1. A. Except as otherwise provided by subsection C of this section, no person shall operate, conduct or maintain a livestock auction market unless the person holds a livestock auction market license issued by the State Board of Agriculture and has:

   1. 1. Executed a corporate surety bond pursuant to the provisions of this section. The bond shall be conditioned upon the prompt and faithful accounting for all livestock received, handled or sold, and the remittance of the proceeds from any sale, purchase or exchange of any livestock to the consignor thereof;

   2. 2. Opened a certificate of deposit account or a money market savings account. For a certificate of deposit account or a money market savings account to be eligible pursuant to the provisions of this section:

      1. a. the account must be opened at a federally insured financial depository,
      2. b. an officer of the financial depository must specifically acknowledge and guarantee the deposit of the funds required by subsection B of this section until otherwise released pursuant to this subsection,
      3. c. the person operating, conducting or maintaining a livestock auction market may only withdraw any funds deposited in a certificate of deposit account or a money market savings account one hundred twenty (120) days after such person has permanently ceased operations of such livestock auction market unless such person presents to the financial institution a written authorization for release of funds by the Oklahoma Department of Agriculture; or
   3. 3. Provided other financial instruments allowable for livestock markets by the Federal Packers and Stockyards Act of 1921, as amended.
2. B. The corporate surety bond or account required by subsection A of this section for any person operating, conducting or maintaining a livestock auction market shall be in accordance with the provisions of the Federal Packers and Stockyards Act of 1921, as amended, but not less than Twenty-five Thousand Dollars ($25,000.00).
3. C. The corporate surety bond or account required by subsection A of this section shall not be required of any person who, as to such livestock auction markets, has executed and maintained a corporate surety bond or account of Twenty-five Thousand Dollars ($25,000.00) to secure the performance of such obligations under the provisions of the Federal Packers and Stockyards Act of 1921, as amended.

4. D.

   1. 1. Any corporate surety company issuing a bond to any person as specified by subsection A or C of this section for operating, conducting or maintaining a livestock auction market shall notify the Board within seven (7) days in writing of such notice of cancellation or nonrenewal of the bond.
   2. 2. The Board shall provide for the publication of notice to the public of the nonrenewal or cancellation of the bond for a livestock auction market upon any notification that the bond of the livestock auction market has been nonrenewed or canceled and no new bond has been obtained.
   3. 3. No person shall knowingly operate, conduct or maintain a livestock auction market without a bond in place. Any person violating the provisions of this paragraph, upon conviction, shall be guilty of a felony.
5. E. All records relating to the prompt and faithful accounting for all livestock received, handled or sold, and the remittance of the proceeds from any sale, purchase or exchange of any livestock to the consignor thereof shall be in accordance with the provisions of the Federal Packers and Stockyards Act of 1921, as amended. The State Board of Agriculture or its authorized agent shall audit such records at least once a year. Any violation of the standards of said Act may result in the suspension of the livestock auction market license.
6. F. Except as otherwise provided by this section, any person violating the provisions of this section, upon conviction, shall be guilty of a misdemeanor.

Added by Laws 1955, HB 505, c. A, art. 9(D), § 2, emerg. eff. June 3, 1955; Amended by Laws 1961, HB 534, c. 1f, § 2, emerg. eff. February 27, 1961; Amended by Laws 1965, HB 520, c. 178, § 1, emerg. eff. June 3, 1965; Amended by Laws 1981, SB 146, c. 5, § 1, eff. October 1, 1981; Amended by Laws 1986, SB 409, c. 309, § 11, emerg. eff. July 1, 1986; Amended by Laws 1991, HB 1318, c. 186, § 4, emerg. eff. May 13, 1991; Amended by Laws 1996, HB 2988, c. 185, § 1, eff. November 1, 1996; Amended by Laws 1997, HB 1213, c. 133. § 97 (effective date amended to July 1, 1999, by Laws 1998, 1st Extr. Sess., HB 1002, c. 2, §§ 23-26, emerg. eff. June 19, 1998) (superseded document available).