81-8-264. Livestock video auction -- license to transact business -- license fee -- contract -- renewal. (1) A livestock video auction may transact business in this state only through a licensed livestock dealer or through a livestock market that is domiciled in the state. The livestock video auction is subject to the same regulation as the domiciled livestock market.

(2) A livestock dealer or a livestock market that proposes to transact business with a livestock video auction pursuant to subsection (1) shall file an application for a license with the department on a form prescribed by the department with the following information:

(a) the nature of the business for which a license is requested;

(b) the name and address of the livestock dealer or the livestock market;

(c) the name and address of the livestock video auction; and

(d) any additional information that the department may require.

(3) The application must be accompanied by:

(a) a fee established by the department commensurate with the costs of administering 81-8-265 and this section;

(b) evidence that the department may require indicating that the livestock video auction is financially responsible and bonded to transact business and has established a custodial account for shippers' proceeds; and

(c) a copy of the contract between the licensed livestock dealer or the livestock market and the livestock video auction. The contract must provide:

(i) for reasonable access by the department to all records and documents relating to the activities of the livestock video auction; and

(ii) that the livestock dealer or the livestock market and the livestock video auction are jointly and severally liable, with the right of contribution, for all business transacted within the state.

(4) If the contract described in subsection (3)(c) is terminated, rescinded, breached, or materially altered, the livestock dealer or the livestock market shall immediately notify the department. Failure to notify the department is considered to be:

(a) a failure to keep and maintain suitable records with the department; and

(b) a false entry or statement of fact in an application filed with the department.

(5) On or before May 1 of each year, a livestock dealer or a livestock market shall renew the license by fulfilling the requirements of subsections (1) through (4).

(6) The license fee must be remitted to the state treasurer to the credit of the department.