agriculture in the 21st century...agriculture in the 21st century: working with ag clients to...

AGRICULTURE IN THE 21ST CENTURY:

Working with Ag Clients to Diversify Their Operations

Horse Businesses in Maryland

Presented by: Kathleen J.P. Tabor, Esquire

Types of Commercial Equine Facilities

MSBA Annual Meeting June 12, 2015

Maryland Equine Initiatives


Worcester County, MD


LICENSING PERIOD & CIVIL PENALTY SYSTEM

If you are a stable who solicits the general public, and have ONE or more horses - and either

give lessons, board horses, or have a rental service or are a rescue or sanctuary stable, you are

required by the State of Maryland to obtain and maintain licensing through the Maryland Horse

Industry Board. Licensing is conditioned on periodic inspections by the Maryland Horse

Industry Board and failure to comply may result in civil fines and penalties.

Pursuant to State Law and regulations promulgated in 2013, license renewal

applications and fees are due on or before July 1 of each year. The stable license is valid

for one year and must be renewed annually. The one-year licensing period runs from July 1

through June 30 of the following year.

(Authority: Agriculture Article, §§2-707, and 2-711, and 2-712, Annotated Code of Maryland)

http://mda.maryland.gov/horseboard/Pages/regulations.aspx

MHIB Inspections COMAR 15.16.01

License: 15.16.01.04

General Requirements: 15.16.01.07B • Shelter • Pest control/manure containment • Fences • Stalls / bedding • Tool storage • Hazard-free areas • Adequate food, water • Basic health care


Special Requirements (Lessons/Rental): 15.16.01.07C • Well-rested horses • Healthy, fit horses • Appropriately tacked, sheltered • Tack in sound condition • Grooming equipment • Wagons & Carriages: axles well-greased; brakes operational

Consequences for Non-Compliance

Failure to license, renew a license, or fail an inspection, MHIB may

impose a penalty:

For 1st violation, not less than $500 or more than

$1,000!

For 2nd violation, not less than $1,000 or more than

$1,500!

For 3rd and subsequent violations, not less than

$1,500 or more than $2,000!!

Authority: Agriculture Article, §§2-701, 2-710, and 2-718, Annotated Code of Maryland


Expanding into a “Discovery Center”


Maryland Horse Industry Board FY 2015 Pilot Program

Voluntary Certification Program for Equine Experience Center

In an effort to provide the general public with a safe, friendly, and educational experience, particularly for those individuals who have never or rarely experienced horses personally, MHIB has developed a network of licensed equine facilities that can offer tours, demonstrations, educational programs, and riding experiences to individuals and groups. Certification is voluntary. No fees are assessed for applying for certification. Each facility maintains its own fee structure for activities conducted on site. Certification is ongoing until revoked by MHIB for failure to comply with regulations. Facilities participating in the certification program agree to be monitored by MHIB based on the established criteria for facility, program development, staffing, and animals.

Certification: Horse Discovery Center

PHYSICAL INSPECTION Premises, Facility, Horses & Tack

Overall condition of premises

Driveway/Roadway/Parking Lot

Signage / Fire Extinguishers / Lighting

Restroom Facilities

Barns/Run-In Sheds/Other Buildings

Fencing / Pastures / Trails

Arenas: indoor; outdoor / Classroom

Condition of Horses / # of Program Horses

Condition and Types of Tack and Gear

Meds/Supplies: types and storage

Helmets

RECORDS INSPECTION Documentation & Business Operations

Orientation Program

Types of Educational Programs

Liability Waivers

Rules & Regulations

Incident/Accident Procedures

Emergency Preparedness Plan

Horse Management Plan

Facility Management Plan

Screening Procedures for Horses / Riders

Tack Inspection Procedure

Health Records of Horses

Staff Training / Volunteer Training

Insurance Policies


ZONING ISSUES for Individual Owners & Stables

• Codes and permits handled at the local municipality or county level for private and commercial use

• Issues to consider: – Parcel development of structures

(signs, barns, arenas, outdoor lighting, fencing, etc.)

• Manure storage, removal, and spreading

• Traffic use (ingress and egress of property)

– Land use of equine facility • Events, lessons, and training

• Cross-country activities; fox chases

• Riding trails

• Boarding, breeding


ALWAYS conduct a Liability Review!

Based on your client’s facility, the types

of activities that will be conducted and

their particular consumer-base.

• Waivers (liability releases)

• Insurance policies

– General liability

– Commercial/business liability

– Workers Compensation


Types of Insurance Policies • Horse Owner Liability coverage

• Equine Mortality and Theft coverage

• Major Medical and Surgical coverage

• Loss of Use coverage

• Named Perils coverage

• Care, Custody and Control coverage

• Horse Trailer coverage

• Short-term Transit coverage

• Farm and Ranch coverage

• Commercial Equine Liability coverage

• Professional Liability coverage

• Show and Event coverage

• Riding Club and Other Group coverage

• Race Horse Owner Liability coverage

• Stallion Infertility coverage

• Barren Mare coverage

• Workers Compensation insurance

• D&O Insurance (for board of directors)


NOTE: Homeowners policies may cover personal use

of a horse, but never for commercial use or

operations!

KEEP IN MIND….

Maryland’s CONTRIBUTORY

NEGLIGENCE is a favorable negligence

standard for equine businesses!

