HB 1267

 26.683.23  101st Legislative Session  1267
                                      2026 South Dakota Legislature
                                              House Bill 1267
 Introduced by: Representative Hunt
1 An Act to require statewide livestock ownership inspection.
2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
3 Section 1. That § 40-18-2 be AMENDED:
440-18-2. At least three of the five members of the board shall must be persons
5     who derive the major portion of their income from the livestock business and who are
6     owners of brands duly recorded with the board. At least three of the five members of the
7     board shall reside in the livestock ownership inspection areas. No appointed member may
8     act as a member of the board while holding an elective or appointive state or federal office.
9     No more than three of the members shall may be of any one political party.
10 Section 2. That § 40-18-15 be AMENDED:
1140-18-15. The board may inspect all livestock moved within the South Dakota
12     livestock ownership inspection area and all livestock leaving the South Dakota livestock
13     ownership inspection area this state and all livestock leaving this state for the purpose of
14     determining the proper ownership and brands, if any, of such the livestock, and shall have
15     general charge, supervision, and custody of all instruments, records, and files in
16     connection with such these ownership inspection activities.
17 Section 3. That § 40-18-16 be AMENDED:
1840-18-16. The board may promulgate rules, pursuant to chapter 1-26, to:
19     (1)     Describe prohibited brand symbols for various types of livestock and identify
20locations on animals where a brand is permitted;
21     (2)     Provide for the registration, transfer, and renewal of livestock brands;
22     (3)     Establish a brand registration fee not to exceed fifty dollars;
23     (4)     Establish a brand renewal fee not to exceed eighteen dollars per year or a brand
24renewal fee not to exceed ninety dollars for each five-year ownership period and;
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1    (5)      Establish a brand transfer fee not to exceed fifty dollars;
2    (5)(6) Establish an ownership inspection fee not to exceed one dollar for each head of
3livestock;
4    (6)(7) Establish recordable livestock brands;
5    (7)(8) Establish      law    enforcement,      ownership    inspection,     and        transportation
6requirementswithin or without the ownership inspection area;
7    (8)(9) Establish a duplicate certificate fee not to exceed twenty dollars;
8    (9)(10)     Establish a mileage fee for inspectors not to exceed the rate set pursuant to
9§ 3-9-1; and
10    (10)     Establish an inspection fee for livestock located outside the ownership inspection
11area not to exceed one dollar for each head of livestock; and
12    (11)     Establish a brand registration application fee not to exceed fifty dollars.
13 Section 4. That § 40-18-17 be AMENDED:
1440-18-17. The Brand Board board shall provide for the registration of livestock
15    brands, for the inspection of livestock for ownership identification purposes, and for the
16    enforcement     of    laws   pertaining   to   the   inspection,   sale,   branding,  ownership,
17    transportation, and theft of livestock within the ownership inspection area and the this
18    state.
19The board shall conduct outreach and education activities to counties not
20    previously included under inspection requirements before the transition to mandatory
21    statewide inspection on July 1, 2029.
22 Section 5. That § 40-19-10.1 be AMENDED:
2340-19-10.1. No person may bring cattle branded with a brand registered in
24    another state into the ownership inspection area this state for grazing or feeding purposes
25    without a permit authorized by the board. If the brand is a duplicate of or conflicts with a
26    brand issued pursuant to this chapter, a permit may only be issued at the discretion of
27    the board. No permit is required if the cattle are rebranded with a brand registered
28    pursuant to this chapter. The application for a permit shall must be on a form approved
29    by the board and shall be signed by the owner of the cattle. Any calves born to cattle
30    which that are subject to the permit may be branded with the out-of-state brand upon
31    prior written notice to the board. The calves shall must be added to the permit. No cattle
32    or calves subject to the permit may be removed from the ownership inspection area this
33    state, sold, or slaughtered without an ownership inspection.
