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AR 418/91 Livestock Patron's Assurance Fund
(Consolidated up to 251/2001)
ALBERTA REGULATION 418/91
Livestock and Livestock Products Act
LIVESTOCK PATRON'S ASSURANCE
FUND REGULATION
Table of Contents
Interpretation 1
Application of Regulation 1.1
Prescribed livestock and livestock products 2
Notification 3
Conditions for payment 4
Levies 5
Withdrawing from protection of Fund 6
Cancelling declaration 7
Refund of levies 8
Maximum amount of payment from Fund 9
Maximum amount of Fund 10
Review committee 11
Transitional 12
Repeal 13
Coming into force 14
Interpretation
1 In this Regulation,
(a) "Act" means the Livestock and Livestock Products Act;
(b) "declaration" means a declaration by a patron stating that the
patron does not want to be eligible to receive payments from the Fund;
(c) "default" means, in respect of a sale of prescribed livestock
by a patron to a licensed livestock dealer or an out of province livestock
dealer, the failure of the dealer to account to or make settlement with the
patron for the value of the prescribed livestock supplied;
(d) "Department" means the Department of Agriculture, Food and
Rural Development;
(d.1) "farming operations" means
(i) the maintenance of livestock for the purpose of
propagation or the production of livestock products or both, or
(ii) the maintenance of feeder livestock for the purpose
of growing or finishing or both;
(e) "Fund" means the Livestock Patron's Assurance Fund;
(f) "licensed livestock dealer" means a licensed livestock dealer
within the meaning of that term in the Licensing and Bonding of Livestock
Dealers and Livestock Dealers Agents Regulation (Alta. Reg. 450/83);
(g) "prescribed livestock" means an animal or animal product
falling within one of the classes of livestock or livestock products
prescribed in section 2.
AR 418/91 s1;220/92;206/2001
Application of Regulation
1.1 This Regulation does not apply to a claim of a patron in respect of
prescribed livestock that is supplied to a licensed livestock dealer on or
after January 1, 1998.
AR 256/97 s2
Prescribed livestock and livestock products
2 The prescribed classes of livestock and livestock products in respect
of which a payment from the Fund may be made are live or dressed cattle and
horses.
AR 418/91 s2
Notification
3 A patron who suffers a loss as a result of a default is not eligible to
receive a payment from the Fund unless the patron
(a) notifies the Minister of the default within 24 hours of the
patron becoming aware of the default or any longer period permitted by the
Minister, and
(b) as soon as practicable after notifying the Minister under
clause (a), provides the Minister with a written statement setting out the
details of the sale of the prescribed livestock and the default and any
information relating to the default that the Minister requests.
AR 418/91 s3
Conditions for payment
4(1) The conditions for making a payment from the Fund when there has been
a default in respect of a sale of prescribed livestock by a patron to a
licensed livestock dealer or out of province livestock dealer are as
follows:
(a) when the agreement to sell the prescribed livestock was made,
the prescribed livestock were alive and in Alberta, Dawson Creek, British
Columbia or Lloydminster, Saskatchewan;
(a.1) if the prescribed livestock came from the patron's farming
operations outside of Alberta or if the prescribed livestock were sold in
Dawson Creek, British Columbia or Lloydminster, Saskatchewan, the livestock
were in Alberta for a minimum of 30 days immediately before the sale;
(b) the prescribed livestock were, for the purposes of the sale,
inspected by
(i) an inspector as defined in the Livestock
Identification and Brand Inspection Act, or
(ii) in the case of prescribed livestock sold in Dawson
Creek, British Columbia or Lloydminster, Saskatchewan, an inspector
appointed under legislation of the jurisdiction in which the sale took
place;
(b.1) the patron did not agree to receive payment for the prescribed
livestock beyond 48 hours from the time of the sale;
(b.2) if the patron and purchaser of the prescribed livestock are
bodies corporate, the patron and the purchaser are not affiliated with each
other within the meaning of "affiliated" under section 2 of the Business
Corporations Act;
(b.3) if one of the patron and purchaser of the prescribed livestock
is a body corporate, the body corporate is not controlled by the other
party to the sale, within the meaning of "controlled" under section 2 of
the Business Corporations Act;
(b.4) if one of the patron and purchaser of the prescribed livestock
is a partnership, the other party to the sale is not a partner in the
partnership;
(b.5) the sale was not made for the purpose of enabling the patron to
make a claim for payment from the Fund;
(c) the patron has not contravened the requirement to pay or cause
to be paid a levy under section 5;
(d) the sale was not made in a year in respect of which the patron
is ineligible to receive payments from the Fund under section 6 or 7;
(e) the requirements in section 3 have been complied with.
(2) In addition to meeting the conditions in subsection (1), a patron
shall comply with the requirements of the Act before a payment may be made
from the Fund.
AR 418/91 s4;220/92;247/95
Levies
5(1) In this section, "eligible sale" means a sale by a patron of
prescribed livestock to a licensed livestock dealer or an out of province
livestock dealer
(a) in which the prescribed livestock were alive and in Alberta
when the agreement to sell the livestock was made, or
(b) in which the prescribed livestock were alive and in Dawson
Creek, British Columbia or Lloydminster, Saskatchewan when the agreement to
sell the livestock was made.
(2) Subject to this section, a patron who makes an eligible sale shall pay
or cause to be paid to the Minister a levy in an amount established by the
Minister from time to time for each head of prescribed livestock sold.
(3) Levies shall be paid at such times as may be established by the
Minister.
(4) A patron who makes a sale of prescribed livestock in a year in respect
of which the patron is ineligible to receive a payment from the Fund under
section 6 or 7 and who maintains an account with the Department for the
payment of inspection fees under the Livestock Identification and Brand
Inspection Act is not required to pay a levy on that sale.
