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CHAPTER 40-15

LIVESTOCK AUCTION AGENCIES

40-15-1      Business constituting livestock auction agency--Exceptions.
40-15-1.1      Buying stations subject to chapter.
40-15-1.2      "Mobile market" defined.
40-15-1.3      "Livestock" defined.
40-15-2      License required for auction agency--Display at place of sales--Violation as petty offense.
40-15-3      Application for auction agency license--Contents.
40-15-4      Hearing on application for license--Notice to livestock associations of application.
40-15-5      Publication and public notice of application for license.
40-15-6      Hearing on application for license--Issuance on finding of conformity.
40-15-7      Factors considered in determining whether to issue license.
40-15-8      Annual fee for issuance or renewal of license.
40-15-9      Notice and hearing dispensed with on renewal of license.
40-15-10      Bond required to operate auction agency--Terms of bond--Approval--Amount--Violation as misdemeanor.
40-15-11      Cancellation of auction agency bond by surety--New bond before continuing business.
40-15-12      Action on auction agency bond.
40-15-13      Livestock handling and testing facilities required for auction agency license--Revocation or suspension if facilities inadequate or unsanitary.
40-15-13.1      Approved scales to be used.
40-15-13.2      Promulgation of rules--Scales--Fees.
40-15-14      Rules specifying facilities needed by veterinary inspector.
40-15-15      Separate pens for segregation of diseased animals--Marking of quarantine pens.
40-15-16      Auction agency services available without discrimination--Filing and posting of rate schedules--Rebates prohibited--Violation as petty offense.
40-15-17      Minimum inspection fees established by Animal Industry Board.
40-15-18      Inspection fees paid to Animal Industry Board.
40-15-19      Inspection service to be provided at auction agency--Veterinarian employed by board--Qualifications--Assistant veterinarian--Violation as petty offense.
40-15-20      Inspection of livestock by veterinarian--Compensation from fees collected.
40-15-21      Testing and treatment required before removal of animal from auction agency.
40-15-22      Veterinary inspection of premises and equipment--Supervision of cleaning of facilities and vehicles.
40-15-23      Inspection in manner prescribed by Animal Industry Board or federal government.
40-15-24      Veterinary inspector supervised by animal industry board--Discontinuance for failure to perform--Supervising veterinarians.
40-15-25      Auction agency not liable for negligence of inspector--Inspector not agent of agency.
40-15-26      Responsibility for inspection of livestock before shipment from auction agency--Certificate to comply with requirements at destination.
40-15-27      Records of livestock agency--Contents--Violation as petty offense.
40-15-28      Records open to inspection--Preservation--Copies furnished.
40-15-29      Revocation or suspension of license for failure to keep records.
40-15-30      Uniform accounting system for agencies.
40-15-31      Segregation and safeguarding of customers' funds by auction agency--Misuse of funds as felony.
40-15-31.1      Electronic auction--Regulation--Licensure.


40-15-31.2      Electronic auction--Delivery.
40-15-32      Revocation or suspension of license for violations--Effect of revocation or suspension.
40-15-32.1      Grounds for revocation, suspension, or refusal to renew license.
40-15-32.2      Board authorized to assume control of funds when agency's license revoked.
40-15-33      Appeal to circuit court from revocation or suspension of license.
40-15-34      Operation of auction agency without license as misdemeanor--Each day as separate offense.
40-15-35      Repealed.
40-15-35.1      Sanitary board allowed to apply for injunction.
40-15-36      Enforcement of chapter--Orders, rules, and regulations--Publication and posting.
40-15-37      Disposition of fees--Apportionment between disease emergency fund and inspectors fund.
40-15-38      Use of livestock disease emergency fund--Authorization by Governor required.
40-15-39      "Livestock fraud" defined--Evidence--Felony.


     40-15-1.   Business constituting livestock auction agency--Exceptions. Any person operating a place of business where livestock are bought and sold through public auction, including livestock buying stations not buying and selling through public auction, is a livestock auction agency, except any place or operation where future farmers or 4-H groups or fair associations or private fairs conduct sales of livestock, any place or operation conducted for a dispersal sale of the livestock of a farmer, dairyman, livestock breeder, or feeder who is discontinuing said business and no other livestock is sold or offered for sale, and any place of operation where a breeder or an association of breeders of livestock assemble and offer for sale and sell under their own management any livestock.

