BILL REQ. #:  S-2064.1 

READ FIRST TIME 03/05/03.   

     AN ACT Relating to livestock identification; amending RCW 16.57.010, 16.57.015, 16.57.020, 16.57.023, 16.57.025, 16.57.030, 16.57.040, 16.57.050, 16.57.080, 16.57.090, 16.57.100, 16.57.120, 16.57.130, 16.57.140, 16.57.150, 16.57.160, 16.57.165, 16.57.170, 16.57.180, 16.57.200, 16.57.210, 16.57.220, 16.57.230, 16.57.240, 16.57.260, 16.57.270, 16.57.275, 16.57.280, 16.57.290, 16.57.300, 16.57.310, 16.57.320, 16.57.330, 16.57.340, 16.57.360, 16.57.370, 16.57.400, 16.57.410, 16.58.020, 16.58.030, 16.58.040, 16.58.050, 16.58.060, 16.58.070, 16.58.080, 16.58.095, 16.58.100, 16.58.110, 16.58.130, 16.58.140, 16.58.150, 16.58.160, 16.58.170, 16.65.010, 16.65.015, 16.65.020, 16.65.030, 16.65.037, 16.65.040, 16.65.042, 16.65.050, 16.65.080, 16.65.090, 16.65.100, 16.65.140, 16.65.170, 16.65.190, 16.65.200, 16.65.235, 16.65.260, 16.65.270, 16.65.280, 16.65.300, 16.65.340, 16.65.350, 16.65.380, 16.65.390, 16.65.400, 16.65.420, 16.65.424, 16.65.440, and 16.65.445; adding new sections to chapter 16.57 RCW; adding a new section to chapter 16.65 RCW; adding a new section to chapter 42.17 RCW; creating a new section; repealing RCW 16.57.380, 16.65.110, 16.65.422, and 16.65.423; prescribing penalties; providing effective dates; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that new federal country of origin labeling requirements, long-term national strategies for monitoring and reporting animal diseases, and potential food safety requirements for homeland security need to be evaluated. The legislature finds that while livestock identification laws used primarily for theft prevention are being updated, the affected industry with assistance from the department of agriculture should consider whether the current livestock identification system will help to satisfy these emerging requirements or needs to be adapted.
     The department shall form an advisory committee representing all major sectors of the livestock industry to which federal country of origin labeling requirements will apply. The committee shall evaluate what mechanisms may need to be established by the public, the private sector, or both to comply with the federal country of origin labeling requirements. Included in the topics that should be examined are recordkeeping, identification, and methods of traceability of the origin of various products.
     Additionally, the committee shall monitor and evaluate any requirements that may be placed on the meat products industry by federal food safety and traceability requirements as part of homeland security measures. Also, the committee shall review the national identification work plan developed by the national food animal identification task force. Participation on the advisory committee by representatives of producers of private sector cultured aquatic products is at the option of organizations representing various segments of that industry.
     At the discretion of the director, additional segments of the meat products industry such as processors, wholesalers, and retailers may be invited to participate in this or another forum to more comprehensively examine these topics.
     The department is to hold a minimum of two meetings of the committee and to encourage formation of informal groups involved in the food chain from the farm to the retail counter to develop an efficient strategy for addressing these issues.
     The department shall submit a written report of the findings and conclusion of the advisory committee to the appropriate committees of the senate and the house of representatives by December 1, 2005.

Sec. 2   RCW 16.57.010 and 1996 c 105 s 1 are each amended to read as follows:
     For the purpose of this chapter:
     (1) "Department" means the department of agriculture of the state of Washington.
     (2) "Director" means the director of the department or ((a)) his or her duly ((appointed)) authorized representative.
     (3) "Person" means a natural person, individual, firm, partnership, corporation, company, society, and association, and every officer, agent or employee thereof. This term shall import either the singular or the plural as the case may be.
     (4) "Livestock" includes, but is not limited to, horses, mules, cattle, sheep, swine, and goats((, poultry and rabbits)).
     (5) "Brand" means a permanent fire brand or any artificial mark, other than an individual identification symbol, approved by the director to be used in conjunction with a brand or by itself.
     (6) "Production record brand" means a number brand which shall be used for production identification purposes only.
     (7) "((Brand)) Livestock inspection" or "inspection" means the examination of livestock or livestock hides for brands or any means of identifying livestock or livestock hides ((and/or the application of any artificial identification such as back tags or ear clips necessary to preserve the identity of the livestock or livestock hides examined)) including the examination of documents providing evidence of ownership.
     (8) "Individual identification symbol" means a permanent mark placed on a horse for the purpose of individually identifying and registering the horse and which has been approved for use as such by the director.
     (9) "Registering agency" means any person issuing an individual identification symbol for the purpose of individually identifying and registering a horse.
     (10) (("Poultry" means chickens, turkeys, ratites, and other domesticated fowl.
     (11))) "Ratite" means, but is not limited to, ostrich, emu, rhea, or other flightless bird used for human consumption, whether live or slaughtered.
     (((12) "Ratite farming" means breeding, raising, and rearing of an ostrich, emu, or rhea in captivity or an enclosure.
     (13))) (11) "Microchipping" means the implantation of an identification microchip or similar electronic identification device to establish the identity of an individual animal:
     (a) In the pipping muscle of a chick ratite or the implantation of a microchip in the tail muscle of an otherwise unidentified adult ratite;
     (b) In the nuchal ligament of a horse unless otherwise specified by rule of the director; and
     (c) In locations of other livestock species as specified by rule of the director when requested by an association of producers of that species of livestock.
     (12) "Certificate of permit" means a form prescribed by and obtained from the director that is completed by the owner or a person authorized to act on behalf of the owner to show the ownership of livestock. It is used to document ownership of livestock while in transit within the state or on consignment to any public livestock market, special sale, slaughter plant or certified feed lot. It does not evidence inspection of livestock.
     (13) "Inspection certificate" means a certificate issued by the director or a veterinarian certified by the director documenting the ownership of an animal based on an inspection of the animal. It includes an individual identification certificate.
     (14) "Individual identification certificate" means an inspection certificate that authorizes the livestock owner to transport the animal out of state multiple times within a set period of time.
     (15) "Self-inspection certificate" means a form prescribed by and obtained from the director that is completed and signed by the buyer and seller of livestock to document a change in ownership.
     (16) "Horses" means horses, burros, and mules.

Sec. 3   RCW 16.57.015 and 1993 c 354 s 10 are each amended to read as follows:
     (1) The director shall establish a livestock identification advisory board. The board shall be composed of six members appointed by the director. One member shall represent each of the following groups: Beef producers, public livestock market operators, horse owners, dairy farmers, cattle feeders, and meat processors. As used in this subsection, "meat processor" means a person licensed to operate a slaughtering establishment under chapter 16.49 RCW or the federal meat inspection act (21 U.S.C. Sec. 601 et seq.). In making appointments, the director shall solicit nominations from organizations representing these groups statewide. The board shall elect a member to serve as chair of the board.
     (2) The purpose of the board is to provide advice to the director regarding livestock identification programs administered under this chapter and regarding ((brand)) inspection fees and related licensing fees. The director shall consult the board before adopting, amending, or repealing a rule under this chapter or altering a fee under RCW 16.58.050, ((16.58.130,)) 16.65.030, 16.65.037, or 16.65.090. If the director publishes in the state register a proposed rule to be adopted under the authority of this chapter ((or a proposed rule setting a fee under RCW 16.58.050, 16.58.130, 16.65.030, or 16.65.090)) and the rule has not received the approval of the advisory board, the director shall file with the board a written statement setting forth the director's reasons for proposing the rule without the board's approval.
     (3) The members of the advisory board serve three-year terms. However, the director shall by rule provide shorter initial terms for some of the members of the board to stagger the expiration of the initial terms. The members serve without compensation. The director may authorize the expenses of a member to be reimbursed if the member is selected to attend a regional or national conference or meeting regarding livestock identification. Any such reimbursement shall be in accordance with RCW 43.03.050 and 43.03.060.

Sec. 4   RCW 16.57.020 and 1994 c 46 s 7 are each amended to read as follows:
     The director shall be the recorder of livestock brands and such brands shall not be recorded elsewhere in this state. Any person desiring to ((register)) record a livestock brand shall apply on a form prescribed by the director. ((Such)) The application shall be accompanied by a facsimile of the brand applied for and a ((thirty-five)) one hundred twenty dollar recording fee. The director shall, upon his or her satisfaction that the application and brand facsimile meet the requirements of this chapter ((and/or)) and its rules ((adopted hereunder)), record ((such)) the brand.

Sec. 5   RCW 16.57.023 and 1998 c 263 s 5 are each amended to read as follows:
     (((1))) The ((board)) director may adopt rules establishing criteria and fees for the permanent renewal of brands registered with the department ((or with the board)) but renewed as livestock heritage brands. Such heritage brands are not intended for use on livestock.
     (((2) If the Washington state livestock identification board with authority and responsibility for administering the livestock identification program is not established by July 31, 1998, the department of agriculture is granted the authorities provided to the board by subsection (1) of this section.))

