36-04 Livestock Dealers

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CHAPTER 36-04LIVESTOCK DEALERS36-04-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1."Commissioner" means the agriculture commissioner.2."Dealer" means any person, copartnership, association, corporation, or limited<br>liability company engaged in the business of buying or dealing in horses, mules,<br>cattle, hogs, goats, sheep, or wool from the producer, terminal market, or livestock<br>auction market for resale, slaughter, or shipment within or without the state, and also<br>resale in the local market.3."Department" means the department of agriculture.36-04-02. Restrictions on application of provisions of chapter. The provisions of thischapter do not apply to:1.Farmers who or farm associations which buy and sell farmed elk, livestock, poultry,<br>or wool among themselves as producers.2.Farmers who or farm associations which purchase farmed elk, livestock, or wool to<br>complete a load of their own farmed elk, livestock, or wool for shipment to market if<br>the amount so purchased does not exceed twenty-five percent of a truckload.3.Cooperative farmed elk, livestock, or wool marketing associations of producers of<br>farmed elk, livestock, or wool in their dealings with their members.4.Livestock, including farmed elk, purchased by local butchers for slaughter or<br>processing in their business for local home consumption.36-04-03. Dealer's license required - Agent designation and licensure - Suitabilityfor licensure - Liability of owner for agent's acts.1.All dealers and agents must be licensed as provided in this chapter.2.No agent may act for any dealer unless the dealer is licensed and has designated<br>such agent to act in the dealer's behalf and has notified the department of the<br>appointment in the dealer's application for a license or in a separate written<br>instrument and requested the department to issue to such agent an agent's license<br>in such form as may be prescribed by the commissioner and has signed a statement<br>in substantially the following form:I, the undersigned applicant for a North Dakota livestock dealer's license,<br>understand that I am strictly responsible for and will be held strictly liable for all<br>acts, omissions, or failures arising out of livestock dealings of the agents listed<br>above, whether or not the dealings have been personally authorized by me.3.No dealer may designate as an agent any person who has been denied a dealer's or<br>agent's license or has had a dealer's or agent's license revoked for any reason or<br>has otherwise acted in a manner which would be in violation of this chapter, except<br>upon a determination by the commissioner that the person is sufficiently<br>rehabilitated to serve the public as a dealer's agent and that the person does not<br>owe any debt to any livestock seller or auction market. Conviction of an offense as<br>defined by section 12.1-01-04 does not disqualify a person from licensure unless the<br>commissioner determines that the offense has a direct bearing upon a person'sPage No. 1ability to serve the public as a dealer's agent or that the person is not at present<br>sufficiently rehabilitated under section 12.1-33-02.1.4.Agents may not deal in their own names or issue a check or any other commercial<br>paper except in the name of their principals when acting as agents. A dealer is<br>accountable and responsible for all the acts arising out of livestock dealings of a<br>designated agent, whether authorized or unauthorized by the dealer.36-04-04. Application for license - Contents - Refusal to license - Suspension andrevocation.1.Before entering into a business of a kind described in this chapter and annually, on<br>or before July first, each dealer shall file an application for a license to transact such<br>business with the department on a form prescribed by it.The application mustshow:a.The nature of the business for which a license is desired and whether it is for<br>the business of buying livestock or wool, or for both such businesses.b.The name or names of the persons applying for the license.c.The full name of each member thereof if the applicant is a firm, association, or<br>partnership, the names of the officers thereof if the applicant is a corporation, or<br>the names of the managers thereof if the applicant is a limited liability company.d.The name of the agent or agents of the applicant.e.The post-office address and the principal place of business of the applicant.f.If the applicant is a foreign corporation, its principal place of business without<br>this state, the name of the state in which it is incorporated, and that it has<br>complied with the laws of this state relating to foreign corporations.g.If the applicant is a foreign