Source: SDC 1939 § 40.2001; SL 1961, ch 204, § 1; SL 1970, ch 232, § 1; SL 1990, ch 325, § 235.


     40-15-1.1.   Buying stations subject to chapter. The term, livestock buying station, refers to any person who buys, sells, or solicits livestock for the purpose of resale within the State of South Dakota, whether such livestock are raised in the state or brought into South Dakota from another state. However, any person who sells only livestock which he has produced and raised in South Dakota and such agencies that buy or sell livestock for slaughter only and those bonded dealers whose business is buying and selling livestock so far as the buying or selling is conducted at licensed and South Dakota inspected markets, are not livestock buying stations.

Source: SL 1970, ch 232, § 2; SL 1990, ch 325, § 236.


     40-15-1.2.   "Mobile market" defined. The term, livestock mobile market refers to any livestock auction agency conducted with mobile facilities as necessary for the receiving, handling, and care of livestock consigned or entrusted to it for sale and sold competitively by means of the marketing and merchandising services it renders.

Source: SL 1970, ch 232, § 3; SL 1990, ch 325, § 237.


     40-15-1.3.   "Livestock" defined. For purposes of this chapter, the term, livestock, means cattle, sheep, horses, mules, swine, goats, and buffalo.

Source: SL 2002, ch 191, § 1.


     40-15-2.   License required for auction agency--Display at place of sales--Violation as petty offense. No livestock auction agency may operate without a license, which shall always be displayed at a conspicuous place on the premises where sales are conducted. A violation of this section is a petty offense. Each day of violation is a separate offense.

Source: SDC 1939, § 40.2002; SL 1941, ch 166; SL 1949, ch 147; SL 1955, ch 141, § 1; SL 1957, ch 203, § 1; SL 1961, ch 204, § 2; SL 1990, ch 325, § 238; SL 1992, ch 158, § 89.


     40-15-3.   Application for auction agency license--Contents. All applications for a license to operate a livestock auction agency shall be made in writing to the Animal Industry Board in the form prescribed by the board and shall contain:
             (1)      The name and addresses of the applicant and all persons having any financial interest in the application and the amount of such interest;
             (2)      Financial responsibility of the applicant in the form of a statement of assets and liabilities;
             (3)      A legal description of the property and its location together with a description of the facilities proposed to be used in the operation of such livestock auction agency;
             (4)      A statement of the facts upon which the applicant relies, the benefits to be derived by the livestock industry and the services proposed to be rendered regularly through the year;
             (5)      Applicant's experience in the livestock industry including any past operation of a livestock auction agency.

Source: SDC 1939, § 40.2002 as added by SL 1961, ch 204, § 2; SL 1990, ch 325, § 239.


     40-15-4.   Hearing on application for license--Notice to livestock associations of application. Upon filing of an application pursuant to § 40-15-3, the Animal Industry Board shall determine whether a hearing need be held upon such application. If the board determines that a hearing need be held, it shall fix a reasonable time and place for hearing. The board shall cause a copy of such application, together with notice of time and place of hearing thereon, to be served by mail not less than fifteen days prior to such hearing upon all statewide livestock associations in the state who have filed written notice with the board of a request to receive notice of such hearings and such other livestock associations, as in the opinion of the board would be interested in such application.

Source: SDC 1939, § 40.2002 as added by SL 1961, ch 204, § 2; SL 1968, ch 157; SL 1990, ch 325, § 240.


     40-15-5.   Publication and public notice of application for license. The Animal Industry Board shall give further notice of a hearing on an application for a license to operate a livestock auction agency by publication of the notice thereof once in a daily or weekly newspaper circulated in the municipality where such applicant intends to conduct a livestock auction agency, and such other notice as the board deems necessary to give public notice of such time and place of hearing to persons interested therein.

Source: SDC 1939, § 40.2002 as added by SL 1961, ch 204, § 2; SL 1990, ch 325, § 241; SL 1992, ch 60, § 2.


