HB-5784, As Passed House, September 27, 2012HB-5784, As Passed Senate, September 27, 2012

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5784

 

 

 

 

 

 

 

 

 

 

 

 

      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 sections 1, 2, 3, 3a, 4, 5, 6, 7, 8, and 11 (MCL

 

287.121, 287.122, 287.123, 287.123a, 287.124, 287.125, 287.126,

 

287.127, 287.128, and 287.131), section 3 as amended by 2007 PA

 

81, and by adding section 7a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 1. (a) "Department" as used in this act shall mean the

 


 1  Michigan state department of agriculture.As used in this act:

 

 2        (b) "Director" as used in this act means the director of the

 

 3  department of agriculture.

 

 4        (a) "Agent" means a person that buys, receives, sells,

 

 5  exchanges, negotiates, or solicits the sale, resale, exchange, or

 

 6  transfer of 1 or more animals for or on behalf of another person.

 

 7        (b) (c) "Animals" or "livestock" as used in this act shall

 

 8  mean and include includes horses, ponies, mules, cattle, calves,

 

 9  swine, sheep, poultry, privately owned cervids, ratites,

 

10  aquaculture species, and goats.

 

11        (c) "Aquaculture species" means aquatic animal organisms,

 

12  including, but not limited to, fish, crustaceans, mollusks,

 

13  reptiles, or amphibians, reared or cultured under controlled

 

14  conditions for commercial aquaculture or the pet trade.

 

15  Aquaculture species does not include aquatic animal organisms

 

16  under the authority of the department of natural resources.

 

17        (d) "Buying station" means a facility or location where

 

18  livestock are congregated and purchased by the owner or agent of

 

19  the facility or location for movement or sale. Buying station

 

20  does not include a livestock auction.

 

21        (e) "Collection point" means a facility or location where

 

22  livestock are congregated by the owner or agent of the facility

 

23  or location for transfer or movement. Collection point does not

 

24  include a livestock auction.

 

25        (f) "Consignment sale" means a sale in which livestock are

 

26  transferred to an agent for sale, but ownership is retained until

 

27  the animals are sold.

 


 1        (g) (d) "Dealer" or "broker" as used in this act shall mean

 

 2  any means a person , copartnership, association or corporation

 

 3  engaged that, as a principal or agent, engages in the business of

 

 4  buying, receiving, selling, exchanging, transporting, buying for

 

 5  slaughter, negotiating, or soliciting sale, resale, exchange,

 

 6  transportation, or transfer of any such animals. , but it shall

 

 7  not be construed to include: (1) any Dealer or broker does not

 

 8  include any of the following:

 

 9        (i) A railroad or air line airline transporting animals

 

10  either interstate or intrastate. ; (2) any

 

11        (ii) A person , association, copartnership or corporation who

 

12  or which, that, by dispersal sale, is permanently discontinuing

 

13  the business of farming, dairying, breeding, or feeding animals.

 

14  ; (3) any

 

15        (iii) A person , association, copartnership or corporation

 

16  that sells livestock which has that have been raised on the

 

17  premises of such the person. , association, copartnership or

 

18  corporation; (4) any

 

19        (iv) A butcher, packer, or processor to whom animals are

 

20  delivered and used exclusively for slaughter. , or that

 

21        (v) A person with respect to that part of the his or her

 

22  business of a farmer which that consists of buying or receiving

 

23  animals for breeding, grazing, and feeding purposes and the sale

 

24  or disposal of such the animals after the feeding or grazing

 

25  period of not less than 21 days. ; (5) terminal livestock markets

 

26  where agricultural research service of the United States

 

27  department of agriculture veterinary inspection is daily

 


 1  maintained; (6) occasionally held consignment sales such as

 

 2        (vi) Occasionally held consignment sales sponsored and

 

 3  conducted by a breed association, 4-H, or F.F.A. sales.group,

 

 4  county fair, or youth fair.

 

 5        (e) "Agent" as used in this act shall mean any person, firm,

 

 6  association, copartnership or corporation buying, receiving,

 

 7  selling, exchanging, transporting, negotiating or soliciting

 

 8  sale, resale, exchange, transportation or transfer of any animals

 

 9  for or on behalf of any dealer or broker.

 

10        (vii) Other persons subject to exemptions approved by the

 

11  director.

 

12        (h) "Department" means the department of agriculture and

 

13  rural development.

 

14        (i) "Director" means the director of the department or his

 

15  or her authorized representative.

 

16        (j) "Licensee" means a person holding a license issued under

 

17  this act.

 

18        (k) (f) "Livestock auction" as used in this act shall mean

 

19  any means a livestock market congregation point where livestock

 

20  is are accepted on consignment and the auction method is used in

 

21  the marketing of such livestock. A Livestock auction does not

 

22  include a public auction of farm goods. by a farmer is not

 

23  included in this definition of a livestock auction.

