54-1,133.

Registered dairy heifer development facility; records; audits.

(1) The operator of a registered dairy heifer development facility shall:

(a) Keep the following for all cattle in such registered dairy heifer development facility: 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.

(2)(a) This subdivision (a) applies unless otherwise provided in subdivision (b) of this subsection. The brand committee or its employees may audit each registered dairy heifer development facility 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 in the registered dairy heifer development facility as of the commencement date of the audit.

(b) The brand committee or its employees may audit a registered dairy heifer development facility 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 dairy heifer development facility 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 dairy heifer development facility 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.