SB115 By Senator Whatley RFD Agriculture, Conservation, and Forestry Rd 1 07-FEB-17

SYNOPSIS: Under existing law, livestock markets are required to have a permit from the Commissioner of the Department of Agriculture and Industries.

This bill would make technical nonsubstantive changes relating to livestock markets regulated by the Department of Agriculture and Industries.

This bill would also repeal provisions relating to the Alabama Public Livestock Market Board and requirements that a livestock market that sells livestock be chartered by the board, and merge the permitting requirements into other existing permitting requirements for livestock markets.

This bill would also repeal duplicative language relating to the weighing of livestock.

A BILL TO BE ENTITLED AN ACT

Relating to livestock markets; to amend Sections 2-15-41, 2-15-61, 2-15-91, 2-15-92, 2-15-131, and 2-15-133, Code of Alabama 1975; to update and streamline language relating to livestock markets, livestock dealers, and weighmasters regulated by the Department of Agriculture and Industries; to merge permitting requirements for livestock markets, thereby eliminating duplicative requirements; to repeal Sections 2-15-93 and 2-15-95, Code of Alabama 1975, relating to the weighing of livestock; and to repeal Sections 2-15-115 to 2-15-127, inclusive, Code of Alabama 1975, relating to the Alabama Public Livestock Market Board and requirements that a livestock market be chartered by the board.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Sections 2-15-41, 2-15-61, 2-15-91, 2-15-92, 2-15-131, and 2-15-133, Code of Alabama 1975, are amended to read as follows:

§2-15-41.

"No dealer as defined in Section 2-15-40, except as provided in this section, may engage in any business described in Section 2-15-40 without a permit. Every dealer shall annually, on or before October 1, file an application with the commissioner for a permit to engage in the business. The application shall be made upon forms furnished by the Department of Agriculture and Industries and shall contain such information as may be required. The fee for every such permit, except as provided in this section, shall be established by the Board of Agriculture and Industries not to exceed thirty-seven dollars fifty cents ($37.50), which shall be paid to the commissioner and deposited in the State Treasury to the credit of the Agricultural Fund. If such permit fee is not paid within 45 days from the date on which the fee is due, a delinquent penalty of 15 percent shall be added.

"Every dealer who also engages in the business of transporting or hauling for hire cattle, sheep, goats, or hogs along any public road or highway of Alabama for resale, market, or slaughter shall pay an annual permit fee established by the Board of Agriculture and Industries not to exceed thirty-seven dollars fifty cents ($37.50) for each vehicle used in hauling or transporting such livestock, and the commissioner, under rules and regulations promulgated by the Board of Agriculture and Industries, shall issue a suitable permit plate or annual decal for proper identification of each vehicle used by dealers in hauling or transporting livestock for resale, market, or slaughter.

"Any dealer, as defined in Section 2-15-40, who procures a license as a dealer pursuant to the requirements of Article 6 of this chapter and who otherwise complies with the provisions of Article 6 of this chapter shall not be required to obtain the annual permit nor pay the fee therefor as required under this section, but every such dealer shall comply with the other provisions and requirements of this article; provided, that any dealer who is required to procure a license by Article 6 of this chapter who also engages in the business of transporting or hauling for hire cattle, sheep, goats, or hogs along any public road or highway in Alabama shall also be required to procure a permit and pay the fee therefor as required under this section.

§2-15-61.

"(a) No person shall operate a livestock market in the State of Alabama without first having obtained from the commissioner, as required by this division, an annual permit therefor.

"(b) The application for such a permit shall be made upon forms furnished by the department, which shall be verified by affidavit of the applicant which shall include all of the following information:

"(1) The name and address of the applicant or applicants and, if a corporation, its officers, and if a partnership, the names and addresses of its partners;.

"(2) The place where applicant proposes to operate a livestock market;.

"(3) A description of the property and facilities proposed to be used as a livestock market;.

"(4) The kind of livestock the applicant proposes to handle at the livestock market and the day or days of the week the applicant proposes to conduct sales;.

"(5) A financial statement of the applicant prepared by a financial institution, certified public accountant, or tax professional, showing the gross amount of business done by applicant during the preceding year, October 1 through September 30, and such statement shall show applicant's assets and liabilities; and.