Sec. 6   RCW 16.57.025 and 1998 c 263 s 6 are each amended to read as follows:
     (((1))) The ((board)) director may enter into agreements with Washington state licensed and accredited veterinarians, who have been certified by the ((board)) director, to perform livestock inspection. Fees for livestock inspection performed by a certified veterinarian shall be collected by the veterinarian and remitted to the ((board)) director. Veterinarians providing livestock inspection may charge a fee for livestock inspection that is in addition to and separate from fees collected under RCW 16.57.220. The ((board)) director may adopt rules necessary to implement livestock inspection performed by veterinarians and may adopt fees to cover the cost associated with certification of veterinarians.
     (((2) If the Washington state livestock identification board with authority and responsibility for administering the livestock identification program is not established by July 31, 1998, the department of agriculture is granted all of the authorities provided to the board by subsection (1) of this section.))

Sec. 7   RCW 16.57.030 and 1959 c 54 s 3 are each amended to read as follows:
     The director shall not record tattoo brands or marks for any purpose ((subsequent to the enactment of this chapter. However, all tattoo brands and marks of record on the date of the enactment of this chapter shall be recognized as legal ownership brands or marks)).

Sec. 8   RCW 16.57.040 and 1974 ex.s. c 64 s 1 are each amended to read as follows:
     The director may provide for the use of production record brands. Numbers for such brands shall be issued at the discretion of the director and shall be placed on livestock immediately below the ((registered)) recorded ownership brand or any other location prescribed by the director.

Sec. 9   RCW 16.57.050 and 1959 c 54 s 5 are each amended to read as follows:
     No person shall place a brand on livestock for any purpose unless ((such)) the brand is recorded with the director in ((his)) the person's name.

Sec. 10   RCW 16.57.080 and 1994 c 46 s 16 are each amended to read as follows:
     The director shall establish by rule a schedule for the renewal of ((registered)) recorded brands. The fee for renewal of ((the brands)) a recorded brand shall be ((no less than twenty-five)) one hundred twenty dollars for each ((two-year)) four-year period of brand ownership, except that the director may, in adopting a renewal schedule, provide for the collection of renewal fees on a prorated basis ((and may by rule increase the registration and renewal fee for brands by no more than fifty percent subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015)). At least sixty days before the expiration of a ((registered)) recorded brand, the director shall notify by letter the owner of record of the brand that on the payment of the ((requisite application fee and application of)) renewal fee the director shall issue ((the)) proof of payment allowing the brand owner exclusive ownership and use of the brand for the subsequent ((registration)) ownership period. The failure of the ((registered)) owner to pay the renewal fee by the date required by rule shall cause ((such owner's)) ownership of the brand to ((revert to the department. The director may)) expire. For ((a period of)) one year following ((such reversion, reissue such)) the expiration, the director shall record the brand only to the prior ((registered)) owner upon payment of the ((registration)) renewal fee and a late ((filing)) fee ((to be prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015, for renewal subsequent to the regular renewal period. The director may at the director's discretion,)) of twenty-five dollars. If ((such)) the brand is not ((reissued)) recorded within one year to the prior ((registered)) owner, the director may issue ((such)) the brand to any other applicant.

Sec. 11   RCW 16.57.090 and 1994 c 46 s 17 are each amended to read as follows:
     A brand is the personal property of the owner of record. Any instrument affecting the title of ((such)) the brand shall be ((acknowledged in the presence of)) executed by the recorded owner and acknowledged by a notary public. The director shall record ((such)) the instrument upon presentation and payment of a recording fee ((not to exceed fifteen)) of twenty-five dollars ((to be prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015. Such)). The recording shall be constructive notice to all the world of the existence and conditions affecting the title to ((such)) the brand. A copy of all records concerning the brand, certified by the director, shall be received in evidence to all intent and purposes as the original instrument. The director shall not be personally liable for failure of the director's agents to properly record ((such)) the instrument.

Sec. 12   RCW 16.57.100 and 1971 ex.s. c 135 s 3 are each amended to read as follows:
     The right to use a brand shall be evidenced by the original certificate issued by the director showing that the brand is of present record or a certified copy of the record of ((such)) the brand showing that it is of present record. A healed brand of record on livestock shall be prima facie evidence that the recorded owner of ((such)) the brand has legal title to ((such)) the livestock and is entitled to its possession((: PROVIDED, That)). The director may require additional proof of ownership ((of)) for any animal showing more than one healed brand.

Sec. 13   RCW 16.57.120 and 1991 c 110 s 2 are each amended to read as follows:
     No person shall remove or alter a brand of record on livestock without first having secured the written permission of the director. Violation of this section ((shall be)) is a gross misdemeanor ((punishable to the same extent as a gross misdemeanor that is punishable under RCW 9A.20.021)).

Sec. 14   RCW 16.57.130 and 1959 c 54 s 13 are each amended to read as follows:
     The director shall not record a brand that is identical to a brand of present record; nor a brand so similar to a brand of present record that it will be difficult to distinguish between ((such)) the brands when applied to livestock.

Sec. 15   RCW 16.57.140 and 1994 c 46 s 18 are each amended to read as follows:
     The owner of a brand of record may ((procure)) obtain from the director a certified copy of the record of the owner's brand upon payment of a fee ((not to exceed seven dollars and fifty cents to be prescribed by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015)) of fifteen dollars.

Sec. 16   RCW 16.57.150 and 1974 ex.s. c 64 s 5 are each amended to read as follows:
     The director shall publish a book to be known as the "Washington State Brand Book", showing all the brands of record. ((Such)) The book shall contain the name and address of the owners of brands of record and a copy of the ((brand)) livestock identification laws and ((regulations)) rules. Supplements to ((such)) the brand book showing newly recorded brands, amendments, or newly adopted ((regulations,)) rules shall be published ((biennially, or prior thereto)) at the discretion of the director((: PROVIDED, That)). Whenever ((he)) the director deems it necessary, the director may ((issue)) publish a new brand book. The director may collect moneys to recover the reasonable costs of publishing and distributing copies of the brand book.

NEW SECTION.  Sec. 17   A new section is added to chapter 16.57 RCW to read as follows:
     The director may adopt rules necessary to administer the recording and changing of ownership of brands.

Sec. 18   RCW 16.57.160 and 1991 c 110 s 3 are each amended to read as follows:
     The director may ((by rule adopted subsequent to a public hearing designate)) adopt rules:
     (1) Designating any point for mandatory ((brand)) inspection of cattle or horses or the furnishing of proof that cattle or horses passing or being transported through ((such)) the point((s)) have been ((brand)) inspected or identified and are lawfully being ((moved. Further, the director may stop vehicles carrying cattle to determine if such cattle are identified, branded, or accompanied by the form prescribed by the director under RCW 16.57.240 or a brand certificate issued by the department)) transported;
     (2) Providing for self-inspection of fifteen head or less of cattle;
     (3) Providing for issuance of individual horse and cattle identification certificates or other means of horse and cattle identification; and
     (4) Designating the documents that constitute other satisfactory proof of ownership for cattle and horses. A bill of sale may not be designated as documenting satisfactory proof of ownership for cattle.

Sec. 19   RCW 16.57.165 and 1971 ex.s. c 135 s 6 are each amended to read as follows:
     The director may, in order to reduce the cost of ((brand)) inspection to livestock owners, enter into agreements with any qualified county, municipal, or other local law enforcement agency, or qualified individuals for the purpose of performing ((brand)) livestock inspection in areas where ((department brand)) inspection by the director may not readily be available.

Sec. 20   RCW 16.57.170 and 1959 c 54 s 17 are each amended to read as follows:
     The director may enter at any reasonable time any slaughterhouse or public livestock market to ((make an examination of the brands on)) inspect livestock or hides, and may enter at any reasonable time an establishment where hides are held to ((examine)) inspect them for brands or other means of identification. The director may enter any of these premises at any reasonable time to examine all books and records required by law in matters relating to ((brand inspection or other methods of)) livestock identification. For purposes of this section, "any reasonable time" means during regular business hours or during any working shift.

Sec. 21   RCW 16.57.180 and 1959 c 54 s 18 are each amended to read as follows:
     Should the director be denied access to any premises or establishment where ((such)) access was sought for the purposes set forth in RCW 16.57.170, ((he)) the director may apply to any court of competent jurisdiction for a search warrant authorizing access to ((such)) the premises or establishment for ((said)) those purposes. The court may upon ((such)) application, issue the search warrant for the purposes requested.

Sec. 22   RCW 16.57.200 and 1959 c 54 s 20 are each amended to read as follows:
     Any owner or his or her agent shall make ((the brand or brands on)) livestock being ((brand)) inspected readily ((visible)) accessible and shall cooperate with the director to carry out ((such brand)) the inspection in a safe and expeditious manner.

Sec. 23   RCW 16.57.210 and 1959 c 54 s 21 are each amended to read as follows:
     The director shall have authority to arrest ((any person)) without warrant anywhere in the state any person found in the act of, or whom ((he)) the director has reason to believe is guilty of, ((driving)) transporting, holding, selling, or slaughtering stolen livestock. Any ((such)) person arrested by the director shall be turned over to the county sheriff ((of the county)) or other local law enforcement officer where the arrest was made, as quickly as possible.

