CHAPTER 14. LIVESTOCK DEALERS
IC 15-17-14
Chapter 14. Livestock Dealers
IC 15-17-14-1
Application of chapter
Sec. 1. This chapter does not apply to the following:
(1) The purchase of livestock by an individual for theindividual's own use other than resale on the livestock market.
(2) The distribution of livestock in connection with programsdedicated to improvement of breeding practices or experimentalprocedures in which the ownership of the livestock remainsvested, in whole or in part, in the distributor or breeder.
(3) The purchase or sale of livestock by a producer or farmerthat buys or sells livestock in connection with a business ofraising, feeding, grazing, or breeding livestock as a part of afarming enterprise and does not follow a definite or routinepattern of disposing of acquired livestock through channels oftrade in less than sixty (60) days after the date of acquisition aspart of a farming enterprise as distinguished from that of adealer or trader.
(4) The purchase of livestock by slaughtering establishments,meat processors, restaurants, grocery stores, meat markets, andsimilar businesses if:
(A) the livestock is purchased solely for the purpose of beingprocessed into meat products for use or sale in connectionwith the business; and
(B) the total number of livestock purchased for the use orsale does not exceed twenty (20) in any one (1) week.
As added by P.L.2-2008, SEC.8.
IC 15-17-14-2
License requirement
Sec. 2. Unless specifically exempted in this chapter, a person mustobtain a license under this chapter to act as a dealer in livestock inIndiana. A person may not deal in livestock after the expiration,suspension, or revocation of the person's license.
As added by P.L.2-2008, SEC.8.
IC 15-17-14-3
Classification of dealers
Sec. 3. The board shall classify dealers required to be licensedunder this chapter based on the enterprise in which each dealer isengaged. The classifications must be consistent with the definitionsset forth in this article and must be based on the facts in the dealer'slicense application and any supporting papers or any inquiry orinvestigation made in conjunction with the application.
As added by P.L.2-2008, SEC.8.
IC 15-17-14-4
License classifications Sec. 4. (a) Licenses are issued under the following classifications:
(1) A market facility dealer license issued to livestock auctionmarkets, stockyards, packers, or concentration points.
(2) An individual dealer license issued to individual dealers andmarket agencies not operating a market facility.
(b) A separate license is required for each location at whichstockyards, packing plants, market agencies, or livestock auctionmarkets are operated. More than one (1) license may not be requiredof individual dealers other than those operating as market agenciesat different locations.
(c) A license issued under this chapter continues in effect until thelicensee ceases operating as a livestock dealer in Indiana or the boardrevokes the license.
(d) The board may adopt rules to implement this chapter,including the following:
(1) Procedures for issuing, suspending, revoking, and updatinglicenses.
(2) Requiring annual or other regular reports from licensees to:
(A) determine the required amount of bond coverage underthis chapter or the current status of agents or other personnelacting under the license; or
(B) update other information used in administering therequirements of this chapter.
As added by P.L.2-2008, SEC.8.
IC 15-17-14-5
Dealers and agents
Sec. 5. (a) Subject to subsection (b), a livestock dealer maydesignate agents subject to the liabilities that ordinarily attach undera contract of agency. An agent may deal in livestock for the principalunder the principal's livestock dealer license. An agent dealing inlivestock may deal only as an agent for the principal unless the agenthas obtained a separate license under this chapter.
(b) A livestock dealer may not designate an individual as an agentif the individual's dealer's license was suspended or revoked in anystate or by the United States Department of Agriculture, GrainInspection, Packers and Stockyards Administration during the two(2) years preceding the proposed designation.
As added by P.L.2-2008, SEC.8.
IC 15-17-14-6
Maintenance of bond
Sec. 6. (a) Except as provided under sections 7 and 8 of thischapter, before operating a livestock dealer business, a person mustexecute and maintain a bond or bond equivalent that meets therequirements of this section.
(b) The form of the bond or bond equivalent shall be prescribedby the board and must meet the following minimum requirements:
(1) The instrument must be payable to the state of Indiana, asobligee, for any person who may be damaged as a result of a
breach of the conditions of the instrument.
(2) The terms of the instrument must secure the performance ofthe licensee's obligations under this chapter. The instrumentmust specifically provide that the dealer will pay all legalclaims that may accrue in favor of any seller of livestock inIndiana.
(3) The surety on any livestock dealer bond or bond equivalentmust be a surety company authorized to do business in Indiana.
(4) The bond or bond equivalent is considered to be continuousunless otherwise specified. The instrument must contain aprovision requiring that, before terminating the instrument, theterminating party must serve to the board either:
(A) written notice of termination at least thirty (30) daysbefore the effective date of the termination; or
(B) notice of a valid replacement bond or bond equivalentthat provides continuous coverage.
