Inspection is not required in cases where the cattle being moved or transported are dairy calves, and such calves meet all of the following classifications:

1. (a) The calves were born on a dairy farm as defined in Section 32505.
2. (b) The calves were born to cows of a recognized dairy breed.
3. (c) The umbilical cord is still a part of, and attached to, the navel of the calf.

4. (d) The calves will not be moved or transported:

   1. (1) Out of the state.
   2. (2) To a licensed slaughterhouse in this state.

   3. (3) To a public saleyard or public cattle sale market in this state that is licensed pursuant to Section 21733 or posted by the United States Department of Agriculture under the Packers and Stockyards Act of 1921 (7 U.S.C. 201 et seq.).

      Nothing in this section shall prohibit any inspector or peace officer from inspecting any calves when such inspection is necessary in accordance with the provisions of Sections 20432, 20435, 20436, and 20438.