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1No person may brand any cattle imported into or purchased within the ownership
2    inspection area this state for feeding purposes with a brand registered in another state
3    without a permit authorized by the board. No permit may be issued if the brand is a
4    duplicate of or conflicts with a brand issued pursuant to this chapter. The application for
5    a permit shall must be signed by the owner of the cattle. No cattle subject to the permit
6    may be removed from the ownership inspection area this state, sold, or slaughtered
7    without an ownership inspection.
8Cattle purchased at a licensed livestock auction market in the ownership inspection
9    area this state may be branded with the owner's out-of-state brand if the cattle are
10    branded at the market, are purchased for export from the this state within two calendar
11    days of purchase, and an authorization form is obtained from the board prior to branding
12    the cattle.
13A violation of this section is a Class 1 misdemeanor.
14 Section 6. That § 40-20-4 be AMENDED:
1540-20-4. Except as otherwise provided in this chapter, it is a Class 2 misdemeanor
16    to remove or authorize the removal of livestock from any point within the livestock
17    ownership inspection area, to any point within one mile of the border with a destination
18    outside the ownership inspection area this state, unless the livestock have been inspected
19    for ownership and the shipper possesses the local ownership inspection certificate, market
20    clearance, shipper's permit, or other form of authorization required by the board.
21Except as otherwise provided in § 40-20-29, a local ownership inspection certificate
22    is valid for the transportation of livestock, other than horses, out of the livestock ownership
23    inspection area this state for twenty-four hours after the time of the inspection, as noted
24    on the inspection certificate. In the case of horses, the certificate is valid for thirty days
25    after the date of the inspection, as noted on the certificate.
26If there is no valid local ownership inspection certificate, the livestock must be
27    inspected before leaving the ownership inspection area this state.
28Livestock being removed from the ownership inspection area this state, without
29    authorization from the board, may be impounded by any law enforcement officer, until
30    the livestock are inspected for ownership by an inspector.
31The venue for the prosecution of any offense under this section is the county where
32    the livestock were loaded, or any county through which the livestock were transported or
33    trailed.
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1Any livestock being transported to a destination outside the ownership inspection
2    area this state must be inspected for ownership if they cease to be in the custody of the
3    carrier at any time prior to leaving the ownership inspection area this state.
4Any livestock shipper within the livestock ownership inspection area this state
5    wanting livestock inspected, as provided in this section, shall notify an inspector in
6    advance of the inspection and allow the inspector reasonable time to provide the
7    inspection.
8 Section 7. That § 40-20-4.1 be AMENDED:
940-20-4.1. Notwithstanding the provisions of § 40-20-4, an owner of any livestock
10    who wishes to move the livestock out of the ownership inspection area this state for any
11    purpose other than sale or trade of the livestock may obtain a written permit from the
12    board for movement of the livestock. The written permit shall remain is in effect for the
13    life of the livestock described, or for a specific term, and it is void if the livestock changes
14    ownership. The fee for the permit shall must be established by rules promulgated pursuant
15    to chapter 1-26. The permit fee includes the costs of any inspection and the fee imposed
16    under the provisions of § 40-18-16. A permit for the transportation of horses and mules
17    may be authorized by the board pursuant to § 40-18-16.
18 Section 8. That § 40-20-5 be AMENDED:
1940-20-5. If the border of the livestock ownership inspection area of South Dakota
20    this state divides any ranch or farm, written permission may be given by the board to the
21    owner or lessee of the ranch or farm to trail livestock out of the South Dakota inspection
22    area this state for grazing purposes without inspection. The border of the South Dakota
23    inspection area shall be contiguous to an inspection area of an adjacent state. The board
24    may cancel such permission at any time subject to the provisions of chapter 1-26.
