General Provisions

Utah Code tit. 4, ch. 4-7, pt. 4-7-P1

in effect

Utah Code § 4-7-102 Purpose declaration.

4-7-102. Purpose declaration. The Legislature finds that the public interest requires regulation of the sale of livestock between the producer and a person who purchases livestock for resale to protect the producer from unwarranted hazard and loss in the sale of livestock. Renumbered and Amended by Chapter 345, 2017 General Session

Utah Code § 4-7-103 Definitions.

4-7-103. Definitions. As used in this chapter: (1) "Agent" means a person who, on behalf of a dealer, purchaser, or livestock market, as defined in Section 4-30-102, solicits or negotiates the consignment or purchase of livestock. (2) "Consignor" means a person who ships or delivers livestock to a dealer for handling or sale. (3) (a) "Dealer" means a person who: (i) receives livestock from a person for sale on commission; (ii) is entrusted with the possession, management, control, or disposal of livestock for the account of that person; or (iii) negotiates price, determines a delivery date, and receives money on behalf of a livestock producer. (b) "Dealer" includes: (i) a livestock dealer; and (ii) a person who owns or leases a feedlot. (4) (a) "Immediate resale" means the resale of livestock within 60 days of purchase. (b) "Immediate resale" does not include the resale of livestock culled within 60 days that were purchased for feeding or replacement. (5) "Livestock" means cattle, swine, equines, sheep, camelidae, ratites, bison, goats, and domesticated elk as defined in Section 4-39-102. (6) "Livestock dealer" means a person engaged in the business of purchasing livestock for immediate resale or interstate shipment for immediate resale. (7) "Producer" means a person who is primarily engaged in the business of raising livestock for profit. Renumbered and Amended by Chapter 345, 2017 General Session

Utah Code § 4-7-104 Unlawful to act as an agent or dealer without license -- Exception.

4-7-104. Unlawful to act as an agent or dealer without license -- Exception. Except as exempted by Section 4-7-105, no person may act as an agent or dealer in this state without being licensed under this chapter. Renumbered and Amended by Chapter 345, 2017 General Session

Utah Code § 4-7-105 Exemptions.

4-7-105. Exemptions. The surety and licensing requirements of this chapter do not apply to: (1) a livestock market that is bonded as required by laws of the United States and Title 4, Chapter 30, Livestock Markets; or (2) a cooperative incorporated under the laws of this state or another state, except as to the receipt of livestock from a nonmember producer. Renumbered and Amended by Chapter 345, 2017 General Session

Utah Code § 4-7-106 Licenses -- Applications.

4-7-106. Licenses -- Applications. Application for an agent's or dealer's license shall be made to the department upon forms prescribed and furnished by the department, and the application shall state: (1) the applicant's name, principal address in this state, and age; (2) the applicant's principal address in any location outside Utah; (3) the name and principal address of the person authorized by the applicant to accept service of process in this state on behalf of the applicant during the licensure period; (4) the name and principal address of the applicant's surety if the application is for a dealer's license; (5) a schedule of the commissions, fees, and other charges the applicant intends to collect for services during the period of licensure; (6) the name and address of each principal the applicant intends to represent during the period of licensure; and (7) any other information that the department may require by rule. Amended by Chapter 528, 2023 General Session

Utah Code § 4-7-107 Issuance of dealer and agent licenses -- Fees -- Deposit of bond or trust agreement -- Renewal -- Refusal to issue or renew license.

4-7-107. Issuance of dealer and agent licenses -- Fees -- Deposit of bond or trust agreement -- Renewal -- Refusal to issue or renew license. (1) The commissioner, if satisfied that the convenience and necessity of the industry and the public will be served, shall issue a license to a dealer within 30 days after: (a) receipt of a proper application and financial statement; (b) payment of a license fee determined by the department pursuant to Subsection 4-2-103(2); and (c) the posting of a corporate surety bond, an irrevocable letter of credit, a trust fund agreement, or other security required by Section 4-7-108. (2) Upon proper application and payment of the license fee determined by the department pursuant to Subsection 4-2-103(2), the commissioner shall issue a license to conduct business as an agent. (3) A license issued under this chapter: (a) entitles the applicant to conduct the business described in the application through December 31 of the year in which the license is issued, subject to suspension or revocation for cause; and (b) is renewable for a period of one year upon: (i) receipt of a proper renewal application; and (ii) payment of an annual license renewal fee determined by the department pursuant to Subsection 4-2-103(2). (4) A license issued under this chapter shall at all times remain the property of the state, and the licensee is entitled to the license only for the duration of the license. (5) The department shall refuse to issue or renew a license if the applicant: (a) cannot produce a financial statement with sufficient assets to justify the amount of business the applicant contemplates, unless the application is for an agent's license; (b) is in violation of this chapter or rules adopted under this chapter; (c) has made a false or misleading statement as to the health or physical condition of livestock in connection with the buying, receiving, selling, exchanging, soliciting or negotiating the sale of, or the weighing of livestock; (d) has failed to keep records of purchases and sales or refused to grant inspection of those records by authorized agents of the department; (e) has failed to comply with a lawful order of the department; (f) has been found by the department to have failed to pay, without reasonable cause, obligations incurred in connection with the livestock transaction; (g) has been suspended by order of the secretary of agriculture of the United States Department of Agriculture under provisions of the Packers and Stockyards Act, 1921, 7 U.S.C. Sec. 181 et seq.; (h) employs a person required to be licensed whose license cannot be renewed or whose license is under suspension or revocation by the department or the United States Department of Agriculture; or (i) has any unsatisfied civil judgments related to an activity for which licensing is required by this chapter. (6) An applicant who has been refused a license or license renewal may not apply again for one year following refusal unless the department determines that the applicant is in compliance with this chapter. Renumbered and Amended by Chapter 345, 2017 General Session

Utah Code § 4-7-108 Applicant for dealer's license to post security -- Increase in amount of security posted -- Action on security authorized -- Duties of commissioner -- Option to require posting new security if action filed -- Effect of failure to post new security -- Commissioner's authority to call bond if not renewed.

