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This week, I would like to provide a broader overview of the proposed changes to the state’s Brand Law.
This session, I introduced LB1187 to allow the ability for the Brand Committee to adjust its inspection fee to help the Brand Committee manage a difficult budget situation.
Due to the closure of the Tyson plant in Lexington earlier this year, as well as other factors, the Brand Committee’s cash fund has depleted in recent years. Although the Brand Committee has indicated it could potentially avoid insolvency without a change in its fee structure, it is clear there is no margin for error, and it would be irresponsible for the Legislature to neglect addressing the Brand Committee’s fiscal situation this session.
My bill LB1187 as introduced simply proposed to raise the maximum per-head inspection fee from $1.10 to up to $1.50 and replace mileage-based travel charges with a flat surcharge of up to $30 per inspection stop.
This would give the Brand Committee much needed revenue options to manage its budget needs.
However, it is very clear there is little support from the Agriculture Committee, the Legislature as a whole, and among segments of the industry to give the Brand Committee additional fee authority without changes to the Brand Law.
There has been growing sentiment among segments of the livestock industry that mandatory brand inspection creates some competitive disadvantages relative to other states.
Momentum for changes to the Brand Law has been growing, as seen with the series of bills introduced in recent years. A bill introduced in 2020 would have repealed the Brand Law altogether and only retained brand registration assigned to the Department of Agriculture.
LB572, enacted in 2021, made a number of significant changes to the statutes attempting to address calls for modernization of the Brand Law. Also this year, LB1258 would have adopted a statewide voluntary inspection system similar to Kansas.
LB646, as introduced last year, would have exempted registered feedlots from brand inspections, audits, and fees. LB646 as amended would (1) increase the physical and electronic inspection fee cap to $1.50 per head, (2) exempt cattle shipped to or from a qualified dairy from brand inspection, (3) amend the registration fee and annual renewal fee for registered feedlots, and (4) replace mileage-based travel charges with a flat surcharge of up to $20 per inspection stop. LB646 as amended advanced to Final Reading but ultimately did not receive a final vote.
This past week, LB1187 was passed by the Legislature with the amendments offered by Senator Jacobson during earlier rounds of debate. LB1187 as amended by the Jacobson amendments would (1) increase the statutory cap on the per head inspection fee from the current $1.10 to up to $1.50, (2) authorize the Brand Committee to collect a uniform travel surcharge of no greater than $30 per stop, (3) authorize the Brand Committee to adjust the brand renewal fee within a statutory cap of $400, (4) revise the composition of the Brand Committee, (5) eliminate duplicative inspection of cattle first placed in grow lots before eventually being placed in a registered feedlot, (6) modify how audits of registered feedlots are conducted, (7) change how registered feedlot fees are calculated to more closely reflect the cost to the Brand Committee to implement the registered feedlot program, and (8) exempt certain dairy-related cattle movements from inspection, such as transfers between development facilities and dairies. LB1187 as amended proved to be much more substantial than what was originally introduced in LB646.
LB1187 has been a collaborative effort by many, including myself, Senator Jacobson, Senator Storer, Senator Ibach, Nebraska Farm Bureau, Nebraska Cattlemen, and others to find a compromise. Although there are revisions that I am not particularly fond of, LB1187 reflects a compromise that, while not perfect, does provide the Brand Committee with additional resources and keeps the registered feedlots within the brand inspection system and subject to Brand Committee oversight. This compromise will still have registered feedlots continue to contribute to the cost of maintaining the brand inspection infrastructure. It will help ensure brand inspection will continue as a service to the cattle industry. Most importantly, without resolution this year, legislation like LB1258 to end mandatory brand inspection altogether, would have returned next year and probably gained traction. As expressed by multiple senators in debate, LB1187 as amended represents a series of changes intended to settle the Brand Law for the foreseeable future.
I invite you to let me know your concerns. My office number is (402) 471-2801 while my email is [email protected]. My address is: DDist. 40 Sen. Barry DeKay, P.O. Box 94604, State Capitol, Lincoln, NE 68509.
