Sub. SB 317--Am. by H
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As Amended by House Committee
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[As Amended by Senate Committee of the
Whole]
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Session of 1997
Substitute for SENATE BILL No. 317
By Committee on Agriculture
3-11
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12 AN ACT abolishing the Kansas state grain inspection department; relating
13 to the transfer of duties and powers thereof; amending K.S.A. 34-101,
14 34-101c, 34-102, 34-111, 34-223, 34-227b, 34-229, 34-230, 34-230a,
15 34-230b, 34-231, 34-233, 34-235, 34-236, 34-238, 34-241a, 34-246, 34-
16 249a, 34-251, 34-257a, 34-273, 34-295a, 34-295b, 34-298, 34-299,
17 34-2,104 and 34-2,110 and K.S.A. 1996 Supp. 34-101b, 34-125, 34-
18 228, 74-4911f, 75-3170a and 77-415 and repealing the existing sec-
19 tions; also repealing K.S.A. 34-101a, 34-101d, 34-102a, 34-104, 34-105,
20 34-106, 34-107, 34-110, 34-112a, 34-113, 34-121, 34-122, 34-123,
21 34-124, 34-127, 34-224, 34-227 34-227a, 34-2,100, 75-1701, 75-1702,
22 75-1703, 75-1704, 75-1706, 75-1709 and 75-1711 and K.S.A. 1996
23 Supp. 34-102b, 34-103a and 34-2,108.
24
25 Be it enacted by the Legislature of the State of Kansas:
26 New Section 1. On and after July September 1, 1997:
27 (a) The Kansas state grain inspection department established by
28 K.S.A. 34-101 is hereby abolished.
29 (b) Except as otherwise provided by this act, all of the powers, duties
30 and functions of the Kansas state grain inspection department and the
31 director of the Kansas state grain inspection department concerning pub-
32 lic warehouses are hereby transferred to and conferred and imposed upon
33 the department of agriculture and the secretary of agriculture.
34 (c) Except as otherwise provided by this act, all of the powers, duties
35 and functions of the Kansas state grain inspection department and the
36 director of the Kansas state grain inspection department concerning grain
37 inspection are hereby governed by the grain inspection, packers, stock-
38 yards administration of the United States department of agriculture.
39 New Sec. 2. On and after July September 1, 1997:
40 (a) Except as otherwise provided by this act, the department of ag-
41 riculture and the secretary of agriculture shall be the successor in every
42 way to the powers, duties and functions of the Kansas state grain inspec-
43 tion department and the director of the Kansas state grain inspection
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1 department concerning public warehouses in which the same were vested
2 prior to the effective date of this section. Every act performed in the
3 exercise of such powers, duties and functions by or under the authority
4 of the department of agriculture and the secretary of agriculture shall be
5 deemed to have the same force and effect as if performed by the Kansas
6 state grain inspection department and the director of the Kansas state
7 grain inspection department, respectively, in which such powers, duties
8 and functions were vested prior to the effective date of this section.
9 (b) Except as otherwise provided by this act, whenever the Kansas
10 state grain inspection department, or words of like effect concerning pub-
11 lic warehouses, is referred to or designated by a statute, contract or other
12 document, such reference or designation shall be deemed to apply to the
13 department of agriculture.
14 (c) Except as otherwise provided by this act, whenever the director
15 of the Kansas state grain inspection department, or words of like effect
16 concerning public warehouses, is referred to or designated by a statute,
17 contract or other document, such reference or designation shall be
18 deemed to apply to the secretary of agriculture.
19 (d) All rules and regulations of the Kansas state grain inspection de-
20 partment and the director of the Kansas state grain inspection department
21 concerning public warehouses in existence on the effective date of this
22 section shall continue to be effective and shall be deemed to be duly
23 adopted rules and regulations of the secretary of agriculture until revised,
24 amended, revoked or nullified pursuant to law.
25 (e) All orders and directives of the Kansas state grain inspection de-
26 partment and the director of the Kansas state grain inspection department
27 concerning public warehouses in existence on the effective date of this
28 section shall continue to be effective and shall be deemed to be orders
29 and directives of the department of agriculture until revised, amended or
30 nullified pursuant to law.