Sec. 24   RCW 16.57.220 and 1997 c 356 s 3 are each amended to read as follows:
     ((The director shall cause a charge to be made for all brand inspection of cattle and horses required under this chapter and rules adopted hereunder. Such charges shall be paid to the department by the owner or person in possession unless requested by the purchaser and then such brand inspection shall be paid by the purchaser requesting such brand inspection. Except as provided by rule, such inspection charges shall be due and payable at the time brand inspection is performed and shall be paid upon billing by the department and if not shall constitute a prior lien on the cattle or cattle hides or horses or horse hides brand inspected until such charge is paid. The director in order to best utilize the services of the department in performing brand inspection may establish schedules by days and hours when a brand inspector will be on duty to perform brand inspection at established inspection points. The fees for brand inspection performed at inspection points according to schedules established by the director shall be sixty cents per head for cattle and not more than two dollars and forty cents per head for horses as prescribed by the director subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015. Fees for brand inspection of cattle and horses at points other than those designated by the director or not in accord with the schedules established by the director shall be based on a fee schedule not to exceed actual net cost to the department of performing the brand inspection service. For the purpose of this section, actual costs shall mean fifteen dollars per hour and the current mileage rate set by the office of financial management.))
     (1) Except as provided for in RCW 16.65.090 and subsection (2), (3), or (4) of this section, the fee for livestock inspection is eighty-five cents per head for cattle and three dollars and fifty cents for horses or fifteen dollars per hour and the current mileage rate set by the office of financial management, whichever is greater.
     (2) When a single inspection certificate issued for thirty or more horses belonging to one person, the fee for livestock inspection is two dollars per head or fifteen dollars per hour and the current mileage rate set by the office of financial management, whichever is greater.
     (3) The fee for individual identification certificates is twenty dollars for an annual certificate and sixty dollars for a lifetime certificate or fifteen dollars per hour and the current mileage rate set by the office of financial management, whichever is greater. However, the fee for an annual certificate listing thirty or more animals belonging to one person is five dollars per head or fifteen dollars per hour and the current mileage rate set by the office of financial management, whichever is greater. A lifetime certificate shall not be issued until the fee has been paid to the director.
     (4) The minimum fee for the issuance of an inspection certificate by the director is five dollars. The minimum fee does not apply to livestock consigned to a public livestock market or special sale.

NEW SECTION.  Sec. 25   A new section is added to chapter 16.57 RCW to read as follows:
     (1) Any inspection fee shall be paid to the department by the owner or person in possession of the livestock unless the inspection is requested by the purchaser and then the fee shall be paid by the purchaser.
     (2) Except as provided by rule, the inspection fee is due and payable at the time inspection is performed and shall be paid upon billing by the department and, if not, constitutes a prior lien on the cattle or cattle hides or horses or horse hides inspected until the fee is paid.
     (3) A late fee of one and one-half percent per month shall be assessed on the unpaid balance against persons more than thirty days in arrears.

Sec. 26   RCW 16.57.230 and 1995 c 374 s 50 are each amended to read as follows:
     No person shall collect or make a charge for ((brand)) inspection of livestock unless there has been an actual ((brand)) inspection of ((such)) the livestock.

Sec. 27   RCW 16.57.240 and 1995 c 374 s 51 are each amended to read as follows:
     ((Any person purchasing, selling, holding for sale, trading, bartering, transferring title, slaughtering, handling, or transporting cattle shall keep a record on forms prescribed by the director. Such forms)) (1) Certificates of permit, inspection certificates, and self-inspection certificates shall show the owner, number, ((specie)) breed, sex, brand, or other method of identification of ((such)) the cattle or horses and any other necessary information required by the director. ((The original shall be kept for a period of three years or shall be furnished to the director upon demand or as prescribed by rule, one copy shall accompany the cattle to their destination and shall be subject to inspection at any time by the director or any peace officer or member of the state patrol: PROVIDED, That in the following instances only, cattle may be moved or transported within this state without being accompanied by an official certificate of permit, brand inspection certificate, bill of sale, or self-inspection slip:
     (1) When such cattle are moved or transported upon lands under the exclusive control of the person moving or transporting such cattle;
     (2) When such cattle are being moved or transported for temporary grazing or feeding purposes and have the registered brand of the person having or transporting such cattle.))
     (2) The director may issue certificate of permit forms to any person on payment of a fee established by rule.
     (3) Certificates of permit, inspection certificates, self-inspection certificates, or other satisfactory proof of ownership shall be kept by the owner and/or person in possession of any cattle and shall be furnished to the director or any peace officer upon demand.
     (4) A self-inspection certificate is not valid if proof of ownership is not provided to the buyer for cattle bearing brands not recorded to the seller.

NEW SECTION.  Sec. 28   A new section is added to chapter 16.57 RCW to read as follows:
     Cattle may not be moved or transported within this state without being accompanied by a certificate of permit, inspection certificate, self-inspection certificate, or other satisfactory proof of ownership, except:
     (1) When the cattle are moved or transported upon lands under the exclusive control of the person moving or transporting the cattle; or
     (2) When the cattle are being moved or transported for temporary grazing or feeding purposes and have the recorded brand of the person having or transporting the cattle.
     Certificates of permit, inspection certificates, self-inspection certificates, or other satisfactory proof of ownership accompanying cattle being moved or transported within this state shall be subject to inspection at any time by the director or any peace officer.

NEW SECTION.  Sec. 29   A new section is added to chapter 16.57 RCW to read as follows:
     The director or any peace officer may stop vehicles carrying cattle or horses to determine if the livestock being transported are accompanied by a certificate of permit, inspection certificate, self-inspection certificate, or other satisfactory proof of ownership, as determined by the director.

Sec. 30   RCW 16.57.260 and 1981 c 296 s 19 are each amended to read as follows:
     It ((shall be)) is unlawful for any person to remove or cause to be removed or accept for removal from this state, any cattle or horses which are not accompanied at all times by an ((official brand)) inspection certificate ((issued by the director)) on such cattle or horses, except as provided ((in RCW 16.57.160)) by rule adopted under this chapter.

NEW SECTION.  Sec. 31   A new section is added to chapter 16.57 RCW to read as follows:
     It is unlawful for any person to fail to present an animal for inspection at any mandatory inspection point designated by the director by rule under this chapter.

Sec. 32   RCW 16.57.270 and 1959 c 54 s 27 are each amended to read as follows:
     It ((shall be)) is unlawful for any person moving or transporting livestock in this state to refuse to assist the director or any peace officer in establishing the identity and ownership of ((such)) the livestock being moved or transported.

Sec. 33   RCW 16.57.275 and 1967 c 240 s 37 are each amended to read as follows:
     Any cattle carcass, or primal part thereof, of any breed or age being transported in this state from other than a state or federal licensed and inspected slaughterhouse or common carrier hauling for ((such)) the slaughterhouse, shall be accompanied by a certificate of permit signed by the owner of ((such)) the carcass or primal part thereof and, if ((such)) the carcass or primal part is delivered to a facility custom handling ((such)) the carcasses or primal parts thereof, ((such)) the certificate of permit shall be deposited with the owner or manager of ((such)) the custom handling facility and ((such)) the certificate of permit shall be retained for a period of one year and be made available to the department for inspection during ((reasonable business hours. The owner of such carcass or primal part thereof shall mail a copy of the said certificate of permit to the department within ten days of said transportation)) regular business hours or any working shift.

Sec. 34   RCW 16.57.280 and 1995 c 374 s 52 are each amended to read as follows:
     No person shall knowingly have ((unlawful)) possession of any ((livestock)) cattle or horse marked with a recorded brand ((or tattoo)) of another person unless the:
     (1) ((Such livestock)) Cattle or horse lawfully bears the person's own healed recorded brand; or
     (2) ((Such livestock)) Cattle or horse is accompanied by a certificate of permit from the owner of the recorded brand ((or tattoo)); or
     (3) ((Such livestock)) Cattle or horse is accompanied by ((a brand)) an inspection certificate; or
     (4) ((Such)) Cattle is accompanied by a self-inspection ((slip)) certificate; or
     (5) ((Such livestock)) Horse is accompanied by a bill of sale from the previous owner; or
     (6) Cattle or horse is accompanied by ((a bill of sale from the previous owner or)) other satisfactory proof of ownership as designated in rule.
     A violation of this section constitutes a gross misdemeanor ((punishable to the same extent as a gross misdemeanor that is punishable under RCW 9A.20.021)).