 

24        (l) "Livestock trucker" means a person, not otherwise

 

25  licensed under this act, that engages in the business of

 

26  transporting livestock not owned by the person, or the person's

 

27  employer, from 1 premises to another. A person is not a livestock

 


 1  trucker solely because the person is engaged in 1 or more of the

 

 2  following activities:

 

 3        (i) Hauling livestock on an occasional basis for persons

 

 4  participating in a livestock exhibition, fair, trail ride, youth

 

 5  livestock event, or similar activity.

 

 6        (ii) Hauling livestock on an incidental basis in connection

 

 7  with another business, such as a veterinary practice or a stable

 

 8  operation, which is operated by that person and which does not

 

 9  ordinarily involve the sale of livestock.

 

10        (iii) Hauling livestock for another person fewer than 6 times

 

11  within the preceding 12 months.

 

12        (m) "Person" means an individual, partnership, corporation,

 

13  association, governmental entity, or other legal entity.

 

14        (n) (g) "Weighmaster" as used in this act shall mean any

 

15  means a person registered under this act who that weighs

 

16  livestock at any a livestock market auction licensed under this

 

17  act.

 

18        Sec. 2. No A dealer, or broker, agent, or livestock trucker

 

19  shall not engage in or carry on the business of buying,

 

20  receiving, selling, exchanging, transporting, negotiating, or

 

21  soliciting the sale, resale, exchange, transportation, or

 

22  transfer of any animals within the state unless duly the person

 

23  is licensed and bonded as hereinafter provided in this act. Such

 

24  A dealer, or broker, shall be agent, or livestock trucker is

 

25  responsible for acts performed or contracts made by any person or

 

26  individual employed by said the dealer, or broker, agent, or

 

27  livestock trucker in buying, receiving, selling, exchanging,

 


 1  transporting, negotiating, or soliciting the sale, resale,

 

 2  exchange, transportation, or transfer of livestock.

 

 3        Sec. 3. (1) A person desiring to obtain a license under this

 

 4  act to act as a dealer, broker, or agent, or livestock trucker,

 

 5  or to operate a livestock auction, buying station, or collection

 

 6  point shall file submit to the department an application with the

 

 7  department for a license. to engage in the business of dealer,

 

 8  broker, or agent. The application shall state the nature of the

 

 9  business, the mailing post office address of the applicant, and

 

10  the mailing post office address at or from which the business is

 

11  to be conducted, and any additional contact information. If the

 

12  applicant desires to operate a livestock yard where livestock is

 

13  are kept and sold at public or private sale, the application

 

14  shall so state. include that information. The application may

 

15  state shall include additional information as requested by the

 

16  director.

 

17        (2) Subject to subsection (7) and Except as otherwise

 

18  provided in this section, until September 30, 2012, 2015, the

 

19  department shall charge and collect the following nonrefundable

 

20  fees for initial and renewal license applications:

 

 

21      (a) Class I (livestock auction operator).....  $  400.00.

22      (b) Class II (collection point/buying

23 station operator).................................  $  250.00.

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

25      (c) (d) Class IV III (dealer/broker/agent/

26 collection point operator)........................  $   50.00.

27      (d) Class IV (livestock trucker).............  $   25.00.

 


 

 1        (3) Subject to subsection (7) and after September 30, 2012,

 

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

 

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

 

 4  $5.00 for a dealer, broker, or agent license.

 

 5        (3) Each class of license listed in subsection (2) allows a

 

 6  person to operate at all classes listed below that class without

 

 7  requiring additional licensing. The licensee shall provide to the

 

 8  department a list of all individuals employed by and operating in

 

 9  license classes under his or her license.

 

10        (4) For each renewal application postmarked or delivered

 

11  after October 1 of each year, a late fee of an additional $10.00

 

12  shall be imposed for each business day the application is late.

 

13  The late fee for a new application submitted after a person is

 

14  operating as a class I, II, III, or IV operation as described in

 

15  subsection (2) shall be an additional $10.00 per business day the

 

16  application is late. However, the total late fee shall not exceed

 

17  $100.00.

 

18        (5) (4) The department shall deposit administrative and

 

19  noncriminal fines received under this act and license or other

 

20  administrative fees received under this section into the

 

21  agriculture licensing and inspection fees fund created in section

 

22  9 of the insect pest and plant disease act, 1931 PA 189, MCL

 

23  286.209, to be used, pursuant to appropriation, by the director

 

24  department in administering and carrying out those duties

 

25  required by law under this act.

 

26        (6) (5) A licensee who buys or sells livestock by weight

 

27  shall employ a registered weighmaster to do all of the weighing.


 

 1  The duties, qualifications, and requirements for registration of

 

 2  weighmasters shall be established by the director department by

 

 3  promulgation of a rule promulgated under section 9.