limited liability company, its principal place of<br>business without this state, the name of the state in which it is organized, and<br>that it has complied with the laws of this state relating to foreign limited liability<br>companies.h.Such other facts as the department may prescribe.2.The commissioner shall refuse to issue or renew a license if the applicant:a.Has not filed a surety bond in the form and amount required under the<br>provisions of this chapter;b.Has not satisfactorily demonstrated that the applicant's current assets exceed<br>the applicant's current liabilities;c.Has been found by the commissioner to have failed to pay, without reasonable<br>cause, obligations incurred in connection with livestock transactions; ord.Has made or caused to be made any false entry or statement of fact in any<br>application, financial statement, or report filed with the department under this<br>chapter.Whenever the commissioner finds that any livestock dealer has violated the<br>provisions of this subsection, the commissioner may suspend or refuse to issue or<br>renew the license of such offender in the manner provided by law.Page No. 236-04-05. Dealer to file bond with department - Additional bond may be required.Each applicant for a license under this chapter shall file with the application a bond issued by an<br>approved surety company. The department must be named as the obligee in each bond but the<br>bond will be held for the purpose of protecting and for the benefit of any person selling livestock<br>or wool, as the case may be, to the licensed dealer or the dealer's agent. The bond must be<br>conditioned for:1.The faithful performance by the dealer and the dealer's designated agent of the<br>duties as such;2.The compliance by the dealer and the dealer's designated agent with all of the<br>provisions of this code relating to the purchase of livestock or wool, as the case may<br>be;3.The full and complete payment to the seller for all livestock or wool purchased by the<br>dealer or the dealer's designated agent; and4.The full protection of any person who deals with the dealer or the dealer's<br>designated agent.Each bond must cover the license period of the dealer or such greater time as thecommissioner may prescribe and must be approved as to amount, form, and sufficiency by the<br>department. The minimum amount of bond is ten thousand dollars, and must be for any greater<br>amount as may be determined by computing the amount of bond on the same basis as<br>prescribed for dealers subject to the provisions of the Packers and Stockyards Act, 1921 [Pub. L.<br>67-51; 42 Stat. 159; 7 U.S.C. 181 et seq.].The department may demand an additional orincreased bond whenever in its judgment the volume of business of the principal warrants such<br>demand.In lieu of the bond required of dealers under this section, the applicant may file with thedepartment the dealer's bond filed by that applicant with the United States department of<br>agriculture and in effect pursuant to the Packers and Stockyards Act, 1921, naming the<br>commissioner as the trustee of such bond. Bonds from out-of-state applicants may be in favor of<br>a trustee who is a financially responsible, disinterested person satisfactory to the commissioner.<br>The minimum amount of such bond is ten thousand dollars, unless the department determines<br>that the amount of such bond is insufficient in any instance, in which event the department shall<br>require the reasonable amount of the bond required to protect the public interest.36-04-05.1. Records release required with application for licensure. A dealer shallfile, together with the license application, a release authorizing the access of the commissioner to<br>financial records of the dealer held by financial institutions, accountants, and other sources. The<br>release must be in a form approved by the commissioner.The commissioner may use therelease in the course of licensing or relicensing a dealer or in the course of an investigation of a<br>dealer. Any information gained through the use of a release is confidential. The commissioner<br>may furnish information obtained through the use of the records release to the attorney general,<br>other state agencies, and any prosecuting officials requiring the information for use in pursuit of<br>official duties.36-04-06. Amount of bonds. 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t36/pdf/t36c04.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 36-04LIVESTOCK DEALERS36-04-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1.\u0026quot;Commissioner\u0026quot; means the agriculture commissioner.2.