LB 646 — Provide an exemption from brand inspections and change fees under the Livestock Brand Act

Electronic inspection shall not require agency employees to be present, except that random audits shall occur.

(b) A Beginning October 1, 2021, an electronic inspection fee not to exceed eighty-five cents per head until June 30, 2023, and beginning July 1, 2023, a fee established by the brand committee of not more than one dollar and fifty ten cents per head shall be charged for all cattle subjected to electronic inspection in accordance with the Livestock Brand Act or section 54-415.

(c) A certified bill of sale for sale of calves shall be provided to qualified dairies once the required information is electronically transferred to the brand committee on calves under thirty days of age.

The fee shall be the same as for an electronic inspection under subdivision (2)(b) of this section.

(d) A certified transportation permit shall be provided to qualified dairies after the required information is electronically transferred to the brand committee on calves under thirty days of age which are moved out of the inspection area.

The fee shall be the same as for an electronic inspection under subdivision (2)(b) of this section.

(e) On or before December 1, 2021, the brand committee shall report to the Legislature any actions taken or necessary for implementing electronic inspection authorized by this subsection, including personnel and other resources utilized to support electronic inspection, how the brand committee's information technology capabilities are utilized to -4- LB646 LB646 2025 support electronic inspection, a listing of approved nonvisual identifiers, the requirements for enrolling cattle identified by approved nonvisual identifiers, current and anticipated utilization of electronic inspection by the livestock industry, and the fees required to recover costs of performing electronic inspection.

(3) Any person who has reason to believe that cattle were shipped erroneously due to an inspection error during a brand inspection may request a reinspection.

The person making such request shall be responsible for the expenses incurred as a result of the reinspection unless the results of the reinspection substantiate the claim of inspection error, in which case the brand committee shall be responsible for the reinspection expenses.

Sec.

5.

Section 54-1,111, Reissue Revised Statutes of Nebraska, is amended to read:

54-1,111 (1) Except as provided in subsection (2) of this section, no person shall sell or trade any cattle located within the brand inspection area, nor shall any person buy or purchase any such cattle unless the cattle have been inspected for evidence of ownership and a certificate of inspection or brand clearance has been issued by the Nebraska Brand Committee.

Any person selling such cattle shall present to the brand inspector a properly executed bill of sale, brand clearance, or other satisfactory evidence of ownership which shall be filed with the original certificate of inspection in the records of the brand committee.

Any time a brand inspection is required by law, a brand investigator or brand inspector may transfer evidence of ownership of such cattle from a seller to a purchaser by issuing a certificate of inspection.

(2) A brand inspection is not required:

(a) For cattle of a registered feedlot that are registered under sections 54-1,120 to 54-1,122 shipped for direct slaughter or sale on any terminal market;

(b) For cattle that are:

-5- LB646 LB646 2025 (i) Transferred to a family corporation when all the shares of capital stock of the corporation are owned by the husband, wife, children, or grandchildren of the transferor and there is no consideration for the transfer other than the issuance of stock of the corporation to such family members;

or (ii) Transferred to a limited liability company in which membership is limited to the husband, wife, children, or grandchildren of the transferor and there is no consideration paid for the transfer other than a membership interest in the limited liability company;

(c) When the change of ownership of cattle is a change in form only and the surviving interests are in the exact proportion as the original interests of ownership.

When there is a change of ownership described in subdivision (2)(b) or (c) of this section, an affidavit, on a form prescribed by the Nebraska Brand Committee, signed by the transferor and stating the nature of the transfer and the number of cattle involved and the brands presently on the cattle, shall be filed with the brand committee;

(d) For cattle sold or purchased for educational or exhibition purposes or other recognized youth activities if a properly executed bill of sale is exchanged and presented upon demand.