 

 4        (7) (6) Beginning July 23, 2004, the The department shall

 

 5  issue an initial or renewal dealer, broker, agent, livestock

 

 6  auction, collecting point/buying station, and horse auction

 

 7  license under this section not later than 90 60 days after the

 

 8  applicant files submits a completed application. Receipt of the

 

 9  application is considered the date the application is received by

 

10  any agency or the department. of the state of Michigan. If the

 

11  application is considered incomplete by the department, the

 

12  department shall notify the applicant in writing , or make the

 

13  information electronically, available, within 30 days after

 

14  receipt of the incomplete application, describing the deficiency

 

15  and requesting the additional information. The 90-day 60-day

 

16  period is tolled upon notification by the department of a

 

17  deficiency until the date the requested information is received

 

18  by the department. The determination of the completeness of an

 

19  application does not operate as an approval of the application

 

20  for the license and does not confer eligibility of an applicant

 

21  determined otherwise ineligible for issuance of a license.

 

22        (8) (7) If the department fails to issue or deny a license

 

23  within the time required by this section, the department shall

 

24  return the license fee and shall reduce the license fee for the

 

25  applicant's next renewal application, if any, by 15%. The failure

 

26  to issue a license within the time required under this subsection

 

27  does not allow the department to otherwise delay the processing


 

 1  of the application, and that application, upon completion, shall

 

 2  be placed in sequence with other completed applications received

 

 3  at that same time. The department shall not discriminate against

 

 4  an applicant in the processing of the application based upon the

 

 5  fact that the license fee was refunded or discounted under this

 

 6  subsection.

 

 7        (8) Beginning October 1, 2005, the director shall submit a

 

 8  report by December 1 of each year to the standing committees and

 

 9  appropriations subcommittees of the senate and house of

 

10  representatives concerned with agriculture issues. The director

 

11  shall include all of the following information in the report

 

12  concerning the preceding fiscal year:

 

13        (a) The number of initial and renewal applications the

 

14  department received and completed within the 90-day time period

 

15  described in subsection (6).

 

16        (b) The number of applications denied.

 

17        (c) The number of applicants not issued a license within the

 

18  90-day time period and the amount of money returned to licensees

 

19  and registrants under subsection (7).

 

20        (9) The application for that a license or the renewal of a

 

21  license, and bond proof of bonding or other security

 

22  requirements, shall be submitted to the director on or before

 

23  October 1 of each year. Each license issued under this section

 

24  shall be for a period of 1 year commencing October 1 and ending

 

25  the following September 30.

 

26        (10) Each dealer, broker, or agent person operating or

 

27  conducting a livestock auction or buying station shall file with


 

 1  his or her application for a license a surety bond effective

 

 2  during the period for which the license is issued or other

 

 3  security. The A surety bond shall be issued by a surety company

 

 4  registered in this state to indemnify persons from whom livestock

 

 5  is purchased or for whom livestock is sold. The surety bond or

 

 6  other security and shall be in such amounts, form, and

 

 7  sufficiency as approved by the director. The amount of the bond

 

 8  or other security shall be an amount equal to the amount of gross

 

 9  dollar volume of livestock business conducted during the average

 

10  week of the previous licensing year by the applicant, but in no

 

11  case shall not be less than $1,500.00. If the average gross

 

12  weekly livestock business conducted by the applicant during the

 

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

 

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

 

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

 

16  gross dollar-volume dollar volume of weekly livestock business

 

17  conducted during the previous year. A licensee who owns or

 

18  operates more than 1 livestock yard or livestock auction or

 

19  buying station may file 1 bond in an amount determined by the

 

20  formula described in this subsection. Any dealer, broker, or

 

21  agent A licensee operating or conducting a livestock yard or a

 

22  livestock auction or buying station who has filed a surety bond

 

23  for the livestock yard or livestock auction or buying station and

 

24  indemnifies persons from whom livestock is purchased or for whom

 

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

 

26  is exempt from the bonding requirements of this subsection

 

27  provided if the bond is equivalent in amount to that which would


 

 1  be required by this act. The bond shall be for a dealer or broker

 

 2  and his or her agents licensee in which the department is the

 

 3  obligee for the benefit and purpose of protecting all persons

 

 4  selling or consigning livestock to the licensed dealer, broker,

 

 5  or agent licensee against the licensed dealer's, broker's, or

 

 6  agent's licensee's failure to pay amounts due on livestock

 

 7  purchased by or consigned to them.

 

 8        (11) Each licensee shall keep records and shall furnish,

 

 9  upon request, information concerning his or her purchases and

 

10  sales as may be required by the director for the purpose of

 

11  establishing the amount of bond required under subsection (10).

 

12  The director, in fixing establishing the amount of the bond,

 

13  shall take into consideration the dollar volume of livestock

 

14  business and other information furnished by the dealer, broker,

 

15  or his or her agent licensee. If a dealer, broker, or agent

 

16  licensee did not operate a livestock auction the previous

 

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

 

18  established by the director after consideration of all

 

19  information available on the probable weekly gross dollar volume

 

20  of business to be conducted by the dealer, broker, or agent

 

21  licensee during the licensing year.

