Legislative Analysis
Phone: (517) 373-8080
LIVESTOCK DEALER LICENSE FEE http://www.house.mi.gov/hfa
SUNSET EXTENSION
Analysis available at
House Bill 4988 (H-1) http://www.legislature.mi.gov
Sponsor: Rep. Jasper Martus
Committee: Appropriations
Complete to 9-19-23
SUMMARY:
House Bill 4988 would amend 1937 PA 284, an act that provides for the licensing of
livestock dealers, to extend the current sunset (expiration date) for certain livestock dealer
licensing fees from October 1, 2023, to October 1, 2027. If the sunset is not lifted or
extended, authority to collect the fees will end on October 1, 2023.
MCL 287.123
BACKGROUND:
1937 PA 284 provides for the licensing of livestock dealers. This licensing requirement has
two primary aims. The first is to prevent the spread of infectious and contagious livestock
diseases by regulating the handling and transportation of livestock by livestock dealers.
Among other things, the act authorizes the Michigan Department of Agriculture and Rural
Development (MDARD) to inspect animals sold or transported by livestock dealers and to
inspect livestock dealer records. The second aim is to provide security for livestock
producers by requiring as a condition of licensure that livestock dealers be bonded.
Bonding helps ensure that producers are paid the amounts due for livestock sold by or
consigned to livestock dealers.
The department indicates that 100% of livestock auction operators and buying station
operators are inspected annually. MDARD also has a goal of inspecting 40% of
dealer/broker/agent/collection point operators and Michigan-based livestock truckers
annually. Investigative inspections may be complaint-driven. MDARD program staffing
consists of 1/4 time of a staff veterinarian and 1/5 time of office support staff.
According to the department, direct labor and related fringe benefits of MDARD livestock
dealer regulatory activities are approximately $84,000 per year. Licensing fees currently
established under the act (shown in the table below) generate approximately $23,000 each
year—approximately 27% of livestock dealer regulatory program costs. The balance of
livestock dealer regulatory program costs are funded with appropriated state general fund
revenue.
House Fiscal Agency Page 1 of 2
 Livestock Dealer License Fee Categories
License Type Current Fee Licensees
Class I (livestock auction operator) $ 400 21
Class II (buying station operator) $ 250 5
Class III (dealer/broker/agent/collection point operator) $ 50 108
Class IV (livestock trucker) $ 25 97
“Livestock auction,” “buying station,” “collection point,” and Total 231
“livestock trucker” are defined terms in the act. The current fee
structure has been in place since October 1, 2012, when
established under amending legislation 2012 PA 317.
FISCAL IMPACT:
Annual livestock dealer licensing fee revenue is approximately $23,000. [Fee revenue in
FY 2021-22 was $23,600.] This revenue is credited to the Agriculture Licensing and
Inspection Fee Fund, a state restricted fund established in section 9 of the Insect Pest and
Plant Disease Act. This fund receives revenue from a number of different fees associated
with various regulatory programs administered by MDARD.
House Bill 4988 is a budget implementation bill. The enacted FY 2023-24 MDARD budget
assumes the continued authority to collect this licensing fee. Note that the bill does not
increase the fees or otherwise change the fee structure. The bill simply allows for the
continued collection of fees after October 1, 2023.
Fiscal Analyst: William E. Hamilton
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 4988 (H-1) Page 2 of 2


Statutes affected:
Substitute (H-1): 287.123
House Introduced Bill: 287.123
As Passed by the House: 287.123
As Passed by the Senate: 287.123
House Concurred Bill: 287.123
Public Act: 287.123
House Enrolled Bill: 287.123