     40-15-6.   Hearing on application for license--Issuance on finding of conformity. If after a hearing upon an application for a license to operate a livestock auction agency, at which interested persons may appear in support or opposition thereto, the Animal Industry Board finds from the evidence presented that the physical facilities of such livestock auction agency conforms to the requirements of the rules of the Animal Industry Board and the statutes applicable to such agencies, such license shall be issued to the applicant.

Source: SDC 1939, § 40.2002 as added by SL 1961, ch 204, § 2; SL 1990, ch 325, § 242.


     40-15-7.   Factors considered in determining whether to issue license. In determining whether a license to operate a livestock auction agency should be granted or denied, the Animal Industry Board shall give reasonable consideration to:
             (1)      The ability of the applicant to comply with the Federal Packers and Stockyard Act, as amended (7 U.S.C. § 181 et seq.) and the rules of the Animal Industry Board;
             (2)      The continuing financial stability, business integrity, and fiduciary responsibility of the applicant;
             (3)      The livestock industry marketing benefits to be derived from the establishment and operation of the livestock auction agency proposed in the application;
             (4)      The adequacy of the facilities set forth to permit the performance of livestock agency services proposed in the application;
             (5)      Whether the proposed livestock auction agency would be permanent and continuous.

Source: SDC 1939, § 40.2002 as added by SL 1961, ch 204, § 2; SL 1990, ch 325, § 243.


     40-15-8.   Annual fee for issuance or renewal of license. The fee for a license to operate a livestock auction agency shall be one hundred dollars. The license shall be issued for a period of one year and may be renewed from year to year upon the payment of a like sum for each renewal. The fee shall be paid to and license and renewals issued by the Animal Industry Board.

Source: SDC 1939, § 40.2002; SL 1941, ch 166; SL 1949, ch 147; SL 1955, ch 141, § 1; SL 1957, ch 203, § 1; SL 1961, ch 204, § 2; SL 1990, ch 325, § 244.


     40-15-9.   Notice and hearing dispensed with on renewal of license. Upon application for the renewal of any existing license, the Animal Industry Board may dispense with the notice and hearing required by §§ 40-15-4 to 40-15-6, inclusive, if it is satisfied from the application for renewal and applicant's prior record that the applicant has been in active business under its existing license during the term covered by such license and has complied with statutes of the state applicable to livestock auction agencies and the rules of the Animal Industry Board during the period covered by the license sought to be renewed.

Source: SDC 1939, § 40.2002 as added by SL 1961, ch 204, § 2; SL 1990, ch 325, § 245.


     40-15-10.   Bond required to operate auction agency--Terms of bond--Approval--Amount--Violation as misdemeanor. No person may operate a livestock auction agency without first filing with the Animal Industry Board a corporate surety bond as required under the provisions of the Federal Packers and Stockyard Act, 1921, as amended to January 1, 2002, for livestock agencies selling on commission. The bond shall be filed with the Animal Industry Board and a certified copy thereof shall be filed with the chief of the Packers and Stockyards Division of the United States Department of Agriculture. The obligee of the bond is the Animal Industry Board with the executive secretary thereof as trustee, with full power and authority to consider claims and pay valid claims from bond proceeds, subject to applicable federal law. The bond shall be for the benefit of all persons sustaining loss which may be covered by the obligation of the bond. The bond shall be approved by the Animal Industry Board as to its sufficiency and by the attorney general as to form prior to filing. The amount of the bond may not be less than twenty thousand dollars. Any person who operates a livestock auction agency in violation of this section is guilty of a Class 1 misdemeanor.

Source: SDC 1939, § 40.2003; SL 1941, ch 167; SL 1947, ch 178; SL 1965, ch 170; SL 1977, ch 190, § 491; SL 1990, ch 325, § 246; SL 2002, ch 191, § 2.


     40-15-11.   Cancellation of auction agency bond by surety--New bond before continuing business. The bond required by § 40-15-10 may be canceled by the surety thereon by not less than thirty days' prior written notice to the Animal Industry Board and such cancellation does not in any manner affect the liability of the surety as to anything occurring prior thereto. In the event of such cancellation, no further operations may be conducted by the livestock auction agency until a bond or security has been provided, approved, and filed as required in § 40-15-10.