 

22        (12) If during any licensing year the bond filed by any a

 

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

 

24  increase in gross dollar volume of livestock sales, or because of

 

25  a claim outside this state, the director may issue an order

 

26  requiring the licensee to file an additional bond to cover the

 

27  increase in gross dollar volume of livestock sales. Failure to


 

 1  comply with the orders of the director is grounds for suspension

 

 2  or revocation of license. A bond or other security shall be

 

 3  conditioned upon the faithful performance of the licensee's

 

 4  duties as a dealer or broker and on the provisions of law

 

 5  relating to the purchase of livestock by the dealer or broker

 

 6  licensee and for the payment by the dealer or broker licensee of

 

 7  all livestock purchased by or consigned to the dealer or broker

 

 8  licensee as a dealer or broker in livestock. If a bond or other

 

 9  security required under this act is canceled, the license that is

 

10  approved under that bond or other security is considered

 

11  immediately suspended without notice. An opportunity for a

 

12  hearing shall be provided to the licensee under the

 

13  administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

14  24.328.

 

15        (13) A licensee bonded as required under this act shall

 

16  submit a notice to the department not later than 60 days prior to

 

17  canceling a bond.

 

18        (14) (13) A license issued under this section allows the

 

19  holder to conduct the business of dealer or broker at or from the

 

20  place named in the application. A legal entity person engaged in

 

21  the business of transporting livestock or negotiating or

 

22  soliciting the transportation or transfer of livestock that is

 

23  not engaged in the buying, selling, reselling, exchanging,

 

24  negotiating, or soliciting the sale, resale, or exchange of

 

25  livestock must shall obtain a license under this section but is

 

26  not required to comply with bonding or other security provisions

 

27  of this section.


 

 1        (14) A dealer, broker, or agent shall keep adequate records

 

 2  of the producers' proceeds account in compliance with section 3a

 

 3  and of all sales and purchases for a period of 5 years in the

 

 4  manner required by the director. The records shall be open to

 

 5  reasonable inspection by the department.

 

 6        (15) A dealer, broker, livestock trucker, or agent shall

 

 7  notify the director of a change of address within 5 days after

 

 8  that change.

 

 9        (16) Any change in ownership of any a livestock auction or

 

10  market shall be reported to the director within 5 days by the

 

11  licensee. Each dealer or broker shall file with the director on

 

12  January 1 of each year a sworn statement of average weekly sales

 

13  and a statement showing the number and kinds species of livestock

 

14  purchased and sold during the previous year.

 

15        (17) (16) As used in this section, "completed application"

 

16  means an application complete on its face and submitted with any

 

17  applicable licensing fees as well as any other information,

 

18  records, approval, security, or similar item required by law or

 

19  rule from of a local unit of government, a federal agency, or a

 

20  private entity but not from of another department or agency of

 

21  the this state. of Michigan.

 

22        (18) Notwithstanding any other provision of this section,

 

23  the department shall waive any fee otherwise required under

 

24  subsection (2)(c) and (d) if the individual responsible for

 

25  paying the fee is, and provides proof satisfactory to the

 

26  department that he or she is, an honorably discharged veteran of

 

27  the armed forces of the United States.


 

 1        Sec. 3a. Each dealer, broker or agent licensee operating a

 

 2  livestock auction or buying station, in addition to providing a

 

 3  bond as required by this act, shall maintain a "producers'

 

 4  proceeds account". Within 7 calendar days following each

 

 5  livestock auction, the dealer licensee shall deposit in the

 

 6  producers' proceeds account funds which shall be equal to the

 

 7  total amount of money due the livestock sellers or consignors of

 

 8  livestock sold or consigned through the livestock auction.

 

 9  Failure to make such deposits in their entirety shall constitute

 

10  is a violation of this section. The director shall audit from

 

11  time to time the producers' proceeds account and ascertain

 

12  whether the provisions of this section are being complied with.

 

13  All records of the licensed dealer licensee shall be made

 

14  available to the director for the purposes of auditing the

 

15  account. The entire sale price of livestock sold through the

 

16  auction less commissions, handling charges, service fees and

 

17  other accepted charges shall be placed in the producers' proceeds

 

18  account and shall be used to pay the seller or consignor for the

 

19  livestock and for no other purpose. A record of the commissions,

 

20  handling charges, service fees and other charges shall be

 

21  maintained by the licensee and shall be provided to the seller or

 

22  consignor of the livestock at the completion of the sale.

