Original Notice.

Preproposal statement of inquiry was filed as WSR 99-07-084.

Title of Rule: Permanent renewal of livestock brands--Livestock Heritage brands.

Purpose: To establish criteria and fees for the permanent renewal of livestock brands registered with the Department of Agriculture. The authorizing legislation was passed during the 1998 legislative session.

Statutory Authority for Adoption: RCW 16.57.023.

Statute Being Implemented: RCW 16.57.

Summary: Proposal establishes criteria and fees for the permanent renewal of livestock brands registered with the Washington State Department of Agriculture (WSDA). This provides an option for livestock brandholders who do not use their brand on livestock, but want to retain ownership of a livestock brand without going through the two-year recording process. If a livestock brand is not renewed with the WSDA, after one year it becomes available to the public.

Name of Agency Personnel Responsible for Drafting: Julie Sandberg, Olympia, Washington, (360) 902-1852; Implementation: Lori McCown, Olympia, Washington, (360) 902-1855; and Enforcement: Leslie Alexander, Pasco, Washington, (509) 545-8816.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: This rule was drafted in response to legislation passed by the 1998 legislature. The purpose is to establish criteria and fees for the permanent renewal of livestock brands registered with the Washington State Department of Agriculture (WSDA). The rule provides owners of livestock brands an option to retain ownership of the brand when they may no longer be using it on livestock. If the brand was not renewed, it could be made available to the public after one year. The Heritage designation gives brandholders an option besides the two year renewal when they want to retain ownership of a brand they no longer use on their livestock.

Proposal does not change existing rules.

No small business economic impact statement has been prepared under RCW 19.85. There are over 7,700 livestock brands recorded with the Washington State Department of Agriculture (WSDA). The cost to record a brand is $35 for a two-year period beginning each even numbered year. On average, the WSDA loses about 5% of those brands due to nonrenewal every two years, but many brandholders would like to maintain ownership of a brand, even though they are not actively using it on livestock.

The 1998 legislature gave the WSDA the authority to set up criteria to designate a livestock Heritage brand and set the fees for that process. The brand must not be used on livestock. It is "retired." This is just one option for the brandholder who wishes to retain ownership of a unique symbol that may have been in the family for many years yet is no longer used on livestock. This is a new fee which the Livestock Identification Advisory Board proposed setting at $200. This is a one-time cost and gives the brandholder permanent ownership of the brand.

For example, if the brandholder chose to renew each two-year period, the cost would be $35, which is an average of $17.50/year. If the brandholder chose the lifetime Heritage brand designation, the cost would be $200, which is less than six two-year renewals ($35x6=$210).

Currently, a brandholder can either choose to renew their livestock brand for a $35 fee every two years or simply not renew the brand. If the brand is not renewed, after one year it becomes available to the public. The Heritage brand designation offers current brandholders another option for retaining ownership of a livestock brand.

We anticipate that approximately 3%, or 231, of the current brandholders will choose to participate in the Heritage brand designation. The majority of brandholders are individual farmers, ranchers, feedlot or public market operations, who do meet the definition of small business. The $200 Heritage brand fee averages out to approximately $17.50/year (or less) and is below the $50.00 annual cost, and indicates the impact is minor or negligible. The participation cost for those entities is equal to, or less than, the cost for a Heritage brand designation and does not place a disproportionate impact on small business.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. WSDA is not a listed agency in section 201.

Hearing Location: Hal Holmes Community Center, 201 North Ruby Street, Ellensburg, WA 98926, (509) 962-7240, on September 8, 1999, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Kathy Hayner by September 3, 1999, TDD (360) 902-1996, or (360) 902-1852.

Submit Written Comments to: Julie Sandberg, Assistant Director, Consumer and Producer Protection Division, P.O. Box 42560, Olympia, WA 98504-2560, fax (360) 902-2086, by September 10, 1999.

Date of Intended Adoption: September 17, 1999.

August 3, 1999

Julie C. Sandberg

Assistant Director

OTS-3270.2

NEW SECTION
WAC 16-607-150
Heritage brands--Designation.

The director will, at the request of the recorded owner, designate any currently recorded brand to be permanently renewed as a livestock Heritage brand. Livestock Heritage brands will be listed as inactive in the brand book and in all supplements.

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The fee to record a livestock Heritage brand is two hundred dollars. A request for a livestock Heritage brand may be made at the normally scheduled renewal period or at any other time upon payment of all fees. Requests made after a brand has been renewed will be accepted, however, no refunds of the original renewal fee will be issued.

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A livestock Heritage brand is considered to be inactive and may not be applied to livestock once it has been placed in that category. Livestock currently bearing a brand that is designated as a Heritage brand will continue to be recognized by the director as belonging to the recorded owner of the brand.

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The ownership of a livestock Heritage brand may be transferred upon payment of the current transfer fee. A transfer will not remove the Heritage designation from the brand.

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The fee to remove a brand from the Heritage designation is one hundred dollars and the current recording fee. When the Heritage designation is removed, the brand may again be used on livestock.

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