31 (f) On the effective date of this act, the department of agriculture
32 shall succeed to whatever right, title or interest the Kansas state grain
33 inspection department has acquired in any real property in this state con-
34 cerning public warehouses, and the department shall hold the same for
35 and in the name of the state of Kansas. On and after the effective date
36 of this act, whenever any statute, contract, deed or other document con-
37 cerns the power or authority of the Kansas state grain inspection depart-
38 ment and the director of the Kansas state grain inspection department
39 concerning public warehouses to acquire, hold or dispose of real property
40 or any interest therein, the department of agriculture shall succeed to
41 such power or authority.
42 (g) The department of agriculture and the secretary of agriculture
43 shall be continuations of the Kansas state grain inspection department
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1 and the director of the Kansas state grain inspection department con-
2 cerning public warehouses.
3 New Sec. 3. Except as otherwise provided in this act, on July Sep-
4 tember 1, 1997, officers and employees who, immediately prior to such
5 date, were in positions engaged in the performance of powers, duties or
6 functions of the Kansas state grain inspection department concerning
7 public warehouses which are transferred by this act, or who become a
8 part of the department of agriculture, or the powers, duties and functions
9 of which are transferred to the department of agriculture, and if, in the
10 opinion of the secretary of agriculture, those positions are necessary to
11 perform the powers, duties and functions of the department of agriculture
12 concerning public warehouses, shall be transferred to, and shall become
13 officers and employees of the department of agriculture. Any such officer
14 or employee shall retain all retirement benefits and all rights of civil serv-
15 ice which had accrued to or vested in such officer or employee prior to
16 the effective date of this section. The service of each such officer and
17 employee so transferred shall be deemed to have been continuous. All
18 transfers of personnel positions in the classified service under the Kansas
19 civil service act shall be in accordance with civil service laws and any rules
20 and regulations adopted thereunder.
21 New Sec. 4. (a) Those positions in the grain inspection department
22 which, in the opinion of the secretary of agriculture, are not necessary to
23 perform the powers, duties and functions of the department of agriculture
24 concerning public warehouses shall be abolished upon July September
25 1, 1997. Thirty-day notice prior to July September 1, 1997, shall be given
26 by the secretary to employees in those positions determined to be un-
27 necessary by the secretary. No bumping rights shall attach to the positions
28 deemed unnecessary by the secretary of agriculture. No further action
29 shall be required in order to abolish these positions.
30 (b) The provisions of this section shall take effect on and after June
31 August 1, 1997.
32 New Sec. 5. On and after July September 1, 1997:
33 (a) When any conflict arises as to the disposition of any power, func-
34 tion or duty or the unexpended balance of any appropriation as a result
35 of any abolition, transfer, attachment or change made by or under au-
36 thority of this act, such conflict shall be resolved by the governor, whose
37 decision shall be final.
38 (b) The department of agriculture shall succeed to all property and
39 records concerning public warehouses which were used for or pertain to
40 the performance of the powers, duties and functions transferred to the
41 department of agriculture. Any conflict as to the proper disposition of
42 property or records arising under this section, and resulting from the
43 transfer or attachment of any state agency, or all or part of the powers,
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1 duties and functions thereof, shall be determined by the governor, whose
2 decision shall be final.
3 New Sec. 6. On and after July September 1, 1997:
4 (a) The department of agriculture shall have the legal custody of all
5 records, memoranda, writings, entries, prints, representations or combi-
6 nations thereof of any act, transaction, occurrence or event of the Kansas
7 state grain inspection department concerning public warehouses and any
8 agency or office transferred thereto under this act.
9 (b) No suit, action or other proceeding, judicial or administrative,
10 lawfully commenced, or which could have been commenced, by or against
11 any state agency mentioned in this act, or by or against any officer of the
12 state in such officer's official capacity or in relation to the discharge of
13 such officer's official duties, shall abate by reason of the governmental
14 reorganization effected under the provisions of this act. The court may
15 allow any such suit, action or other proceeding to be maintained by or
16 against the successor of any such state agency or any officer affected.
17 (c) No criminal action commenced or which could have been com-
18 menced by the state shall abate by the taking effect of this act.