Source: SDC 1939, § 40.2003; SL 1941, ch 167; SL 1947, ch 178; SL 1965, ch 170; SL 1990, ch 325, § 247.


     40-15-12.   Action on auction agency bond. Action may be brought by any person upon the bond required by § 40-15-10 without the necessity of joining the State of South Dakota or securing leave therefor.

Source: SDC 1939, § 40.2003 as added by SL 1941, ch 167; SL 1947, ch 178; SL 1965, ch 170.


     40-15-13.   Livestock handling and testing facilities required for auction agency license--Revocation or suspension if facilities inadequate or unsanitary. Every livestock auction agency shall provide adequate facilities for care, sorting, feeding, and handling of livestock and for proper inspection, examination, and testing for disease according to specifications determined by the Animal Industry Board. No license shall be issued or renewed by the board until the facilities are deemed adequate by it; and any time after issuance of the license, it may revoke or suspend the license of the agency until faults are corrected whenever it determines that the facilities of the agency are then inadequate or that the premises are not being maintained and operation conducted in a sanitary and safe manner to prevent the spread of livestock disease.

Source: SDC 1939, § 40.2005; SL 1957, ch 203, § 2; SL 1990, ch 325, § 248.


     40-15-13.1.   Approved scales to be used. No livestock subject to this chapter may be weighed on any scale, except a livestock scale certified by the Division of Commercial Inspection and Licensing approved for purposes of this chapter.

Source: SL 1970, ch 231; SL 2004, ch 17, § 293.


     40-15-13.2.   Promulgation of rules--Scales--Fees. The board shall promulgate rules pursuant to chapter 1-26 to ensure:
             (1)      That livestock for immediate slaughter sold on a carcass basis are weighed on livestock scales certified by the United States Packers and Stockyards Administration for weighing livestock on a carcass basis;
             (2)      That livestock for immediate slaughter sold on a live basis are weighed on livestock scales certified by the United States Packers and Stockyards Administration for weighing such livestock; and
             (3)      That a fee is assessed for all livestock sold by electronic auction on a per head basis in an amount equal to ten percent of the minimum inspection fees as provided for in § 40-15-17.

Source: SL 1997, ch 230, § 3.


     40-15-14.   Rules specifying facilities needed by veterinary inspector. The Animal Industry Board may promulgate rules pursuant to chapter 1-26 to require the maintenance or installation of facilities such as the paving of alleys or holding pens, squeeze chutes, and quarters for the veterinary inspector that are reasonably necessary to test or treat cattle for disease.

Source: SDC 1939, § 40.2005 as added by SL 1957, ch 203, § 2; SL 1986, ch 326, § 87; SL 1990, ch 325, § 249.


     40-15-15.   Separate pens for segregation of diseased animals--Marking of quarantine pens. Each livestock auction agency shall maintain one or more pens separate and apart from other pens for the purpose of holding animals consigned to the sales that show symptoms of any contagious, communicable, or infectious disease and for cattle branded and tagged as brucellosis reactors, tuberculosis reactors, or livestock otherwise marked or identified as being diseased. These animals shall be sold from these quarantine pens for slaughtering purposes only. Such pens shall be marked as quarantine pens and labeled as such with the top rail of such pens to be painted yellow in color.

Source: SDC 1939, § 40.2005 as added by SL 1957, ch 203, § 2; SL 1990, ch 325, § 250.


     40-15-16.   Auction agency services available without discrimination--Filing and posting of rate schedules--Rebates prohibited--Violation as petty offense. Every livestock auction agency shall furnish its service to every person who requests it, without discrimination. Its rates shall be reasonable and nondiscriminating and shall be filed with the Animal Industry Board before a license is issued. The rates may be changed from time to time by filing new schedules with the board thirty days before they are to take effect. Rates shall be posted plainly, visibly, and conspicuously with the license on the premises. No livestock auction agency may rebate any service charge or render its services to anyone without charging the rate posted and filed. A violation of this section is a petty offense. Each violation is a separate offense.

Source: SDC 1939, § 40.2006; SL 1977, ch 190, § 492; SL 1990, ch 325, § 251; SL 1992, ch 158, § 90.