\u0026quot;Dealer\u0026quot; means any person, copartnership, association, corporation, or limited\u003cbr\u003eliability company engaged in the business of buying or dealing in horses, mules,\u003cbr\u003ecattle, hogs, goats, sheep, or wool from the producer, terminal market, or livestock\u003cbr\u003eauction market for resale, slaughter, or shipment within or without the state, and also\u003cbr\u003eresale in the local market.3.\u0026quot;Department\u0026quot; means the department of agriculture.36-04-02. Restrictions on application of provisions of chapter. The provisions of thischapter do not apply to:1.Farmers who or farm associations which buy and sell farmed elk, livestock, poultry,\u003cbr\u003eor wool among themselves as producers.2.Farmers who or farm associations which purchase farmed elk, livestock, or wool to\u003cbr\u003ecomplete a load of their own farmed elk, livestock, or wool for shipment to market if\u003cbr\u003ethe amount so purchased does not exceed twenty-five percent of a truckload.3.Cooperative farmed elk, livestock, or wool marketing associations of producers of\u003cbr\u003efarmed elk, livestock, or wool in their dealings with their members.4.Livestock, including farmed elk, purchased by local butchers for slaughter or\u003cbr\u003eprocessing in their business for local home consumption.36-04-03. Dealer's license required - Agent designation and licensure - Suitabilityfor licensure - Liability of owner for agent's acts.1.All dealers and agents must be licensed as provided in this chapter.2.No agent may act for any dealer unless the dealer is licensed and has designated\u003cbr\u003esuch agent to act in the dealer's behalf and has notified the department of the\u003cbr\u003eappointment in the dealer's application for a license or in a separate written\u003cbr\u003einstrument and requested the department to issue to such agent an agent's license\u003cbr\u003ein such form as may be prescribed by the commissioner and has signed a statement\u003cbr\u003ein substantially the following form:I, the undersigned applicant for a North Dakota livestock dealer's license,\u003cbr\u003eunderstand that I am strictly responsible for and will be held strictly liable for all\u003cbr\u003eacts, omissions, or failures arising out of livestock dealings of the agents listed\u003cbr\u003eabove, whether or not the dealings have been personally authorized by me.3.No dealer may designate as an agent any person who has been denied a dealer's or\u003cbr\u003eagent's license or has had a dealer's or agent's license revoked for any reason or\u003cbr\u003ehas otherwise acted in a manner which would be in violation of this chapter, except\u003cbr\u003eupon a determination by the commissioner that the person is sufficiently\u003cbr\u003erehabilitated to serve the public as a dealer's agent and that the person does not\u003cbr\u003eowe any debt to any livestock seller or auction market. Conviction of an offense as\u003cbr\u003edefined by section 12.1-01-04 does not disqualify a person from licensure unless the\u003cbr\u003ecommissioner determines that the offense has a direct bearing upon a person'sPage No. 1ability to serve the public as a dealer's agent or that the person is not at present\u003cbr\u003esufficiently rehabilitated under section 12.1-33-02.1.4.Agents may not deal in their own names or issue a check or any other commercial\u003cbr\u003epaper except in the name of their principals when acting as agents. A dealer is\u003cbr\u003eaccountable and responsible for all the acts arising out of livestock dealings of a\u003cbr\u003edesignated agent, whether authorized or unauthorized by the dealer.36-04-04. Application for license - Contents - Refusal to license - Suspension andrevocation.1.Before entering into a business of a kind described in this chapter and annually, on\u003cbr\u003eor before July first, each dealer shall file an application for a license to transact such\u003cbr\u003ebusiness with the department on a form prescribed by it.The application mustshow:a.The nature of the business for which a license is desired and whether it is for\u003cbr\u003ethe business of buying livestock or wool, or for both such businesses.b.The name or names of the persons applying for the license.c.The full name of each member thereof if the applicant is a firm, association, or\u003cbr\u003epartnership, the names of the officers thereof if the applicant is a corporation, or\u003cbr\u003ethe names of the managers thereof if the applicant is a limited liability company.d.The name of the agent or agents of the applicant.e.The post-office address and the principal place of business of the applicant.f.If the applicant is a foreign corporation, its principal place of business without\u003cbr\u003ethis state, the name of the state in which it is incorporated, and that it has\u003cbr\u003ecomplied with the laws of this state relating to foreign corporations.g.If the applicant