19 New Sec. 7. On and after July September 1, 1997:
20 (a) The balance of all funds appropriated and reappropriated to the
21 Kansas state grain inspection department concerning public warehouses
22 is hereby transferred to the department of agriculture and shall be used
23 only for the purpose for which the appropriation was originally made.
24 (b) The liability for all accrued compensation or salaries of officers
25 and employees who, immediately prior to such date, were engaged in the
26 performance of powers, duties or functions of the Kansas state grain in-
27 spection department concerning public warehouses, or who become a
28 part of the department of agriculture, or the powers, duties and functions
29 of which are transferred to the department of agriculture, shall be as-
30 sumed and paid by the department of agriculture.
31 New Sec. 8. (a) On and after July 1, 1997, the Kansas grain inspection
32 service September 1, 1997, the department of agriculture shall suc-
33 ceed to whatever right, title or interest the Kansas state grain inspection
34 department has acquired in any property in this state concerning grain
35 inspection, including equipment and supplies from the protein labora-
36 tories and inspection laboratories. The director of Kansas correctional
37 industries, or the director's designee, pursuant to the director's
38 duties as operator of the state surplus property program, shall
39 place a fair market value on such property. Upon receipt of such
40 fair market value, the secretary shall offer for sale, at the fair mar-
41 ket value, all property acquired in such transfer in a single lot to
42 the entity that has been designated by the grain inspection, pack-
43 ers and stockyards administration as the official agency pursuant
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1 to the United States grain standards act. If such designated agency
2 declines to purchase such property, the secretary shall offer for
3 sale such property to the general public. All revenue received pur-
4 suant to such sale shall be deposited in the state treasury and cred-
5 ited to the grain inspection fee fund.
6 (b) On July September 1, 1997, the grain inspection fee fund and
7 all records of the grain inspection fee fund are hereby transferred to the
8 secretary of agriculture for the purposes of this section.
9 (c) On and after July September 1, 1997, all expenditures from the
10 grain inspection fee fund shall be made in accordance with appropriation
11 acts upon warrants of the director of accounts and reports issued pursuant
12 to vouchers approved by the secretary of agriculture or the secretary's
13 designee. On and after July September 1, 1997, the secretary of agri-
14 culture shall pay all outstanding liabilities of the grain inspection fee fund
15 as evidenced by encumbrances of moneys credited to the grain inspection
16 fee fund. After such payment of all outstanding liabilities of the grain
17 inspection fee fund, the secretary of agriculture shall pay all remaining
18 moneys credited to transfer the amount of money equal to the
19 amount of money credited to the grain inspection fee fund on De-
20 cember 1, 1993, from the grain inspection fee fund to the warehouse
21 fee fund, created in K.S.A. 34-101, and amendments thereto. After such
22 payment to the warehouse fee fund, created in K.S.A. 34-101, and amend-
23 ments thereto, the grain inspection fee fund is hereby abolished. The
24 remaining moneys credited to the grain inspection fee fund shall
25 be maintained in such fund. Such moneys shall be expended only
26 if necessary to reestablish or designate a state agency pursuant to
27 statute to perform the duties and functions of grain inspection. On
28 or before the 10th of each month, the director of accounts and
29 reports shall transfer from the state general fund to the warehouse
30 fee fund interest earnings based on:
31 (1) The average daily balance of moneys in the grain inspection
32 fee fund for the preceding month; and
33 (2) the net earnings rate of the pooled money investment port-
34 folio for the preceding month.
35 (d) The secretary may maintain the leases of the grain inspec-
36 tion department until October 1, 1997.
37 New Sec. 9. On and after July 1, 1997, the secretary of agriculture
38 may adopt rules and regulations necessary for the administration and
39 enforcement of the provisions of this act, and amendments thereto.
40 Sec. 10. On and after July 1, 1997, K.S.A. 34-101 is hereby amended
41 to read as follows: 34-101. (a) A state department of record to be desig-
42 nated as the Kansas state grain inspection department is hereby estab-
43 lished. Such department shall have exclusive control of the official sam-
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1 pling, inspection, grading, weighing and protein analysis and the
2 certification of grades, weights, and protein content of all grain at all
3 places where inspection stations are now or may hereafter be established.