Sec. 35   RCW 16.57.290 and 1995 c 374 s 53 are each amended to read as follows:
     ((All unbranded cattle and horses and those bearing brands not recorded, in the current edition of this state's brand book, which are not accompanied by a certificate of permit, and those bearing brands recorded, in the current edition of this state's brand book, which are not accompanied by a certificate of permit signed by the owner of the brand)) All cattle and horses that are not accompanied by a certificate of permit, inspection certificate, self-inspection certificate, or other satisfactory proof of ownership when offered for sale and presented for inspection by the director, shall be ((sold)) impounded. If theft is suspected, the director shall immediately initiate an investigation. If theft is not suspected, the animal shall be sold and the proceeds retained by the director ((or the director's representative, unless other satisfactory proof of ownership is presented showing the person presenting them to be lawfully in possession)). Upon the sale of ((such)) the cattle or horses, the director ((or the director's representative)) shall give the purchasers ((a bill of sale therefor, or, if theft is suspected, the cattle or horses may be impounded by the director or the director's representative)) an inspection certificate for the cattle or horses documenting their ownership.

Sec. 36   RCW 16.57.300 and 1989 c 286 s 24 are each amended to read as follows:
     Except under section 37 of this act, the proceeds from the sale of cattle and horses ((as provided for)) when impounded under RCW 16.57.290, after paying the cost thereof, shall be paid to the director, who shall make a record showing the brand or marks or other method of identification of the animals and the amount realized from the sale thereof. However, the proceeds from a sale of ((such)) the cattle or horses at a licensed public livestock market shall be held by the licensee for a reasonable period not to exceed thirty days to permit the consignor to establish ownership or the right to sell ((such)) the cattle or horses. If ((such)) the consignor fails to establish legal ownership or the right to sell ((such)) the cattle or horses, ((such)) the proceeds shall be paid to the director to be disposed of as any other estray proceeds.

NEW SECTION.  Sec. 37   A new section is added to chapter 16.57 RCW to read as follows:
     The proceeds from the sale of dairy breed cattle when impounded under RCW 16.57.290, and after paying the cost thereof, shall be paid to the seller if:
     (1) The cattle bears a brand that is not recorded in this state or any state where a reciprocal agreement is in place as provided under RCW 16.57.340;
     (2) There is no evidence of theft;
     (3) The director has posted the brand for at least ninety days at each licensed public livestock market in this state and any other state where the director provides for livestock inspection; and
     (4) No other person has established legal ownership of the cattle with the director.
     The proceeds from the sale shall be held by the director until paid to the seller or other person as specified by the director. However, the proceeds from a sale of the cattle at a licensed public livestock market shall be held by the licensee.

Sec. 38   RCW 16.57.310 and 1959 c 54 s 31 are each amended to read as follows:
     When a person has been notified by registered mail that animals bearing ((his)) the person's recorded brand have been sold by the director, ((he)) the person shall present to the director a claim on the proceeds within ((ten)) thirty days from the receipt of the notice or the director may decide that no claim exists.

Sec. 39   RCW 16.57.320 and 1991 c 110 s 6 are each amended to read as follows:
     If, after the expiration of one year from the date of sale, the person presenting the animals for inspection has not provided the director with satisfactory proof of ownership, the proceeds from the sale shall be paid on the claim of the owner of the recorded brand. However, it shall be a gross misdemeanor for the owner of the recorded brand to knowingly accept such funds after he or she has sold, bartered or traded such animals to the claimant or any other person. ((A gross misdemeanor under this section is punishable to the same extent as a gross misdemeanor that is punishable under RCW 9A.20.021.))

Sec. 40   RCW 16.57.330 and 1959 c 54 s 33 are each amended to read as follows:
     If, after the expiration of one year from the date of sale, no claim under RCW 16.57.310 is made or no satisfactory proof of ownership is provided under RCW 16.57.320, the money shall be credited to the department ((of agriculture)) to be expended in carrying out the provisions of this chapter.

Sec. 41   RCW 16.57.340 and 1959 c 54 s 34 are each amended to read as follows:
     The director ((shall have)) has the authority to enter into reciprocal agreements with any or all states to prevent the theft, misappropriation, or loss of identification of livestock. The director may declare any livestock which is shipped or moved into this state from ((such)) those states estrays if ((such)) the livestock is not accompanied by the proper ((official brand)) inspection certificate or other ((such)) certificates required by the law of the state of origin of ((such)) the livestock. The director may hold ((such)) the livestock subject to all costs of holding or sell ((such)) the livestock and send the funds, after the deduction of the cost of ((such)) the sale, to the proper authority in the state of origin of ((such)) the livestock.

Sec. 42   RCW 16.57.360 and 1991 c 110 s 7 are each amended to read as follows:
     The department is authorized to issue notices of and enforce civil infractions in the manner prescribed under chapter 7.80 RCW.
     The violation of any provision of this chapter and/or rules ((and regulations)) adopted ((hereunder)) under this chapter shall constitute a class I civil infraction as provided under chapter 7.80 RCW unless otherwise specified herein.

Sec. 43   RCW 16.57.370 and 1959 c 54 s 37 are each amended to read as follows:
     All fees collected under the provisions of this chapter shall be ((retained and)) deposited ((by the director to be used only for the enforcement)) in an account in the agricultural local fund and used to carry out the purposes of this chapter.

Sec. 44   RCW 16.57.400 and 1994 c 46 s 20 are each amended to read as follows:
     ((The director may provide by rules and regulations adopted pursuant to chapter 34.05 RCW for the issuance of)) Horses and cattle may be identified by individual ((horse and cattle)) identification certificates or other means of ((horse and cattle)) identification ((deemed appropriate)) authorized by the director. ((Such)) The certificates or other means of identification ((shall be)) are valid only for the use of the ((horse and cattle)) owner in whose name it is issued.
     Horses and cattle identified pursuant to ((the provisions of)) this section ((and the rules and regulations adopted hereunder shall not be)) are only subject to ((brand)) inspection ((except when sold at points provided for in RCW 16.57.380. The director shall charge a fee for the certificates or other means of identification authorized pursuant to this section and no identification shall be issued until the director has received the fee. The schedule of fees shall be established in accordance with the provisions of chapter 34.05 RCW)) when the animal is consigned for sale.

Sec. 45   RCW 16.57.410 and 1993 c 354 s 11 are each amended to read as follows:
     (1) No person may act as a registering agency without a permit issued by the ((department)) director. The director may issue a permit to any person ((or organization)) to act as a registering agency for the purpose of issuing permanent identification symbols for horses in a manner prescribed by the director. Application for ((such)) a permit, or the renewal thereof by January 1 of each year, shall be on a form prescribed by the director, and accompanied by the proof of registration to be issued, any other documents required by the director, and a fee of ((one)) two hundred and fifty dollars.
     (2) Each registering agency shall maintain a permanent record for each individual identification symbol. The record shall include, but need not be limited to, the name, address, and phone number of the horse owner and a general description of the horse. A copy of each permanent record shall be forwarded to the director, if requested by the director.
     (3) Horses shall be examined for individual identification symbols ((shall be inspected as required for brands under RCW 16.57.220 and 16.57.380. Any horse)) when presented for inspection ((and bearing such a symbol, but not accompanied by proof of registration and certificate of permit, shall be sold as provided under RCW 16.57.290 through 16.57.330)).
     (4) The director shall adopt ((such)) rules ((as are)) necessary ((for the effective administration of)) to administer this section ((pursuant to chapter 34.05 RCW)).

Sec. 46   RCW 16.58.020 and 1971 ex.s. c 181 s 2 are each amended to read as follows:
     For the purpose of this chapter:
     (1) "Certified feed lot" means any place, establishment, or facility commonly known as a commercial feed lot, cattle feed lot, or the like, which complies with all of the requirements of this chapter, and any ((regulations)) rules adopted ((pursuant to the provisions of)) under this chapter and which holds a valid license from the director ((as hereinafter provided)).
     (2) "Department" means the department of agriculture of the state of Washington.
     (3) "Director" means the director of the department or his or her duly authorized representative.
     (4) "Licensee" means any persons licensed under the provisions of this chapter.
     (5) "Person" means a natural person, individual, firm, partnership, corporation, company, society, and association, and every officer, agent or employee thereof. This term shall import either the singular or the plural as the case may be.
     (6) "Livestock inspection" or "inspection" means the examination of livestock or livestock hides for brands or any means of identifying livestock or livestock hides including the examination of documents providing evidence of ownership.
     (7) "Change of ownership" means the transfer of ownership from one person to another by the sale of livestock. It does not mean: A change in partners within a partnership; a change in members within an association or a society; or the sale of stock within a corporation, company, or association.
     (8) "Direct to slaughter" means the delivery of livestock to a slaughter plant within ten days of the sale of the cattle to the slaughter plant.

Sec. 47   RCW 16.58.030 and 1971 ex.s. c 181 s 3 are each amended to read as follows:
     The director may adopt ((such)) those rules ((and regulations)) as are necessary to carry out the purpose of this chapter. ((The adoption of such rules shall be subject to the provisions of this chapter and rules and regulations adopted hereunder.)) No person shall interfere with the director when he or she is performing or carrying out any duties imposed upon ((him)) the director by this chapter or rules ((and regulations)) adopted ((hereunder)) under this chapter.

