54-1,120.

Registered feedlot; application; requirements; fees; audit; records; rescind registration for cause.

(1)(a) Any person who operates a cattle feeding operation located within the brand inspection area may apply to the brand committee for registration as a registered feedlot. The application form shall be prescribed by the brand committee and shall be made available by the executive director of the brand committee for this purpose upon written request. If the applicant is an individual, the application shall include the applicant's social security number. After the brand committee has received a properly completed application, an agent of the brand committee shall within thirty days make an investigation to determine if the following requirements are satisfied:

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

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

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applicant, the brand committee shall issue a registration number and registration certificate valid for one year unless rescinded for cause. If the registration is rescinded for cause, any registration fee shall be forfeited by the applicant.

(c)(i) The initial fee for a registered feedlot shall be an amount for a registered feedlot having one thousand head or less capacity and an equal amount for each additional one thousand head capacity, or part thereof, of such registered feedlot. For each subsequent year, the renewal fee for a registered feedlot shall be an amount for the first one thousand head or portion thereof of average annual inventory of cattle on feed of the registered feedlot and an equal amount for each additional one thousand head or portion thereof of average annual inventory of cattle on feed of the registered feedlot. The brand committee shall calculate and charge the fee per one thousand head capacity or average annual inventory. Such fee shall be equal to twenty-five percent of the inspection fee provided under section 54-1,108.

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

(2) The brand committee may adopt and promulgate rules and regulations for the operation of registered feedlots to assure that brand laws are complied with, that registered feedlot shipping certificates are available, and that proper records are maintained. Violation of sections 54-1,120 to 54-1,122 subjects the operator to revocation or suspension of the feedlot registration issued. Sections 54-1,120 to 54-1,122 shall not be construed as prohibiting the operation of nonregistered feedlots.

(3) The operator of a registered feedlot shall:

(a) Keep the following for all cattle in such registered feedlot: Cattle inventory records, purchase records, certificates of inspection, and any other satisfactory evidence of ownership; and

(b) Make such records and satisfactory evidence of ownership available to the brand committee or its employees for purposes of: Performing audits under this section, investigating lost or stolen livestock, or investigating violations of the Livestock Brand Act.

(4)(a) This subdivision (a) applies unless otherwise provided in subdivision (b) of this subsection. The brand committee or its employees may audit each registered feedlot twice during a calendar year. When performing an audit under this subsection, the brand committee or its employees shall audit a selection of up to ten percent of the lot files for the cattle on feed in the registered feedlot as of the commencement date of the audit.

(b) The brand committee or its employees may audit a registered feedlot under subdivision (a) of this subsection more than twice during a calendar year if:

(i) The audit is approved by a majority vote of all of the members of the brand committee;

(ii) The brand committee finds the existence of reasonable cause of a violation by the registered feedlot of the Livestock Brand Act or any rules and regulations that are adopted and promulgated under the act; and

(iii) The reasonable cause for the audit is specifically stated by the brand committee in a resolution authorizing the audit. The brand committee may adopt a resolution for purposes of this subdivision (iii).

(c) During an audit that is conducted under this subsection, the operator of the registered feedlot shall show:

(i) The lot files selected for the audit; and

(ii) Cattle purchase records and other satisfactory evidence of ownership for cattle included in the lot files selected for the audit.

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