Livestock Dealers and Agents Licensing Regulation

Livestock Dealers and Agents Licensing Regulation, M.R. 505/88 The Livestock and Livestock Products Act , C.C.S.M. c. L170 Regulation 505/88 Registered November 24, 1988 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Application 3 Prohibition 4 Application for licence 5 Fees 6 Minister to give notice of application 7 Issuance of licence 8 Refusal to issue licence 9 Conditions of licence 10 Expiry 11 Licence not transferable 12 Licence for each premises 13 Licence to be displayed and carried 14 Special conditions for agent's licence 15 Suspension and cancellation of licence 16 Security required 17 Breach of security 18 Licence dependent on security 19 Payment to sellers 20 Information respecting sale 21 Reporting of default in payment 22 Advertisement 23 Records 24 Delegation Definitions 1 In this regulation, "Act" means The Livestock and Livestock Products Act ; («  Loi  ») "business day" means a day other than a holiday; (« jour ouvrable ») "licencee" means a livestock dealer or a livestock dealer's agent who holds a licence under this regulation; (« titulaire de permis ») "livestock dealer" means an individual, partnership, corporation or cooperative that buys or sells livestock, or acts as a livestock selling agent, and as such makes direct payment to persons selling livestock, but does not include, (a) a producer who buys livestock and retains title to the majority of it for not less than 30 days, (b) a person who sells the meat of livestock on a retail basis, unless the meat or livestock is bought directly from a producer, (c) a producer association, agricultural society or 4-H club that conducts no more than three sales of livestock in any year, (d) a packer that slaughters livestock on a custom fee basis and does not re-sell the meat, (e) [repealed] M.R. 215/96, (f) a producer who conducts an annual production sale or a complete herd dispersal sale, (g) a person who buys and sells livestock that is registered under the Livestock Pedigree Act (Canada) and who gives the buyer a properly transferred pedigree certificate for each animal, or (h) a person who is a local supervisor of a feeder asssociation that has entered into an agreement with the Crown under the Manitoba Feeder Associations Loan Guarantee Program, where the local supervisor buys or sells livestock on behalf of the feeder association; (« négociant-revendeur d'animaux de ferme ») "livestock dealer's agent" means a person who buys or sells livestock on behalf of a livestock dealer or who negotiates an arrangement as a consequence of which livestock are delivered to a livestock dealer; (« représentant d'un négociant-revendeur d'animaux de ferme ») "packer" means the operator of premises in which animals are slaughtered or meat products are prepared, packaged, labelled or stored in accordance with the Meat Inspection Act (Canada) or the Canada/Manitoba Inspection Agreement or both; (« exploitant d'abattoir ») "person" includes a number of persons in partnership; (« personne ») "price determination" means the point of time at which buyer and seller agree on a price; (« fixation du prix ») "producer" means a farmer, rancher or feedlot operator whose permanent residence is located in Manitoba who purchases livestock for the development or maintenance of his or her own farm, ranch or feedlot. (« producteur ») M.R. 155/89; 13/92; 215/96 Application 2 This regulation does not apply to livestock dealers and livestock dealer's agents who buy or sell only live poultry or bees. M.R. 155/89 Prohibition 3(1) No person shall carry on business as a livestock dealer or a livestock dealer's agent except under the authority of a licence issued in accordance with this regulation. 3(2) No livestock dealer's agent shall act on behalf of a livestock dealer unless the dealer has, in writing, designated the agent to act on his or her behalf. 3(3) No person whose permanent residence is located outside Manitoba shall (a) purchase livestock in Manitoba; and (b) make payment for livestock directly to a seller who is not a licenced livestock dealer in Manitoba; unless the person is the holder of a valid and subsisting livestock dealer's licence issued by the minister under this regulation. M.R. 155/89 Application for licence 4(1) A person who applies for a licence shall provide the minister with (a) a completed application in the form prescribed by the minister; (b) the fee prescribed in subsection 5(1); and (c) where the application is for a livestock dealer's licence, a bond or other security conforming to the requirements of section 16. 4(2) An applicant for a licence who is a partnership, a corporation or a cooperative shall designate an individual whose name shall appear on the licence and who will act as its representative. 4(3) An individual designated under subsection (2) must be eligible to obtain a licence as a livestock dealer's agent. 