     40-15-17.   Minimum inspection fees established by Animal Industry Board. The livestock auction agencies shall collect fees for inspection and examination of livestock as provided in this chapter which may not be less than the minimum established by the Animal Industry Board.

Source: SDC 1939, § 40.2002 as added by SL 1957, ch 203, § 1; SL 1961, ch 204, § 2; SL 1990, ch 325, § 252.


     40-15-18.   Inspection fees paid to Animal Industry Board. The Animal Industry Board shall collect from all livestock auction agencies, all fees collected by the agency for the inspection required by §§ 40-15-19 to 40-15-25, inclusive.

Source: SDC 1939, § 40.2002; SL 1941, ch 166; SL 1949, ch 147; SL 1955, ch 141, § 1; SL 1957, ch 203, § 1; SL 1961 ch 204, § 2; SL 1970, ch 233, § 1; SL 1990, ch 325, § 253.


     40-15-19.   Inspection service to be provided at auction agency--Veterinarian employed by board--Qualifications--Assistant veterinarian--Violation as petty offense. Every livestock auction agency shall be provided with inspection and examination to determine evidence of disease in any livestock handled on the premises. Such examination and inspection shall be made by a veterinarian who has been recommended by the livestock auction agency to be examined and inspected and employed by the Animal Industry Board, and with the approval of the veterinarian in charge of the animal disease eradication branch of the United States Department of Agriculture, and at any livestock auction agency which is engaged in the interstate shipment of livestock. Such veterinarian shall be a local veterinarian, or a veterinarian of the vicinity, accredited, capable, and qualified, unless there is no such veterinarian available. If the livestock auction agency fails to recommend such a veterinarian within a reasonable time, the board may after ten days' notice to such agency appoint such a veterinarian. In the event of a temporary absence or in the event that a sale is too large for one veterinarian to properly handle, the veterinarian so employed may employ an assistant who shall be a licensed veterinarian of the State of South Dakota and qualified as above. A violation of this section is a petty offense.

Source: SDC 1939, § 40.2007; SL 1939, ch 152; SL 1945, ch 173; SL 1957, ch 203, § 3; SL 1990, ch 325, § 254; SL 1992, ch 158, § 91.


     40-15-20.   Inspection of livestock by veterinarian--Compensation from fees collected. The veterinarian employed pursuant to § 40-15-19 shall inspect and examine all livestock handled on the premises to determine evidence of disease. The veterinarian so employed shall be paid by the Animal Industry Board with ninety percent of the fees collected for such inspection, as provided in § 40-15-37.

Source: SDC 1939, § 40.2007; SL 1945, ch 173; SL 1957, ch 203, § 3; SL 1970, ch 233, § 2; SL 1990, ch 325, § 255.


     40-15-21.   Testing and treatment required before removal of animal from auction agency. The Animal Industry Board may require the testing or treatment of any animal before being removed from any auction agency, by methods prescribed by such board, if deemed necessary for protection of the health of livestock within the state.

Source: SDC 1939, § 40.2007; SL 1939, ch 152; SL 1945, ch 173; SL 1957, ch 203, § 3; SL 1990, ch 325, § 256.


     40-15-22.   Veterinary inspection of premises and equipment--Supervision of cleaning of facilities and vehicles. The veterinary inspector provided for in § 40-15-19 shall examine all premises and equipment used in handling livestock at the agency and shall direct and supervise the cleaning and disinfection of such premises and equipment with the object of maintaining such premises in a sanitary and safe manner to prevent the spread of livestock disease. He shall also supervise the cleaning and disinfection of all vehicles used to transport or otherwise handle livestock delivered to or removed from such agency as may be required from time to time and in a manner prescribed by the Animal Industry Board.

Source: SDC 1939, § 40.2007; SL 1939, ch 152; SL 1945, ch 173; SL 1957, ch 203, § 3; SL 1990, ch 325, § 257.


     40-15-23.   Inspection in manner prescribed by Animal Industry Board or federal government. The veterinary inspector provided for in § 40-15-19 shall perform and report the inspection and examination of livestock in the manner prescribed by the Animal Industry Board or the animal disease eradication branch in all interstate shipments of livestock.

