State of Michigan

 

JENNIFER M. GRANHOLM

governor

DEPARTMENT OF NATURAL RESOURCES

Lansing

REBECCA  A. HUMPHRIES

director

 


 

BILL ANALYSIS

 

BILL NUMBER:       HOUSE BILL 6245, AS INTRODUCED

TOPIC:                      Regulation of the privately-owned cervidae industry

SPONSOR:              Representative Casperson

CO-SPONSORS:    Representatives Hildenbrand, Shaffer, Hoogendyk, Emmons, Nitz, Marleau, Proos, Huizenga, Booher, Moore, Pastor and Farhat

COMMITTEE:           Conservation, Forestry, and Outdoor Recreation

Analysis Done:       July 3, 2006

 

POSITION

The Department supports the bill.

PROBLEM/BACKGROUND

Executive Order (EO) 2004-3 transferred responsibility to administer the privately-owned cervidae (POC) program from Michigan Department of Agriculture (MDA) to the Department of Natural Resources (DNR) and called for the DNR to conduct a risk-based audit of the industry.  The main deficiencies revealed in the audit involve animal identification, the rate of disease testing, conditions of fences, and the rate and reporting of escaped animals.

DESCRIPTION OF BILL

HB 6245 reflects changes to the Operational Standards for Privately Owned Cervidae Facilities negotiated by a work group.  The proposed changes are responsive to the audit findings.  These standards are the basis for operations for cervidae facilities and are to be incorporated by reference in PA 190 and will have the same legal status as the statute.  HB 6245 changes the roles of DNR and MDA within Act 190 to be consistent with EO 2004-3.

HB 6245 amends definitions and responsibilities to establish DNR as the POC program administrator with MDA responsible for animal health testing and animal movement.

This bill generates approximately 50 percent of POC program revenue for DNR through increased registration fees and new inspection and application fees for cervidae producers.  These fees are supported by the industry represented by the Michigan Deer and Elk Farmers Association.

The legislation addresses audit findings by creating a formal decommission process for cervidae facilities wishing to cease operation; updating application processing and timelines; addressing modification of registration; and, by incorporating revised operational standards, improving operational procedures of POC facilities to reduce risks associated with this agricultural activity.

The process to revise the Operational Standards and to propose amendments to PA 190 of 2000 have been a collaborative effort between state agencies, industry representatives, conservation interests, and the sponsor.

SUMMARY OF ARGUMENTS

Pro

HB 6245 proposes changes to reduce disease risks to the state’s agriculture industry and free-ranging wildlife by addressing findings of the 2004-5 audit of the POC industry.

HB 6245 proposes fees to provide nearly 50 percent of the costs for DNR to administer the POC program.

HB 6245 redefines agency responsibility to be consistent with Executive Order 2004-3.

Con

HB 6245 eliminates authority to promulgate rules.

FISCAL/ECONOMIC IMPACT

Are there revenue or budgetary implications in the bill to the --

(a)     Department

Budgetary:

None

Revenue:   

Based on the current number of registered facilities within the state, the proposal to increase registration fees in HB 6245 will generate revenue of approximately $495,000 over three years.  In addition, application and inspection fees for new facilities, fees for second inspections and modification application fees for current facilities have been added.  It is unknown how much revenue these fees will generate, but their existence will only increase the amount of revenue brought into the Department.  Current cost estimates to run the POC program are projected to be roughly $310,000 per year.  The increased fees in HB 6245 will provide approximately half of the funding needed annually to support the program.

Comments:

None

 

(b)     State

Budgetary:

None

Revenue:   

None

Comments:

None

(c)     Local Government

Comments:

None

OTHER STATE DEPARTMENTS

The MDA has been involved in the process and is in support of HB 6245.

ANY OTHER PERTINENT INFORMATION

Michigan Deer and Elk Farmers Association support the bill.

Cervid Farmers of Michigan support the bill.

Michigan United Conservation Clubs supports the bill.

ADMINISTRATIVE RULES IMPACT

HB 6245 eliminates authority to promulgate rules.

 

 

 

 

 

_______________________________

Rebecca A. Humphries

Director

 

_______________________________

Date

 

LED/WLD/BSS