December 11, 2018, Introduced by Rep. Vaupel and referred to the Committee on Agriculture.
A bill to create the Michigan equine commission; to impose
certain assessments and provide for the collection of those
assessments; to provide for certain remedies and penalties; and to
prescribe the powers and duties of the commission and certain state
agencies and officials.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"Michigan equine promotion act".
Sec. 2. As used in this act:
(a) "Coggins test" means a test for equine infectious anemia
administered by a veterinarian licensed to practice in this state.
(b) "Commission" means the Michigan equine commission created
under section 3.
(c) "Department" means the department of agriculture and rural
development.
(d) "Director" means the director of the department, or the
director's designee.
(e) "Equine" means a horse or any member of the family
equidae.
(f) "Financial institution" means a state or nationally
chartered bank, savings and loan association, savings bank, or
credit union, whose deposits are insured by an agency of the United
States government and that maintains a principal or branch office
located in this state under the laws of this state or the United
States.
(g) "Horse feed" means feed specifically formulated for
horses, including concentrates and complete feeds, that is
manufactured by a licensed feed manufacturer and offered for sale
in this state.
(h) "Licensed feed distributor or guarantor" means a horse
feed distributor or guarantor licensed under the feed law, 1975 PA
120, MCL 287.521 to 287.539.
(i) "Licensed feed manufacturer" means a horse feed
manufacturer licensed under the feed law, 1975 PA 120, MCL 287.521
to 287.539.
(j) "Michigan equine organization" means an incorporated,
licensed, or officially recognized equine organization in this
state that is organized for the purpose of promoting and
representing breeds, disciplines, events, or activities of equine.
Sec. 3. (1) The Michigan equine commission is created within
the department. The commission shall consist of 11 members
appointed by the governor from nominees submitted by Michigan
equine organizations. A member shall serve for a term of 3 years
and may be appointed for a second term. Each member shall have a
vote equal to the other members of the commission. The director may
serve as an ex officio member on the commission with no vote.
(2) The commission shall include the following members:
(a) One member from each of the following segments of the
equine industry:
(i) Horse show and competition.
(ii) Horse racing.
(iii) Trail riding.
(iv) Equine education.
(b) One member who is an equine veterinarian licensed in this
state.
(c) One member representing the horse feed industry or another
equine-related business that is not included in the industry
segments listed in subdivision (a).
(d) Five members from the equine community at large
representing different breeds and segments of the equine industry.
(3) If the commission is unable to seat a member from a
category listed in subsection (2) due to a lack of availability,
the commission may seat a member from another category listed in
that subsection.
Sec. 4. The director shall do all of the following:
(a) Ensure that the commission is self-supporting.
(b) Supervise commission activities to ensure commission
operations are in accordance with the rules established under
section 14.
(c) Coordinate the administrative activities of the commission
and the department.
(d) Confer and cooperate with the legally constituted
authorities of other states and the United States to effectuate the
provisions and intent of this act.
Sec. 5. (1) The commission shall do all of the following:
(a) Annually elect a chairperson, secretary, and treasurer
from the members of the commission.
(b) Meet not less than twice each calendar year and at other
times if determined necessary by the commission chairperson or at
the request of 4 or more commission members.
(c) Receive and distribute funds and make arrangements for the
financial affairs of the commission, including banking, accounting,
and other services as needed.
(d) Establish a process for applying for, receiving, or
accepting grants or contributions of money, property, labor, or
other things of value from individuals, the federal government or
any of its agencies, this state, a municipality, or other public or
private agencies to be used for the purposes of this act.
(e) Develop an equine promotion program in accordance with the
requirements of this act.
(f) Develop and maintain a list of equine owners in this state
that are directly affected by the activities of the commission, as
determined by the commission.
(g) Prepare an annual report that provides a full description
of the commission's activities including, but not limited to, a
detailed and audited financial statement. The commission shall
provide the report to the governor and the director and make the
report available to any person directly affected by this act as
determined by the commission.
(2) The commission shall reimburse a commission member for
actual expenses and provide a per diem payment, as determined by
the commission not to exceed $70.00, while attending meetings of
the commission or while engaged in the performance of official
responsibilities delegated by the commission.