Sec. 48   RCW 16.58.040 and 1971 ex.s. c 181 s 4 are each amended to read as follows:
     ((On or after August 9, 1971,)) Any person desiring to engage in the business of operating one or more certified feed lots shall obtain an annual license from the director for ((such)) that purpose. The application for a license shall be on a form prescribed by the director and shall include the following:
     (1) The number of certified feed lots the applicant intends to operate and their exact location and mailing address;
     (2) The legal description of the land on which the certified feed lot will be situated;
     (3) A complete description of the facilities used for feeding and handling of cattle at each certified feed lot;
     (4) The estimated number of cattle which can be handled for feeding purposes at each ((such)) certified feed lot; and
     (5) Any other information necessary to carry out the purpose and provisions of this chapter and rules ((or regulations)) adopted ((hereunder)) under this chapter.

Sec. 49   RCW 16.58.050 and 1997 c 356 s 5 are each amended to read as follows:
     (1) The application for an annual license to engage in the business of operating one or more certified feed lots shall be accompanied by a license fee of ((six)) eight hundred fifty dollars.
     (2) Upon approval of the application by the director and compliance with the provisions of this chapter and rules adopted ((hereunder)) under this chapter, the applicant shall be issued a license or ((a)) license renewal ((thereof)). The director shall conduct an inspection of all cattle and their corresponding ownership documents prior to issuing an original license. The inspection fee is the higher of the current inspection fee per head of cattle or time and mileage as set forth in RCW 16.57.220.

Sec. 50   RCW 16.58.060 and 1991 c 109 s 10 are each amended to read as follows:
     ((The director shall establish by rule an expiration date or dates for all certified feed lot licenses. License fees shall be prorated where necessary to accommodate staggering of expiration dates of a license or licenses.)) Certified feed lot licenses expire on June 30th following the date of issuance. If ((an application for renewal of a certified feed lot license is not received by the department per the date required by rule or should)) a person fails, refuses, or neglects to apply for renewal of a ((preexisting)) license ((on or before the date of expiration)) by June 30th, ((that)) the person's license shall expire. To reinstate a license, the person shall be assessed ((an additional)) a late fee of twenty-five dollars which shall be added to the regular license fee and shall be paid before the director may issue a license to the applicant.

Sec. 51   RCW 16.58.070 and 1989 c 175 s 54 are each amended to read as follows:
     The director is authorized to deny, suspend, or revoke a license in ((accord)) accordance with the provisions of chapter 34.05 RCW if he or she finds that there has been a failure to comply with any requirement of this chapter or rules ((and regulations)) adopted ((hereunder)) under this chapter. Hearings for the revocation, suspension, or denial of a license shall be subject to the provisions of chapter 34.05 RCW ((concerning adjudicative proceedings)).

Sec. 52   RCW 16.58.080 and 1971 ex.s. c 181 s 8 are each amended to read as follows:
     Every certified feed lot shall be equipped with a facility or a livestock pen, approved by the director as to location and construction within the ((said)) feed lot so that necessary ((brand)) livestock inspection can be carried on in a proper, expeditious and safe manner. Each licensee shall furnish the director with sufficient help necessary to carry out ((brand)) inspections in the manner set forth above.

Sec. 53   RCW 16.58.095 and 1991 c 109 s 11 are each amended to read as follows:
     All cattle entering or reentering a certified feed lot must be inspected ((for brands)) upon entry, unless they are accompanied by ((a brand)) an inspection certificate issued by the director, or any other agency authorized in any state or Canadian province by law to issue ((such)) a certificate. Licensees shall report a discrepancy between cattle entering or reentering a certified feed lot and the ((brand)) inspection certificate accompanying the cattle to the nearest ((brand)) inspector immediately. A discrepancy may require an inspection of all the cattle entering or reentering the lot, except as may otherwise be provided by rule.

Sec. 54   RCW 16.58.100 and 1979 c 81 s 3 are each amended to read as follows:
     The director shall ((each year)) conduct audits of the cattle received, fed, handled, and shipped by the licensee at each certified feed lot. ((Such)) These audits shall be for the purpose of determining if ((such)) the cattle correlate with the ((brand)) inspection certificates issued in their behalf and that the certificate of assurance furnished the director by the licensee correlates with his or her assurance that ((brand)) inspected cattle were not commingled with uninspected cattle.

Sec. 55   RCW 16.58.110 and 1991 c 109 s 12 are each amended to read as follows:
     All certified feed lots shall furnish the director with records as requested by ((him from time to time)) the director on a monthly basis on all cattle entering or on feed in ((said)) the certified feed lots and dispersed therefrom. These records must include a copy of each inspection certificate received and an itemized listing of all cattle entering and leaving the feed lot. All ((such)) requested records shall be subject to examination by the director for the purpose of maintaining the integrity of the identity of all ((such)) the cattle. The director may make the examinations only during regular business hours or any working shift except in an emergency to protect the interest of the owners of ((such)) the cattle.

Sec. 56   RCW 16.58.130 and 1997 c 356 s 7 are each amended to read as follows:
     Each licensee shall pay to the director a fee of ((twelve)) seventeen cents for each head of cattle handled through the licensee's feed lot. Payment of ((such)) the fee shall be made by the licensee on a monthly basis. Failure to pay as required shall be grounds for suspension or revocation of a certified feed lot license. ((Further,)) The director shall not renew a certified feed lot license if a licensee has failed to make prompt and timely payments.

Sec. 57   RCW 16.58.140 and 1979 c 81 s 5 are each amended to read as follows:
     All fees provided for in this chapter shall be ((retained by the director for the purpose of)) deposited in an account in the agricultural local fund and used for enforcing and carrying out the purpose and provisions of this chapter or chapter 16.57 RCW.

Sec. 58   RCW 16.58.150 and 1971 ex.s. c 181 s 15 are each amended to read as follows:
     No ((brand)) inspection shall be required when cattle are moved or transferred from one certified feed lot to another ((or the transfer of cattle)) when they are accompanied by satisfactory proof of ownership and there is no change of ownership or from a certified feed lot to a point within this state, or out of state where this state maintains ((brand)) inspection, for the purpose of immediate slaughter. Any change of ownership within a certified feed lot requires a livestock inspection unless the cattle are sent direct to slaughter. An inspection fee as provided for in RCW 16.57.220 is payable to the director by the seller of the cattle or through the licensee as an agent. Upon notice by the director to suspend a license under this section, a person may request a hearing under chapter 34.05 RCW.

Sec. 59   RCW 16.58.160 and 1991 c 109 s 15 are each amended to read as follows:
     The director may, when a certified feed lot's conditions become such that the integrity of reports or records of the cattle ((therein)) in that feed lot becomes doubtful, immediately suspend ((such)) the certified feed lot's license until such time as the director can conduct an investigation to ((carry out the purpose of this chapter)) verify the condition of reports or records.
     Upon notice by the director to suspend a license under this section, a person may request a hearing under chapter 34.05 RCW.

Sec. 60   RCW 16.58.170 and 1971 ex.s. c 181 s 17 are each amended to read as follows:
     Any person who violates the provisions of this chapter or any rule ((or regulation)) adopted ((hereunder)) under this chapter shall be guilty of a misdemeanor and shall be guilty of a gross misdemeanor for any second or subsequent violation: PROVIDED, That any offense committed more than five years after a previous conviction shall be considered a first offense.

NEW SECTION.  Sec. 61   A new section is added to chapter 16.65 RCW to read as follows:
     The purpose of this chapter is to ensure the orderly marketing of livestock, to ensure the financial stability of public livestock markets, and to protect persons who consign livestock to markets and sales.

Sec. 62   RCW 16.65.010 and 1983 c 298 s 1 are each amended to read as follows:
     For the purposes of this chapter:
     (1) The term "public livestock market" means any place, establishment or facility commonly known as a "public livestock market", "livestock auction market", "livestock sales ring", yards selling on commission, or the like, conducted or operated for compensation or profit as a public livestock market, consisting of pens or other enclosures, and their appurtenances in which livestock is received, held, sold, kept for sale or shipment. The term does not include the operation of a person licensed under this chapter to operate a special open consignment horse sale.
     (2) "Department" means the department of agriculture of the state of Washington.
     (3) "Director" means the director of the department or his or her duly authorized representative.
     (4) "Licensee" means any person licensed under the provisions of this chapter.
     (5) "Livestock" includes horses, mules, burros, cattle, sheep, swine, and goats.
     (6) "Person" means a natural person, individual, firm, partnership, corporation, company, society, and association, and every officer, agent or employee thereof. This term shall import either the singular or the plural as the case may be.
     (7) "Stockyard" means any place, establishment, or facility commonly known as a stockyard consisting of pens or other enclosures and their appurtenances in which livestock services such as feeding, watering, weighing, sorting, receiving and shipping are offered to the public: PROVIDED, That stockyard shall not include any facilities where livestock is offered for sale at public auction, feed lots, or quarantined registered feed lots.
     (8) "Packer" means any person engaged in the business of slaughtering, manufacturing, preparing meat or meat products for sale, marketing meat, meat food products or livestock products.
     (9) (("Deputy state veterinarian" means a graduate veterinarian authorized to practice in the state of Washington and appointed or deputized by the director as his duly authorized representative.
     (10))) "Special open consignment horse sale" means a sale conducted by a person other than the operator of a public livestock market which is limited to the consignment of horses and donkeys only for sale on an occasional and seasonal basis.
     (10) "Livestock inspection" or "inspection" means the examination of livestock or livestock hides for brands or any means of identifying livestock or livestock hides including the examination of documents providing evidence of ownership.

