81-8-264. Livestock video auction — license to transact business — license fee — contract — renewal. (1) A livestock video auction may transact business in this state only through a licensed livestock dealer or through a livestock market that is domiciled in the state. The livestock video auction is subject to the same regulation as the domiciled livestock market.

Terms Used In Montana Code 81-8-264

  • Contract: A legal written agreement that becomes binding when signed.
  • custodial account: means a separate account established and maintained by a livestock market or livestock video auction engaged in selling livestock on a commission or agency basis. See Montana Code 81-8-213
  • Department: means the department of livestock provided for in Title 2, chapter 15, part 31. See Montana Code 81-8-213
  • Livestock: means cattle, calves, hogs, pigs, horses, mules, sheep, lambs, and goats. See Montana Code 81-8-213
  • Livestock dealer: means a person engaged in the business of buying or selling livestock in commerce on the person's own account or as an employee or agent of a vendor or purchaser. See Montana Code 81-8-213
  • Livestock market: means :

    (i)a person engaged in the business of buying or selling livestock in commerce on a commission basis;

    (ii)a person engaged in the business of furnishing stockyard services; or

    (iii)a livestock video auction as defined in this section. See Montana Code 81-8-213

  • Livestock video auction: means a person who conducts the business of buying or selling livestock on a commission or fee basis through the use of online, video, or other electronic means and who provides the means for handling receivables or proceeds resulting from these types of transactions. See Montana Code 81-8-213
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201

(2)A livestock dealer or a livestock market that proposes to transact business with a livestock video auction pursuant to subsection (1) shall file an application for a license with the department on a form prescribed by the department with the following information:

(a)the nature of the business for which a license is requested;

(b)the name and address of the livestock dealer or the livestock market;

(c)the name and address of the livestock video auction; and

(d)any additional information that the department may require.

(3)The application must be accompanied by:

(a)a fee established by the department commensurate with the costs of administering 81-8-265 and this section;

(b)evidence that the department may require indicating that the livestock video auction is financially responsible and bonded to transact business and has established a custodial account for shippers’ proceeds; and

(c)a copy of the contract between the licensed livestock dealer or the livestock market and the livestock video auction. The contract must provide:

(i)for reasonable access by the department to all records and documents relating to the activities of the livestock video auction; and

(ii)that the livestock dealer or the livestock market and the livestock video auction are jointly and severally liable, with the right of contribution, for all business transacted within the state.

(4)If the contract described in subsection (3)(c) is terminated, rescinded, breached, or materially altered, the livestock dealer or the livestock market shall immediately notify the department. Failure to notify the department is considered to be:

(a)a failure to keep and maintain suitable records with the department; and

(b)a false entry or statement of fact in an application filed with the department.

(5)On or before May 1 of each year, a livestock dealer or a livestock market shall renew the license by fulfilling the requirements of subsections (1) through (4).

(6)The license fee must be remitted to the state treasurer to the credit of the department.

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