REVISE CERVIDAE PRODUCERS MARKETING ACT
House Bill 6245
Sponsor: Rep. Tom Casperson
Committee: Conservation, Forestry, and Outdoor Recreation
Complete to 6-28-06
A SUMMARY OF HOUSE BILL 6245 AS INTRODUCED 6-21-06
House Bill 6245 would amend the Privately Owned Cervidae Producers Marketing Act to increase registration fees and to reflect the shifting of the primary regulatory responsibility for the act, and standards issued under it, to the Department of Natural Resources from the Department of Agriculture. (The cervidae species includes deer, elk, moose, reindeer, and caribou. Cervidae products include any co-products or by-products of cervidae, including antler, antler velvet, meat, or any part of the animal.) A more detailed explanation of the bill follows.
Administered by Department of Natural Resources. Currently under the statute, the Department of Agriculture administers the act (in consultation with the Departments of Natural Resources and Environmental Quality). Under the bill, the act would be administered by the Department of Natural Resources (in consultation with the Departments of Agriculture and Environmental Quality). However, under the bill, the director of the Department of Agriculture would continue to assure that cervidae livestock operations are afforded all rights, privileges, opportunities, and responsibilities of other agricultural enterprises. This change appears to make the statute conform to the transfer of regulatory responsibilities to the DNR from Agriculture under Executive Order 2004-3 issued by Governor Granholm in April 2004.
Animal Industry Act. The bill would retain the provision that specifies that any movement, importing, or exporting of cervidae species or products be in compliance with the Animal Industry Act (which is administered by the Department of Agriculture).
Registration fees. The bill requires that the department charge a non-refundable application fee of $250 for an initial application, and the following initial inspection fees:
** For facilities containing 40 acres or less, $250.
** For facilities greater than 40 acres, $500.
The fee for a second inspection of a cervidae livestock facility would be $100.
The department would charge the following fees for initial and renewal applications for cervidae facilities:
** Class I (hobby) renewal………..$450 (increased from $45)
** Class II (exhibition)……………$450 (increased from $75)
** Class III (ranch)………………..$750 (increased from $500)
** Full registration………………...$750 (increased from $150)
Registration. Currently under the law, a person cannot engage in a cervidae livestock operation unless he or she first obtains a cervidae livestock facility registration. Under the bill, this provision would be retained; however, one also could not "possess" cervidae without a registration.
December 2005 operating standards. Until January 1, 2008, a cervidae livestock facility registered before the effective date of this legislation (if it is enacted into law) must comply with the facility standards issued by the Michigan Department of Agriculture and dated May 2000. However, after January 1, 2008, the facility would have to be in compliance with the standards adopted by the Department of Natural Resources, the Michigan Commission of Agriculture, and the Natural Resources Commission, in December 2005, and on January 9, 2006, and January 12, 2006, respectively.
Responsibilities of the department. The bill would require that an initial application to construct a cervidae livestock facility be accompanied by an application fee, and require the Department of Natural Resources to approve, deny, or propose a modification to the completed application within 60 days. The application would be evaluated using the December 2005 standards. Before issuing any registration, the director would be required to verify, through written confirmation, both of the following: a) that the department had approved the method used to flush any free-ranging cervidae species from the facility, if applicable, and all free-ranging cervidae species had actually been flushed; and b) that the department had determined that the size and location of the facility would not place unreasonable stress on wildlife habitat or migration corridors.
Business plan; disease herd plan. Currently under the law, an applicant who wishes to operate a cervidae livestock facility must submit a business plan. Under the bill, the same would be true of an applicant who wished to modify a cervidae livestock facility. Currently the law specifies the necessary components of a business plan. Under the bill, those provisions would be retained, and in addition, an applicant would be required to submit a "disease herd plan" for approval by the state veterinarian under the Animal Industry Act of 1988, and in compliance with the December 2005 standards. Currently the law specifies the kind of perimeter fence required at a facility (the specifications of which vary, depending upon the species). Under the bill, the fencing requirements would be those found in the December 2005 standards.
Expansion of facilities. Beginning on the effective date of this legislation (if enacted into law), the Department of Natural Resources would be required to issue an initial or modification registration allowing an expansion of an existing facility not later than 120 days after the applicant filed a completed application. Renewal applications could not be issued later than 60 days after the applicant filed a complete application. (Receipt of the application would be considered to be the date the application was received by the department.) If the application was considered incomplete, the department would be required to notify the applicant in writing, or make the information electronically available, within 30 days after receipt of the incomplete application, describing the deficiencies and requesting the additional information.