 

23        Sec. 4. For failure or refusal to obey the provisions of If

 

24  a person fails or refuses to comply with this act, the department

 

25  may refuse to issue a license or may suspend or revoke the

 

26  license held by such the licensee. Whenever the director is

 

27  satisfied of the existence of any one or more of the reasons for


 

 1  refusing, suspending or revoking the license provided for in this

 

 2  act, before Before refusing, suspending, or revoking the license,

 

 3  the department shall give written notice of a hearing to be had

 

 4  thereon to the licensee affected. The notice shall appoint a time

 

 5  of hearing at the department and shall be mailed by certified or

 

 6  registered mail to the licensee. On the day of the hearing, the

 

 7  licensee may present such evidence to the director as he deems

 

 8  fit or she considers appropriate regarding the violations

 

 9  charged, and after the hearing the director shall thereupon

 

10  render a decision. Any A licensee who feels aggrieved at the

 

11  decision of the director may appeal from said the decision within

 

12  10 days by writ of certiorari to the circuit court of the county

 

13  where the licensee resides. The following reasons shall be

 

14  construed as just are cause for refusal , to issue a license or

 

15  for the suspension or revocation of a license:

 

16        (a) Where the The applicant or licensee has failed to pay in

 

17  full for any amounts due on livestock purchased, or has violated

 

18  the laws of the state or official regulations rules promulgated

 

19  by the director or other competent authority governing the

 

20  interstate or intrastate movement, shipment, or transportation of

 

21  animals.

 

22        (b) Where there There have been intentionally false or

 

23  misleading statements to the purchaser as to the health or

 

24  physical condition of the animal or animals with regard to

 

25  official tests, ownership, or quantity of animals or

 

26  misrepresentation in connection therewith, or in the buying or

 

27  receiving of animals, or receiving, selling, exchanging,


 

 1  soliciting, or negotiating sale, resale, exchange, transport,

 

 2  transfer, weighing, or shipment of animals concerning the

 

 3  identity or the physical condition of an animal, any test

 

 4  intended to establish the health status of an animal; or as to

 

 5  the ownership of an animal, the quantity of animals, or other

 

 6  matter in connection with the buying, receiving, selling,

 

 7  exchanging, soliciting, or negotiating the sale, resale,

 

 8  exchange, transport, transfer, weighing, or shipment of animals.

 

 9        (c) Where the The licensee engages has engaged in buying or

 

10  receiving animals, or receiving, selling, exchanging, soliciting,

 

11  or negotiating the sale, resale, exchange, transport, or transfer

 

12  of animals affected with a communicable disease or diseases that

 

13  are likely to be transmitted to other animals or human beings:

 

14  Provided, That subdivision (c) of this section shall not apply to

 

15  animals which have reacted to any test used for the detection of

 

16  tuberculosis, and Bang's disease, when said animals are disposed

 

17  of in conformity with state laws and regulations governing

 

18  disposal of such animals and when such animals are killed under

 

19  supervision of a United States department of agriculture research

 

20  service inspector or a regularly authorized inspector of the

 

21  state livestock disease control division.that do not comply with

 

22  official identification, testing, permitting, or intrastate or

 

23  interstate animal movement requirements under the animal industry

 

24  act, 1988 PA 466, MCL 287.701 to 287.746.

 

25        (d) Where the The licensee fails has failed to practice

 

26  measures of sanitation, disinfection, and dead animal disposal as

 

27  required in 1982 PA 239, MCL 287.651 to 287.683, bodies of dead


 

 1  animals, animal handling, or inspection as required by this act,

 

 2  of related to the premises or vehicles used for the stabling ,

 

 3  yarding or transportation of animals.

 

 4        (e) Where there There has been a failure or refusal on the

 

 5  part of the licensee, upon the request of the department, to

 

 6  produce records of transactions in the carrying on of the

 

 7  business for which such license is granted.required under this

 

 8  act.

 

 9        Sec. 5. Every dealer, broker, livestock trucker, or agent

 

10  licensed under the provisions of this act and carrying on or

 

11  conducting business under such the license shall at all times

 

12  keep in or at the place of business or in each vehicle used by

 

13  such the licensee for the purpose of transporting livestock a

 

14  copy of such the license for inspection by any representative of

 

15  the department, sheriff, undersheriff, deputy sheriff, Michigan

 

16  state police or any other law enforcing agency. Each person

 

17  licensed under this act that utilizes a vehicle, trailer, or

 

18  other conveyance for the purpose of transporting livestock shall

 

19  place and visibly maintain the required vehicle permit on the

 

20  upper forward corner of the left side of the vehicle, trailer, or

 

21  other conveyance.

 

22        Sec. 6. (1) Each dealer, broker, livestock trucker, or agent

 

23  leasing, renting, operating, or owning any livestock yards, pens,

 

24  premises, or vehicles in which animals are quartered, fed, held,

 

25  or transported shall keep such the yards, premises, or vehicles

 

26  properly cleaned, and disinfected, and in adequate repair as

 

27  prescribed by the department. The director may restrict the use


 

 1  of a licensed livestock auction facility, portion of a facility,

 

 2  or permitted vehicle, trailer, or conveyance until the licensee

 

 3  can demonstrate that it complies with cleaning, disinfecting, and

 

 4  adequate repair requirements under this act or a rule promulgated

 

 5  under this act.