4(4) An applicant who has designated an individual under subsection (2) shall immediately notify the minister in writing of any change in the designation, and upon receipt of the notice the minister shall issue an amended licence. M.R. 155/89; 194/2008 Fees 5(1) The fees payable to the minister are: (a) for a livestock dealer's licence, $100.00; (b) for a livestock dealer's agent's licence, $100.00. (c) [repealed] M.R. 155/89. 5(2) If the minister is satisfied that a licence has been inadvertently lost or destroyed, the minister may issue a duplicate licence on payment of a fee of $10.00. M.R. 155/89 Minister to give notice of application 6 Upon receipt of an application, the minister shall (a) publish in one issue of a newspaper circulated throughout the province a notice that the applicant has applied for a licence as a livestock dealer or as a livestock dealer's agent; and (b) notify, by mail, all livestock dealers licenced under this regulation of the application. M.R. 155/89 Issuance of licence 7 Subject to section 8, the minister shall issue a licence to a person who makes an application that conforms to the requirements of section 4. M.R. 155/89 Refusal to issue licence 8(1) The minister may refuse to issue a licence to any person (a) who (i) has been convicted of an indictable offence under the Criminal Code , (ii) has been convicted of an offence under the Act or this regulation, or (iii) has been convicted of an offence under Canadian law that in the opinion of the minister involves a dishonest act or intent on the part of the convicted person; (b) who is an undischarged bankrupt or in respect of whom proceedings are pending under the Bankruptcy Act (Canada) either by way of assingment or by petition or where proceedings are pending by way of winding up; (c) who has made a material misstatement, or has failed to disclose full information as required, in an application for a licence; (d) who is a corporation or a cooperative, one of the directors, officers or managers of whom could be refused a licence under clause (a), (b) or (c); (e) who is a partnership, one of the partners of whom could be refused a licence under clause (a), (b) or (c); or (f) under circumstances where the minister is of the opinion that it would be injurious to the public interest to grant a licence. 8(2) The minister may refuse to renew a licence if in the minister's opinion there are circumstances that would permit the minister to refuse to grant a licence to the applicant under subsection (1). M.R. 155/89 Conditions of licence 9 The minister, when granting or renewing a licence, or by written notice at any other time, may impose on the licence such conditions and restrictions as the minister considers reasonably necessary. M.R. 155/89 Expiry 10 Every licence expires on December 31 following the date of issue and shall be renewed annually, and if a licence is not renewed at the proper time, it expires. M.R. 155/89; 215/96 Licence not transferable 11 A licence under this regulation is not transferable. Licence for each premises 12 Where a licencee conducts business in more than one premises, the minister shall provide the licencee with a copy of the licence for each premises. M.R. 155/89 Licence to be displayed and carried 13 Every licencee shall (a) prominently display his or her licence or a copy of it at each premises where the licencee carries on business; and (b) obtain from the minister and have in his or her posssession at all times, a pocket size licence, and produce it when requested to do so by an inspector. M.R. 155/89 Special conditions for agent's licence 14(1) Every application for a licence as a livestock dealer's agent shall be accompanied by a written designation given by a livestock dealer stating that the applicant, if granted a licence, is authorized to act as an agent representing that livestock dealer. 14(2) A licence issued to a livestock dealer's agent shall specify as the principal of the licencee the livestock dealer who has given the designation under subsection (1), and the agent shall conduct business only in the name of the livestock dealer. 14(3) A livestock dealer's agent who is the holder of a subsisting licence is deemed to be authorized by the livestock dealer specified in the licence to act on behalf of the livestock dealer. 14(4) Where a livestock dealer's agent ceases to represent a livestock dealer, the livestock dealer shall (a) immediately by telephone; and (b) by certified mail within two business days; notify the minister that the agent has ceased to represent the livestock dealer, and the receipt of the notice of the minister operates as a cancellation of the licence of the agent. 14(5) The livestock dealer shall, at the time of giving notice by mail under subsection (4), return the agent's licence to the minister. M.R. 155/89 Suspension and cancellation of licence 15(1) The minister may, by written notice, suspend or cancel the licence of a livestock dealer or a livestock dealer's agent if (a) the dealer or the agent contravenes the Act, this regulation, or any term or condition to which the licence is subject; or (b) the minister becomes aware of any circumstance that would disentitle the dealer or the agent to a licence under section 8. 