(2) Each licensed market shall keep and maintain business records showing the following information:

(a) The names of the owners or persons having an interest in the market.

(b) The names of the managers or operators of the market.

(c) The names of the owners of the premises upon which the market is located if different than the owners of the licensed market; if a corporation, the names of the directors, officers, and the stockholders, showing their interest in the corporation.

(d) Any contracts or leases executed in connection with the operation of the market.

(e) The type of organization used in operating the market and the members thereof.

(f) If a corporation, the names of the directors, officers, and the stockholders, showing their interest in the corporation.

(3) Such records and information must be available for inspection and examination by any specifically qualified and authorized agent of the department of livestock, brands-enforcement division. Such information as provided above must be submitted by the licensee of any market to the Montana department of livestock, brands-enforcement division upon request. All records used in the purchase and sale of livestock and all records required by this rule must be kept and maintained by the licensed market for a period of not less than 5 years.

(2) The licensee of each licensed market has a personal and non-delegable responsibility to operate and maintain the market in accordance with the laws of the state of Montana, the laws of the United States, and the rules of the Montana department of livestock, brands-enforcement division.

(1) The owner of a licensed livestock market must immediately notify the department of livestock of any changes in ownership, management, control, operation, the regular sale day or location of the market. All changes are subject to the prior approval of the department of livestock.

(2) Changes which result in ownership or control of the market passing to persons not already approved by the department of livestock to operate the market may be given approval only after public hearing before the department of livestock.

(3) All other changes may be approved without a public hearing, provided that whenever the board of livestock deems it in the interest of the livestock industry, the board may order a public hearing to be held.

(a) In the event that a change in ownership or control is involved, supporting data must include:

(i) Current financial statements of the market and of those persons acquiring ownership or control, prepared by a certified public accountant or a licensed public accountant; and

(ii) Executed copies of any contracts bearing on the change of ownership or control.

(b) In the event that the changes involve a relocation of the market facility supporting data must include:

(i) A detailed copy of construction plans of the new facility; and

(ii) Proof that the new location and construction plans have been approved by the water quality bureau, Montana department of health and environmental sciences, and meet any other regulatory requirements which may be applicable.

(2) The department may require such other information and documents relating to the change as it deems necessary.

(3) In the event that a hearing is required under ARM 32.15.104, at least 10 days notice must be given to all persons who are recipients of notice under section 81-8-252 MCA, and to all persons who have previously advised the department in writing of their interest in such matters. A copy of the notice must be posted at the market in a conspic-ious place easily accessible to the public for a period of not less than 10 days before the hearing.

(4) A hearing held under this sub-chapter must be conducted according to the contested case provisions of the Montana Administrative Procedures Act and any rules promulgated thereunder.

(2) Upon request by a specifically authorized agent of the Montana department of livestock, brands-enforcement division, each licensed market shall submit an accurate and current financial report on the operation of the market and of the current assets and liabilities of the licensed market.

(2) Any market aggrieved by a department ordered change in its bonding requirements may request a hearing before the department by written petition. Such a hearing must be conducted as a contested case under the Montana Administrative Procedures Act.

(2) A licensed market shall keep such necessary records or accounts as to disclose the handling of the "custodial account" and the same shall be open to inspection by specifically authorized and qualified agents of the Montana department of livestock, brands-enforcement division.

(2) Any business such as a livestock grower or feeder, dealer, order buyer or auctioneer must be conducted separate and distinct from that of the licensed market, with books and records reflecting that condition.

(2) All livestock entering such a market enclosure for sale must be checked in to the operator of the market at the time of delivery of the livestock. A list of the livestock offered for sale must be furnished in triplicate showing the number, sex, and holding brand of all livestock offered for sale, and the time that such livestock is checked in at the market. One copy must be furnished to the state stock inspector, one copy placed on the gate of the pen in which such livestock is placed for inspection, and one copy retained and filed by the livestock market.

(3) All livestock entered into a licensed market must be placed in pens and be kept separate by ownership until inspected by the state stock inspector and released. Livestock which has not been inspected cannot be placed in pens containing stock that has already been inspected without authority from the state stock inspector. There must be a check-in ticket or copy thereof in the true owner's name on each pen, and if more than one pen is used for a separate consignment each pen must be listed on the original check-in ticket.

(4) All livestock yarded after sale for an individual purchaser must be placed in pens and be kept separate by ownership until inspected by the state stock inspector and released for removal from the market area. It is the duty of the market operator to furnish the brand inspector the pen number and the number of animals in each pen and the name of purchaser. All animals must be made available by the market operator for inspection. After sale, all livestock must be kept separate by ownership until removal from the market area. A copy of the purchase order, showing the name or names of the consignor, the number of animals and their weight, must be delivered to the inspector before release of the animals purchased. Transfers of ownership must be shown on the purchase order as made after sale.

(5) No cattle or horses delivered to a livestock market for sale may be sold until inspected by the stock inspector, and no cattle or horses may be removed from the premises of the livestock market until clearance has been issued by the stock inspector.

