HOUSE BILL NO. 5239
November 13, 2019, Introduced by Reps. Vaupel,
Leutheuser, Brann and Howell and referred to the Committee on Agriculture.
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".
(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 that is manufactured by a licensed feed manufacturer and offered for sale in this state.
(h) "Licensed feed manufacturer" means a horse feed manufacturer that is licensed under the feed law, 1975 PA 120, MCL 287.521 to 287.539.
(i) "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 and 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 by a licensed feed manufacturer. A licensed feed manufacturer 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 as determined by the commission.
(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 1.5% 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) A person that has paid an assessment under this act may request a refund of that assessment from the commission. The commission shall provide the refund to the person requesting it if that person provides to the commission a receipt for the purchase of horse feed or the administration of a Coggins test for which the assessment was paid.
(7) The commission shall adopt procedures and promulgate rules governing the receipt or refunding 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 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 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 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 or licensed veterinarian to remit the stated amount not more than 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 or licensed veterinarian an assessment in that amount. The notice provided under subdivision (b) shall inform the licensed feed manufacturer or licensed veterinarian of the assessment described in this subdivision 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 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 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 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 commission 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 commission arbitrarily and capriciously violates section 5(5), the commission 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.