H. B. 4495


(By Delegate Michael)
[Introduced February 16, 1994; referred to the
Committee on Agriculture and Natural Resources then Finance.]




A BILL to amend and reenact sections two, five and seven, article ten-b, chapter nineteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to further amend article ten-b by adding thereto a new section, designated section five-a, all relating to creating a livestock dealer system that requires farm fresh livestock to be distinguished from resold livestock in any sale, trade or exchange; defining terms, intent and duties; requiring identification by signed receipt, back tag and sale announcement; mandating separation in pens and at sale; incorporating farm fresh and resold designations in dealer record-keeping; and authorizing civil and criminal penalties for misrepresentations and other violations.

Be it enacted by the Legislature of West Virginia:

That sections two, five and seven, article ten-b, chapter nineteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that article ten-b be further amended by adding thereto a new section, designated section five-a, all to read as follows:
ARTICLE 10B. LIVESTOCK DEALER'S LICENSING ACT.

§ 19 - 10B - 2. Definitions.

Unless the context clearly indicates otherwise, as used in this article:

(a) "Bond" means a written instrument guaranteeing that the person bonded shall faithfully fulfill the terms of the contract of purchase and guarantee payment of the purchase price of all livestock purchased by him/her, and made payable to the commissioner for the benefit of persons sustaining loss resulting from the nonpayment of the purchase price or the failure to fulfill the terms of the contract of purchase.
(b) "Commissioner" means the commissioner of agriculture of the state of West Virginia and duly authorized representatives.
(c) "Department" means the department of agriculture of the state of West Virginia.
(d) "Farm fresh livestock" means livestock being offered, received or assembled for sale, trade or exchange in this state which has been raised from birth on a single farm and not previously offered for sale, trade or exchange or which has been fed and grazed on a single farm for sixty or more consecutive days immediately prior to its movement from its farm of origin: Provided, That the commissioner may make an exception to the sixty day standard for livestock being sold by an individual who is permanently discontinuing the business of farming, dairying, breeding, raising or feeding animals.
(e) "Farm of origin" means a farm or other premise where an animal defined as livestock was born, raised and not previously offered for sale, trade or exchange or where such animal has been fed and grazed for sixty or more consecutive days immediately prior to any movement of the animal from that location.
(d) (f) "Livestock" means cattle, horses, swine, sheep, goats or any other animal of the bovine, equine, porcine, ovine or caprine specie, and domestic poultry.
(e) (g) "Livestock dealer" means a person other than a livestock producer who buys, receives or assembles livestock for resale, either for his/her own account or that of another person.
(h) "Livestock market" means any public market or auction as defined in section one, article two-a of this chapter at which livestock is assembled or presented for sale, trade or exchange.
(f) (i) "Livestock producer" means a person selling livestock which he/she has raised or livestock which he/she has additionally purchased and summered or wintered.
(g) (j) "Person" means an individual, partnership, corporation, association or other legal entity.
(k) "Resold livestock" means livestock for breeding or feeding purposes which has been sold through any livestock market within the prior twenty-one consecutive days, which has not been transported directly from its farm of origin or which fails to meet this article's definition of farm fresh.
§ 19 - 10B - 5. Records of transactions; inspection by commissioner.

Every licensed livestock dealer shall make and retain for at least two years written livestock sales records in the form and manner prescribed by the commissioner, including, but not limited to, records indicating (1) the identification numbers or letters, the farm fresh or resold status and the sex, brand and approximate weight of all livestock bought, sold, received, exchanged or otherwise transferred, and (2) the names and addresses of all owners, sellers, consignors or buyers with whom he the dealer has in any manner exchanged livestock, with the date of such exchanges.