(6) The operator of a licensed market or market agency must furnish necessary help to assist stock inspectors in handling livestock to be inspected for brands prior to sale or removal from market area.

(7) All livestock consigned to a licensed market must be checked in, penned and sold in the true owner's name, and all net proceeds must be paid to such owner except for valid liens and mortgages against the property sold.

(8) Fully modern, regularly maintained and serviced and accurately operated livestock scales must be provided by each livestock market for the determination of accurate weights from which total prices paid for livestock sold are computed.

(a) Competent, experienced and qualified weighmen shall do the actual weighing of all livestock.

(b) Cattle sold for individual owners or for the Montana department of livestock, brands-enforcement division must be weighed in the true owner's name and according to brands as shown by stock inspector's tally, unless sold by the head.

(9) No deductions may be made on estrays or livestock held for any service other than the regular market charges without the authority of the stock inspector.

(10) Proceeds from the sale of cattle or horses ordered paid to the Montana department of livestock, brands-enforcement division may be held by the market agency not longer than 30 days in cases where title to such stock is not clear at time of sale.

(11) Each licensed market shall have good and adequate facilities to operate an auction market consistent with the volume of such business and shall keep and maintain the facilities of the market in good, clean operating condition and must repair such facilities as from time to time may be necessary, and comply with the rules of the Montana department of livestock, animal health division.

(12) "Feed only" or "yard only" livestock not delivered on consignment, must at all times be "checked in" and be kept in separate pens and be in the control of the licensee. Such animals may not be mixed with consigned cattle and are subject to inspection by the Montana department of livestock, brands-enforcement division. Such animals may be released by the market owner only upon approval of the livestock inspector.

(1) "Consignor pens" means pens in which animals are placed and held prior to being sold.

(2) "Outbuyer pens" means pens in which animals are placed and held after they have been sold.

(2) The surface of all loading pens, all unloading pens, all cattle-testing chutes and testing-holding pens, all pens in which swine are held for any purpose, all quarantine pens, and all alleyways adjacent to paved pens in the consignor and outbuyer areas must be covered with concrete or other acceptable impervious material.

(3) The surface area of sufficient consignor pens must be covered with concrete or other acceptable impervious material to provide 25 square feet of pavement or other acceptable impervious material per animal, which must be determined by multiplying 25 square feet by the average number of animals at each sale held the last 4 months of the year for the past 3 years.

(4) The surface of sufficient outbuyer pens must be covered with concrete or other acceptable impervious material to equal at least 20% of the surface area of the consignor pens.

(5) The surface area of the consignor pens in a new market must be covered with concrete or other acceptable impervious material shall be determined by multiplying 25 square feet by the number of animals expected to be sold on an average sale day the last 4 months of the year.

(6) The surface area of outbuyer pens in a new market must be covered in the amount equal to at least 20% of the area designated in (5) .

(7) Sufficient alleyways must be covered with concrete or other acceptable impervious material arranged adjacent to pens covered with concrete or other acceptable impervious material, so that livestock can enter and leave the auction market and at all times be on surfaces covered with concrete or other impervious material.

(8) All loading, unloading, and holding pens, alleyways, and entire yard area must be adequately drained.

(9) Automatic float control or other acceptable control must be provided for all water troughs or tanks, to avoid overflow creating unsanitary conditions.

(1) Adequate facilities must be provided for the handling, testing, dipping, or treating of diseased or exposed animals when handling, testing, dipping, or treating is required by the Montana Department of Livestock.

(2) Proper chutes and sufficient help so that animals may be properly and thoroughly examined, treated, and segregated, must be provided.

(3) Office space with adequate facilities for the deputy state veterinarian to make necessary tests and reports, keep necessary tests and reports, and keep necessary equipment and materials, must be provided by each livestock market.

(2) Animals placed in the quarantine pen may be released from such pen only upon permission of a representative of the Montana department of livestock, animal health division.

(2) Breeding places for flies or other insects must be prevented. Flies and other insects must be kept under control.

(3) Following the completion of each day's sale, the sale ring, entering and exit alleyways, must be thoroughly cleaned. If considered necessary by a representative of the Montana department of livestock, animal health division, they must also be disinfected. If considered necessary by a representative of the Montana department of livestock, animal health division, holding pens must also be cleaned and disinfected.

(4) All livestock markets shall provide adequate facilities for washing and disinfecting any conveyance used for transporting livestock.

(2) Animals which are determined to be brucellosis reactors as the result of an official test for brucellosis performed at a licensed livestock market must be handled pursuant to and in accordance with provisions of ARM.

(3) Animals which are determined to be brucellosis suspects, or brucellosis exposed animals, as the result of an official test for brucellosis performed at a licensed livestock market must be handled pursuant to and in accordance with the provisions of ARM 32.2.425.

(4) Condemned or diseased animals may not be sold or offered for sale except for immediate slaughter under official supervision by a duly appointed state or federal meat inspector, and may not be removed from the market except upon written permit by a representative of the Montana department of livestock, animal health division.