Sec. 63   RCW 16.65.015 and 1983 c 298 s 2 are each amended to read as follows:
     (1) Except under subsection (2) of this section, this chapter does not apply to:
     (((1))) (a) A farmer selling his or her own livestock ((on the farmer's own premises by auction or any other method)).
     (((2))) (b) A farmers' cooperative association or an association of livestock breeders when any class of their own livestock is assembled and offered for sale at a special sale ((on an occasional and seasonal basis)) under the association's management and responsibility((, and the special sale has been approved by the director in writing. However, the special sale shall be subject to brand and health inspection requirements as provided in this chapter for sales at public livestock markets)).
     (c) A youth livestock organization such as 4-H, FFA, or other junior livestock group, when any class of livestock owned by the youth members is assembled and offered for sale at a special sale under the organization's management and responsibility.
     (2) Any farmer, farmers' cooperative association, livestock breeders' association, or youth livestock organization under subsection (1) of this section, may, upon obtaining a permit from the director, conduct a public sale of his or her or its members livestock on an occasional or seasonal basis. Application for the permit shall be in writing to the director for his or her approval at least fifteen days before the proposed public sale is scheduled to be held. The application must be complete and accompanied by a nonrefundable fee of fifty dollars for each sale, except that the fee is waived for youth livestock organizations. The sale is subject to the livestock and health inspection requirements as provided in this chapter for sales at public livestock markets, unless otherwise prescribed by rule.

Sec. 64   RCW 16.65.020 and 1983 c 298 s 5 are each amended to read as follows:
     Public livestock markets and special open consignment horse sales shall be under the direction and supervision of the director, and the director((, but not his duly authorized representative,)) may adopt ((such)) those rules ((and regulations)) as are necessary to carry out the purpose of this chapter. It shall be the duty of the director to enforce and carry out the provisions of this chapter and rules ((and regulations)) adopted ((hereunder)) under this chapter. No person shall interfere with the director when he or she is performing or carrying out any duties imposed ((upon him)) by this chapter or rules ((and regulations)) adopted ((hereunder)) under this chapter.

Sec. 65   RCW 16.65.030 and 1995 c 374 s 54 are each amended to read as follows:
     (1) ((On and after June 10, 1959,)) No person shall operate a public livestock market without first having obtained a license from the director. Application for ((such)) a license shall be in writing on forms prescribed by the director, and shall include the following:
     (a) A nonrefundable original license application fee of ((fifteen hundred)) two thousand dollars.
     (b) A legal description of the property upon which the public livestock market shall be located.
     (c) A complete description and blueprints or plans of the public livestock market physical plant, yards, pens, and all facilities the applicant proposes to use in the operation of such public livestock market.
     (d) ((A detailed statement showing all the assets and liabilities of the applicant which must reflect a sufficient net worth to construct or operate a public livestock market.)) A financial statement, audited by a certified or licensed public accountant, to determine whether or not the applicant meets the minimum net worth requirements, established by the director by rule, to construct and/or operate a public livestock market. If the applicant is a subsidiary of a larger company, corporation, society, or cooperative association, both the parent company and the subsidiary company must submit a financial statement to determine whether or not the applicant meets the minimum net worth requirements. All financial statement information required by this subsection is confidential information and not subject to public disclosure.
     (e) The schedule of rates and charges the applicant proposes to impose on the owners of livestock for services rendered in the operation of such livestock market.
     (f) The weekly or monthly sales day or days on which the applicant proposes to operate his or her public livestock market sales and the class of livestock that may be sold on these days.
     (g) Projected source and quantity of livestock((, by county,)) anticipated to be handled.
     (h) Projected ((income and expense statements for)) gross dollar volume of business to be carried on, at, or through the public livestock market during the first year's operation.
     (i) Facts upon which ((are)) is based the conclusion that the trade area and the livestock industry will benefit because of the proposed market.
     (j) ((Such)) Other information as the director may ((reasonably)) require by rule.
     (2) ((The director shall, after public hearing as provided by chapter 34.05 RCW, grant or deny an application for original license for a public livestock market after considering evidence and testimony relating to all of the requirements of this section and giving reasonable consideration at the same hearing to:
     (a) Benefits to the livestock industry to be derived from the establishment and operation of the public livestock market proposed in the application; and
     (b) The present market services elsewhere available to the trade area proposed to be served.
     (3) Applications for renewal under RCW 16.65.040 shall include all information under subsection (1) of this section, except subsection (1)(a) of this section.)) If the director determines that the applicant meets all the requirements of subsection (1) of this section, the director shall conduct a public hearing as provided by chapter 34.05 RCW, and shall grant or deny an application for original license for a public livestock market after considering evidence and testimony relating to the requirements of this section and giving reasonable consideration to:
     (a) Benefits to the livestock industry to be derived from the establishment and operation of the public livestock market proposed in the application;
     (b) The geographical area that will be affected;
     (c) The conflict, if any, with sales days already allocated in the area;
     (d) The amount and class of livestock available for marketing in the area;
     (e) Buyers available to the proposed market; and
     (f) Any other conditions affecting the orderly marketing of livestock.
     (3) Before a license is issued to operate a public livestock market, the applicant must:
     (a) Execute and deliver to the director a surety bond as required under RCW 16.65.200;
     (b) Provide evidence of a custodial account, as required under RCW 16.65.140, for the consignor's proceeds;
     (c) Pay the appropriate license fee; and
     (d) Provide other information required under this chapter and rules adopted under this chapter.

Sec. 66   RCW 16.65.037 and 1997 c 356 s 9 are each amended to read as follows:
     (1) ((Upon the approval of the application by the director and compliance with the provisions of this chapter, the applicant shall be issued a license or renewal thereof.)) Any license issued under the provisions of this chapter shall only be valid at the location and for the sales day or days for which the license was issued.
     (2) The license fee shall be based on the average gross sales volume per official sales day of ((that)) a market((:
     (a) Markets with an average gross sales volume up to and including ten thousand dollars, a one hundred twenty dollar fee;
     (b) Markets with an average gross sales volume over ten thousand dollars and up to and including fifty thousand dollars, a two hundred forty dollar fee; and
     (c) Markets with an average gross sales volume over fifty thousand dollars, a three hundred sixty dollar fee.
     The fees for public market licenses shall be set by the director by rule subsequent to a hearing under chapter 34.05 RCW and in conformance with RCW 16.57.015)) in the previous twelve months or, for a new market, the projected average gross sales per official sales day of the market during its first year's operation.
     (a) The license fee for markets with an average gross sales volume up to and including ten thousand dollars is one hundred fifty dollars.
     (b) The license fee for markets with an average gross sales volume over ten thousand dollars and up to and including fifty thousand dollars is three hundred dollars.
     (c) The license fee for markets with an average gross sales volume over fifty thousand dollars is four hundred fifty dollars.
     (3) Any applicant operating more than one public livestock market shall make a separate application for a license to operate each ((such)) public livestock market, and each ((such)) application shall be accompanied by the appropriate ((application)) license fee.

Sec. 67   RCW 16.65.040 and 1983 c 298 s 6 are each amended to read as follows:
     (1) All public livestock market licenses provided for in this chapter ((shall)) expire on March 1st subsequent to the date of issue.
     (2) Application for renewal of a public livestock market license shall be in writing on forms prescribed by the director, and shall include:
     (a) All information under RCW 16.65.030(1) (d), (e), and (f);
     (b) The gross dollar volume of business carried on, at, or through the applicant's public livestock market in the twelve-month period prior to the application for renewal of the license;
     (c) Other information as the director may require by rule; and
     (d) The appropriate license fee.
     (3) If any person ((who)) fails, refuses, or neglects to apply for a renewal of a preexisting license ((on or before the date of expiration)) by March 1st, the person's license shall expire. To reinstate a license, the person shall pay a penalty of twenty-five dollars, which shall be added to the regular license fee, before ((such)) the license may be ((renewed)) reinstated by the director.

Sec. 68   RCW 16.65.042 and 1983 c 298 s 3 are each amended to read as follows:
     (1) A person shall not operate a special open consignment horse sale without first obtaining a license from the director. The application for the license shall include:
     (a) ((A detailed statement showing all of the assets and liabilities of the applicant;
     (b))) The schedule of rates and charges the applicant proposes to impose on the owners of horses for services rendered in the operation of the horse sale;
     (((c))) (b) The specific date and exact location of the proposed sale;
     (((d))) (c) Projected quantity and approximate value of horses to be handled; and
     (((e))) (d) Such other information as the director may reasonably require.
     (2) The application shall be accompanied by a license fee of one hundred dollars. Upon the approval of the application by the director and compliance with this chapter, the applicant shall be issued a license. A special open consignment horse sale license is valid only for the specific date or dates and exact location for which the license was issued.

Sec. 69   RCW 16.65.050 and 1959 c 107 s 5 are each amended to read as follows:
     All fees provided for under this chapter shall be ((retained by the director)) deposited in an account in the agricultural local fund and used for ((the purpose of)) enforcing and carrying out the purpose and provisions of this chapter and chapter 16.57 RCW.