(c) The livestock dealer bond or bond equivalent required underthis section must be an amount that is not less than the next highestmultiple of five thousand dollars ($5,000) above the quotient of:
(1) the dollar amount of livestock transactions conducted by thelicense applicant during the preceding twelve (12) months, orin that part of the year in which the applicant did business;divided by
(2) the number of days on which business was conducted.
(d) The following apply to the calculation set forth in subsection(c):
(1) The number of days on which business was conducted in ayear may not exceed one hundred thirty (130).
(2) The amount of the bond or bond equivalent may not be lessthan ten thousand dollars ($10,000), and when the requirementsexceed fifty thousand dollars ($50,000) under the calculationsas specified in subsection (c), the amount of the instrument neednot exceed fifty thousand dollars ($50,000) plus ten percent(10%) of the excess raised to the next multiple of five thousanddollars ($5,000).
(e) If the gross amount of business transacted during a twelve (12)month period changes and warrants an increase in the amount ofbond or bond equivalent coverage required under this chapter, thedealer shall have the bond or bond equivalent adjusted to complywith this chapter. If the gross amount of business changes to warranta decrease in the amount of bond or bond equivalent required underthis chapter, the dealer may have the bond or bond equivalentadjusted accordingly.
(f) A licensee may furnish a blanket bond or bond equivalent,based upon the gross amount of business transacted on an annualbasis for each enterprise operated under the same ownership, insteadof individual instruments for each enterprise operated.
As added by P.L.2-2008, SEC.8.
IC 15-17-14-7 Bond or bond equivalent with other agency
Sec. 7. If a licensee under this chapter has a valid bond or bondequivalent on file with the United States Department of Agriculture,Grain Inspection and Packers and Stockyards Administration, and thebond or bond equivalent is an adequate amount and conditioned uponterms that provide at least as much protection to sellers of livestockas a state bond under this chapter, additional coverage by bond orbond equivalent under this chapter is not required.
As added by P.L.2-2008, SEC.8.
IC 15-17-14-8
Packer; security
Sec. 8. A packer, other than a packer operating stockyards inIndiana, is not required to furnish security under section 6 of thischapter if a bond or bond equivalent is not required of the packersunder the federal Packers and Stock Yards Act of 1921 (7 U.S.C. 181through 7 U.S.C. 229).
As added by P.L.2-2008, SEC.8.
IC 15-17-14-9
Records
Sec. 9. A dealer required to be licensed under this chapter shallkeep records, accounts, and memoranda fully and correctlydisclosing all purchases, sales, or transfers involving completedlivestock transactions in connection with the dealer's business. Therecords concerning the business must disclose all persons with anownership interest in the business, including stockholders. If theboard finds that the accounts, records, memoranda, and ownershipinterest do not fully disclose all the transactions involved in thedealer's business, the board may prescribe the record keepingprocedures that the dealer must follow.
As added by P.L.2-2008, SEC.8.
IC 15-17-14-10
Scales
Sec. 10. (a) Scales used by a dealer licensed under this chapter aresubject to inspection and testing by a scale inspector who may be anyweights and measures inspector appointed by the state department ofhealth. Scales are subject to the applicable requirements of the codeof specifications, tolerances, and rules for scales adopted by the statedepartment of health.
(b) If, after proper inspection and testing, a scale fails to meet theapplicable requirements of subsection (a), the scale inspector maycondemn the scale to prevent its further use until the scale is broughtinto conformance with the requirements.
(c) A dealer licensed under this chapter, after a hearing under thischapter, shall have the dealer's license revoked if the hearingestablishes that the dealer is guilty of fraudulent, deceptive, ordishonest practices in the weighing of livestock.
As added by P.L.2-2008, SEC.8.
IC 15-17-14-11
Offenses; civil penalties
Sec. 11. (a) A person who knowingly or intentionally allows ascale to be used in a business transaction involving the purchase,sale, or exchange of livestock:
(1) after the scale has been condemned; and
(2) before it has been repaired to the satisfaction of the scaleinspector;
commits a Class D felony.
(b) In addition to any criminal penalties imposed, a person whoviolates subsection (a) may be subject to a civil penalty of fiftydollars ($50) for each day the defective scale is used. If a civilpenalty is assessed under this subsection and not paid, theprosecuting attorney of the county where the proceeding was broughtmay enforce the collection of the civil penalty. Civil penaltiescollected under this section must be deposited in the state generalfund.
As added by P.L.2-2008, SEC.8.