15(2) Where the licence of a livestock dealer is suspended or cancelled, the licence of all agents of the livestock dealer shall also be suspended or cancelled, as the case may be. 15(3) Notice of suspension or cancellation of a licence shall be deemed to have been served on the person to whom the notice is addressed (a) on the notice being served personally on that person; or (b) eight days after it is mailed by registered mail to the last known postal address of that person. 15(4) When a livestock dealer or a livestock dealer's agent is served with a notice under this section, the dealer or the agent shall return his or her licence to the minister without delay. M.R. 155/89 Security required 16(1) An applicant for a livestock dealer's licence or renewal of such a licence shall provide the minister with the following security in a form that is acceptable to the minister: (a) a bond of a surety company licensed to transact business in Manitoba; or (b) an irrevocable letter of credit from a chartered bank, credit union or trust company. 16(2) The amount of security that a livestock dealer who is not a packer or does not deal on behalf of a packer must provide shall, (a) in the case of a new livestock dealer's licence, be determined by the number of livestock — calculated in accordance with subsection (2.2) — that the prospective livestock dealer expects to buy in his or her first licence term, as stated in his or her licence application form; or (b) in the case of the renewal of a livestock dealer's licence, be determined by the actual number of livestock — calculated in accordance with subsection (2.2) — that the livestock dealer bought in his or her previous licence term; and be in the amount set out opposite the applicable number of livestock in the following table: 16(2.1) The amount of security that a livestock dealer who is a packer or deals on behalf of a packer must provide shall, (a) in the case of a new livestock dealer's licence, be determined by the number of livestock — calculated in accordance with subsection (2.2) — that the prospective livestock dealer expects to buy in his or her first licence term, as stated in his or her licence application form; or (b) in the case of the renewal of a livestock dealer's licence, be determined by the actual number of livestock — calculated in accordance with subsection (2.2) — that the livestock dealer bought in his or her previous licence term; and be in the amount set out opposite the applicable number of livestock in the following table: 16(2.2) For the purpose of determining the dollar value of the security to be provided under this section, the number of livestock actually bought in a previous licence term, or expected to be bought in the term of a new licence, is to be calculated in accordance with the following formula: A = B + (C ÷ 4) In this formula, A is the number of livestock calculated for security valuation purposes; B is the number of cattle and horses bought in the previous licence term (renewal application) or expected to be bought (new application); C is the number of sheep and swine bought in the previous licence term (renewal application) or expected to be bought (new application). 16(3) The minister may at any time require an audit of sales and may require additional security and fix the time by which it must be provided. 16(4) If a bond is provided as security, it shall provide that it cannot be cancelled without 90 days prior written notice to the minister. M.R. 155/89; 13/92; 228/92; 215/96; 194/2008 Breach of security 17(1) If the minister finds that the holder of a livestock dealer's licence has omitted to account to or make settlement with the sellers of livestock in accordance with the value of the livestock sold, the minister may publish a notice, as frequently and in as many publications that circulate in the municipality where the livestock dealer carries on business, as the minister considers appropriate. 17(2) The notice referred to in subsection (1) shall require sellers who have claims against the dealer to furnish to the minister, by the date specified in the notice, particulars of their claims verified by statutory declaration or in any other manner that the minister requires. 17(3) The date specified in the notice shall be at least three months after the date the notice is first published. 17(4) A claim furnished to the minister under subsection (2) shall contain or refer to a statement of account showing particulars of the indebtedness. 