2020 Georgia Code
Title 4 - Animals
Chapter 6 - Livestock Dealers and Auctions
Article 3 - Livestock Auctions
§ 4-6-49.1. Denial of Licenses; Commissioner's Right to Require Disclosures and Examine Records and Accounts; Dealers Purchasing Livestock for Cash Only; Financial Statement

1. No license shall be issued to or allowed to be maintained by any sales establishment or dealer if:
   1. Any beneficial interest in the business of the sales establishment or dealer is directly or indirectly owned by a defaulter; or
   2. Any defaulter is employed in a management position by the sales establishment or dealer.
2. As used in this Code section, the term "defaulter" means any person who has, within the past five years, been employed in a managerial position by or owned any beneficial interest in the business of a sales establishment or dealer and such business has ceased operations without satisfying all liabilities of the business either from assets of the business or from any surety.
3. The Commissioner shall have full authority to require disclosure from licensees and applicants of information sufficient to determine whether the licensee or applicant is qualified to be licensed under this Code section. The Commissioner shall have full authority to examine the records and accounts of all licensees in order to determine whether any proceeds of the business are being paid to any defaulter.
4. This Code section shall not prohibit the Commissioner from allowing a defaulter to operate as a dealer who purchases livestock for cash only.
5. All applicants for licensure shall submit to the Commissioner a current financial statement, and all licensees shall submit a current financial statement annually.

(Code 1981, §4-6-49.1, enacted by Ga. L. 1982, p. 1804, § 4; Ga. L. 1983, p. 1161, § 1; Ga. L. 2017, p. 129, § 12/HB 49.)

The 2017 amendment, effective July 1, 2017, in subsection (b), inserted commas following "has" and "years" near the beginning, substituted "dealer and such" for "dealer which" in the middle, and substituted "surety" for "bond or bonds" at the end; and, in subsection (e), substituted a comma for a semicolon.

- Provisions regarding powers of Commissioner relating to sale of livestock at auction, § 10-2-52.

JUDICIAL DECISIONS

Editor's notes.

- In light of the similarity of the provisions, decisions under former Ga. L. 1956, p. 501 are included in the annotations for this Code section.

- Under the terms of the bond required by Ga. L. 1956, p. 501, which named the Commissioner as trustee, the law obligated the Commissioner when there was a default in its provisions to collect the bond or any necessary part thereof to pay the claim of any person from whom the principal had purchased livestock and failed to pay for the same; or where the aggregate claims of several similarly situated exceeded the amount of the bond to collect it in full and disburse the proceeds pro rata among several claimants. Campbell v. Benton, 217 Ga. 368, 122 S.E.2d 223 (1961) (decided under former Ga. L. 1956, p. 501).

- Bond dealt with in Ga. L. 1956, p. 501 is purely and strictly a statutory one - a bond which a livestock dealer or broker is required by law to execute and deposit with Georgia's Commissioner of Agriculture before the dealer or broker can obtain a license or permit to deal in livestock. The validity of a bond given in compliance with a statute, and which meets the requirements of the statute is not affected or its nature changed by the inclusion in the bond of a condition that is either unauthorized or is repugnant to the statute. Campbell v. Benton, 217 Ga. 368, 122 S.E.2d 223 (1961) (decided under former Ga. L. 1956, p. 501).

OPINIONS OF THE ATTORNEY GENERAL

Editor's notes.

- In light of the similarity of the provisions, opinions under Ga. L. 1956, p. 501 are included in the annotations for this Code section.

- The sale of baby chicks is not subject to either Ga. L. 1956, p. 501 or Ga. L. 1956, p. 617, § 1 (see O.C.G.A. § 2-9-1) inasmuch as such sales are not within the provisions of these acts; no law would provide protection for those selling baby chicks to Georgia dealers and producers insofar as a bond is concerned, specifically providing protection therefor. 1958-59 Op. Att'y Gen. p. 3 (decided under former Ga. L. 1956, p. 501).

RESEARCH REFERENCES

Am. Jur. 2d.

- 7 Am. Jur. 2d, Auctions & Auctioneers, §§ 1 et seq., 34.

- 7A C.J.S., Auctions & Auctioneers, § 1 et seq.