Original Notice.

     Preproposal statement of inquiry was filed as WSR 12-12-082.

     Title of Rule and Other Identifying Information: Chapter 16-610 WAC, Livestock brand inspection.

     Hearing Location(s): Natural Resources Building, 1111 Washington Street S.E., First Floor, Conference Room 175, Olympia, WA 98504, on September 6, 2012, at 1:00 p.m.; and at Central Washington University, 1007 North Chestnut, Block Hall, Meeting Room 150, Ellensburg, WA 98926, on September 7, 2012, at 1:00 p.m.

     Date of Intended Adoption: October 5, 2012.

     Submit Written Comments to: Teresa Norman, P.O. Box 42560, Olympia, WA 98504-2560, e-mail WSDARulesComments@agr.wa.gov, fax (360) 902-2092, by 5:00 p.m., September 7, 2012.

     Assistance for Persons with Disabilities: Contact WSDA receptionist by August 31, 2012, TTY (800) 833-6388 or 711.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The department proposes to amend chapter 16-610 WAC to align with SHB 1538 that was signed by the governor in 2011 supporting animal disease traceability. Proposed changes include:

•	Modifying the livestock inspection exemption for private sales of unbranded, female, dairy breed cattle involving fifteen head or less. This modification would limit the inspection exemption to only producers with a valid WSDA milk producers license;
•	Requiring milk producers to develop, implement, and financially support an electronic transaction reporting system within eighteen months of the rule making effective date;
•	Requiring a certificate of permit and bill of sale to accompany any cattle presented for an inspection that are in the possession of the buyer;
•	Exempting unbranded dairy breed bull calves or free martins from inspection requirements when criteria are met; and
•	Reinstating livestock inspection fees for dairy calves delivered to a USDA inspected slaughter facility.

     Reasons Supporting Proposal: Animal disease traceability is a vital tool used to protect public health, safety, and welfare and to maintain the economic vitality of our livestock industries. Washington's number one source for in-state traceability is through livestock inspections at change of ownership or movement out-of-state.

     Statutory Authority for Adoption: RCW 16.57.350 and chapter 34.05 RCW.

     Statute Being Implemented: Chapter 16.57 RCW.

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

     Name of Proponent: Washington state department of agriculture, governmental.

     Name of Agency Personnel Responsible for Drafting and Implementation: Lynn Briscoe, Olympia, (360) 902-1987; and Enforcement: Leonard E. Eldridge, DVM, Olympia, (360) 902-1881.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. RCW 19.85.030 (1)(a) requires that an agency prepare a small business economic impact statement (SBEIS) for proposed rules that impose a more than minor cost on businesses in an industry. The department has analyzed the economic effects of the proposed revisions and has concluded that they are negligible costs on the regulated industry and, therefore, a formal SBEIS is not required.

     A cost-benefit analysis is not required under RCW 34.05.328. The Washington state department of agriculture is not a listed agency under RCW 34.05.328 (5)(a)(i).

August 1, 2012

Leonard E. Eldridge

State Veterinarian

OTS-4924.1

AMENDATORY SECTION(Amending WSR 10-21-016, filed 10/7/10, effective 11/7/10)

WAC 16-610-020   Cattle inspections for brands or other proof of ownership.   (1) All cattle must be inspected for brands or other proof of ownership:

     (a) Before being moved out of Washington state, unless the provisions of WAC 16-610-035(2) apply.

     (b) When offered for sale at any public livestock market or special sale approved by the director.

     (c) Upon delivery to any cattle processing plant where the United States Department of Agriculture maintains a meat inspection program, unless the cattle:

     (i) Originate from a certified feedlot; or

     (ii) Are accompanied by an inspection certificate issued by the director, or a veterinarian certified by the director, or an agency in another state or Canadian province authorized by law to issue such a certificate.

     (2) All cattle entering or reentering any certified feedlot licensed under chapter 16.58 RCW must be inspected for brands or other proof of ownership before commingling with other cattle unless the cattle are accompanied by an inspection certificate issued by the director, or a veterinarian certified by the director, or an agency in another state or Canadian province authorized by law to issue such a certificate.

     (3) All cattle must be inspected for brands or other proof of ownership at any point of private sale, trade, gifting, barter, or any other action that constitutes a change of ownership((, except for)).

     (a) Subject to the requirements of this subsection, individual private sales of unbranded female dairy breed cattle involving fifteen head or less where the buyer and seller are milk producers holding a current milk producer's license under chapter 15.36 RCW and cattle are not being moved or transported out of Washington state are exempt from this inspection requirement. Milk producers holding a current milk producer's license under chapter 15.36 RCW must develop, implement, and financially support an electronic transaction reporting system compatible with department resources within eighteen months of the effective date of this section that will facilitate traceability and payment of all required assessments or fees for dairy cattle exempted under this section from mandatory livestock inspections. The system must include third-party verification by department personnel for transactions that are reported electronically. When the electronic transaction reporting system is implemented, milk producers holding a current milk producer's license under chapter 15.36 RCW conducting individual private sales of unbranded female dairy breed cattle involving fifteen head or less are required to either utilize the electronic transaction reporting system or obtain a mandatory livestock inspection. Should the director determine that full deployment of the electronic transaction reporting system has not occurred within the eighteen months of the effective date of this section, individual private sales of unbranded female dairy breed cattle involving fifteen head or less are no longer exempt and mandatory livestock inspections must occur.

