Committee approves bill to raise fee caps, retain interest for Idaho Brand Board to address shortfall

Cody Berlisle, director of the Idaho Brand Board and Idaho State Brand Inspector, presented Senate Bill 1016 to the Senate Agricultural Affairs Committee and said the legislation would raise statutory fee caps and allow the Brand Board to retain interest on its dedicated fund to address a multi-year shortfall.

The bill, developed through a stakeholder working group of industry groups, would adjust fee caps in Idaho Code (Title 25, Chapter 11) governing brand inspection and recording. Berlisle told the committee the Brand Board verified ownership on about 2,200,000 head of livestock last year, recovered and returned livestock valued at more than $250,000, and prevented more than $600,000 in questionable ownership distributions. He said the board achieved a 98% return rate on livestock that are found and that the board collected and processed more than $3,300,000 in assessment fees for other commodity and animal boards.

The Nut Graf: Committee members were told the Brand Board has faced inflation-driven expense increases in personnel, replacement vehicles and fuel, producing consecutive deficits (about $85,000 in fiscal 2023 and about $340,000 in fiscal 2024) and a drop of more than $500,000 in cash balance over two years. Stakeholders met roughly 20 times over an 18-month period to propose a 10-year plan, which the board says is embodied in SB 1016.

Supporters from the livestock industry told the committee they endorsed the bill as a negotiated way to preserve a producer-funded service. Bob Nierbaugh of the Idaho Dairymen's Association said the changes are funded by industry-dedicated dollars, not general tax revenue, and that stakeholders placed limits on how quickly caps can be raised. Spencer Black, president of the Idaho Cattle Association and a producer, said the brand is "the title to our livestock" and that industry members had reviewed and supported the proposal. Ted Vanderskoff, chairman of the Idaho Brand Board, described the board as five producer members who oversee the department and said the increases were a "prudent action" to maintain the program.

Berlisle told senators the bill would allow the Brand Board to retain interest accrued on its operating account; historically that interest reverted to the state general fund. He said SB 1016 would have an estimated $40,000 negative impact on the state general fund and an estimated $300,000 positive effect on the Brand Board's dedicated fund, with additional indeterminate gains as fee adjustments are implemented over time.

Committee members asked how stakeholders were selected, whether the horse industry was affected, and how enforcement of violations is handled. Berlisle said the stakeholder group included the Idaho Cattle Association, Idaho Farm Bureau, Idaho Dairymen's Association and livestock market representatives; the proposed fee changes target the cattle side and do not change horse inspection operations except for brand recording and renewal fees that apply to all livestock owners. Enforcement of violations is performed by Brand Board staff, many of whom are commissioned law enforcement officers; citation revenue is remitted to the general fund and does not fund the Brand Board, Berlisle said.

After testimony and questions, Senator Leahy moved to send Senate Bill 1016 to the floor with a recommendation that it do pass. The motion received a second and passed on a voice vote; committee minutes record no opposition during the voice vote.

Ending: The committee advanced SB 1016 to the full Senate with a do-pass recommendation. The bill would raise statutory fee caps, allow retention of interest on a dedicated Brand Board fund, and, according to presenters, shore up the Brand Board's finances while preserving an industry-funded inspection program.