25 Section 9. That § 40-20-18 be AMENDED:
2640-20-18. Any person in charge or control of any motor vehicle transporting
27    livestock from any point within the livestock ownership inspection area shall this state
28    must, upon demand of any state law enforcement officer, exhibit to the officer
29    authorization as required pursuant to § 40-20-4. It is a Class 2 misdemeanor for any
30    person not to be in possession of such any authorization if required by the provisions of
31    this section.
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1 Section 10. That § 40-20-26 be AMENDED:
240-20-26. It is a Class 1 misdemeanor for any licensed livestock auction market
3    in the livestock ownership inspection area this state to allow any livestock, brought into
4    the yards of the market for the purpose of sale, to leave the yards until first without being
5    inspected for ownership. However, if If a shipment of livestock arrives at any auction
6    market in the ownership inspection area after daylight hours, facilities shall must be made
7    available to yard such livestock separate and apart that shipment of livestock separately
8    from any other livestock. The auction market may sell such livestock from that shipment
9    that night, but livestock so sold shall any of the livestock sold must be returned to the
10    separate yard facilities, and may not be removed therefrom until an ownership inspection
11    has been made. The livestock ownership inspector may, in his discretion, reinspect the
12    livestock before they leave the yards of the auction market.
13 Section 11. That § 40-20-26.1 be AMENDED:
1440-20-26.1. It is a Class 2 misdemeanor for any person to sell or to transfer
15    ownership of any livestock within the livestock ownership inspection area this state without
16    first obtaining an ownership inspection, except as provided in § 40-20-26 §§ 40-20-26
17    and 40-20-26.2.
18 Section 12. That § 40-20-26.2 be AMENDED:
1940-20-26.2. Notwithstanding § 40-20-26.1, ownership of livestock with the
20    seller's South Dakota recorded and healed brand or the owner's unbranded livestock may
21    be transferred by means of an authorized bill of sale, without a brand inspection. The bill
22    of sale must be on a form prescribed by the board. A copy of the bill of sale must be
23    forwarded to the board.
24An authorized bill of sale is not a substitute for the inspection of livestock being
25    removed from the ownership inspection area of this state.
26An authorized bill of sale may not be used to transfer ownership of more than five
27    head of livestock to any one buyer. Multiple authorized bills of sale may not be executed
28    to subdivide numbers of livestock greater than five to any one buyer.
29A violation of this section is a Class 2 misdemeanor.
30 Section 13. That § 40-20-29 be AMENDED:
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140-20-29. It is a Class 1 misdemeanor for any person to slaughter or process
2    livestock commercially within the livestock ownership inspection area until this state
3    unless the livestock have received an ownership inspection and the certificate of such the
4    inspection is filed and is made a part of that person's permanent records, or unless the
5    person has the hide of each slaughtered carcass available for inspection. An ownership
6    brand inspection certificate on livestock is valid for no longer than four days from the date
7    of issue. Livestock arriving at a slaughter destination later than four days from the date
8    indicated on the inspection certificate shall must be inspected and the fee collected. All
9    certificates of ownership inspection shall, at any time must, upon demand, be displayed
10    to any state law enforcement officer or to the board.
11 Section 14. That § 40-20-32 be AMENDED:
1240-20-32. Any person who operates a drylot cattle feeding operation, within the
13    confines of permanently fenced lots and within the ownership inspection area, may apply
14    to the board for designation as a registered feedlot. The board shall prescribe a form for
15    this purpose. Upon receipt of an application and within thirty days, the board may grant
16    a permit if the following requirements are satisfied:
17    (1)      The operator's feedlot is a permanently fenced drylot;
18    (2)      The operator commonly practices feeding cattle to finish for slaughter; and
19    (3)      The operator brands all cattle carrying mixed brands, held under common
20ownership, with a registered brand or a feedlot assigned feedlot-assigned brand
21approved by the board.
22 Section 15. That § 40-20-37 be AMENDED:
2340-20-37. It is a Class 1 misdemeanor for any buyer of livestock at a licensed
24    livestock auction market in the ownership inspection area, or any person on the buyer's
25    behalf, to remove any livestock from the market until the livestock have been inspected
26    for ownership as provided in § 40-20-26.
