HOUSE BILL No. 6498

 

September 24, 2008, Introduced by Rep. Hune and referred to the Committee on Agriculture.

 

     A bill to amend 1988 PA 466, entitled

 

"Animal industry act,"

 

by amending section 14 (MCL 287.714), as amended by 2002 PA 458.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 14. (1) If the director determines that the control or

 

eradication of a disease or condition of livestock warrants entry

 

onto property where livestock or domestic animals are located, the

 

director shall order the entry onto property where livestock or

 

domestic animals are located and authorize seizure, slaughter,

 

destruction, or other disposition of individual livestock or

 

domestic animals or the entire herd, flock, or school. If the

 

director has signed an order for the slaughter, destruction, or

 

other disposition of livestock or domestic animals, the director

 


shall notify the attorney general and the house and senate

 

appropriations committees and the department of management and

 

budget on the issue of indemnity under this section. The director

 

may approve facilities and procedures for the orderly disposal of

 

animals, animal products, and animal feeds for the purpose of

 

controlling or preventing the spread of an infectious, contagious,

 

or toxicological disease. The director may select a site or method

 

for the disposal with the advice of the director of the department

 

of environmental quality.

 

     (2) The director may, under rules promulgated by the

 

department, allow indemnification for the slaughter, destruction,

 

or other disposition of livestock or domestic animals due to

 

livestock diseases or toxicological contamination. If the director

 

has signed an order for the slaughter, destruction, or other

 

disposition of livestock or domestic animals, the owner may apply

 

for indemnification. The director shall appraise and inventory the

 

condemned livestock or domestic animals. The appraisals and

 

inventories shall be on forms approved by the director. The

 

director shall use agricultural pricing information from commercial

 

livestock or domestic animal auction markets and other livestock or

 

domestic animal market information as determined by the director to

 

determine the value of condemned livestock or domestic animals.

 

     (3) Except as otherwise provided in subsection (5),

 

indemnification for individual livestock or domestic animals within

 

a herd, flock, or school shall be based upon 100% of the fair

 

market value of that type of livestock or domestic animal on the

 

date of the appraisal and marketable for the purpose for which the

 


livestock or domestic animal was intended. , not to exceed

 

$4,000.00 for each livestock or domestic animal. The appraisal

 

determination shall not delay the slaughter, destruction, or

 

disposition of the livestock or domestic animals. The

 

indemnification amount under this subsection shall include a

 

deduction for any compensation received, or to be received, from

 

any other source including, but not limited to, indemnification by

 

the United States department of agriculture, insurance, salvage

 

value, or any monetary value obtained to encourage disposal of

 

infected or exposed livestock or domestic animals in accordance

 

with a disease control or eradication program. The owner shall

 

furnish to the department all records indicating other sources of

 

indemnity. An affidavit signed by the owner attesting to the amount

 

of compensation for the livestock received or to be received from

 

any other source shall accompany the appraisal certificate before

 

indemnification under this section.

 

     (4) Except as otherwise provided in subsection (5),

 

indemnification for entire herd, flock, or school depopulations of

 

livestock or domestic animals shall be based upon 100% of the fair

 

market value of that type of animal on the date of the appraisal

 

and marketable for the purpose for which the livestock or domestic

 

animal was intended. , not to exceed an average of $4,000.00 per

 

animal in the flock, herd, or school. The appraisal determination

 

shall not delay depopulation. The indemnification amount under this

 

section shall include a deduction for any compensation received, or

 

to be received, from any other source including, but not limited

 

to, indemnification by the United States department of agriculture,

 


insurance, salvage value, or any monetary value obtained to

 

encourage disposal of infected or exposed livestock or domestic

 

animals in accordance with a disease control or eradication

 

program. The owner shall furnish to the department all records

 

indicating other sources of indemnity. An affidavit signed by the

 

owner attesting to the amount of compensation for the livestock or

 

domestic animals received, or to be received, from any other source

 

shall accompany the appraisal certificate prior to indemnification

 

under this section.

 

     (5) The department may provide for indemnity pursuant to this

 

section not to exceed $100,000.00 per order, from any line item in

 

the annual budget for the department in the applicable fiscal year.

 

Any agreement greater than $100,000.00 entered into between the

 

department and an owner of livestock shall contain a provision

 

indicating that, notwithstanding the terms of the agreement,

 

indemnification shall be subject to specific appropriations by the

 

legislature and not be paid from department funds.

 

     (6) Acceptance of compensation under this act constitutes a

 

full and complete release of any claim the owner has against the

 

state of Michigan, its departments, agencies, officers, employees,

 

agents, and contractors to the extent these persons were acting on

 

behalf of the state, within the scope of their employment with the

 

state or under the direction of the state, its departments,

 

agencies, officers, or employees, arising out of testing, purchase,

 

removal, slaughter, destruction, and other disposition of the

 

owner's animals.

 

     (7) The right to indemnity from the state for animals

 


condemned and ordered slaughtered, destroyed, or otherwise disposed

 

of by the director applies only to native livestock and native

 

domestic animals. Indemnification shall not apply to livestock or

 

domestic animals determined by the department to be imported

 

without meeting import requirements such as official interstate

 

health certificate or official interstate certificate of veterinary

 

inspection, required testing, required vaccination, or for

 

livestock or domestic animals determined by the department to have

 

been illegally moved within this state. An owner is not entitled to

 

indemnity from the state for an animal that comes into the

 

possession of the owner with the owner's knowledge that the animal

 

is diseased or is suspected of having been exposed to an

 

infectious, contagious, or toxicological disease. In addition, the

 

director shall not indemnify an owner for animals that have been

 

exposed to an animal that comes in to the possession of the owner

 

with the owner's knowledge that the animal is diseased or is

 

suspected of having been exposed to an infectious, contagious, or

 

toxicological disease.

 

     (8) A premises that has been depopulated shall be cleaned and

 

disinfected as prescribed by the director.

 

     (9) Repopulation of the premises, except as approved by the

 

director, shall not confer eligibility for future indemnity under

 

this section.

 

     (10) The department may cooperate and coordinate with the

 

secretary of the United States department of agriculture or the

 

secretary's authorized representative or other governmental

 

departments or agencies regarding indemnification under this

 


section.

 

     (11) Not less than annually, within 60 days after the close of

 

the fiscal year, the director shall make a written report to the

 

standing committees of the house of representatives and senate

 

having jurisdiction on agricultural and farming issues. The report

 

will include the following:

 

     (a) The amount expended by the department for bovine

 

tuberculosis eradication during the preceding fiscal year.

 

     (b) An explanation of the expenditures made by the department

 

for bovine tuberculosis eradication during the preceding fiscal

 

year.

 

     (c) The status of bovine tuberculosis eradication efforts in

 

Michigan.

 

     (12) Not less than annually, within 60 days after the close of

 

the fiscal year, the director of the department of natural

 

resources shall make a written report to the standing committees of

 

the house of representatives and senate having jurisdiction on

 

agricultural and farming issues. The report will include the

 

following:

 

     (a) The amount expended by the department of natural resources

 

for bovine tuberculosis eradication during the preceding fiscal

 

year.

 

     (b) An explanation of the expenditures made by the department

 

of natural resources for bovine tuberculosis eradication during the

 

preceding fiscal year.