Sec. 70   RCW 16.65.080 and 1985 c 415 s 9 are each amended to read as follows:
     (1) The director ((is authorized to)) may deny, suspend, or revoke a license ((in the manner prescribed herein,)) when ((there are findings by)) the director finds that ((any)) a licensee (a) has ((been guilty of fraud or misrepresentation as to)) misrepresented titles, charges, numbers, brands, weights, proceeds of sale, or ownership of livestock; (b) has attempted payment to a consignor or the department by a check the licensee knows not to be backed by sufficient funds to cover such check; (c) has violated any of the provisions of this chapter or rules ((and regulations)) adopted ((hereunder)) under this chapter; (d) has violated any laws of the state that require ((health or brand)) inspection of livestock for health or ownership purposes; (e) has violated any condition of the bond, as provided in this chapter. ((However, the director may deny a license if the applicant refuses to accept the sales day or days allocated to him under the provisions of this chapter.))
     (2) ((In all proceedings for revocation, suspension, or denial of a license the licensee or applicant shall be given an opportunity to be heard in regard to such revocation, suspension or denial of a license. The director shall give the licensee or applicant twenty days' notice in writing and such notice shall specify the charges or reasons for such revocation, suspension or denial. The notice shall also state the date, time and place where such hearing is to be held. Such hearings shall be held in the city where the licensee has his principal place of business, or where the applicant resides, unless some other place be agreed upon by the parties, and the defendant may be represented by counsel.)) Upon notice by the director to deny, revoke, or suspend a license, a person may request a hearing under chapter 34.05 RCW.
     (3) The director may issue subpoenas to compel the attendance of witnesses, and/or the production of books or documents anywhere in the state. The applicant or licensee shall have opportunity to be heard, and may have such subpoenas issued as he or she desires. Subpoenas shall be served in the same manner as in civil cases in the superior court. Witnesses shall testify under oath which may be administered by the director. Testimony shall be recorded, and may be taken by deposition under such rules as the director may prescribe.
     (((4) The director shall hear and determine the charges, make findings and conclusions upon the evidence produced, and file them in his office, together with a record of all of the evidence, and serve upon the accused a copy of such findings and conclusions.))

Sec. 71   RCW 16.65.090 and 1997 c 356 s 11 are each amended to read as follows:
     The director shall provide for ((brand)) livestock inspection. When ((such brand)) livestock inspection is required the licensee shall collect from the consignor and pay to the department an inspection fee, as provided by law, ((a fee for brand inspection)) for each animal ((consigned to the public livestock market or special open consignment horse sale)) inspected. However, if in any one sale day the total fees collected for ((brand)) inspection do not exceed ((seventy-two)) one hundred dollars, then ((such)) the licensee shall pay ((seventy-two)) one hundred dollars for ((such brand)) the inspection ((or as much thereof as the director may prescribe)) services.

Sec. 72   RCW 16.65.100 and 1983 c 298 s 9 are each amended to read as follows:
     The licensee of each public livestock market or special open consignment horse sale shall collect from any purchaser of livestock requesting ((brand)) inspection a fee as provided by law for each animal inspected. ((Such)) This fee shall be in addition to the fee charged to the consignor for ((brand)) inspection and shall not apply to the minimum fee chargeable to the licensee.

Sec. 73   RCW 16.65.140 and 1971 ex.s. c 192 s 4 are each amended to read as follows:
     Each licensee shall establish a custodial account for consignor's proceeds. All funds derived from the sale of livestock handled on a commission or agency basis shall be deposited in that account. ((Such)) The account shall be drawn on only for the payment of net proceeds to the consignor, or ((such)) other person or persons of whom ((such)) the licensee has knowledge is entitled to ((such)) the proceeds, and to obtain from ((such)) those proceeds only the sums due the licensee as compensation for ((his)) the services as are set out in ((his)) the posted tariffs, and for ((such)) the sums as are necessary to pay all legal charges against the consignment of livestock which the licensee in ((his)) the capacity as agent is required to pay for on behalf of the consignor or shipper. The licensee in each case shall keep ((such)) those accounts and records that will at all times disclose the names of the consignors and the amount due and payable to each from the funds in the custodial account for consignor's proceeds. The licensee shall maintain the custodial account for consignor's proceeds in a manner that will expedite examination by the director and reflect compliance with the requirements of this section.

Sec. 74   RCW 16.65.170 and 1967 c 192 s 1 are each amended to read as follows:
     The licensee shall keep accurate records which shall be available for inspection to all parties directly interested therein, and ((such)) the records shall contain the following information:
     (1) The date on which each consignment of livestock was received and sold.
     (2) The name and address of the buyer and seller of ((such)) the livestock.
     (3) The number and species of livestock received and sold.
     (4) The marks and brands on ((such)) the livestock ((as supplied by a brand inspector)).
     (5) All statements of warranty or representations of title material to, or upon which, any ((such)) sale is consummated.
     (6) The gross selling price of ((such)) the livestock with a detailed list of all charges deducted therefrom.
     ((Such)) These records shall be kept by the licensee for one year subsequent to the receipt of such livestock.

Sec. 75   RCW 16.65.190 and 1983 c 298 s 12 are each amended to read as follows:
     No person shall ((hereafter)) operate a public livestock market or special open consignment horse sale unless ((such)) that person has filed a schedule with the application for license to operate ((such)) a public livestock market or special open consignment horse sale. ((Such)) The schedule shall show all rates and charges for stockyard services to be furnished ((by such person)) at ((such)) the public livestock market or special open consignment horse sale.
     (1) Schedules shall be posted conspicuously at the public livestock market or special open consignment horse sale, and shall plainly state all ((such)) rates and charges in such detail as the director may require, and shall state any rules ((and regulations)) which in any manner change, affect, or determine any part of the aggregate of ((such)) the rates or charges, or the value of the stockyard services furnished. The director may determine and prescribe the form and manner in which ((such)) the schedule shall be prepared, arranged, and posted.
     (2) No changes shall be made in rates or charges so filed and published except after thirty days' notice to the director and to the public filed and posted as ((aforesaid)) set forth under this section, which shall plainly state the changes proposed to be made and the time ((such)) the changes will go into effect.
     (3) No licensee shall charge, demand, or collect a greater or a lesser or a different compensation for ((such)) a service than the rates and charges specified in the schedule filed with the director and in effect at the time; nor shall a licensee refund or remit in any manner any portion of the rates or charges so specified (but this shall not prohibit a cooperative association of producers from properly returning to its members, on a patronage basis, its excess earnings on their livestock); nor shall a licensee extend to any person at ((such)) a public livestock market or special open consignment horse sale any stockyard services except ((such)) as are specified in ((such)) the schedule.

Sec. 76   RCW 16.65.200 and 1983 c 298 s 13 are each amended to read as follows:
     Before the license is issued to operate a public livestock market or special open consignment horse sale, the applicant shall execute and deliver to the director a surety bond in a sum as herein provided for, executed by the applicant as principal and by a surety company qualified and authorized to do business in this state as surety. ((Said)) The bond shall be a standard form and approved by the director as to terms and conditions. ((Said)) The bond shall be conditioned that the principal will not commit any fraudulent act and will comply with the provisions of this chapter and the rules ((and/or regulations)) adopted ((hereunder. Said)) under this chapter. The bond shall be to the state in favor of every consignor and/or vendor creditor whose livestock was handled or sold through or at the licensee's public livestock market or special open consignment horse sale: PROVIDED, That if ((such)) the applicant is bonded as a market agency under the provisions of the packers and stockyards act, (7 U.S.C. 181) as amended, on March 20, 1961, in a sum equal to or greater than the sum required under the provisions of this chapter, and ((such)) the applicant furnishes the director with a bond approved by the United States secretary of agriculture ((naming the department as trustee)), the director may accept ((such)) the bond and its method of termination in lieu of the bond provided for herein and issue a license if ((such)) the applicant meets all the other requirements of this chapter.
     The total and aggregate liability of the surety for all claims upon the bond shall be limited to the face of ((such)) the bond. Every bond filed with and approved by the director shall, without the necessity of periodic renewal, remain in force and effect until ((such time as)) the license of the licensee is revoked for cause or otherwise canceled. The surety on a bond, as provided herein, shall be released and discharged from all liability to the state accruing on ((such)) the bond upon compliance with the provisions of RCW 19.72.110 concerning notice and proof of service, ((as enacted or hereafter amended,)) but this shall not operate to relieve, release, or discharge the surety from any liability already accrued or which shall accrue (due and to become due hereunder) before the expiration period provided for in RCW 19.72.110 concerning notice and proof of service ((as enacted or hereafter amended)), and unless the principal shall before the expiration of ((such)) this period, file a new bond, the director shall ((forthwith)) immediately cancel the principal's license.

Sec. 77   RCW 16.65.235 and 1973 c 142 s 3 are each amended to read as follows:
     In lieu of the surety bond required under the provisions of this chapter, an applicant or licensee may file with the director a deposit consisting of cash or other security acceptable to the director. The director may adopt rules ((and regulations)) necessary for the administration of such security.