27 Section 16. That § 40-20-39 be AMENDED:
2840-20-39. Livestock that is removed from the ownership inspection area this state
29    in violation of this chapter may be inspected at any place outside the inspection area
30    location and the fee collected for the inspection. The inspection does not exempt any
31    person from prosecution for violation of the inspection laws.
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1 Section 17. That § 40-21-10 be AMENDED:
240-21-10. If any livestock, inspected under the provisions of this chapter or
3    chapter 40-20 bears an unrecorded brand, or a recorded brand other than the brand of
4    the person selling the livestock or transporting the livestock out of the ownership
5    inspection area this state, and does not bear the recorded brand of such the person, then
6    the person selling or transporting the livestock shall be required to establish ownership to
7    the livestock, by presenting to the livestock ownership inspector a witnessed bill of sale
8    to the animal or by other satisfactory evidence of ownership which may include an affidavit
9    of ownership signed by the person selling or transporting the livestock and witnessed by
10    the ownership inspector. If any livestock listed on the original bill of sale or affidavit of
11    ownership are not sold or transported out of the ownership inspection area this state, the
12    inspector shall must pick up the ownership documents and issue a receipt showing the
13    number of livestock sold or transported and the number remaining. If any livestock are
14    unbranded, the inspector may must require the shipper or seller to establish ownership
15    by presenting to the inspector an affidavit of ownership. Only an original bill of sale or
16    affidavit of ownership is valid for proof of ownership. Any bill of sale or affidavit shall must
17    be notarized or signed by two witnesses.
18 Section 18. That § 40-21-11 be AMENDED:
1940-21-11. If any livestock inspected under the provisions of this chapter or
20    chapter 40-20 bears the recorded brand of the seller or the person transporting the
21    livestock out of the ownership inspection area this state, and also bears a recorded brand
22    of another person, then the seller or the person transporting the livestock out of the
23    ownership inspection area this state may be required, at the discretion of the livestock
24    ownership inspector, to establish ownership to the livestock by presenting to the
25    ownership inspector satisfactory evidence of ownership.
26 Section 19. That § 40-21-12.1 be AMENDED:
2740-21-12.1. If the person transporting livestock out of the ownership inspection
28    area this state, as described in § 40-21-10 or 40-21-11, fails to establish ownership of
29    any livestock, the board may hold the livestock. If a hold has been placed on the livestock,
30    it is a Class 1 misdemeanor for the person to remove the livestock from the ownership
31    inspection area this state or sell the livestock before the board has cleared the hold for
32    release. Any livestock hold continuing beyond sixty days shall must be forwarded by the
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1    inspector to the board for review and final disposition, which may include clarification,
2    settlement, or payment related to proper ownership.
3 Section 20. That § 40-22-12 be AMENDED:
440-22-12. Any person slaughtering or processing livestock outside the ownership
5    inspection area shall must, upon demand of any state law enforcement officer, provide
6    names and dates of persons who delivered livestock for slaughter that may have
7    originated from within the ownership inspection area.
8 Section 21. That § 40-20-1 be REPEALED.
9The South Dakota livestock ownership inspection area consists of all of that part of
10    the State of South Dakota lying within the following counties: Harding, Butte, Lawrence,
11    Pennington, Custer, Fall River, Perkins, Meade, Oglala Lakota, Corson, Dewey, Ziebach,
12    Haakon, Stanley, Jackson, Jones, Mellette, Bennett, Todd, Lyman, Tripp, and Gregory.
13 Section 22. That § 40-20-2 be REPEALED.
14Any county contiguous to the livestock ownership inspection area may become a
15    part of such area upon a petition signed by a majority of the owners of livestock residing
16    within such county to be attached, which shall be presented to the board. The board shall,
17    in its discretion, either reject or approve such petition at its next regular or special
18    meeting. No area in the brand inspection area may be smaller than a county.