Source: SDC 1939, § 40.2007; SL 1939, ch 152; SL 1945, ch 173; SL 1957, ch 203, § 3; SL 1990, ch 325, § 258.


     40-15-24.   Veterinary inspector supervised by animal industry board--Discontinuance for failure to perform--Supervising veterinarians. The service and duties of the veterinary inspector provided for in § 40-15-19 shall be under the direction and supervision of the Animal Industry Board, and the inspector shall be discontinued at the agency if he fails to perform the services and duties required of him by the board. The board may employ as many supervising veterinarians as may be deemed necessary to assist in the enforcement of the law relating to livestock auction agencies.

Source: SDC 1939, § 40.2007; SL 1939, ch 152; SL 1945, ch 173; SL 1957, ch 203, § 3; SL 1990, ch 325, § 259.


     40-15-25.   Auction agency not liable for negligence of inspector--Inspector not agent of agency. No livestock auction agency is liable for the negligent acts of any veterinary inspector, nor may any such veterinary inspector be considered an agent of the livestock auction agency.

Source: SDC 1939, § 40.9926 as added by SL 1957, ch 203, § 4; SL 1990, ch 325, § 260.


     40-15-26.   Responsibility for inspection of livestock before shipment from auction agency--Certificate to comply with requirements at destination. The livestock auction agency shall ensure that any livestock passing through a livestock auction agency for interstate or intrastate traffic, are inspected, examined, and tested before being removed from the premises as required by the state of destination. Shipment of such livestock shall be covered by such certificate of health as may be required by the state of destination before such livestock is removed from the premises of the auction agency; but if such certificate is made from physical examination only, it shall be issued without charge by the veterinary inspector to the shipper.

Source: SDC 1939, § 40.2007; SL 1939, ch 152; SL 1945, ch 173; SL 1957, ch 203, § 3; SL 1990, ch 325, § 261.


     40-15-27.   Records of livestock agency--Contents--Violation as petty offense. Every livestock agency shall keep complete records as prescribed by the Animal Industry Board in rules promulgated pursuant to chapter 1-26. Such information may include the names of all persons or organizations bringing to or offering livestock for sale at the agency and a description of the livestock as prescribed by the Animal Industry Board to fulfill the intent of this chapter. A violation of this section is a petty offense. Each violation is a separate offense.

Source: SDC 1939, § 40.2004; SL 1990, ch 325, § 262; SL 1992, ch 158, § 92; SL 2013, ch 202, § 143.


     40-15-28.   Records open to inspection--Preservation--Copies furnished. The records required by § 40-15-27 shall be open for inspection at any reasonable time to any person interested as prescribed by the Animal Industry Board in rules promulgated pursuant to chapter 1-26 to fulfill the intent of this chapter. Every livestock auction agency shall keep and preserve all records for at least three years and shall furnish copies thereof to peace officers without charge and to any other person upon payment of reasonable charge for making such copy.

Source: SDC 1939, § 40.2004; SL 1990, ch 325, § 263; SL 2013, ch 202, § 144.


     40-15-29.   Revocation or suspension of license for failure to keep records. Failure to comply with any of the provisions of §§ 40-15-27 and 40-15-28 is cause for revocation or suspension of the agency license as the Animal Industry Board may decide.

Source: SDC 1939, § 40.2004; SL 1990, ch 325, § 264.


     40-15-30.   Uniform accounting system for agencies. All livestock auction agencies shall maintain a uniform accounting system as prescribed by the Animal Industry Board.

Source: SDC 1939, § 40.2008; SL 1955, ch 141, § 2; SL 1990, ch 325, § 265.


     40-15-31.   Segregation and safeguarding of customers' funds by auction agency--Misuse of funds as felony. No livestock auction agency may make such use or disposition of funds in its possession or control as endangers or impairs the faithful and prompt accounting for any payment or such portion thereof as may be due the owner or consignor of livestock or any other person having an interest therein, and to this end shall so handle all such funds as to prevent their being commingled or confused with other accounts or funds of the auction agency kept or used for other purposes. The misuse of such funds, resulting in their loss to the owner or consignor of livestock or any other person having an interest therein, is a Class 5 felony.

