Attention Michigan Horse Dealers: Understand How Michigan’s New Dealer Law Affects You
On October 1, 2012, a new Michigan law went into affect that has implications for certain people or businesses who engage in selling or transporting horses and livestock in Michigan. The law, HB 5784, was designed to control the spread of infectious diseases of livestock and animals in Michigan. It now requires those engaged in the buying, receiving, selling, transporting, exchanging negotiating or who solicit sale, resale, exchange, or transportation of livestock to be licensed bonded by the Michigan Department of Agriculture.
The License Requirement
The new law states in Section 2:
“A dealer, broker, agent, or livestock trucker shall not engage in or carry on the business of buying, receiving, selling, exchanging, transporting, negotiating, or soliciting the sale, resale, exchange, transportation, or transfer of any animals within the state unless the person is licensed as provided in this act. A dealer, broker, agent, or livestock trucker is responsible for acts performed or contracts made by any person employed by the dealer, broker, agent, or livestock trucker in buying, receiving, selling, exchanging, transporting, negotiating, or soliciting the sale, resale, exchange, transportation, or transfer of livestock.”
Don’t seek licensure unnecessarily. Read and understand the law first. A brief summary follows.
Who is Affected by the Law?
The law defines “animals” or “livestock” to include “horses, ponies, mules, cattle, and others.” It defines a “dealer” or “broker” as “a person that, as a principal or agent, engages in the business of buying, receiving, selling, exchanging, buying for slaughter, negotiating, or soliciting sale, resale, exchange, transportation, or transfer of animals.” It exempts persons who are “permanently discontinuing the business of farming, breeding, or feeding animals.” It also exempts “a person that sells livestock that have been raised on the premises of the person.” Those who buy or receive animals for breeding, grazing, and feeding as well as the sale and disposal after a feeding and grazing period of not less than 21 days are also exempt.
Who is Not Affected?
Among the exemptions are occasional consignment sales that are sponsored and conducted by a breed association, 4-H, or FFA group, county fair or youth fair.
The law specifically provides that a “buying station” “does not include a livestock auction.” It also provides that a “livestock trucker” does not include a person who hauls livestock “on an occasional basis for persons participating in a livestock exhibition, fair, trail ride, youth livestock event, or similar activity.” Exemptions also include “hauling livestock on an incidental basis in connection with another business, such as a veterinary practice or a stable operation, which is operated by that person and which does not ordinarily involve the sale of livestock” as well as “[h]auling livestock for another person fewer than 6 times within the preceding 12 months.”
How Do You Get Licensed?
Contact the Department of Agriculture and Rural Development.
How Much is a License?
Permits can be purchased through the Department of Agriculture and Rural Development. The new law provides that annual, non-refundable fees range from $25 for a “livestock trucker” to $400 for a “livestock auction operator.” Licenses become effective October 1 of each year and expire on September 30.
Other Requirements in the Law
The law imposes several requirements for livestock “auctions, collection points, or buying stations” such as pen and building construction, flooring, manure storage, auction rings, docks, pens, and scales. The law also has provisions affecting watering of animals and flooring.
Penalties for Non-Compliance
Noncompliance with the law could involve steep penalties. The law provides for a total limit of fines of up to $25,000.
Categories: Contracts, Regulatory
Julie Fershtman is considered to be one of the nation's leading attorneys in the field of equine law. She has successfully tried equine cases before juries in four states. A frequent author and speaker on legal issues, she has written over 400 published articles, four books, and has lectured at seminars, conventions, and conferences in 29 states on issues involving law, liability, risk management, and insurance. For more information, please also visit www.fershtmanlaw.com and www.equinelaw.net, and www.equinelaw.info.
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Fershtman’s Equine Law Book Wins Fourth National Award
Julie Fershtman’s latest book, Equine Law and Horse Sense, won its fourth national award on May 31, 2021. It was selected to receive a "Finalist" Medal in the 2021 Next Generation Indie Book Awards.
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Fershtman’s Equine Law Book Receives Third National Award
Julie Fershtman’s book, Equine Law & Horse Sense, published by the American Bar Association, has been selected to receive a 2020 NYC Big Book Award in the category of “Reference” books.
The NYC Big Book Awards draws nominations world-wide. This is the third award for Fershtman’s book since its publication last year. Here is a link for more information, and to see the list of winners: https://www.nycbigbookaward.com/2020winners
Information on the book: https://www.amazon.com/gp/product/164105493X/ref=dbs_a_def_rwt_hsch_vapi_taft_p1_i0
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Upcoming Speaking Engagements
In 2022, Julie Fershtman is scheduled to be a speaker on equine liability at these conventions:
- American Horse Council Annual Meeting and National Issues Forum, Washington D.C. - June 6, 2022
- National Conference on Equine Law, Lexington, Kentucky – May 4, 2022
- IRMI Agribusiness Conference (“AgriCon”), Sacramento, California – March 8, 2022
- New York State Bar Association Equine Law Symposium (virtual conference) – February 9, 2022
Fershtman’s Equine Law Book Receives Second National Award
Julie Fershtman’s book, Equine Law & Horse Sense, published by the American Bar Association, has been selected to receive a 2020 NYC Big Book Award in the category of “Reference” books.
The NYC Big Book Awards draws nominations world-wide. This is the third award for Fershtman’s book since its publication last year. Here is a link for more information, and to see the list of winners: https://www.nycbigbookaward.com/2020winners
Information on the book: https://www.amazon.com/gp/product/164105493X/ref=dbs_a_def_rwt_hsch_vapi_taft_p1_i0
Honors & Recognitions
Equine lawyer, Julie Fershtman, has received these prestigious equine industry awards from respected equine organizations:
"Excellence in the Advancement of Animal Law Award" - American Bar Association Tort Trial & Insurance Law Section Animal Law Committee
"Distinguished Service Award" - American Youth Horse Council
"Industry Service Award" - Michigan Equine Partnership
"Catalyst Award"- Michigan Horse Council
"Outstanding Achievement Award" - American Riding Instructors Association
"Partner in Safety Award" - American Riding Instructors Association
"Associate Service Award" - United Professional Horseman's Association
"National Partnership in Safety" Award" - Certified Horsemanship Association
Some of our Equine Law Services
Handling breach of contract, fraud/ misrepresentation, commercial code, and other claims involving equine-related transactions including purchases/sales, leases, mare leases/foal transfers, and partnerships.
Litigating a wide variety of equine-related disputes in court or through alternative dispute resolution (arbitration, mediation, facilitation).
Defending equine/farm/equestrian industry professionals, businesses, and associations in personal injury claims and lawsuits.
Drafting and negotiating contracts for boarding, training, sales, waivers/releases, leases, and numerous other equine-related transactions.
Representing and advising insurers on coverage and policy language as well as litigation;
Advising equine industry clubs and associations regarding management, rules, bylaws, disputes, and regulations.
Representing some of the equine industry's top trainers, competitors, stables, and associations.
Counseling industry professionals, stable managers, and individual horse owners.
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Did you know Julie Fershtman has spoken at the American Horse Council Annual Meeting, Equine Affaire, US Hunter/Jumper Association Annual Meeting, Midwest Horse Fair, Equitana USA, US Dressage Federation Annual Meeting, North American Riding for the Handicapped (now PATH International) Annual Meeting, American Paint Horse Association Annual Meeting, US Pony Clubs, Inc.'s Annual Meeting, All-American Quarter Horse Congress, American Youth Horse Council Annual Meeting, American Riding Instructors Association Annual Meeting, CHA Annual Meeting, and numerous others? Consider signing her up for your convention. Contact Julie directly.
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