,000.00, at the rate of $1,000.00 for           

24  each $5,000.00 or part thereof above $25,000.00 on the average              

25  gross dollar-volume of weekly livestock business conducted during           

26  the previous year.  A licensee who owns or operates more than 1             

27  livestock yard or livestock auction may file 1 bond in an amount            

1   determined by the  foregoing  formula described in this                     

2   subsection.  Any dealer, broker, or agent operating or conducting           

3   a livestock yard or livestock auction who has filed a surety bond           

4   for  such the livestock yard or livestock auction  which and

5   indemnifies persons from whom livestock is purchased or for whom            

6   livestock is sold in accordance with the terms of any federal act           

7   shall be is exempt from the bonding requirements of this                  

8   section subsection provided the bond is equivalent in amount to           

9   that which would be required by this act.  The bond shall be for            

10  a livestock dealer or broker and his or her agents in which the             

11  department  of agriculture shall be is the obligee  but which              

12  shall be  for the benefit and purpose of protecting all persons             

13  selling or consigning livestock to  such the licensed dealer,              

14  broker, or agent against the licensed dealer's, broker's, or                

15  agent's failure to pay amounts due on livestock purchased by or             

16  consigned to them.                                                          

17  (7) Each licensee shall keep  such  records and shall                       

18  furnish, upon request,  such  information concerning his or her

19  purchases and sales as may be required by the director for the              

20  purpose of establishing the amount of bond required  hereunder

21  under subsection (6).  The director, in fixing the amount of the            

22  bond, shall take into consideration the dollar volume of                    

23  livestock business and other information furnished by the                   

24  livestock dealer, broker, or his or her agent.  If a dealer,                

25  broker, or agent did not operate a livestock auction the previous           

26  licensing year, the bond shall be for an amount as shall be                 

27  established by the director after  his  consideration of all                

1   information available  to him  on the probable weekly gross                 

2   dollar volume of business  which will to be conducted by the               

3   dealer, broker, or agent during the licensing year.                         

4   (8) If during any licensing year the bond filed by any                      

5   licensee becomes less than required by this act because of an               

6   increase in gross dollar volume of livestock sales, the director            

7   may  require issue an order requiring the licensee to file an              

8   additional bond to cover the increase in gross dollar volume of             

9   livestock sales.  Failure to comply with the orders of the                  

10  director  shall be reason is grounds for suspension or                     

11  revocation of license.   Such A bond shall be conditioned upon             

12  the faithful performance of  his the licensee's duties as a                

13  dealer and on the provisions of law relating to the purchase of             

14  livestock by  such the livestock dealer  ,  and for the payment            

15  by  said the livestock dealer of all livestock purchased by or             

16  consigned to  such the livestock dealer as a dealer in                     

17  livestock.   The fees collected by the director of agriculture              

18  shall be turned over to the state treasury and shall be credited            

19  to the general fund.  The said

20  (9) A license  shall entitle issued under this section                     

21  allows the holder  thereof  to conduct the business of dealer or            

22  broker  as defined in this act  at or from the place named in the           

23  application.  :  Provided, however, That every business,                    

24  association, partnership or corporation A legal entity engaged             

25  in the business of transporting livestock  ,  or negotiating or             

26  soliciting the transportation or transfer of livestock  , and who           

27  shall that is not  be  engaged in the buying, selling,                     

1   reselling, exchanging,  or  negotiating, or soliciting the sale,            

2   resale, or exchange of  such  livestock  , shall be required to

3   must obtain  the a license  provided for in under this section            

4   but  shall is not  be  required to comply with bonding                     

5   provisions of this  act section.                                           

6   (10)  Every A dealer, broker, or agent shall keep adequate                 

7   records of the producers' proceeds account  as defined  in                  

8   compliance with section 3a  of this act  and of all sales and               

9   purchases for a period of 2 years in  such the manner  as shall            

10  be  required by the director.  of agriculture, and which The

11  records shall be open to reasonable inspection by the department.

12  of agriculture.  Any

13  (11) A dealer, broker, or agent  upon change of address

14  shall notify the director of  such a change of address within 5            

15  days after that change.  Any change in ownership of any livestock           

16  auction or market shall be reported to the director within 5 days           

17  by the licensee.  Each dealer or broker shall file with the                 

18  director on January 1 of each year a sworn statement of average             

19  weekly sales and a statement showing the number and kinds of                

20  livestock purchased and sold during the previous year.