Educational or exhibition purpose means cattle sold or purchased for the purpose of being fed, bred, managed, or tended in a program designed to demonstrate or instruct in the use of various feed rations, the selection of individuals of certain physical conformation or breeds, the measurement and recording of rate of gain in weight or fat content of meat or milk produced, or the preparation of cattle for the purpose of exhibition or for judging as to quality and conformation;

(e) For calves under the age of thirty days sold or purchased at private treaty if a bill of sale is exchanged and presented upon demand;

and (f) For seedstock cattle raised by the seller and individually -6- LB646 LB646 2025 registered with an organized breed association if a properly executed bill of sale is exchanged and presented upon demand;

and .

(g) For cattle shipped to or from a qualified dairy.

(3) A violation of this section is an infraction.

A peace officer shall have the authority to write a citation, which shall be waivable, to offenders in violation of this section.

A fine under this section shall not exceed two hundred dollars per head for each offense.

Violations shall be charged in the county in which the offense occurred.

Sec.

6.

Section 54-1,120, Reissue Revised Statutes of Nebraska, is amended to read:

54-1,120 (1)(a) (1) Any person who operates a cattle feeding operation located within the brand inspection area may apply make application to the brand committee Nebraska Brand Committee for registration as a registered feedlot.

The application form shall be prescribed by the brand committee and shall be made available by the executive director of the brand committee for this purpose upon written request.

If the applicant is an individual, the application shall include the applicant's social security number.

After the brand committee has received a properly completed application, an agent of the brand committee shall within thirty days make an investigation to determine if the following requirements are satisfied:

(i) (a) The operator's feedlot shall must be permanently fenced;

and (ii) (b) The operator shall must commonly practice feeding cattle to finish for slaughter.

(b) If the application is satisfactory, and upon payment of an initial registration fee by the applicant, the brand committee shall issue a registration number and registration certificate valid for one year unless rescinded for cause.

If the registration is rescinded for cause, any registration fee shall be forfeited by the applicant.

(c)(i) The initial registration fee and the annual renewal registration fee for a registered feedlot shall be an amount that is -7- LB646 LB646 2025 fifty cents multiplied by the maximum livestock capacity of the registered feedlot.

for a registered feedlot having one thousand head or less capacity and an equal amount for each additional one thousand head capacity, or part thereof, of such registered feedlot.

For each subsequent year, the renewal fee for a registered feedlot shall be an amount for the first one thousand head or portion thereof of average annual inventory of cattle on feed of the registered feedlot and an equal amount for each additional one thousand head or portion thereof of average annual inventory of cattle on feed of the registered feedlot.

The brand committee shall set the fee per one thousand head capacity or average annual inventory so as to correspond with the inspection fee provided under section 54-1,108.

(ii) The annual renewal registration fee shall be paid on an annual basis.

(2) The brand committee may adopt and promulgate rules and regulations for the operation of registered feedlots to assure that brand laws are complied with, that registered feedlot shipping certificates are available, and that proper records are maintained.

Violation of sections 54-1,120 to 54-1,122 subjects the operator to revocation or suspension of the feedlot registration issued.

Sections 54-1,120 to 54-1,122 shall not be construed as prohibiting the operation of nonregistered feedlots.

(3) Registered feedlots are subject to inspection at any reasonable time at the discretion of the brand committee and its authorized agents, and the operator shall show cattle purchase records or certificates of inspection to cover all cattle in his or her feedlot.

Cattle having originated from such registered feedlots may from time to time, at the discretion of the committee, be subject to a spot-check inspection and audit at destination to enable the brand committee to assure satisfactory compliance with the brand laws by the registered feedlot operator.

(4) The operator of a registered feedlot shall keep cattle inventory records.

A form for such purpose shall be prescribed by the brand -8- LB646 LB646 2025 committee.

The brand committee and its employees may from time to time make spot checks and audits of the registered feedlots and the records of cattle on feed in such feedlots.

(5) The brand committee may rescind the registration of any registered feedlot operator who fails to cooperate or violates the laws or rules and regulations of the brand committee relating to covering registered feedlots.

Sec.

7.

Original sections 54-170, 54-171, 54-1,108, 54-1,111, and 54-1,120, Reissue Revised Statutes of Nebraska, are repealed.

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