HB 49 was signed into law in May, bringing about some changes for Georgia livestock dealers and market operators. The bill takes effect on July 1, 2017.
HB 49 clarifies the definition of a livestock dealer and adds more parameters for those not considered livestock dealers. Georgia livestock dealers are anyone engages in or facilitates the purchase, sale, exchange, or other ownership transfer of livestock in Georgia, including by electronic means. The definition of a livestock dealer does not include the following, per the new law:
- Farmers acquiring livestock solely for the purpose of grazing and feeding
- Packers whose annual livestock purchases total less than $50,000 and who buy only from licensed dealers and sale establishments
- Persons selling livestock of their own production or buying for their own production
- Persons auctioning livestock on behalf of a third party
HB 49 removes all instances of the word “bond” and replaces them with the word “surety,” which includes a surety bond, letter of credit, certificate of deposit, or other bank-issued financial assurance. This means that Georgia livestock dealers and market operators have the option of posting one of those proofs of financial security rather than a surety bond.
Under current law, Georgia livestock dealers’ surety bond amount is calculated based on the number of days in the previous year during which the dealer did business. Then, the total�dollar value of livestock purchased during the previous year is divided by half of the number of business days or 130, whichever number is less. Surety bond amounts are then determined as follows:
- The number found is $10,000 or less: $10,000 surety bond
- The number found is more than $10,000 but less than $75,000: surety bond is equal to number found
- The number found is more than $75,000: surety bond is $75,000 plus 10 percent of the amount by which the amount found exceeds $75,000
Livestock market operators’ surety bond is currently calculated according to the annual sales of the livestock sales establishment:
- Annual sales of $2,600,000 or less: surety bond is one fifty-second of annual sales but no less than $10,000
- Annual sales of more than $2,600,000: surety bond is $50,000 plus one fifty-second�of the amount of annual sales in excess of $2,600,000.00 times a factor of 0.2
- If the surety bond amount calculated is not a multiple of $5,000, the bond amount is rounded up to the nearest higher multiple of $5,000
Under HB 49, Georgia livestock dealers and market operators will have a much less complicated way of determining their surety bond amount, as a sufficient bond amount will be agreed upon with the Georgia Department of Agriculture. HB 49 mandates that the Department publishes a list of licensed dealers and market operators.
Ready to purchase a Georgia livestock dealer or market operator surety bond? Get in touch with Single Source Insurance today!