 

 6        (2) The application for a vehicle permit under this section

 

 7  shall be on forms approved by the director and shall demonstrate

 

 8  that the applicant meets requirements for registration and

 

 9  vehicle licensing required by this state.

 

10        (3) A vehicle, trailer, or other conveyance permitted under

 

11  this act shall comply with all state and federal requirements for

 

12  transport vehicles or livestock conveyances, and shall be

 

13  maintained to ensure the safety and welfare of any animals that

 

14  are transported in the vehicle. The operator of the permitted

 

15  conveyance shall allow inspection of the conveyance during normal

 

16  business hours and when operating, or at any reasonable time

 

17  agreed upon by the licensee and the director. The director may

 

18  revoke the permit for an individual vehicle without prior

 

19  notification for a violation of this subsection.

 

20        (4) A licensee shall obtain and maintain during transport

 

21  any official health certificates, movement permits, or testing

 

22  forms required by state or federal law.

 

23        Sec. 7. (1) For the purpose of preventing the spread of

 

24  infection or communicable diseases of livestock, all animals

 

25  sold, transferred, or exchanged from any yards or premises by any

 

26  dealer, broker, or agent as designated in this act shall may be

 

27  inspected by a representative of the department. the director.


 

 1  The department shall director may prescribe the proper tests or

 

 2  treatment of any such animal sold when such tests or treatment

 

 3  are deemed considered necessary to prevent the spread of a

 

 4  communicable disease or undue suffering of livestock. Such The

 

 5  test or treatment shall be made by a veterinarian approved by the

 

 6  department, director, and the director may require fees for such

 

 7  tests the test or treatment shall to be paid by the dealer,

 

 8  broker, livestock trucker, or agent.

 

 9        (2) (a) No A dealer, broker, agent, livestock trucker, or

 

10  owner of any an animal shall not under an assumed or fictitious

 

11  name sell or offer for sale any such the animal under an assumed

 

12  or fictitious name or make any false or misleading statements as

 

13  to the identity or the physical condition of said the animal or

 

14  with regard to any test which that is supposed to establish the

 

15  health status of any the animal offered for sale or sold.

 

16        (3) Animals that enter a livestock auction, collection

 

17  point, or buying station, licensed under this act, are considered

 

18  to have moved from 1 premises to another within this state. The

 

19  livestock auction, collection point, or buying station is

 

20  considered the immediate point of destination of the animals and

 

21  the licensee is responsible for ensuring that requirements for

 

22  any necessary official identification, permitting, testing, or

 

23  certification as required under the animal industry act, 1988 PA

 

24  466, MCL 287.701 to 287.746, are met prior to allowing animals to

 

25  be unloaded from the conveyance vehicle.

 

26        (4) The department may confer with the licensee of a

 

27  livestock auction, collection point, or buying station that is to


 

 1  be used by the licensee for the purpose of selling, trading, or

 

 2  delivering livestock and define an area surrounding the premises

 

 3  that shall be known as the market zone of the premises. All

 

 4  livestock brought into the market zone and sold or traded shall

 

 5  be handled and sold through the livestock auction or buying

 

 6  station within the market zone in compliance with state laws and

 

 7  rules.

 

 8        (5) A licensee of a livestock auction, collection point, or

 

 9  buying station shall ensure that pens and buildings are available

 

10  to protect livestock handled from injury and inclement weather.

 

11  The pens and buildings shall be of such construction as will

 

12  facilitate cleaning and disinfection and shall be regularly

 

13  cleaned and disinfected and kept free of mud and accumulations of

 

14  manure and filth. A licensee shall ensure that all of the

 

15  following are complied with:

 

16        (a) Flooring materials that are appropriate for the health

 

17  and safety of livestock shall be installed in all pens and alleys

 

18  in all licensed livestock auctions and in the loading and

 

19  unloading areas immediately adjacent to the structure.

 

20        (b) All pens, alleys, and dock areas shall be constructed to

 

21  facilitate drainage. Water shall not be permitted to accumulate

 

22  in pens, alleys, or the loading and unloading areas, except in

 

23  approved lagoons.

 

24        (c) Manure may be stored on the premises of any licensed

 

25  livestock auction and shall be disposed of according to normal

 

26  agricultural practices, or as otherwise required by the director.

 

27        (d) The walls of all primary animal enclosures shall be kept


 

 1  clean and free of accumulations of filth.

 

 2        (e) The area in front of the unloading dock, for a distance

 

 3  of 15 feet, shall be of concrete or impervious material so as to

 

 4  facilitate the cleaning of manure and debris from the unloading

 

 5  trucks.