Source: SDC 1939, § 40.2003 as added by SL 1941, ch 167; SL 1947, ch 178; SL 1965, ch 170; SL 1988, ch 325; SL 1990, ch 325, § 266.


     40-15-31.1.   Electronic auction--Regulation--Licensure. The term, electronic auction, refers to computer-accessible auctions where livestock are bought and sold through public auction. The Animal Industry Board shall regulate electronic auctions. Any livestock auction agency licensed under this chapter may also be licensed to operate electronic auctions of livestock for immediate slaughter if the application and licensure procedures for the electronic auctions are in compliance with §§ 40-15-1 to 40-15-10, inclusive. The provisions of §§ 40-15-11, 40-15-12, 40-15-14, 40-15-16, 40-15-21, 40-15-26 to 40-15-34, inclusive, 40-15-35.1, 40-15-36, 40-15-38, and 40-15-39 also apply to electronic auction agencies.

Source: SL 1997, ch 230, § 1.


     40-15-31.2.   Electronic auction--Delivery. Livestock sold by electronic auction not delivered directly from the farm of origin to a United States Department of Agriculture or state inspected slaughter establishment may pass only through a United States Department of Agriculture approved stockyard for all classes of livestock.

Source: SL 1997, ch 230, § 2.


     40-15-32.   Revocation or suspension of license for violations--Effect of revocation or suspension. The Animal Industry Board may revoke or suspend for such time as it deems necessary the license of any livestock auction agency for any violation of the provisions of § 40-15-32.1. If a license is revoked, the licensee may not engage in the business authorized by his license for a period of one year. If a license is suspended, the licensee may not, directly or indirectly, operate the agency or the premises on which the agency is located during the period of suspension.

Source: SL 1988, ch 326, § 1; SL 1990, ch 325, § 267.


     40-15-32.1.   Grounds for revocation, suspension, or refusal to renew license. The Animal Industry Board may revoke or may suspend an existing license or may refuse to renew a license if the holder or applicant:
             (1)      Makes a material false statement in an application for a license or testifies falsely on behalf of such application;
             (2)      Misuses, withdraws, diverts, or fails to directly deposit custodial funds in the custodial account required by the provisions of the Packers and Stockyards Act of 1921 and § 40-15-31;
             (3)      Has not filed or maintained a surety bond or an equivalent security in the form and amount required under the provisions of § 40-15-10;
             (4)      Has not satisfactorily demonstrated that the current assets of the agency exceed the current liabilities of the agency;
             (5)      Has been convicted, pled guilty, or pled nolo contendere before any state or federal court to charges of forgery, theft, theft by deception, bribery, embezzlement, theft by threat, conspiracy to defraud or other like offense, or violation of the livestock laws of this state;
             (6)      Has been suspended by order of the secretary of agriculture of the United States Department of Agriculture under the provisions of the Packers and Stockyards Act of 1921; or
             (7)      Has failed to comply with the provisions of § 40-15-27 or 40-15-28, or willfully falsifies records required under this chapter.

Source: SL 1988, ch 326, § 2; SL 1990, ch 325, § 268.


     40-15-32.2.   Board authorized to assume control of funds when agency's license revoked. If a livestock auction agency's license is relinquished, revoked, or suspended by the Animal Industry Board, subject to applicable federal law, the Animal Industry Board may assume control of any account and funds described in § 40-15-31, including collection of any deposit items, identification and processing of claims to the funds, and payment of valid claims from the available funds.

Source: SL 2002, ch 191, § 3.


     40-15-33.   Appeal to circuit court from revocation or suspension of license. Any licensee aggrieved at the revocation or suspension of the license may appeal from the decision to the circuit court of this state for the county in which the agency was located, licensed, and operated, at any time within sixty days after notice of such revocation or suspension has been mailed by registered or certified mail to the business address of the agency as shown by its application, license, or other records on file with the Animal Industry Board. The appeal shall be taken by notice of the same stating the substance of the decision appealed from sufficiently to identify the same, copy of which notice shall be served on the animal industry board or by registered or certified mail addressed to the office at Pierre, South Dakota, and by filing the original of such notice and proof of the service thereof with the clerk of the court to which appeal is taken. Thereafter the appeal shall be brought on for hearing and tried upon all issues of law and fact relative thereto under the same procedure as court or equity cases are tried by the court.