(5) A patron who makes
(a) a private sale of prescribed livestock at a place other than a
market as defined in the Livestock Identification and Brand Inspection Act,
or
(b) a sale of prescribed livestock at a country sale as defined in
the Livestock Identification and Branch Inspection Act where permission has
been given under that Act for the country sale to be held without
inspection,
in a year in respect of which the patron is ineligible to receive a payment
from the Fund under section 6 or 7 is not required to pay a levy on that
sale.
(6) A patron is not required to pay a levy on an eligible sale if the
patron does not satisfy the conditions for making a payment from the Fund
under section 4(1)(a.1), (b.1), (b.2), (b.3) or (b.4) in respect of that
sale.
AR 418/91 s5;220/92;247/95
Withdrawing from pro-tection of Fund
6(1) A patron who wants to withdraw from the protection of the Fund may
provide the Minister with a declaration and a patron who provides the
Minister with a declaration is ineligible to receive payments from the Fund
in respect of sales of prescribed livestock made in the years following the
year the declaration was provided, unless the patron cancels the
declaration under section 7.
(2) Notwithstanding subsection (1), if a patron whose first sale of
prescribed livestock occurs on or after January 1, 1992 wants to withdraw
from the protection of the Fund in respect of sales made in the year of the
first sale and later years, the patron shall, within 30 days after the date
of the first sale, provide the Minister with a declaration.
(3) A patron who provides the Minister with a declaration under subsection
(2) is ineligible to receive payments from the Fund in respect of sales of
prescribed livestock made in the year of the first sale and later years,
unless the patron cancels the declaration under section 7.
(4) Notwithstanding subsection (1), if a patron who has sold prescribed
livestock prior to January 1, 1992 wants to withdraw from the protection of
the Fund in respect of sales made in 1992 and later years, the patron
shall, by January 31, 1992, provide the Minister with a declaration.
(5) A patron who provides the Minister with a declaration under subsection
(4) is ineligible to receive payments from the Fund in respect of sales of
prescribed livestock made in 1992 and later years, unless the patron
cancels the declaration under section 7.
AR 418/91 s6
Cancelling declaration
7(1) A patron who has provided the Minister with a declaration under
section 6 may, by a written notice to the Minister, cancel the declaration.
(2) A patron who cancels a declaration under subsection (1) remains
ineligible to receive payments from the Fund in respect of sales made in
the year the notice was provided to the Minister.
AR 418/91 s7
Refund of levies
8(1) If a patron is, under section 6 or 7, ineligible to receive a payment
from the Fund in respect of sales of prescribed livestock made in a year,
referred to in this section as an ineligible year, the patron may apply for
a refund of levies paid in respect of sales made in the ineligible year.
(2) A patron is not entitled to a refund of levies paid in an ineligible
year unless
(a) the patron submits a written application to the Minister that
sets out the total number of prescribed livestock sold by the patron in the
ineligible year for which levies were paid,
(b) the Minister receives the application by March 31 of the year
following the ineligible year, and
(c) the patron provides the Minister with any information that the
Minister requests to verify the number of prescribed livestock sold.
(3) If the Minister is satisfied that a patron is entitled under this
section to a refund, a payment in an amount determined by the Minister
shall be made out of the Fund to the patron.
AR 418/91 s8
Maximum amount of payment from Fund
9(1) Subject to subsection (2), the maximum amount that a patron may
receive from the Fund in respect of a default is an amount that, together
with the amount recovered pursuant to a bond or security under section
13(5) of the Act, equals 80% of the patron's claim.
(2) The maximum amount that a patron who cancels a declaration under
section 7 may receive from the Fund in respect of a sale made in the year
following the year the notice cancelling the declaration was provided to
the Minister is
(a) 25% of the maximum amount under subsection (1) if the sale
occurred in the first quarter,
(b) 50% of the maximum amount under subsection (1) if the sale
occurred in the second or third quarter, and
(c) 75% of the maximum amount under subsection (1) if the sale
occurred in the fourth quarter.
AR 418/91 s9;251/2001
Maximum amount of Fund
10 The maximum amount of the Fund is $3 000 000.
AR 418/91 s10
Review committee
11(1) The Minister shall establish a review committee if the committee is
required under section 13(3) of the Act.
(2) The Minister shall appoint the following persons as members of a
review committee:
(a) a person recommended by the Alberta Auction Markets
Association;
(b) a person recommended by the Alberta Cattle Feeders Association;
(c) a person recommended by the Alberta Cattle Commission.
(3) If the Minister does not receive a recommendation from a group
referred to in subsection (2), the Minister may appoint as a member a
person who the Minister believes will represent that group.
(4) The Minister may appoint one or more additional members to a review
committee if the Minister considers the appointments to be appropriate.
(5) The Minister may pay reasonable fees and living expenses to the
members of a review committee.
AR 418/91 s11
Transitional
12 An application for a payment from the Fund by a patron who suffers a
loss as a result of a licensed livestock dealer failing to account or make
settlement to or with the patron in accordance with the value of the
livestock or livestock products supplied before January 1, 1992 is governed
by
(a) the Livestock Patron's Assurance Fund Regulation (Alta. Reg.
451/83) as though that Regulation had not been repealed, and
(b) the Livestock and Livestock Products Act as it read on December
31, 1991.
AR 418/91 s12
Repeal
13 The Livestock Patron's Assurance Fund Regulation (Alta. Reg. 451/83)
is repealed.
AR 418/91 s13
Coming into force
14 This Regulation comes into force on January 1, 1992.
AR 418/91 s14
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