is a foreign limited liability company, its principal place of\u003cbr\u003ebusiness without this state, the name of the state in which it is organized, and\u003cbr\u003ethat it has complied with the laws of this state relating to foreign limited liability\u003cbr\u003ecompanies.h.Such other facts as the department may prescribe.2.The commissioner shall refuse to issue or renew a license if the applicant:a.Has not filed a surety bond in the form and amount required under the\u003cbr\u003eprovisions of this chapter;b.Has not satisfactorily demonstrated that the applicant's current assets exceed\u003cbr\u003ethe applicant's current liabilities;c.Has been found by the commissioner to have failed to pay, without reasonable\u003cbr\u003ecause, obligations incurred in connection with livestock transactions; ord.Has made or caused to be made any false entry or statement of fact in any\u003cbr\u003eapplication, financial statement, or report filed with the department under this\u003cbr\u003echapter.Whenever the commissioner finds that any livestock dealer has violated the\u003cbr\u003eprovisions of this subsection, the commissioner may suspend or refuse to issue or\u003cbr\u003erenew the license of such offender in the manner provided by law.Page No. 236-04-05. Dealer to file bond with department - Additional bond may be required.Each applicant for a license under this chapter shall file with the application a bond issued by an\u003cbr\u003eapproved surety company. The department must be named as the obligee in each bond but the\u003cbr\u003ebond will be held for the purpose of protecting and for the benefit of any person selling livestock\u003cbr\u003eor wool, as the case may be, to the licensed dealer or the dealer's agent. The bond must be\u003cbr\u003econditioned for:1.The faithful performance by the dealer and the dealer's designated agent of the\u003cbr\u003eduties as such;2.The compliance by the dealer and the dealer's designated agent with all of the\u003cbr\u003eprovisions of this code relating to the purchase of livestock or wool, as the case may\u003cbr\u003ebe;3.The full and complete payment to the seller for all livestock or wool purchased by the\u003cbr\u003edealer or the dealer's designated agent; and4.The full protection of any person who deals with the dealer or the dealer's\u003cbr\u003edesignated agent.Each bond must cover the license period of the dealer or such greater time as thecommissioner may prescribe and must be approved as to amount, form, and sufficiency by the\u003cbr\u003edepartment. The minimum amount of bond is ten thousand dollars, and must be for any greater\u003cbr\u003eamount as may be determined by computing the amount of bond on the same basis as\u003cbr\u003eprescribed for dealers subject to the provisions of the Packers and Stockyards Act, 1921 [Pub. L.\u003cbr\u003e67-51; 42 Stat. 159; 7 U.S.C. 181 et seq.].The department may demand an additional orincreased bond whenever in its judgment the volume of business of the principal warrants such\u003cbr\u003edemand.In lieu of the bond required of dealers under this section, the applicant may file with thedepartment the dealer's bond filed by that applicant with the United States department of\u003cbr\u003eagriculture and in effect pursuant to the Packers and Stockyards Act, 1921, naming the\u003cbr\u003ecommissioner as the trustee of such bond. Bonds from out-of-state applicants may be in favor of\u003cbr\u003ea trustee who is a financially responsible, disinterested person satisfactory to the commissioner.\u003cbr\u003eThe minimum amount of such bond is ten thousand dollars, unless the department determines\u003cbr\u003ethat the amount of such bond is insufficient in any instance, in which event the department shall\u003cbr\u003erequire the reasonable amount of the bond required to protect the public interest.36-04-05.1. Records release required with application for licensure. A dealer shallfile, together with the license application, a release authorizing the access of the commissioner to\u003cbr\u003efinancial records of the dealer held by financial institutions, accountants, and other sources. The\u003cbr\u003erelease must be in a form approved by the commissioner.The commissioner may use therelease in the course of licensing or relicensing a dealer or in the course of an investigation of a\u003cbr\u003edealer. Any information gained through the use of a release is confidential. The commissioner\u003cbr\u003emay furnish information obtained through the use of the records release to the attorney general,\u003cbr\u003eother state agencies, and any prosecuting officials requiring the information for use in pursuit of\u003cbr\u003eofficial duties.36-04-06. Amount of bonds. 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