4 The certificates issued by the department shall be conclusive evidence to
5 all parties interested and shall form the basis of all settlements between
6 the buyer and seller, unless an appeal is taken therefrom, in the manner
7 provided by law, and all freight charges shall be based on the official state
8 weights.
9 (b) The department of agriculture shall have supervision and regu-
10 lation of all warehouses operated under the Kansas public warehouse laws
11 relating to storage of grain. Such department is authorized and empow-
12 ered by and with the consent of the governor to establish, maintain and
13 operate inspection stations covering all or any part of its service at great
14 railway terminals and points where organized grain markets are regularly
15 maintained, and at other points where operating costs are guaranteed by
16 special arrangements with the industries served, or the managing officers
17 in charge. Where great railroad terminals lie partly within the state of
18 Kansas and partly in an adjoining state and a larger part of the depart-
19 ment's service at such terminal is for the account of firms having offices
20 in such adjoining state, it shall be lawful for the department to maintain
21 and operate an inspection station covering part or all of its services in
22 such adjoining state. No sampling or weighing of grain shall be done by
23 the department outside of the state of Kansas, except as provided in
24 K.S.A. 34-101d, and amendments thereto. Such stations shall be located
25 as conveniently to the interest served as practicable. The owner may di-
26 rect that such owner's grain may not be inspected by writing or stamping
27 upon the bill of lading thereof, ``no inspection desired'' or words to that
28 effect.
29 (c) (b) The department of agriculture shall have the authority to co-
30 operate with any private entity or organization or local, state or national
31 organization or agency, whether voluntary or created by the law of any
32 state, or by national law, engaged in work or activities similar to the work
33 and activities of the department, and to enter into contracts and agree-
34 ments with such entities, organizations or agencies for carrying on a joint
35 campaign of development, education and publicity.
36 (d) (c) No provision of this section shall be construed to prohibit or
37 prevent either the secretary of the state board of agriculture or the state
38 sealer or any of their respective or any authorized representatives from
39 inspecting any weighing or measuring device or otherwise performing any
40 of their the secretary's duties pursuant to any provision of chapter 83 of
41 Kansas Statutes Annotated, and amendments thereto.
42 (d) (1) There is hereby created the warehouse fee fund in the state
43 treasury. The secretary shall remit all moneys received by or for the sec-
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1 retary from fees, charges or penalties to the state treasurer at least
2 monthly. Upon receipt of any such remittance the state treasurer shall
3 deposit the entire amount thereof in the state treasury and credited to the
4 warehouse fee fund. All expenditures from such fund shall be made in
5 accordance with appropriation acts upon warrants of the director of ac-
6 counts and reports issued pursuant to vouchers approved by the secretary
7 or by a person or persons designated by the secretary.
8 (2) On or before the 10th of each month, the director of accounts and
9 reports shall transfer from the state general fund to the warehouse fee
10 fund interest earnings based on:
11 (A) The average daily balance of moneys in the warehouse fee fund
12 for the preceding month; and
13 (B) the net earnings rate of the pooled money investment portfolio for
14 the preceding month.
15 Sec. 11. On and after July September 1, 1997, K.S.A. 1996 Supp.
16 34-101b is hereby amended to read as follows: 34-101b. (a) The director
17 of the Kansas state grain inspection department, with the approval of the
18 state grain advisory commission and the governor, secretary of agriculture
19 is authorized and empowered to enter into contracts and agreements
20 necessary to cooperate with the commodity credit corporation, a public
21 corporation organized under the laws of the United States or other federal
22 agencies to make uniform the procedures followed in examining state
23 licensed public grain warehouses and to make available to the commodity
24 credit corporation or other federal agencies the information acquired un-
25 der such examining procedures by state warehouse examiners.
26 (b) The director of the Kansas state grain inspection department sec-
27 retary of agriculture is authorized and empowered to enter into contracts
28 and agreements necessary to cooperate with governmental agencies of
29 this state, other states, agencies of the federal government and private
30 associations in order to carry out the purpose and provisions of this chap-
31 ter and the United States warehouse act, 7 U.S.C.A., section 241, et seq.
