PET SHOP LICENSE ISSUANCE S.B. 1214 (S-1): FLOOR ANALYSIS


Senate Bill 1214 (Substitute S-1 as reported)
Sponsor: Senator Nancy Cassis
Committee: Economic Development, Small Business and Regulatory Reform

CONTENT
The bill would amend Public Act 287 of 1969, which regulates pet shops and animal control shelters, to require the Michigan Department of Agriculture (MDA) to do the following:

-- Issue an initial or renewal license for a pet shop within 90 days after an applicant filed a "completed application" (as defined in the bill).
-- Notify the applicant in writing, or make information electronically available, within 30 days after receiving an incomplete application, describing the deficiency and requesting additional information.
-- Refund the license fee and reduce the fee for the applicant's next renewal application, if any, by 15% if the Department missed the deadline.
-- Report to the Legislature by December 1 each year, beginning in 2005, regarding the number of applications received and completed within the 90-day time period; the number denied; the number of applicants not issued a license within the 90-day period; and the amount of money returned to applicants.


MCL 287.334 Legislative Analyst: Suzanne Lowe

FISCAL IMPACT
The bill could result in a reduction in State revenue associated with the requirement for the Department to issue a license within 90 days.


At this time, it is unknown how many, if any, license applications would not be renewed within the stated time frame. The maximum amount of lost revenue to the State would equal the total revenue generated by the license fee ($200 initial/$100 renewal) in a given year, assuming the MDA did not meet the deadline for any of the license applications. It is estimated that the Department will receive about $18,000 in license fee revenue in FY 2003-04 under the Act. (The actual fee revenue generated in any given year will depend on the number of individuals applying for a license and whether the MDA issues the license.) Future revenue also could be reduced as a result of the 15% license fee discount that would apply to the next license renewal, if the Department failed to meet the deadline in the prior licensing period.


The bill could result in administrative costs to the State if the Department had to hire additional staff to meet the new 30-day application review process or the 90-day approval time frame. The average annual cost of a full-time classified employee is $67,400.


Date Completed: 6-11-04 Fiscal Analyst: Craig Thiel




floor\sb1214 Analysis available @ http://www.michiganlegislature.org
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.

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. sb1214/0304