Rule 40-16-3-.14. Licensing and Bonding Requirements

Rule 40-16-3-.14. Licensing and Bonding Requirements

1. (1) No barn, auction or sales operator engaged in the sale of equine shall engage in or carry on such business without first having applied for and obtained a license from the Commissioner. No equine dealer or broker who buys or sells through a barn, auction or sale operator shall engage in or carry on such business without first having applied for and obtained a license from the Commissioner; provided that said license shall be permanent until cancelled, suspended, revoked, or surrendered. Said license shall be nontransferable and free of charge. Any person, firm or corporation commencing operation of a new sales establishment for the sale of equine at auction, and any dealer or broker commencing such a business, shall, prior to obtaining a license, post a bond as required by this section. The provisions of this section requiring the posting of a bond shall not apply to any authorized agent of a person, firm, or corporation having posted the bond required by this Code section, which such agent is acting for and on behalf of such principal.

2. (2) No person shall operate a sales establishment for the sale of equine at auction unless he has then in force a bond in an amount calculated as follows:

   1. (a) If the annual sales of the establishment are $2,600,000.00 or less, the amount of the bond shall be one fifty-second of the amount of annual sales but not less than $10,000.00.
   2. (b) If the annual sales of the establishment are more than $2,600,000.00 the amount of the bond shall be $50,000.00 plus one fifty-second of the amount of annual sales in excess of $2,600,000.00 times a factor of 0.20; or
   3. (c) An amount calculated under paragraph (a) or (b) of this subsection, if not a multiple of $5,000.00, shall be rounded to the nearest higher multiple of $5,000.00.

3. (3) No dealer or broker shall purchase equine at any sales establishment or directly from producers unless he has then in force a bond in the amount calculated as follows:

   1. (a) Determine a number which is the number of days during the preceding year on which the dealer or broker did business;

   2. (b) Divide the total dollar value of livestock purchased by the dealer or broker during the preceding year by the lesser of:

      1. 1. One-half of the number determined under paragraph (a) of this subsection; or
      2. 2. One hundred thirty.

   3. (c) Adjust the amount obtained under paragraph (b) of this subsection as follows:

      1. 1. If the amount obtained under paragraph (b) of this subsection is more than $10,000.00 or less, then the amount of the bond shall be $10,000.00;
      2. 2. If the amount obtained under paragraph (b) of this subsection is more than $10,000.00 but not more than $75,000.00 then that amount shall be the amount of the bond; or
   4. (d) If the amount obtained under paragraph (b) of this subsection is more than $75,000.00 then the amount of the bond shall be the sum of $75,000.00 plus 10 percent of the amount by which the amount obtained under paragraph (b) of this subsection exceeds $75,000.00; and
   5. (e) An amount calculated under paragraph (d) of this subsection, if not a multiple of $5,000.00 shall be rounded up to the nearest multiple of $5,000.00.
4. (4) Any equine dealer, broker, or sales establishment operator who would otherwise be required by this section to post a bond who has posted a current livestock dealer's, or sales establishment's bond under Chapter 6 of this title shall not be required to post any bond under this section if livestock dealer's, broker's, or sales establishment's bond, in addition to meeting all requirements of Chapter 6 of this title, meets the requirements of paragraph (1) of Code Section 4-4-111.
5. (5) In calculating amount of bonds under this Code section, the total amount of annual sales or annual purchases for the preceding calendar year shall be used; but, if an applicant for a license does not have an annual sales history, the Commissioner shall estimate the amount of annual sales or annual purchases which will occur.

Authority: O.C.G.A. Sec. 4-4-113.

History. Original Rule entitled "Licensing and Bonding Requirements" adopted. F. Apr. 1, 1970; eff. Apr. 20, 1970.

Amended: Authority changed. F. May 2, 1984; eff. May 22, 1984.

Repealed: New Rule of same title adopted. F. Mar. 25, 1987; eff. Apr. 14, 1987.

Repealed: New Rule of same title adopted. F. Jan. 17, 2003; eff. Feb. 6, 2003.