If the commissioner has reasonable cause to believe any livestock in this state are diseased in a manner such as to constitute a health hazard to other livestock or are being sold, traded or exchanged as farm fresh rather than as resold livestock, wherever located, he the commissioner may request in writing the livestock sales records of any livestock dealer in the state for the purpose of tracing or discovering (1) the diseased livestock, the source of the disease, and all other livestock which may be affected by the disease, and (2) any resold livestock that has been misrepresented as farm fresh. A livestock dealer shall comply with such request within twenty-four hours.
The commissioner shall have the authority to enter premises and buildings occupied by a livestock dealer at any reasonable time in order to examine books and records maintained by the livestock dealer.
The commissioner may require livestock dealers to file in such a prescribed form as he may prescribe, regular or special reports, or answers in regard to specific questions, for the purpose of providing information concerning that includes, but is not limited to, livestock movement, and animal health, quality and disease control.
§ 19-10B-5a. Resold livestock; dealer and seller duties; identifying, tagging and segregating; record keeping; unlawful acts; rule making; sanctions.

(a) The Legislature has determined that in order to protect purchasers from unknowingly acquiring livestock that is diseased or stressed due to repeated exposure through sale, trade or exchange at livestock markets, it shall be the duty of every seller and dealer of livestock to identify, tag and segregate resold livestock.

(b) When any livestock for feeding or breeding purposes is delivered to a livestock market, the seller or transporter shall identify by signed receipt and colored back tag any livestock that, by law, is defined as resold and the livestock dealer shall obtain from the seller or transporter sufficient information to ascertain whether livestock being presented for sale, trade or exchange has been designated correctly by signed receipt and back tag as being resold or farm fresh.
(c) All dealers shall pen any resold livestock together, identify them as "resold" to the public with a prominent sign and separate them from farm fresh livestock. Dealers shall present farm fresh livestock for sale, trade or exchange first and before offering any resold livestock and shall publicly announce that such livestock is resold and not farm fresh when it is offered up for sale.
(d) It shall be unlawful for the back tags of resold livestock to be removed by anyone other than an authorized department veterinarian or immediately prior to slaughter.
(e) Any civil or criminal penalty specifically authorized by this article, or any other penalty or sanction imposed by rule or other provision of this chapter regulating livestock production, sale or processing in this state, may be imposed on any person, without limitation, who is found directly or indirectly to have been involved in misrepresenting resold livestock as farm fresh livestock in any sale, trade or exchange within the state regardless of in which state any prior sales, trades or exchanges occurred which require the livestock to be designated as resold under this article's provisions.
§ 19 - 10B - 7. Refusals, suspensions or revocation of licenses.

The commissioner may refuse to grant or may suspend or revoke a livestock dealer's license when it is determined from the evidence that there is reasonable cause to believe that any of the following situations exists:

(a) Where the applicant or licensee has violated the laws of the state or official regulations governing the interstate or intrastate movement, shipment or transportation of livestock.
(b) Where there have been false or misleading statements or fraud or misrepresentation regarding as to the health or physical condition of the animals, with regard to the official tests or quality of the animals, the farm fresh or resold status of the animals, or the practice of fraud or misrepresentation in connection therewith, in the buying or receiving of animals, or in the receiving, selling, exchanging, soliciting or negotiation of the sale, resale, exchange, weighing or shipment of animals.
(c) Where the applicant or licensee acts as a dealer for a person attempting to conduct business in violation of this article, after the notice of such violation has been given the licensee by the commissioner.
(d) Where the applicant or licensee fails to practice measures of sanitation, disinfection and inspection of premises or vehicles used for the yarding, holding or transportation of livestock.
(e) Where there has been a failure to keep records required by the commissioner, or where there is a refusal on the part of the applicant or licensee to produce records of transactions in the carrying on of the business for which such license is granted.
(f) Where the licensee fails to maintain a bond or to adjust a bond upon thirty days notice, or refuses or neglects to pay the fees or inspection charges required to be paid.
(g) Where the licensee has been suspended by order of the secretary of agriculture of the United States department of agriculture under provisions of The United States Department of Agriculture Packers and Stockyards Act of 1921, 42 Stat 159.7 USCA, 181 as amended.



NOTE: The purpose of this bill is to require livestock dealers and sellers to identify, tag and segregate resold livestock from farm fresh livestock when it is sold at livestock markets or auctions in the state and to authorize civil or criminal penalties against any person for misrepresentation of resold livestock or other violations.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

Section five-a is new; therefore, strike-throughs and underscoring have been omitted.