"(6) An annual animal health inspection of the site performed by the State Veterinarian or his or her duly authorized agent.

"(7) Such other pertinent information as the commissioner may require relating to the bond and insurance, as required by this division, together with such information as may be required relating to the physical facilities of the livestock market and its record-keeping system for the identity of livestock received and handled.

"(c) A permit shall be issued when the commissioner finds that:

"(1) The application is in due form;

"(2) The applicant has filed with the commissioner a bond as provided in this division;

"(3) The permit fee has been paid as provided in this division; and

"(4) The requirements of this division and all rules and regulations promulgated under the provisions of this division have been complied with.

"(d) A permitee shall notify the commissioner in writing not more than 30 days after any change to the information required under subsection (b).

"(e) The permit issued under this division shall be revoked or shall not be issued or renewed when the commissioner finds that the livestock market is not complying with the provisions of this division or rules and regulations duly promulgated under this division or any such livestock market is or has not complied with any requirement of law for the control and eradication of any diseases of livestock or any law requiring the keeping of records relating to the identity of livestock for such purpose or for the tracing of lost, stolen, or estrayed livestock or any rule or regulation promulgated under authority of such laws.

"(e)(f) Any livestock market refused or denied a permit provided for in this division or any livestock market having its permit revoked or cancelled by the commissioner shall be entitled to appeal such action of the commissioner to the board by filing a written notice or demand therefor with the commissioner within 10 days after notice of denial, revocation of, or failure to renew a permit has been received by the livestock market, which appeal must be heard by the board at the next regular meeting or a special meeting called for this purpose; provided, that such appeal must be heard by the board on a date not later than 30 days following the date on which an appeal is filed. The filing of an appeal shall not suspend the action of the commissioner in the revocation or cancellation of a permit. The action of the board in refusing to grant or in revoking any permit may be reviewed by the circuit court of the county in which the livestock market is located, upon a complaint being filed in said the circuit court, accompanied by a bond to be approved by the register or clerk within 15 days after notice to the applicant or to the holder of the permit of the board's decision. Such complaint shall be styled in the name of applicant or holder of the permit as plaintiff against the commissioner as defendant and shall set forth the action complained of and pray its reversal. It shall be the duty of the commissioner to serve an answer within 30 days after said the complaint is served upon him the commissioner. The case shall be heard de novo by the court and it shall be determined from the evidence whether the refusal or revocation of the permit is or is not justified under the provisions of this division, and a decision shall be accordingly entered, subject to the right of appeal, which shall lie from a final order or judgment of the circuit court in the same manner as in other civil cases. All appeal rights provided in this subsection shall not suspend the action of the commissioner in the revocation or refusal of a permit.

§2-15-91.

"No person shall operate scales upon which livestock are weighed at livestock markets where the livestock are sold upon the basis of weight unless such person obtains a public weighmaster permit as required under the provisions of this division, nor shall any person who operates a livestock market sell livestock for himself or others at a livestock market upon the basis of weight unless such livestock is weighed by a person holding a public weighmaster permit as required under the provisions of this division.

§2-15-92.

"A public weighmaster permit to operate scales at livestock markets as required under Section 2-15-91 shall be obtained from the Commissioner of Agriculture and Industries and such permit shall expire on September 30 following the date of issuance in accordance with Sections 8-16-50 to 8-16-59, inclusive, and Section 8-16-106.

"A permit fee not to exceed $20.00 established by the Board of Agriculture and Industries shall accompany each application for a permit, which fee shall be deposited into the Agricultural Fund of the State Treasury.

"Annual permits Permits required under this division shall cover the 12-month period beginning October 1 and ending September 30 be valid for one year as provided in Section 8-16-51.

§2-15-131.

"When used in this article, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise:

"(1) COMMISSIONER. The Commissioner of Agriculture and Industries of the State of Alabama.

"(2) BOARD. The Board of Agriculture and Industries of the State of Alabama.

"(5)(3) DEALER. Any person engaged in the business of buying livestock in the State of Alabama for resale, exchange or slaughter and meat packing purposes, either on his or her own account or as agent for others on a commission basis or otherwise.

