DAIRY LICENSE FEES S.B. 1131 (S-2) & 1132 (S-1): FLOOR SUMMARY
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Senate Bill 1131 (Substitute S-2 as reported)
Senate Bill 1132 (Substitute S-1 as reported)
Sponsor: Senator Gerald Van Woerkom
Committee: Agriculture and Bioeconomy

CONTENT

Senate Bill 1131 (S-2)
would amend the Grade A Milk Law to do the following:

-- Require a milk plant to pay a licensing or permitting fee of $400, $800, or $1,600, based on its expected raw milk receipts, rather than the current $175 fee.
-- Require each grade A dairy farm to be licensed under the Law and pay a license or permit fee of $70, or $25 if it maintained adequate personnel to conduct certified industry farm inspections.
-- Permit the Michigan Department of Agriculture (MDA) to assess a plan review fee of $100 to a potential dairy licensee or permittee, and a fee of $300 for two or more consecutive re-inspections.
-- Increase license fees for certified industry farm inspectors, receiving or transfer stations, milk truck cleaning facilities, milk transportation companies, milk tank trucks, distribution facilities, container manufacturers, and milk hauler/samplers.
-- Revise the provisions for determining the fine for selling milk with violative drug residues.


Senate Bill 1132 (S-1) would amend the Manufacturing Milk Law to do the following:

-- Require a dairy plant to pay an annual licensing or permitting fee of $200 or $400, based on the plant's anticipated raw milk receipts, rather than the current $50 annual fee.
-- Require each dairy farm producing manufacturing milk to be licensed under the Law and pay a license or permit fee of $30, or $15 if it maintained adequate personnel to conduct certified industry farm inspections.
-- Permit the MDA to assess a plan review fee of $100 to a potential dairy licensee or permittee, and a fee of $150 for two or more consecutive re-inspections.
-- Increase license or permit fees for receiving or transfer stations, milk tank truck cleaning facilities, container manufacturers, and milk hauler/samplers.
-- Revise the provisions for determining the fine for selling milk with violative drug residues.
-- Require certified inspectors to conduct one routine inspection per year of each producer, and a farm inspection of all producers whose first routine bacterial count exceeded legal standards.


MCL 288.501 et al. (S.B. 1131) Legislative Analyst: Curtis Walker 288.670 & 288.685 (S.B. 1132)

FISCAL IMPACT
The bills together would generate approximately $100,000 in additional restricted funds to be utilized by the Department of Agriculture to help support its dairy inspection program. These funds are included in the FY 2009-10 appropriations for the Department, Public Act 119 of 2009.


Date Completed: 3-2-10 Fiscal Analyst: Bruce Baker

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb1131&1132/0910 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.