BOISE — Fees and caps related to Idaho livestock branding would change if the legislature approves the first revenue-generation overhaul in more than 14 years.

Senate Bill 1016 aims to better position the brand board to cover rising costs and operate effectively, state brand inspector Cody Burlile said. Stakeholder groups including the Idaho Farm Bureau Federation and state cattlemen’s, dairymen’s and auction associations provided key input.

“Three to four years ago, the brand board could see that our expenses started to outweigh our revenue” driven by inflation, he said.

The board held more than 20 meetings with stakeholders to develop a plan for the next 10 years. In addition to financial stability, the plan addresses “things we could be doing better or need to change,” Burlile said.

Some fees and caps changed in 2011. Many have not been changed since 2006.

A brand inspection is required when livestock ownership changes, or when animals leave the state or go to slaughter.

Recording a brand now costs $50; the bill would cap this fee at $75. A fee would apply to researching a brand recording, now free.

The brand renewal fee cap would change from $125 to $200 for five years, though the portion for the Idaho Wolf Depredation Control Board would remain $25.

The bill would not change some livestock fees, particularly those that the board collects for distribution to other agencies. Another example is an Idaho Beef Council fee for promotion and producer education.

The per-head cattle inspection fee cap would change from $1.25 to $1.50. Livestock dealer licenses would move from $100 to $300 a year, mostly in line with surrounding states.

The legislature traditionally sets brand board fees by administrative rule and sets fee caps by statute.

“Part of the bill changes that so the board would have the ability to adjust those fees underneath the cap,” Burlile said. The rationale is to “allow the board to determine if a change is needed” and by how much it should be raised or lowered.

This additional flexibility would enable the board to operate more efficiently and nimbly, said Rick Naerebout, Idaho Dairymen’s Association CEO.

“Now the board needs to go to the legislature every time it raises a fee,” he said. That can take well over a year from when the new fee is proposed to when it is approved and put into effect.

Future changes to fee caps still would require legislative approval.

“There are some sideboards,” Burlile said. The board, in an advertised meeting at the start of the year, will determine if fee changes are needed. Cattle brand inspection fees could not be increased by more than 10 cents per head a year and must remain below the cap.

Also under SB 1016, the board would be able to retain interest on the state brand account rather than returning it to the Idaho general fund. The brand board is funded by industry entirely and does not receive general fund money.

About $40,000 in interest would move from the state general fund to the brand account, based on last fiscal year’s returns, according to the bill’s fiscal impact statement. In all, the board is expected to get an additional $300,000 in fee and interest income if the bill passes.

Personnel, fuel and other vehicle expenses jumped, especially in the past three years, Burlile said.

Also three to four years ago, drought prompted more cattle sales and, in turn, more brand inspections — the number of which reached a 20-year high in 2022.

“We fully expected those numbers to drop, and they haven’t” significantly, Burlile said. Headcount is below that of 2022 but still strong.

Nevertheless, inflated costs exceed revenue, and “essentially the talk has been that we need a solvent brand department,” he said. “It is valued.”

If the bill passes, the brand board will have the long-term resources needed to identify and trace cattle and protect owners from theft, Naerebout said.