     (b) For transactions involving cattle not being moved or transported out of Washington state:

     (((a))) (i) Cattle must be presented for an inspection within fifteen days from the date of the initial transaction and accompanied by a certificate of permit and bill of sale listing any brand or official identification as applicable. It shall be the responsibility of the seller to notify the department immediately that a sale has occurred. It shall be the responsibility of the buyer to present the animals for inspection.

     (((b))) (ii) Cattle sold for 4-H and FFA youth projects are exempt from the fifteen day inspection requirement and can be inspected, if not prior, when consigned to a terminal show.

     (4) Transactions involving unbranded dairy breed bull calves or free martins (infertile female calves) not being moved or transported out of Washington state are exempt from inspection requirements in subsection (3) of this section only when:

     (a) The animal is under thirty days old and has not been previously bought or sold;

     (b) The seller holds a valid milk producer's license under chapter 15.36 RCW;

     (c) The sale does not take place at or through a public livestock market or special sale authorized by chapter 16.65 RCW; and

     (d) Each animal is officially identified as provided in WAC 16-29-025. A certificate of permit and a bill of sale listing each animal's individual official identification must accompany the animal to the buyer's location. These documents do not constitute proof of ownership under WAC 16-610-018.

     (5) Exemptions from mandatory inspections do not exempt cattle owners or sellers from paying beef promotion fees owed to the Washington state beef commission under chapter 16.67 RCW or the animal disease traceability fee owed to the department under chapter 16.36 RCW.

[Statutory Authority: Chapters 16.57, 16.58, 16.65, and 34.05 RCW. 10-21-016, § 16-610-020, filed 10/7/10, effective 11/7/10; 07-14-057, § 16-610-020, filed 6/28/07, effective 7/29/07; 04-01-171, § 16-610-020, filed 12/23/03, effective 1/23/04.]

     For purposes of this section, the time and mileage fee means seventeen dollars per hour and the current mileage rate set by the office of financial management.

Certificate	Fees:
Inspection Certificate - Cattle	(1) The livestock inspection fee for cattle is $1.60 per head or the time and mileage fee, whichever is greater, except:
	The fee for livestock inspection for cattle is $1.10 per head or the time and mileage fee, whichever is greater, when cattle are identified with a valid brand recorded to the owner of the cattle in Washington.
	The time and mileage fee may be waived for private treaty transactions of ten head or less of cattle bearing the seller's Washington recorded brand and special sales of 4-H, FFA, and junior/youth groups. The time and milage waiver:
	(a) Will be limited to twelve waivers within a calendar year; and
	(b) Does not apply to multiple sales to the same buyer within a thirty-day period.
	(2) The livestock inspection fee for cattle is $4.00 per head for cattle delivered to a USDA inspected slaughter facility with a daily capacity of no more than five hundred head of cattle.
	(3) No inspection fee is charged for a calf that is inspected prior to moving out-of-state under an official temporary grazing permit if the calf is part of a cow-calf unit and the calf is identified with the owner's Washington state-recorded brand.
	(((4) No inspection fee is charged for a dairy calf less than thirty days old that is delivered to a USDA inspected slaughter facility.))
Inspection Certificate - Horse	(((5))) (4) The livestock inspection fee for horses is $3.50 per head or the time and mileage rate, whichever is greater, except:
Inspection Certificate - Groups of thirty or more horses	(((6))) (5) The livestock inspection fee for groups of thirty or more horses is $2.00 per head or the time and mileage fee, whichever is greater, if:
	(a) The horses are owned by one individual; and
	(b) The inspection is performed on one date and at one location; and
	(c) Only one certificate is issued.
Inspection Certificate - Minimum fee	(((7))) (6) The minimum fee for a livestock inspection is $5.00. The minimum fee does not apply to livestock consigned to and inspected at a public livestock market, special sale, or a cattle processing plant.
Annual individual identification certificate for individual animals	(((8))) (7)(a) The livestock inspection fee for an annual individual identification certificate for cattle and horses is $20.00 per head or the time and mileage fee, whichever is greater.
	(b) The livestock inspection fee for an annual individual identification certificate for groups of thirty or more horses or cattle is $5.00 per head or the time and mileage fee, whichever is greater, if:
	(i) The horses or cattle are owned by one individual;
	(ii) The inspection is performed on one date and at one location; and
	(iii) Only one certificate is issued.
Lifetime individual identification certificate	(((9))) (8) A livestock inspection fee for a lifetime individual identification certificate for horses and cattle is $60.00 per head or the time and mileage fee, whichever is greater.

[Statutory Authority: Chapters 16.57, 16.58, 16.65, and 34.05 RCW. 10-21-016, § 16-610-065, filed 10/7/10, effective 11/7/10; 07-14-057, § 16-610-065, filed 6/28/07, effective 7/29/07; 04-01-171, § 16-610-065, filed 12/23/03, effective 1/23/04.]

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