 

 6        (f) All auction rings, docks, pens, scales, and alleys used

 

 7  for holding livestock shall be thoroughly cleaned after each sale

 

 8  day. In addition, auction rings and pens used to hold animals

 

 9  with an infectious or contagious disease shall also be thoroughly

 

10  disinfected with a disinfectant approved by the director after

 

11  each sale before being used again.

 

12        (g) Water shall be offered at least every 12 hours, or as

 

13  needed in inclement weather. If an animal is to be housed for

 

14  more than 24 hours, feed must be offered at least once a day, or

 

15  as appropriate for species and age of the animal.

 

16        (h) Livestock housed for more than 24 hours shall be able to

 

17  lie down, turn around, and stand in accordance with normal

 

18  agricultural management practices. A person who purchases cattle

 

19  under 3 months of age shall remove the cattle from the premises

 

20  by noon the day following the sale.

 

21        (6) Trucks or vehicles, and transportation cages, used by

 

22  livestock dealers, brokers, or livestock truckers for

 

23  transportation and handling of livestock shall be properly

 

24  constructed to adequately protect handled livestock from injury

 

25  and undue exposure to inclement weather and shall be regularly

 

26  cleaned and disinfected.

 

27        (7) Animals under quarantine shall not be sold through a


 

 1  livestock auction unless approved by the director.

 

 2        (8) A licensee shall ensure that all pens used for

 

 3  confinement of animals with a contagious or infectious disease

 

 4  are in a location that prevents contact with healthy animals. The

 

 5  pens shall be of smooth tight siding construction and of

 

 6  sufficient height that they will not permit the contact of any

 

 7  other livestock. The pens shall be drained in such a manner as to

 

 8  prevent contamination of the alley. Pens used for livestock

 

 9  infected with contagious or infectious diseases shall be properly

 

10  identified and shall not be used to confine any other livestock.

 

11        (9) Except upon a permit from the director, swine shall not

 

12  be sold or removed from a livestock auction, collection point, or

 

13  buying station except for immediate slaughter. Swine shall not be

 

14  allowed to contact any swine not used for immediate slaughter or

 

15  delivery as indicated in this section.

 

16        (10) Healthy swine not subject to quarantine that are within

 

17  this state and handled in compliance with department rules and

 

18  state law may be sold and removed from livestock auction

 

19  facilities referred to in this section for purposes other than

 

20  immediate slaughter when unloaded from vehicles and delivered

 

21  directly to vehicles in which the swine are transported from the

 

22  sale premises.

 

23        (11) As used in this section, "immediate slaughter" means

 

24  killed or delivered to a licensed livestock facility, where state

 

25  or federal veterinary inspection is maintained daily, within 72

 

26  hours following removal from the livestock auction, collection

 

27  point, or buying station.


 

 1        Sec. 7a. (1) A licensee shall not transport nonambulatory

 

 2  livestock to a livestock auction, collection point, or buying

 

 3  station. Livestock that become nonambulatory in transport, or

 

 4  while present at a livestock auction, collection point, or buying

 

 5  station shall be humanely euthanized, and the dead animal

 

 6  disposed of as required in subsection (4) or be humanely moved or

 

 7  physically separated from other livestock.

 

 8        (2) A licensee shall ensure that nonambulatory livestock are

 

 9  not dragged, pulled, pushed, rolled, or otherwise moved except as

 

10  passive passengers on or in slings, mats, floats, carts, pallets,

 

11  or containers, or as directly necessary to facilitate the use of

 

12  these devices. When moved by these devices, the motive force

 

13  shall be attached to the device, not the livestock. Nonambulatory

 

14  animals that are not immediately euthanized shall be managed as

 

15  provided in this section and shall receive appropriate veterinary

 

16  care.

 

17        (3) The director may require a licensee to adhere to

 

18  specific methods of euthanasia to ensure the welfare of the

 

19  animal during the euthanasia process.

 

20        (4) A licensee shall dispose of any dead animals as defined

 

21  in 1982 PA 239, MCL 287.651 to 287.683, in the manner required in

 

22  that act.

 

23        Sec. 8. (1) The department or any of the duly authorized

 

24  agents shall have authority to director may inspect the records

 

25  of any licensee at any time to determine the origin and

 

26  destination of any livestock handled by the licensee and to

 

27  determine if any provisions of this act or the rules and


 

 1  regulations promulgated hereunder under this act, or requirements

 

 2  for importation of animals, or movement of animals within the

 

 3  state, have been violated.

 

 4        (2) Each person licensed under this act shall keep the

 

 5  following records, for a minimum of 5 years, on each animal

 

 6  bought, received, sold, exchanged, transported, resold, or

 

 7  transferred:

 

 8        (a) The identity of each animal, including all of the

 

 9  following:

 

10        (i) Species.

 

11        (ii) Breed or physical description.

 

12        (iii) Age or type.

 

13        (iv) Gender.

 

14        (b) The date and source of each animal, including complete

 

15  name and address of the person from whom the animal is acquired.

 

16        (c) Records of all required tests, treatments, movement

 

17  certificates, and permits.