The bill describes several circumstances under which the 120-day period is tolled. If the department failed to issue or deny a registration within the time-period, it would return the registration fee, and also reduce the fee for the applicant's next renewal by 15 percent. The department could not discriminate against an applicant in the processing of the application based on the fact that the registration fee was refunded or discounted. The bill defines the phrase "completed application" to mean an application complete on its face and submitted with any applicable registration fees as well as any other information, records, approval, security, or similar item required by law or rule from a local unit of government, a federal agency, or a private entity but not from another department or agency of the State of Michigan.
Three-year registration. Registrations issued by the department would be valid for three years (as is the case now).
Prohibit hobby registrations. The bill specifies that beginning on the effective date of this legislation (if enacted into law), the department would be prohibited from issuing an initial registration for a Class I (Hobby) cervidae facility, but it could renew the registration of an existing Class I (Hobby) facility.
Modification applications. The bill would require a registered cervidae livestock facility to submit and have approved a modification registration before either of the following changes occurred: a) a change in registration class and b) a modification to the size of a cervidae livestock facility. The modification application would have to include the appropriate fee for the new class (if applicable), or $100 if submitted to change the facility's size. A modification application would have to be submitted within 30 days after any of the following occurred:
1) A change to the complete name, business name, business address, or telephone number of the current cervidae livestock facility registration holder.
2) A change of the complete address of the cervidae livestock facility location.
3) A sale or transfer of ownership of a cervidae livestock facility (including a written statement signed by the new and previous owners verifying the sale or transfer of ownership).
4) The introduction of new species into a cervidae livestock facility.
Decommissioning a facility. A registrant can ask to decommission a facility, and any decommission is done in compliance with operational standards, unless there is a risk to the environment and to the health of other free-ranging animals in the area in the removal of fencing and other barriers. Under the bill, an owner is prohibited from abandoning a registered cervidae livestock facility without first notifying the Department of Natural Resources and the Department of Agriculture. Under the bill, a person may not cause the ingress of free-ranging cervidae species into a registered cervidae livestock facility; nor release or allow the release of any cervidate species from a cervidae livestock facility.
Disease herd plans. Under the bill, the director of the Department of Natural Resources would enter into a memorandum of understanding with the Department of Agriculture for approving disease herd plans.
Administrative Rules. The bill would repeal Section 15 of the act, which allows the promulgation of rules to implement and enforce the act.
BACKGROUND INFORMATION:
A March 23, 2005 memorandum from the House Fiscal Agency provides background information on the Privately Owned Cervid Licensing and Inspection Program. The memorandum can be found at the following link:
http://www.house.mi.gov/hfa/PDFs/cervidae%20memo.pdf
FISCAL IMPACT:
Section 8 of Public Act 190 of 2000 deals with registration fees established under the Privately Owned Cervidae Producers Marketing Act (Public Act 190 of 2000). The bill would amend Section 8 to eliminate the current registration requirement for new Class I (Hobby) facilities, but would authorize renewal registrations for Class I facilities that were registered as of the effective date of the enacted bill.
The bill would add a new $250 non-refundable application fee, and new initial inspection fees of $250 for facilities of 40 acres or less, and $500 for facilities greater than 40 acres. The bill would also add a new fee for a second facility inspection of $100, and a new $100 application modification fee for applications to modify a previously registered facility.
The bill would increase registration fees as follows:
|
Class |
Total Facilities |
3-year Registration Fee |
Revenue Estimate Based on Proposed Registration Fees |
|
|
Current Fee |
Proposed Fee |
|||
|
Class I (Hobby) (renewal only) |
166 |
$45 |
$450 |
$74,700 |
|
Class II (Exhibition) |
33 |
$75 |
$450 |
$14,850 |
|
Class III (Ranch) |
142 |
$500 |
$750 |
$106,500 |
|
Class IV (Full) |
399 |
$150 |
$750 |
$299,250 |
|
Total Facilities/Fees |
740 |
$495,300 |
||
|
Note that the number of facilities in each class is based on information obtained from the Michigan Department of Agriculture in March 2005. |
||||
The act does not appear to define the four classes.
Under current law, the Michigan Department of Agriculture collected all registration fee revenue. The Act did not establish a separate restricted fund in the State Treasury; however, the department did account for these funds separately and treated the funds as restricted Licensing and Inspection Fee revenue. The bill would not change current law in this regard; it would not establish a separate restricted fund.
Cervidae inspection fee revenue was approximately $50,000 in both FY 2002-03 and FY 2003-04. The cost of the regulatory and inspection program is significantly higher than the revenue generated by the license fees.
Note that the registration fees shown in the above table are for a three-year registration period. The average annual fee revenue would be approximately $165,100.
Legislative Analyst: J. Hunault
Fiscal Analyst: William Hamilton
■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.