"(3)(4) DEPARTMENT. The Department of Agriculture and Industries of the State of Alabama.

"(6)(5) LIVESTOCK. Cattle, swine, sheep, goats, equidae, ratites, poultry, and catfish.

"(6) LIVESTOCK MARKET. A place, concentration, or collection point or other public or private place where a person assembles livestock for either public or private sale by himself or herself and the service or the cost or expense thereof is compensated by the owner of the livestock on a commission basis or otherwise. The term does not include any of the following:

"a. A place used on a temporary basis solely for the dispersal sale of the livestock of a farmer, dairy farmer, livestock breeder, or feeder who is discontinuing his or her business and where no other livestock is sold or offered for sale.

"b. A farm, ranch, or place where livestock is raised or kept for the grazing season or for fattening and subsequently sold and where no other livestock is brought there for sale or offered for sale.

"c. The premises of a butcher, packer, or processor that receives livestock exclusively for immediate slaughter.

"d. A place where livestock is raised solely for breeding purposes and the owner exclusively sells animals he or she produced.

"e. A place where a producer or an association of producers of livestock of any class assemble and sell or offer for sale any livestock, provided the producer or association manages the sale and assumes all responsibility for the sale and the title to the livestock sold.

"f. A place used on a temporary basis solely for livestock sales of 4-H clubs, Future Farmers of America, or other similar youth organizations.

"(7) LIVESTOCK MARKET OWNER. A person engaged in the business of conducting or operating a public livestock market whether personally or through agents or employees.

"(4)(8) PERSON. Any individual, partnership, corporation, association or other business unit.

§2-15-133.

"(a) No license as required under Section 2-15-132 shall be issued or renewed until the applicant therefor shall make, execute, and thereafter maintain on file with the commissioner a bond or a bond equivalent as provided in subsection (f) of this section in favor of the State of Alabama or a trustee to be approved by the commissioner to secure the performance of obligations incurred in the State of Alabama and the payment thereof to persons from whom such dealer purchases livestock. Except as otherwise provided in this subsection, the amount of each bond shall be not less than the next multiple of $2,000.00 two thousand dollars ($2,000) above the average amount of purchases of livestock purchased either as a dealer or on an agency basis in Alabama during a period equivalent to two business days based on the total number of business days and the total amount of such transactions during the proceeding preceding 12 months or in such substantial part thereof in which the applicant did business. For the purpose of this computation, 260 shall be deemed the number of business days in any year. Bonds above $26,000.00 twenty-six thousand dollars ($26,000) shall not be less than the next multiple of $5,000.00 five thousand dollars ($5,000) above the average amount of livestock purchased either as a dealer or on an agency basis in Alabama, computed as set out in this subsection. When the amount of a bond, calculated as required in this subsection, exceeds $50,000.00 fifty thousand dollars ($50,000), the amount of the bond shall not exceed $50,000.00 fifty thousand dollars ($50,000) plus 10 percent of the excess, unless the commissioner has reason to believe that a bond in such that amount is inadequate because of the volume of business conducted on a seasonal or otherwise irregular basis, in which event the commissioner shall determine and specify the amount of the bond to be required.

"(b) In no case shall a bond covering the buying operations of a dealer be less than $10,000.00 ten thousand dollars ($10,000).

"(c) If the applicant is a successor in business to a dealer subject to the requirements of this article, the bond of such applicant shall be in an amount not less than that required of the prior dealer, unless the commissioner finds that the amount of such a bond will be excessive and unnecessary. If the applicant has not been previously engaged in the business of a dealer subject to the requirements of this article, the bond of such applicant shall be in an amount equivalent to the estimated value of livestock purchases which it is anticipated such applicant will make during any two business days during the succeeding 12 months; provided, however, that the amount of such bond shall be subject to adjustment from time to time in accordance with the provisions of subsection (e) of this section.