Sec. 78   RCW 16.65.260 and 1983 c 298 s 14 are each amended to read as follows:
     In case of failure by a licensee to pay amounts due a vendor or consignor creditor whose livestock was handled or sold through or at the licensee's public livestock market or special open consignment horse sale, as evidenced by a verified complaint filed with the director, the director may proceed ((forthwith)) immediately to ascertain the names and addresses of all vendor or consignor creditors of ((such)) the licensee, together with the amounts due and owing to them and each of them by ((such)) the licensee, and shall request all ((such)) vendor and consignor creditors to file a verified statement of their respective claims with the director. ((Such)) This request shall be addressed to each known vendor or consignor creditor at his or her last known address.

Sec. 79   RCW 16.65.270 and 1959 c 107 s 27 are each amended to read as follows:
     If a vendor or consignor creditor so addressed fails, refuses or neglects to file in the office of the director his or her verified claim as requested by the director within sixty days from the date of such request, the director shall ((thereupon)) be relieved of further duty or action ((hereunder)) on behalf of ((said)) the producer or consignor creditor.

Sec. 80   RCW 16.65.280 and 1959 c 107 s 28 are each amended to read as follows:
     Where by reason of the absence of records, or other circumstances making it impossible or unreasonable for the director to ascertain the names and addresses of all ((said)) vendor and consignor creditors, the director, after exerting due diligence and making reasonable inquiry to secure ((said)) the information from all reasonable and available sources, may make demand on ((said)) the bond on the basis of information then in his or her possession, and thereafter shall not be liable or responsible for claims or the handling of claims which may subsequently appear or be discovered.

Sec. 81   RCW 16.65.300 and 1959 c 107 s 30 are each amended to read as follows:
     Upon the refusal of the surety company to pay the demand, the director may ((thereupon)) bring an action on the bond in behalf of ((said)) vendor and consignor creditors. Upon any action being commenced on ((said)) the bond, the director may require the filing of a new bond. Immediately upon the recovery in any action on ((such)) the bond ((such)) the licensee shall file a new bond. Upon failure to file the ((same)) new bond within ten days, ((in either case,)) such a failure shall constitute grounds for the suspension or revocation of ((his)) the license.

Sec. 82   RCW 16.65.340 and 1967 c 192 s 2 are each amended to read as follows:
     The director shall, when livestock is sold, traded, exchanged, or handled at or through a public livestock market, require such testing, treating, identifying, examining and record keeping of such livestock by a ((deputy)) Washington state licensed and accredited veterinarian employed by the market as in the director's judgment may be necessary to prevent the spread of brucellosis, tuberculosis, paratuberculosis, ((hog cholera)) pseudorabies, or any other infectious, contagious, or communicable disease among the livestock of this state. The state veterinarian or his or her authorized representative may conduct additional testing and examinations for the same purpose.

Sec. 83   RCW 16.65.350 and 1959 c 107 s 35 are each amended to read as follows:
     (((1) The director shall perform all tests and make all examinations required under the provisions of this chapter and rules and regulations adopted hereunder: PROVIDED, That veterinary inspectors of the United States department of agriculture may be appointed by the director to make such examinations and tests as are provided for in this chapter without bond or compensation, and shall have the same authority and power in this state as a deputy state veterinarian.
     (2))) The director shall ((have the responsibility for the direction and control of)) adopt rules regarding sanitary practices ((and)), health practices and standards, and ((for)) the examination of animals at public livestock markets. ((The deputy state veterinarian at any such public livestock market shall notify the licensee or his managing agent, in writing, of insanitary practices or conditions. Such deputy state veterinarian shall notify the director if the improper sanitary practices or conditions are not corrected within the time specified. The director shall investigate and upon finding such report correct shall take appropriate action to hold a hearing on the suspension or revocation of the licensee's license.))

Sec. 84   RCW 16.65.380 and 1959 c 107 s 38 are each amended to read as follows:
     Public livestock market facilities shall include adequate space and facilities necessary for ((deputy)) market, federal, or state veterinarians to properly carry out their functions as prescribed by law and rules ((and regulations)) adopted ((hereunder)) under law or as prescribed by applicable federal law or regulation.

Sec. 85   RCW 16.65.390 and 1959 c 107 s 39 are each amended to read as follows:
     Public livestock market facilities shall include space and facilities necessary for ((brand)) livestock inspectors and veterinarians to properly carry out their duties, as provided by law and rules ((and regulations)) adopted ((hereunder)) under law, in a safe and expeditious manner.

Sec. 86   RCW 16.65.400 and 1983 c 298 s 15 are each amended to read as follows:
     (1) Each public livestock market licensee shall maintain and operate approved weighing facilities for the weighing of livestock at such licensee's public livestock market.
     (2) All dial scales used by the licensee shall be of adequate size to be readily visible to all interested parties and shall be equipped with a mechanical weight recorder.
     (3) All beam scales used by the licensee shall be equipped with a balance indicator, a weigh beam and a mechanical weight recorder, all readily visible to all interested parties.
     (4) All scales used by the licensee shall be checked for balance at short intervals during the process of selling and immediately prior to the beginning of each sale day.
     (5) The scale ticket shall have the weights mechanically imprinted upon ((such)) the tickets when the weigh beam is in balance during the process of weighing, and shall be issued in triplicate, for all livestock weighed at a public livestock market. A copy of ((such)) the weight tickets shall be issued to the buyer and seller of the livestock weighed.

Sec. 87   RCW 16.65.420 and 1991 c 17 s 3 are each amended to read as follows:
     (1) Any application ((for sales days or days for a new salesyard, and any application)) for a change of sales day or days or additional sales day or days for an existing ((yard)) salesyard shall be subject to approval by the director, subsequent to a hearing ((as provided for in this chapter)) and the director is hereby authorized to ((allocate)) approve these ((dates and type)) days and class of livestock which may be sold on these ((dates)) days. In considering the ((allocation)) approval or denial of ((such)) these sales days, the director shall give appropriate consideration, among other relevant factors, to the following:
     (a) The geographical area which will be affected;
     (b) The conflict, if any, with sales days already allocated in the area;
     (c) The amount and class of livestock available for marketing in the area;
     (d) Buyers available to such market;
     (e) Any other conditions affecting the orderly marketing of livestock.
     (2) No special sales shall be conducted by the licensee unless the licensee has applied to the director in writing fifteen days prior to such proposed sale ((and such sale date shall be approved at the discretion of the director)). Each application must be accompanied by a nonrefundable fee of fifty dollars.
     (3) In any case that a licensee fails to conduct sales on the sales days allocated to the licensee, the director shall, subsequent to a hearing, be authorized to revoke an allocation for nonuse. The rate of usage required to maintain an allocation shall be established by rule.

Sec. 88   RCW 16.65.424 and 1963 c 232 s 19 are each amended to read as follows:
     The director ((shall have)) has the authority to grant a licensee an additional sales day, or days, limited to the sale of horses and/or mules and may if requested grant the licensee, by permit, the authority to have the sale at premises other than at his or her public livestock market if the facilities are approved by the director as being adequate for the protection of the health and safety of ((such)) the horses and/or mules. For the purpose of such limited sale the facility requirements of RCW 16.65.360 shall not be applicable.

Sec. 89   RCW 16.65.440 and 1959 c 107 s 44 are each amended to read as follows:
     Any person who ((shall)) violates any provisions or requirements of this chapter or rules ((and regulations)) adopted by the director ((pursuant to)) under this chapter ((shall be deemed)) is guilty of a gross misdemeanor((; and any subsequent violation thereafter shall be deemed a gross misdemeanor)).

Sec. 90   RCW 16.65.445 and 1989 c 175 s 55 are each amended to read as follows:
     The director shall hold public hearings upon ((a)) any proposal to ((promulgate)) adopt any new or amended ((regulations)) rules and all hearings for the denial, revocation, or suspension of a license issued under this chapter or in any other adjudicative proceeding, and shall comply in all respects with chapter 34.05 RCW, the Administrative Procedure Act.

NEW SECTION.  Sec. 91   A new section is added to chapter 42.17 RCW to read as follows:
     Financial statements provided under RCW 16.65.030(1)(d) are exempt from disclosure under this chapter.

NEW SECTION.  Sec. 92   The following acts or parts of acts are each repealed:
     (1) RCW 16.57.380 (Horses--Mandatory brand inspection points--Powers of director) and 1991 c 110 s 8, 1981 c 296 s 22, & 1974 ex.s. c 38 s 1;
     (2) RCW 16.65.110 (Charge for examining, testing, inoculating, etc.--Minimum fee) and 1959 c 107 s 11;
     (3) RCW 16.65.422 (Special sales of purebred livestock) and 1963 c 232 s 17; and
     (4) RCW 16.65.423 (Limited public livestock market license, sale of horses and/or mules--Sales days) and 1983 c 298 s 16 & 1963 c 232 s 18.

NEW SECTION.  Sec. 93   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2003, except for sections 4 and 10 of this act which take effect January 1, 2004.