19 Section 23. That § 40-20-3 be REPEALED.
20Any county which has become a part of the livestock inspection area by petition
21    and which adjoins a noninspection area may withdraw from the inspection area by a
22    petition requesting withdrawal. The petition shall be signed by a majority of the owners
23    of livestock in the county seeking withdrawal. The petition shall be filed with the board.
24    The board shall at its next regular or special meeting enter a resolution approving the
25    withdrawal, which action removes the county described in the petition from the ownership
26    inspection area. No area seeking withdrawal may be smaller than a county.
27 Section 24. That § 40-20-6 be REPEALED.
28Subject to the conditions set forth in §§ 40-20-7 to 40-20-12, inclusive, if livestock
29    is transported or trailed to a designated inspection point outside the livestock ownership
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1    inspection area designated by the board as an open market, no livestock ownership
2    inspection is required at point of origin.
3 Section 25. That § 40-20-7 be REPEALED.
4In lieu of an ownership inspection, any person who intends to remove livestock
5    from the livestock ownership inspection area for the purpose of sale or slaughter may
6    obtain a shipper's permit from the board or its authorized agent for the transportation of
7    livestock to a previously designated open market or slaughter plant pursuant to § 40-18-
8    16. The permit may be obtained forty-eight hours in advance of shipment from an
9    authorized agent of the board.
10 Section 26. That § 40-20-7.1 be REPEALED.
11A market clearance is valid for transporting livestock out of the ownership
12    inspection area only if the transportation originates at the market where the livestock
13    were inspected. If the livestock are unloaded or held at any other location other than the
14    market of origin, they shall be reinspected for ownership immediately prior to further
15    transportation.
16 Section 27. That § 40-20-10 be REPEALED.
17If authorization is required, it is a Class 2 misdemeanor for a carrier or owner to
18    transport livestock from the livestock ownership inspection area or to within a mile of the
19    border with a destination outside the livestock ownership inspection area unless the carrier
20    or owner is in possession of authorization by the board.
21 Section 28. That § 40-20-10.1 be REPEALED.
22If livestock have been shipped to an open market and no authorization for the
23    transportation of such livestock has been obtained, the proceeds of the sale of such
24    livestock shall be held in trust by the operators of the open market until the board
25    authorizes the release of the proceeds.
26 Section 29. That § 40-20-12 be REPEALED.
27If livestock shipped from the livestock ownership inspection area are consigned to
28    an open market, as described in § 40-20-6, it is a Class 2 misdemeanor for any person to
29    change the consignment to a point other than a livestock market previously designated
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1    by the board as an open market, unless the livestock receive a livestock ownership
2    inspection and the carrier receives a certificate or clearance from the board showing that
3    all the livestock belong to the shipper.
4 Section 30. That § 40-21-5 be REPEALED.
5To facilitate the inspection of livestock and the enforcement of chapters 40-18 to
6    40-22, inclusive, any livestock market, slaughter facility, or inspection point, whether
7    within or without the State of South Dakota, that meets the criteria established by the
8    board may be designated by the board as an open market. The board shall establish
9    criteria for designating an open market and for revoking open market status by rules
10    promulgated pursuant to chapter 1-26. Criteria may include distance from the livestock
11    ownership inspection area, the number of head inspected annually, compliance by the
12    market with ownership inspection laws, adequacy of the facilities, economic feasibility,
13    and compliance with the open market agreement. Any livestock market, slaughter facility,
14    or inspection point designated as an open market by the board shall enter into an open
15    market agreement with the board on such terms and conditions as may be necessary for
16    proper brand inspection in accordance with the brand inspection laws and regulations of
17    this state and of the state in which the livestock market, slaughter facility, or inspection
18    point is located.
19 Section 31. This Act is effective beginning July 1, 2029.
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