"(d) Bonds required by subsection (a) of this section shall be conditioned that the dealer or principal shall pay, when due to the person or persons entitled thereto, the purchase price of all livestock purchased in the State of Alabama by said the dealer-principal for his or her own account or for the accounts of others and that the said dealer-principal shall safely keep and properly disburse all funds, if any, which come into his or her hands for the purpose of paying for livestock purchased for the account of others. Bonds required by subsection (a) of this section shall be written by a surety company qualified to do business in Alabama. Any person having a cause of action against a dealer for breach of the condition of the bond may bring a civil action against the principal and surety of such bond in any court of competent jurisdiction for recovery of the loss resulting from such breach of the condition of the bond; provided, however, that the aggregate liability of the surety for all such losses shall not exceed the amount of the bond. The bond shall contain a provision requiring not less than 15 days' written notice to the commissioner by the party terminating such bond in order to effect its termination.

"(e) Whenever the commissioner finds that any bond required under this section is inadequate, such bond, upon notice from the commissioner, shall be increased to meet the requirements of this section or, in like manner, may be reduced if found to be in excess of the requirements of this section; provided, however, that the amount of such bond shall not be increased or reduced by the commissioner, nor shall the amount of any bond be increased under authority of subsection (a) of this section unless and until the State Board of Agriculture and Industries board adopts and promulgates rules and regulations prescribing the conditions under which bond increases or reductions will be required by the commissioner. Such rules and regulations The rules shall prescribe a uniform method and procedure to be followed by the commissioner in determining the amount of any bond increases or reductions that may be ordered by the commissioner because of being inadequate or excessive. All such bond increases and reductions as ordered by the commissioner as authorized under this subsection shall be reviewed by the board at its next quarterly or special call meeting for the purpose of determining whether the action of the commissioner in requiring an increase or reduction in the amount thereof is in compliance with the rules and regulations as prescribed by the said board for this purpose.

"(f) A bond equivalent may be filed or maintained in lieu of a bond. A bond equivalent shall be in the form of a trust fund agreement based upon cash or fully negotiable bonds of the United States government or of the State of Alabama. All provisions of this section relating to making, executing, filing, and maintaining bonds on file with the commissioner shall be applicable to such trust fund agreements.

"(g) The above requirements for a bond or bond equivalent may be waived provided the dealer, "at the time of purchase," pays for all livestock purchased with United States currency (cash), money orders, or cashier's or certified checks. The dealer may also be required to submit verified statements to this effect.

"(h) Every person engaged in the business of a dealer, as defined in Section 2-15-131, shall furnish annually and at such other times as the commissioner may designate or request verified financial statements and reports showing the volume and value of livestock purchased in Alabama and the names and addresses of all employees authorized to purchase livestock for such person and shall keep such books and records as the commissioner may require as being reasonably necessary to carry out the provisions and requirements of this section, and the commissioner or his or her duly authorized agent or agents shall have access to such books and records during the regular business hours of any business day for the purpose of examination, inspection, audit, or investigation of such dealer's operations. Any person who submits false information in making any report required under this subsection or who refuses the commissioner or his or her authorized agent access to such books and records as are required to be kept under this subsection shall be subject to the provisions of Section 2-15-136.

"(i) Every person engaged in the business of a dealer, as defined in Section 2-15-131, shall make full payment of the amount of each purchase of livestock to the person from whom such purchase was made not later than the close of the next business day following the date of such the purchase; however, dealers engaged in the business of buying catfish shall make such payment not later than the close of 10 business days following the date of such the purchase of catfish.

"(j) Every person engaged in the business of a dealer shall as defined in Section 2-15-131, with regard to any purchase of livestock made by such dealer at a livestock market regulated by Sections 2-15-60 through 2-15-71, shall be liable for the payment of the amount of each such the livestock purchase made by such the dealer whether the purchase was made by the dealer on his or her own account or as an agent for another, and with respect to such livestock purchases made as an agent for another, such liability shall exist without regard to the fact that the other party for whom the purchase was made shall also be liable for the payment of the amount of such purchase."

Section 2. Sections 2-15-93, 2-15-95, and Sections 2-15-115 to 2-15-127, inclusive, Code of Alabama 1975, are repealed.

Section 3. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Livestock

Agriculture and Industries Department

Agriculture

Livestock Market Board

Code Repealed

Code Amended