 

18        (d) The date and place of disposition of each animal

 

19  including the complete name and address of the destination and

 

20  the name of the person receiving the animal.

 

21        (3) In addition to the records described in subsection (2),

 

22  a person licensed to operate a livestock auction, buying station,

 

23  or collection point shall keep the following records of each

 

24  animal bought, received, sold, exchanged, transported, resold, or

 

25  transferred:

 

26        (a) The official identification of each animal recorded by

 

27  official eartag, official breed registry tattoo, or official


 

 1  backtag number.

 

 2        (b) If an animal is sold by weight, the official weight of

 

 3  the animal.

 

 4        (4) Animals, as determined by the director, at a licensed

 

 5  livestock auction, collection point, or buying station consigned

 

 6  for slaughter, or that do not meet intrastate testing

 

 7  requirements for movement from 1 premises to another, shall be

 

 8  sold for slaughter only and shall be moved directly to slaughter.

 

 9  A person operating a livestock auction or buying station shall

 

10  not sell livestock to a buyer of animals not meeting intrastate

 

11  testing requirements for movement from 1 premises to another

 

12  unless the buyer certifies in a signed statement that the animals

 

13  removed from the premises shall be moved directly to a slaughter

 

14  establishment and slaughtered within 5 days after movement. A

 

15  licensee shall not allow animals to be removed from a livestock

 

16  auction, collection point, or buying station premises until the

 

17  buyer provides the slaughter destination information for each

 

18  animal being removed from the premises.

 

19        Sec. 11. Whoever violates or refuses to comply with any of

 

20  the provisions of this act shall, upon conviction, be sentenced

 

21  to pay a fine of not less than 25 dollars nor more than 100

 

22  dollars and costs of prosecution, and in default of payment of

 

23  fine and costs, shall be sentenced to imprisonment for not less

 

24  than 10 nor more than 30 days, and for each subsequent violation

 

25  a fine shall be imposed of not less than 100 dollars nor more

 

26  than 500 dollars, or imprisonment for not more than 6 months, or

 

27  both, and the costs of prosecution.


 

 1        (1) A person that violates section 2 may be ordered to pay a

 

 2  civil fine of not less than $100.00 or more than $1,000.00. Each

 

 3  day of continuing violation is a separate violation. However, a

 

 4  person shall not be subject to a civil fine totaling more than

 

 5  $25,000.00.

 

 6        (2) The court may allow the department to recover reasonable

 

 7  costs and attorney fees incurred in an action resulting in the

 

 8  imposition of a civil fine under subsection (1). Costs assessed

 

 9  and recovered under this subsection shall be paid to the state

 

10  treasury and credited to the department for the enforcement of

 

11  this act.

 

12        (3) Except as otherwise provided in subsection (1), the

 

13  director, upon finding that a person has violated this act or a

 

14  rule promulgated under this act, may do any of the following:

 

15        (a) Issue a warning.

 

16        (b) Immediately summarily suspend use of equipment, a

 

17  vehicle, or a facility with the opportunity for a hearing under

 

18  the administrative procedures act of 1969, 1969 PA 306, MCL

 

19  24.201 to 24.328.

 

20        (c) Impose an administrative fine of not more than $1,000.00

 

21  for each violation after notice and an opportunity for a hearing

 

22  pursuant to the administrative procedures act of 1969, 1969 PA

 

23  306, MCL 24.201 to 24.328.

 

24        (d) Issue an appearance ticket as described and authorized

 

25  by sections 9c to 9g of chapter IV of the code of criminal

 

26  procedure, 1927 PA 175, MCL 764.9c to 764.9g, for a violation of

 

27  subsection (4).


 

 1        (4) A person that violates this act is guilty of a

 

 2  misdemeanor punishable by imprisonment for not more than 93 days

 

 3  or a fine of not less than $300.00 or not more than $1,000.00, or

 

 4  both.

 

 5        (5) The remedies and sanctions under this act are

 

 6  independent and cumulative. The use of a remedy or sanction under

 

 7  this act does not bar other lawful remedies and sanctions and

 

 8  does not limit criminal or civil liability. Notwithstanding any

 

 9  other provision of this act, the department may bring an action

 

10  to do 1 or more of the following:

 

11        (a) Obtain a declaratory judgment that a method, act, or

 

12  practice is a violation of this act.

 

13        (b) Obtain an injunction against a person who is engaging,

 

14  or about to engage, in a method, act, or practice that violates

 

15  this act.

 

16        (6) The director shall advise the attorney general of the

 

17  failure of any person to pay an administrative or civil fine

 

18  imposed under this section. The attorney general shall bring a

 

19  civil action in a court of competent jurisdiction to recover the

 

20  fine and costs and fees, including attorney fees. Civil fines and

 

21  administrative fines collected shall be paid to the state

 

22  treasury and credited to the department for the enforcement of

 

23  this act.