4-7-108. Applicant for dealer's license to post security -- Increase in amount of security posted -- Action on security authorized -- Duties of commissioner -- Option to require posting new security if action filed -- Effect of failure to post new security -- Commissioner's authority to call bond if not renewed. (1) (a) Before a license is issued to a dealer, the applicant shall post a corporate surety bond, irrevocable letter of credit, trust fund agreement, or any other security agreement considered reasonable in an amount not less than $10,000, as determined by the commissioner or as required by the Packers and Stockyards Act, 1921, 7 U.S.C. Sec. 181 et seq. (b) Any bond shall be written by a surety licensed under the laws of Utah and name the state, as obligee, for the use and benefit of producers. (c) The bond or other security posted shall be conditioned upon: (i) the faithful performance of contracts and the faithful accounting for and handling of livestock consigned to the dealer; (ii) the performance of the obligations imposed under this chapter; and (iii) the payment of court costs and attorney fees to the prevailing party incident to any suit upon the bond or other security posted. (2) (a) The commissioner may require a dealer who is issued a license to increase the amount of the bond or other security posted under Subsection (1)(a) if the commissioner determines the bond or other security posted is inadequate to secure performance of the dealer's obligations. (b) The commissioner shall notify the Packers and Stockyards Administration of an increase made under Subsection (2)(a). (c) The commissioner may suspend a dealer's license for failure to comply with Subsection (2)(a) within 10 days after notice is given to the dealer. (3) A consignor claiming damages, as a result of fraud, deceit, or willful negligence by a dealer or as a result of the dealer's failure to comply with this chapter, may bring an action upon the bond or other security posted for damages against both the principal and surety. (4) (a) If it is reported to the department by a consignor that a dealer has failed to pay in a timely manner for livestock received for sale, the commissioner shall: (i) ascertain the name and address of each consignor who is a creditor of the dealer; and (ii) request a verified written statement setting forth the amount claimed due from the dealer. (b) Upon receipt of the verified statements, the commissioner shall bring an action upon the bond or other security posted on behalf of the consignors who claim amounts due from the dealer. (5) (a) If an action is filed upon the bond or other security posted, the commissioner may require the filing of new security. (b) Immediately upon recovery in the action described in Subsection (5)(a), the commissioner shall require the dealer to file a new bond or other security. (c) (i) The commissioner may suspend a license if a dealer fails to file the bond or other security within 10 days after the commissioner's demand. (ii) A suspension described in Subsection (5)(c)(i) shall remain in effect until the dealer files a new bond or other security. (d) If the bond or other security posted under this section is not renewed within 10 days of its expiration date, unless the commissioner states in writing that this is unnecessary, the commissioner may obtain, after a hearing, the full amount of the bond or other security before it expires. Renumbered and Amended by Chapter 345, 2017 General Session

Utah Code § 4-7-109 Dealers -- Records mandated -- Records subject to inspection.

4-7-109. Dealers -- Records mandated -- Records subject to inspection. (1) A dealer who receives livestock for sale or consignment shall promptly record: (a) the name and address of the consignor; (b) the date received; (c) the condition and quantity upon arrival; (d) the date of sale for account of the producer-consignor; (e) the sale price; (f) an itemized statement of the charges to be paid by the producer-consignor; (g) the individual or group identification of the livestock; (h) the nature and amount of any claims the dealer has against third persons for overcharges or damages; and (i) if the dealer has a direct or indirect financial interest in the business of the purchaser, or, if the purchaser has a similar financial interest in the business of the dealer, the name and address of the purchaser. (2) (a) The dealer shall provide a copy of the livestock receipt to the producer immediately upon delivery of the product. (b) The records required by this section shall be retained for a period of one year following the date of consignment and shall be available during business hours for inspection by the department. (c) A consignor involved in a consignment subject to inquiry may inspect relevant records. (3) (a) A dealer shall file an annual report of the records required under Subsection (1) with the department on a form prescribed and furnished by the department. (b) The dealer shall file the report by April 15 following the end of a calendar year, or if the records are kept on a fiscal year basis, by 90 days after the close of the fiscal year. (c) The commissioner may, for good cause shown or by the commissioner's own motion, grant an extension to the filing deadline under Subsection (3)(b). (d) For purposes of this Subsection (3), "dealer" does not include a packer buyer registered to purchase livestock for slaughter only. (e) The department shall accept reports as required by the Packers and Stockyards Administration for livestock under the Packers and Stockyards Act, 1921, 7 U.S.C. Sec. 181, et seq. (f) The reports required under this Subsection (3) may be subject to audit and establish the basis for bond adequacy. Renumbered and Amended by Chapter 345, 2017 General Session

Utah Code § 4-7-110 Livestock purchases.

4-7-110. Livestock purchases. Livestock purchases shall be paid for as provided in the Packers and Stockyards Act, 1921, 7 U.S.C. Sec. 181, et seq. Renumbered and Amended by Chapter 345, 2017 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title4/Chapter7/4-7-P1.html?v=C4-7-P1_2017050920170701Fetched: 10/26/2026