(3) The commission may adopt procedures and promulgate rules
necessary for the exercise of its powers and the performance of its
duties under this act in accordance with the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(4) In compliance with the open meetings act, 1976 PA 267, MCL
15.261 to 15.275, the commission shall conduct its business at a
public meeting and provide public notice of the time, date, and
place of the meeting.
(5) Except as otherwise provided in this subsection, the
commission shall make available to the public, in compliance with
the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246,
a writing prepared, owned, used, in the possession of, or retained
by the commission in the performance of an official function. All
of the following apply to the disclosure of information under this
subsection:
(a) Information relating to specific assessments imposed upon
a specific person under this act, as well as names and addresses of
equine owners, are exempt from disclosure.
(b) Information regarding the aggregate amounts of penalties
levied under this act is not exempt from disclosure.
(c) The director or the department may obtain information
necessary to confirm compliance with this act.
(d) The director or the department may disclose statistical
information so long as that disclosure does not reveal a specific
assessment imposed upon a specific person under this act.
Sec. 6. The purpose and objectives of the commission's
activities may include, but are not limited to, the following:
(a) Promoting the equine industry in this state.
(b) Disseminating educational programs and materials regarding
the equine industry and its positive impact on the citizens of this
state.
(c) Aiding in the development of practices within the equine
industry that lead to enhanced opportunities for the equine
industry of this state.
(d) Promoting research related to the purposes of this act.
Sec. 7. (1) The commission shall impose an assessment of $5.00
for each ton of horse feed sold in this state. A licensed feed
manufacturer, or licensed feed distributor or guarantor, that sells
horse feed in this state shall collect the assessment imposed by
the commission under this subsection and remit the assessment to
the commission at least quarterly.
(2) The commission shall impose an assessment of $3.00 for
each Coggins test administered in this state. A licensed
veterinarian who administers a Coggins test in this state shall
collect the assessment imposed by the commission under this
subsection and remit the assessment to the commission at least
quarterly, as determined by the commission.
(3) A person that is required to collect and remit assessments
under this act shall do all of the following:
(a) Maintain an accurate record of the details concerning each
assessment collected and make the record available to the
department upon request.
(b) File a report annually with the commission indicating the
amount of assessments collected and the amount and type of feed
sold or the number of Coggins tests administered.
(4) A person that is required to collect an assessment under
this act may offset the costs associated with collection and
remittance activities by withholding 0.1% of the assessments
collected. A person may withhold the amount described in this
subsection beginning on the date the person first remits to the
commission the assessments due under this act and ending 2 years
after that date.
(5) The commission shall specify the date that assessments
collected under this act are due for remittance to the commission
and provide reasonable notice of that date. If a person does not
remit the collected assessments to the commission by the date
specified, the person is subject to an interest charge of 1% of the
total amount due for each month that the remittance remains
outstanding.
(6) The commission shall adopt procedures and promulgate rules
governing the receipt of money described in this section in
accordance with the administrative procedures act of 1969, 1969 PA
306, MCL 24.201 to 24.328.
Sec. 8. If a licensed feed manufacturer, licensed feed
distributor or guarantor, or licensed veterinarian fails to collect
or remit an assessment that is due under this act, the commission
may file a written complaint with the director. All of the
following apply to a complaint filed under this section:
(a) Upon receipt of the complaint, the director shall conduct
an investigation of the allegations raised in the complaint.
(b) If the director finds upon investigation that a licensed
feed manufacturer, licensed feed distributor or guarantor, or
licensed veterinarian failed to collect or remit an assessment that
is due under this act, the director shall provide by certified mail
to the licensed feed manufacturer, licensed feed distributor or
guarantor, or licensed veterinarian a notice of the finding,
including a statement of the amount that should have been collected
or remitted. The director shall provide this notice not more than
10 days after the date of the finding. The notice shall require the
licensed feed manufacturer, licensed feed distributor or guarantor,
or licensed veterinarian to remit the stated amount within 30 days
after the date of the notice.
(c) If the finding in subdivision (b) concerns a failure to
collect an assessment, the director shall compute the amount that
reasonably should have been collected and impose on the licensed
feed manufacturer, licensed feed distributor or guarantor, or
licensed veterinarian an assessment in that amount. The notice
provided under subdivision (b) shall inform the licensed feed
manufacturer, licensed feed distributor or guarantor, or licensed
veterinarian of this assessment and provide a statement describing
its calculation.