…along with…

• Contracts (waivers and other agreements)

• Assumption of Risk (knowingly, voluntarily, & willingly)

• Last Clear Chance (reasonable care to avoid)


Maryland’s Contributory Negligence Standard

(it’s a good thing!)

• The individual participant is responsible for their

own actions and decisions!

• Promotes due diligence and caution.

• Requires an honest assessment of one’s own

equestrian abilities and limitations.

• Favorable to the equine business operator as well

as the private individual who practice safe riding

and conducts due diligence.


Maryland Recreational Use Act Natural Resources, Title 5, Subtitle 11, Annotated Code of Maryland

Immunity from liability applies to the Land Owner if the

activity is for:

1. Educational purposes, and/or

2. Recreational purposes, AND

3. NO collection of money is made!


Maryland DOES NOT HAVE:

• “Attractive Nuisance” Doctrine or

• Equine Liability Statute


Expanding the Business

• Location and access

• Consumer base

• Seasonal considerations

• Other local competing interests

• Zoning restrictions

• Additional permitting or

license requirements

• Contracts and releases

• Insurance and tax considerations (retail, admissions & amusement)


Comptroller of Maryland

Combined Tax Registration https://interactive.marylandtaxes.com/webapps/comptrollercra/entrance.asp

Online application and paper version available. Equine facilities may need for:

o Admission & Amusement Tax account

o Income Tax Withholding account

o Unemployment Insurance account

o Sales & Use Tax license

o Use Tax account

o Alcohol Tax license

o Sales & Use Tax Exemption certificate


https://interactive.marylandtaxes.com/webapps/comptrollercra/entrance.asp

Additional Fees & Costs for Expansion

If expanding with selling or preparing food – some counties require “certified” food

managers (Baltimore City, Baltimore County, Howard County, Montgomery County and

Prince George’s County).

If expanding into retail with tack, supplies, gifts or related items – sales tax must

be collected and submitted to the State.

If expanding into bed and breakfast or other overnight accommodations – must

obtain a Bed & Breakfast license or similar rental license; pre-inspections required.

If expanding with a petting zoo or using animals for educational purposes – must

be licensed with USDA Animal & Plant Health Inspection Services (APHIS).

Adding any additional activity to current operations – contact insurance carrier for

updating coverage.



Clark's Elioak Farm A Petting Farm in the Heart of Howard County

Petting farm animals * Hayrides * Cow Train Rides

Pony Rides * Birthday Parties * Educational Tours

Enchanted Pine Tree Forest (Maze) * Special Weekend Events Enchanted Forest Attractions * Fall Season Pumpkin Patch

Clark’s Farm

http://www.clarklandfarm.com/CEF Welcome Page.htm





Riding Lessons Trail Rides Pony Rides Carriage & Sleigh

Rides Hayrides Summer Camp Tea Parties

Birthday Parties Weddings &

Receptions Bed & Breakfast Retail Sales

• gift items • books • produce, honey

A Horse Discovery Center: North East, Maryland ~ Cecil County


Full Moon Farm, LLC Finksburg, Maryland ~ Carroll County

Horse Discovery Center

Offering:

Boarding and Lessons

Horse Leases

Equitation Teams

Pony Club

Competitive Horse Trials

Summer Camps

Field Trips

Parties and Special Events Venue

Farrier Services


36609 Purnell Crossing Road

Willards, Maryland

Wicomico County

Trail Riding Adventures (year-round)

Riding Lessons / Summer Camp

Custom Birthday Parties

Educational Tours

Cat Classes for cat lovers

Retail Sales

Horse Discovery Center


Privately-owned farm – leases facility and land for:

Competitive horse events

Hunter-Jumper events

Dressage Shows

Maryland Horse Trials

Boarding barn and pastures

Fields for crop production

Fields for beef production

Adamstown, Maryland ~ Frederick County

http://www.lochmoyfarm.com/index.php


GRAHAM EQUESTRIAN CENTER Friends of Gunpowder Falls State Park Graham Area Equestrian Center, Inc.

Glen Arm, Maryland ~ Baltimore County

A Non-Profit Equine Educational Center and Horse Discovery Center

• Boarding

• Lessons

• Training

• Horse Shows & Events

• Clinics

• Summer Camps

• Educational Programs

• Special Events

• Wine & Ride

• Day of the Horse


Therapeutic Riding Program

Operation Warrior Relief

Little Leaps

Spring Break & Summer Camps

One-Time Ride

Group Ride

Educational Tours

Greenwell State Park Hollywood, Maryland ~ St. Mary’s County

Greenwell Foundation, Inc. is a non-profit

organization serving community members,

with or without disabilities.

A Horse Discovery Center!


RIVER VALLEY RANCH, INC. Manchester, Maryland Horse Discovery Center

Carroll County

Began in 1952 as a cowboy summer camp and ministry for youth,

now offers programs year-round.

Trail Rides, Therapeutic Rides, Summer Camps, Retreats, Outdoor

Experiences, Paintball, Special Events, and Seasonal Activities!

Maryland Equine Law A Legal Guide to Horse Ownership & Activities

Available for $27.25 online at:

www.ktaborlaw.com

or

Today for

“MSBA Annual Meeting”

only $20.00


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