If the designated inspector finds that the auction market operators, dealers, or individuals involved in change of ownership transactions are not in compliance with the above-stated standards, that person or establishment will:

1. (1) Be notified in writing explaining the deficiencies and recommendations made on what improvements should be made to achieve compliance; and

2. (2) Notify the Arkansas Board of Animal Health within fifteen (15) days after receipt of such notice to certify that the steps have been taken to comply with the standards:

   1. (A)

      1. (i) If there is a failure to respond, or if the board or its designated inspector determines that the establishment has not complied with the standards, the market shall be inspected by a committee consisting of:

         1. (a) (a) One (1) livestock market representative;
         2. (b) (b) Two (2) livestock producers; and
      2. (c) (c) The State Veterinarian.
      3. (ii) Members of the committee shall be appointed by the Chair of the Arkansas Board of Animal Health and those members shall be from outside the incriminated establishment's trade area.
      4. (iii) Per diem and mileage for committee members shall be paid as provided for by the State of Arkansas;
   2. (B) If the committee finds that the incriminated establishment does not meet the prescribed standards, the board shall order the market closed immediately until the market is found to be in compliance with the defined standards;
   3. (C) That they have knowingly sold for dairy or breeding purposes livestock which were affected with livestock diseases;
   4. (D) That they have demonstrated to the satisfaction of the board their inability or unwillingness to carry out the record keeping requirements of this part; or
   5. (E) That they have ceased to operate the business for which the license was issued.