(d) If the amount due under subdivision (b) is not remitted
within 30 days, or the licensed feed manufacturer, licensed feed
distributor or guarantor, or licensed veterinarian is not in
compliance with a written agreement for a full payment of the
amount due, the director may file an action in a court of competent
jurisdiction to collect the amount due. Venue in the action is the
place where the licensed feed manufacturer, licensed feed
distributor or guarantor, or licensed veterinarian has its primary
place of business.
(e) In an action filed under subdivision (d), if the director
prevails, the court shall award the director all costs and expenses
in bringing the action, including, but not limited to, reasonable
and actual attorney fees, court costs, and audit expenses. If the
director does not prevail, the director shall charge the commission
for reasonable and actual attorney fees, court costs, and expenses
incurred in bringing the action.
Sec. 9. (1) Money, assets, or other items of value collected
or received under this act, whether collected from assessments,
received as grants or gifts, earned from royalties or license fees,
or derived from any activities performed by the commission, are not
state money and shall be deposited in a financial institution in
this state.
(2) The commission shall disburse or expend money in the
commission's account only for the necessary expenses incurred by
the commission in carrying out the purposes of this act. The
commission may use not more than 33% of the assessments received
under this act for the commission's administrative expenses.
(3) A certified public accountant shall audit all expenditures
of the commission at least annually. Not more than 30 days after
completion of the audit, the certified public accountant shall give
copies of the audit to the members of the commission and the
director. The commission or director shall publish annually an
activity and financial report and make it available to interested
parties.
Sec. 10. (1) After the first 5 full calendar years of
operation, the commission shall conduct a referendum to determine
if the commission shall be renewed. If more than 50% of the equine
owners directly affected by the activities of the commission, as
determined by the commission, that pay more than 50% of the
assessments vote in favor of the commission's termination, the
commission shall be terminated.
(2) Upon the submission of a written petition to terminate the
commission signed by 2,500 of the equine owners directly affected
by the activities of the commission, as determined by the
commission, during the previous calendar year, the director, not
more than 100 days after the date on which the petition is
submitted shall conduct a referendum to determine if the commission
shall be terminated. If more than 50% of the equine owners directly
affected by the activities of the commission, as determined by the
commission, that pay more than 50% of the assessments due under
this act vote in favor of the commission's termination, the
commission shall be terminated.
(3) Upon its termination, the commission shall distribute any
unexpended money remaining in the commission's account to an
appropriate equine entity or entities as determined by the
commission.
Sec. 11. The director may institute an action necessary to
enforce compliance with this act, a rule promulgated under this
act, or a program or marketing plan adopted under this act. In
addition to any other remedy provided by law, the director may
apply to a court of competent jurisdiction for relief by injunction
to protect the public interest without alleging or proving that an
adequate remedy at law does not exist.
Sec. 12. (1) Except as provided in subsections (2) and (3), an
individual who violates this act is guilty of a misdemeanor
punishable by a fine of up to $1,000.00 per day that the individual
is in violation of this act.
(2) A member of the board who intentionally violates section
5(4) is subject to the penalties prescribed in the open meetings
act, 1976 PA 267, MCL 15.261 to 15.275.
(3) If the board arbitrarily and capriciously violates section
5(5), the board is subject to the penalties prescribed in the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
Sec. 13. (1) Except as provided in subsections (2) and (3),
prosecution for violation of this act may be instituted in any
county in which any of the defendants reside, in which the
violation was committed, or in which any of the defendants have a
principal place of business. State and county law enforcement
officers shall enforce this act.
(2) A prosecution for a violation of section 5(4) shall be
instituted in the manner provided for in the open meetings act,
1976 PA 267, MCL 15.261 to 15.275.
(3) A prosecution for a violation of section 5(5) shall be
instituted in the manner provided for in the freedom of information
act, 1976 PA 442, MCL 15.231 to 15.246.
Sec. 14. The director shall promulgate rules for the
implementation of this act in accordance with the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Enacting section 1. This act takes effect 90 days after the
date it is enacted into law.