(5) Condemned or diseased animals may not be diverted enroute but must be shipped direct for immediate slaughter to the consignee designated on the Montana department of livestock, animal health division representative's written shipping release.

(6) Condemned or diseased animals for which indemnity is to be paid must be handled and sold in such a manner as not to invalidate the owner's claim for indemnity.

(1) A deputy state veterinarian provided at the expense of the livestock market, but authorized by the Montana Department of Livestock, Animal Health Division must inspect all livestock coming into livestock markets, make and keep records of the proper disposition of any animal showing evidence of disease or any animal condemned by the Montana Department of Livestock or the United States Department of Agriculture, and determine the brucellosis status of all female cattle and bulls.

(1) The fees for health certification for interstate shipment and for necessary tests or vaccinations will be paid by the owner of the livestock.

(1) The issuing of health certificates, necessary testing, and vaccinating may be done by either the veterinarian representing the Montana Department of Livestock, Animal Health Division, or by another deputy state veterinarian.

(1) A brand mortgage (lien) covering branded livestock must be filed with the Department of Livestock.

(a) Brand mortgages apply to cattle with Montana brands only.

(b) A brand mortgage may be referred to as a notice of security agreement

or lien on branded livestock.

(2) A fee must be paid to the department by every person filing a brand mortgage, assignment, renewal, or termination for each brand listed.

(3) There are two ways to file a brand mortgage:

(a) all brand owners of the brand sign the brand mortgage papers; or

(b) by Writ of Execution directing the mortgage be placed on the brand to enable the department to comply with a court order.

(4) A notice of continuation (assignment) signed by the new brand owners, and the filing fee must be sent to the department to complete a name change on a brand mortgage.

(5) A notice of termination plus the filing fee must be filed with the department immediately upon satisfaction to terminate a brand mortgage.

(1) Brand mortgages and assignments must be renewed every five years commencing on January 1, 1983 and every five years thereafter.

(2) Renewal requirements are:

(i) a completed notice of continuation of brand mortgage; and

(ii) the appropriate filing fee paid to the department.

(3) The mortgage will be terminated if not renewed prior to the deadline.

(1) "Person" means an association, corporation, partnership, or other business unit or arrangement, or a natural person.  When used in the singular the plural is included.

(2) "Board" means the board of livestock provided for in 2-15-3102, MCA.

(3) "Association sale" means a sale of livestock by auction or similar method sponsored by a livestock association.  It includes an association organized on a geographic basis made up of livestock producers who collectively produce more than one breed of livestock.

(4) "Test station sale" means a sale of livestock by auction or similar method from a place where livestock are taken to measure rates of gain under uniform feeding conditions when that place is not owned by the owner of the livestock.

(5) "Management firm" means a person with whom the association or test station sponsoring a sale has contracted

to conduct the sale.  Management services include but are not

limited to receipt and disbursement of funds received for the sale of livestock.

(6) "Custodial account" means a demand account established in a Montana bank licensed under state or federal law into which all proceeds from the sale of livestock at a

sale covered by these rules must be placed for prompt disbursement, after proper charges have been subtracted, to consignors selling livestock at the sale.

(7) "Livestock" means cattle, horses, sheep and swine.

(2) Private production or dispersion sales with less than three guest consignors, 4H, future farmers of America sales do not require a permit under this sub-chapter.

(3) An association or test station sale conducted in or by a Montana licensed livestock auction market, when all sale proceeds are handled through the market's custodial account, is exempt from the provisions of these rules.

To obtain a permit to conduct an association or test station sale the following conditions must be agreed to and performed by the applicant:

(1) A custodial account must be established and all proceeds from the sale of livestock and cashed entry fees must be deposited therein to be disbursed to consignors after proper charges have been deducted;

(2) A list of the types of all charges which will or could be imposed on consignors and a description of all rules of the sale including breed registration requirements must be given to consignors at or before the time of consignment;

(3) If the sale is to be conducted by a management firm which will have access to the custodial account or otherwise handle proceeds of the sale the association or test station sponsoring the sale must require the management firm to secure a bond, in an amount set by the board, conditioned upon the prompt payment of sale proceeds to consignors to the sale.  The bond must be obtained from a firm licensed to issue such bonds in Montana.  The bond must be registered with the board;

(4) All consignors must be paid the full sale price of their livestock sold at the sale, less any proper charges, as soon as possible and not later than 30 days after the

date of sale.  When a consignor has failed to meet sale requirements regarding livestock registration or health of which he has been informed at or prior to the time of consignment, payment to him may be made after registration and health requirements have been met and thereafter be paid as soon as possible; and

(5) The person conducting the sale shall comply with all applicable statutes, rules and orders relating to animal health, brand inspection, and the movement of livestock.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(a) Failure to notify the department of livestock of any change in employment status may constitute a violation serious enough to initiate and invoke the provisions of 81-8-273 and 81-8-274 , MCA.