Oregon Administrative Rules › Chapter 603 - DEPARTMENT OF AGRICULTURE › Division 12 - LIVESTOCK AUCTION MARKETS › Section 603-012-0003 - State Bonds: When Required by Livestock Auction Markets

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The provisions
			 of this section which are required by House Bill 1242 (also cited as Chapter
			 368, Oregon Laws 1967) apply only to those livestock auction markets that have
			 not as yet qualified under or are subject to the provisions of laws or
			 regulations of the federal Packers and Stockyards Act and who have not obtained
			 and are maintaining the federal bonds required thereunder.
(2) Except as hereinafter otherwise provided,
			 the owner or operator of a livestock auction market shall obtain and maintain a
			 state bond with the Department, the amount or size of which shall be not less
			 than the next multiple of $2,000 above the average amount of sales of livestock
			 by such market during a period equivalent to two (2) business days based on the
			 total number of business days, and the total amount of such transactions in the
			 preceding 12 months or in such substantial part thereof in which such market
			 did business, if any.
(3) For the
			 purpose of such computation, 260 shall be deemed the number of business days in
			 any year. The amount of the bond shall be determined by dividing the total
			 value of the livestock sold by the livestock auction market, during the
			 preceding 12 months or any substantial part thereof as the market was engaged
			 in business, by the actual number of sales by auction or on commission at which
			 livestock was sold, but in no instance shall the divisor be greater than
			 130.
(4) Bonds in an amount above
			 $26,000 shall be not less than the next multiple of $5,000 above the average
			 amount of sales of livestock, computed as set forth above in this
			 section.
(5) When the amount of a
			 bond for any livestock auction market, calculated as set forth above in this
			 section exceeds $50,000, the amount of the bond need not exceed $50,000 plus 10
			 percent of the excess, unless the Department pursuant to OAR 603-012-0005, has
			 reason to believe a bond in the computed amount is inadequate.
(6) Notwithstanding the other provisions of
			 this rule, in no case shall a bond for a livestock auction market be less than
			 $10,000.
(7) If an applicant for a
			 license to operate a livestock auction market has been licensed during the past
			 three years and has engaged in the operation of a livestock auction market in
			 Oregon, the value of the livestock sold, at such previous other location, may
			 be used by the Department in computing the bond (providing the previous
			 operation or amount of business is representative of the future business or
			 operation). If the applicant for a license and bond is a successor in business
			 to an owner or operator of an existing livestock auction market, the bond of
			 the applicant shall be in an amount not less than that required of the prior
			 licensee, unless otherwise determined by the Department.
Stat. Auth.: ORS 596, ORS 597 & ORS 599
Stats. Implemented: ORS
				  599.245