17(5) If a seller has received payment from a livestock dealer by cheque, it is a condition of making a claim under this section that the seller (a) present the cheque for payment within (i) eight business days of the day of price determination, or (ii) five business days of the day of price determination, if the seller is also a livestock dealer; and (b) provide the minister with evidence of non-payment within a further seven days. 17(6) After the date specified in the notice referred to in subsection (1), the security may be realized or enforced in respect of (a) the amount of the claims of the sellers that the minister finds to be proved; and (b) the amount determined by the minister to be the government's reasonable legal and administrative expenses incurred in determining claims against the livestock dealer to be proved. 17(7) If the amount of money derived under subsection (6) is insufficient to pay in full all of the claims that the minister finds to be proved, the money to satisfy the claims shall be paid on a pro rata basis to the claimants. 17(8) If a licencee becomes bankrupt, the minister may assign the security for the benefit of the sellers who have claims that the minister finds to be proved. 17(9) Notwithstanding any other provision of this regulation, the total liability of a security shall not exceed the face value of that security. M.R. 155/89; 13/92 Licence dependent on security 18 A licence issued to a livestock dealer under this regulation is revoked if (a) the security is cancelled or expires and new security is not provided on or before the date the cancellation or expiry takes effect; or (b) the minister required additional security and it is not provided within the time that the minister has fixed for it to be provided. M.R. 155/89; 13/92 Payment to sellers 19(1) A livestock dealer who buys livestock shall make payment to the seller no later than at the end of one business day following the day of price determination. 19(2) [Repealed] M.R. 215/96 19(3) Payment shall be deemed to have been made if it is sent by mail and postmarked within the time required by this section. M.R. 155/89; 13/92; 215/96 Information respecting sale 20(1) A livestock dealer or a livestock dealer's agent who accepts livestock on consignment shall give to the consignor a copy of the official scale ticket and a written statement of sale that includes the following information: (a) the name and address of the dealer; (b) the name and address of the consignor; (c) the number and kind of livestock sold; (d) the weight of the livestock at the time of the sale; (e) the selling price of the livestock on a unit of weight basis, including the total dollar amount; (f) the amount of the advance payment to the consignor, if any; and (g) the net amount, after relevant deductions, paid to the consignor. 20(2) If a livestock dealer receives livestock on consignment that is subsequently condemned by an inspector of the Veterinary Operations Directorate, Food Production and Inspection Branch, Agriculture Canada, the dealer or the livestock dealer's agent shall obtain from the inspector a certificate signed by the inspector showing the reason for the condemnation, and the dealer shall immediately send a copy of the certificate to the consignor. 20(3) A livestock dealer or a livestock dealer's agent who buys livestock shall give to the seller a written statement that includes the following information: (a) the name and address of the seller; (b) the name and address of the dealer; (c) the number and kind of the livestock bought; (d) the unit and gross purchase price; (e) the weight of the livestock, if bought on a weight basis. Reporting of default in payment 21 If a licenced livestock dealer defaults in the payment of money due to another licenced livestock dealer for the purchase of livestock, (a) the dealer to whom the money is owing shall notify the minister within 24 hours of becoming aware of the default; and (b) the minister shall by mail notify all licenced livestock dealers of the default within 24 hours of becoming aware of the default. M.R. 155/89 Advertisement 22 A livestock dealer and a livestock dealer's agent shall ensure that there appears in every advertisement relating to the dealer's or the agent's business a statement that the dealer or agent is licenced and the number of that licence. Records 23(1) A livestock dealer shall keep detailed records of all transactions carried on by the dealer, and any of the dealer's agents, relating to dealing in livestock and shall, when requested to do so by the minister, furnish the minister with a copy of the records relating to the purchase of livestock from any person. 23(2) A livestock dealer shall retain all of the records under subsection (1) for a period of not less than two years from when the record arose. 23(3) When requested to do so by the minister, a livestock dealer shall submit to the minister, in such form and containing such information as the minister may require, a written statement of the transactions of the dealer and of the dealer's agents. M.R. 155/89; 13/92 Delegation 24 The minister may authorize any employee of the department to perform any function or duty and exercise any power imposed or conferred on the minister under this regulation. M.R. 155/89