Source: SDC 1939, § 40.2009; SL 1990, ch 325, § 269.


     40-15-34.   Operation of auction agency without license as misdemeanor--Each day as separate offense. Any person who operates as a livestock agency without the license required by this chapter or while such license has been suspended is guilty of a Class 2 misdemeanor. Each day of operation constitutes a separate offense.

Source: SDC 1939, § 40.9926 as added by SL 1957, ch 203, § 4; SL 1977, ch 190, § 493; SL 1990, ch 325, § 270.


     40-15-35.   Repealed by SL 1992, ch 158, § 93


     40-15-35.1.   Sanitary board allowed to apply for injunction. The Animal Industry Board may apply for an injunction in any court of competent jurisdiction to restrain any violation of chapter 40-15 or 40-16.

Source: SL 1988, ch 327; SL 1990, ch 325, § 271.


     40-15-36.   Enforcement of chapter--Orders, rules, and regulations--Publication and posting. The Animal Industry Board shall enforce the provisions of this chapter and may promulgate rules pursuant to chapter 1-26 concerning:
             (1)      The licensure of livestock auction agencies;
             (2)      The requirements for facilities;
             (3)      The handling of any animal found to be affected with any infectious, contagious, or transmissible disease;
             (4)      The requirements for inspecting, examining, and testing of livestock passing through a livestock auction agency;
             (5)      The reporting and record keeping requirements for livestock auction agencies; and
             (6)      Procedures for the consideration, processing, and payment of claims from bond proceeds and, if a livestock auction agency's license is relinquished, revoked or suspended, procedures for the collection of deposit items, processing of claims to the funds, and payment of valid claims in accordance with §§ 40-15-10 and 40-15-32.2.
     Such rules shall be sent to each licensed auction agency, there to be posted by such agency plainly, visibly, and conspicuously, and with the license on the premises so as to be available to any person using the service of such agency.

Source: SDC 1939, § 40.2010; SL 1986, ch 326, § 88; SL 1990, ch 325, § 272; SL 2002, ch 191, § 4.


     40-15-37.   Disposition of fees--Apportionment between disease emergency fund and inspectors fund. The license and renewal fees and the inspection fees shall be paid by the livestock auction agency to the Animal Industry Board and by it remitted to the state treasurer within thirty days after receipt. The state treasurer shall issue a receipt for the same to the Animal Industry Board.
     The state treasurer shall credit ten percent of the amount received to a fund to be known as the livestock disease emergency fund and shall distribute and apply such fund as provided by law. The remaining ninety percent of the amount received shall be credited to a fund to be known as the livestock auction market inspectors fund, all of which shall be distributed and applied by the Animal Industry Board as compensation to the livestock auction market inspectors on a monthly basis.

Source: SDC 1939, § 40.2008; SL 1955, ch 141, § 2; SL 1970, ch 233, § 3; SL 1990, ch 325, § 273.


     40-15-38.   Use of livestock disease emergency fund--Authorization by Governor required. The Animal Industry Board shall deposit all funds collected by it to the credit of a fund to be known as the livestock disease emergency fund in the Office of the State Treasurer as provided by § 40-15-37. The livestock disease emergency fund shall be available for use to the Animal Industry Board only pursuant to determination of the Governor that an emergency exists and an order from the Governor authorizing the use of said funds for the eradication and control of virulent diseases among livestock.

Source: SDC 1939, § 40.2002; SL 1941, ch 166; SL 1949, ch 147; SL 1955, ch 141, § 1; SL 1957, ch 203, § 1; SL 1961, ch 204, § 2; SL 1990, ch 325, § 274.


     40-15-39.   "Livestock fraud" defined--Evidence--Felony. Any person who purchases livestock from a livestock auction agency, as defined in this chapter, with intent to defraud is guilty of livestock fraud. The failure of such purchaser to tender payment in full within four days of the date of purchase, is prima facie evidence of intent to defraud.
     Livestock fraud is a Class 4 felony.

Source: SL 1981, ch 292; SL 1990, ch 325, § 275.


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