32 Notwithstanding any other provisions of this chapter, such agreements
33 may relate to a joint program for licensing, and bonding and inspecting
34 stations. Such a program may be designed to avoid duplication of effort
35 on the part of the licensing authority and requirements for operation, and
36 promote more efficient enforcement of the provisions of this chapter and
37 comparable provisions of the laws of the states of Nebraska, Colorado,
38 Missouri and Oklahoma.
39 Sec. 12. On and after July September 1, 1997, K.S.A. 34-101c is
40 hereby amended to read as follows: 34-101c. Such Any contracts entered
41 into pursuant to K.S.A. 34-101b, and amendments thereto, may provide
42 for reimbursement to the state grain inspection department of agriculture
43 by the commodity credit corporation for such services so performed and
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1 furnished, and any money received pursuant to the terms of such con-
2 tracts shall be deposited in the grain inspection fee state general [ware-
3 house fee] fund.
4 Sec. 13. On and after July September 1, 1997, K.S.A. 34-102 is
5 hereby amended to read as follows: 34-102. (a) The director secretary
6 shall:
7 (1) Generally supervise the inspection, sampling, sampling for in-
8 spection and weighing of grain, as required by law;
9 (2) supervise the handling, inspection, sampling, sampling for in-
10 spection, weighing, protein analysis and storage of grain;
11 (3) Adopt any rules and regulations necessary to enforce the laws of
12 this state relating to inspection, sampling, sampling for inspection, weigh-
13 ing, protein analysis and storage of grain and management of public ware-
14 houses;
15 (4) keep proper records of all the inspection, sampling, sampling for
16 inspection, protein analysis and weighing done in and out of warehouses
17 licensed by law to do business in this state, for which purpose the director
18 shall provide books, blanks and other material needed in order to keep
19 perfect and proper records;
20 (5) (2) investigate all complaints of, and to the extent possible correct
21 occurrences of, fraud or oppression in the grain trade; and
22 (6) (3) investigate and, at the director's secretary's discretion, monitor
23 a grain handling facility when the director secretary believes it is operating
24 as a public grain warehouse without a valid federal or state warehouse
25 license.
26 (b) No person or entity shall have charge of weighing or issue official
27 certificates of weight on grain at any point within the state except:
28 (1) Private industries for the purpose of making settlement with their
29 own customers; and
30 (2) officials or employees of the Kansas state grain inspection de-
31 partment, on the regular form of weight certificates adopted and ap-
32 proved by the director.
33 (c) All scales over which official state weights of carlots of grain are
34 taken shall be equipped with type-registering beams or electronic print-
35 out tape, in order that an original punched scale ticket may be taken of
36 each draft weighed. The original punched scale ticket shall become the
37 property of the Kansas state grain inspection department, and shall be
38 filed as a record of the weight.
39 (d) No person or entity shall install or continue to maintain at any
40 elevator, mill or warehouse where official state weights are given any
41 blower, suction fan, cleaner or other device for the purpose of removing
42 dirt, seeds, sticks, chaff or similar substances from grain unloaded into
43 the elevator, mill or warehouse before the grain has been officially
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1 weighed.
2 (e) No person shall in any manner change or alter an official state
3 inspection or weight certificate after it has been issued.
4 (f) If an official state weight certificate has been issued on any lot of
5 grain, the purchaser must make settlement on the basis of the amount of
6 grain shown on that weight certificate.
7 (g) Violation of any provision of this section is a class B misdemeanor.
8 (h) (c) No provision of this section shall be construed to prohibit or
9 prevent either the secretary of the state board of agriculture or the state
10 sealer or any of their respective the secretary's authorized representatives
11 from inspecting any weighing or measuring device or otherwise perform-
12 ing any of their the secretary's duties pursuant to any provision of chapter
13 83 of Kansas Statutes Annotated, and amendments thereto.
14 Sec. 14. On and after July September 1, 1997, K.S.A. 34-111 is
15 hereby amended to read as follows: 34-111. (a) The attorney general of
16 the state of Kansas shall be attorney ex officio for the director and shall
17 give the director such counsel and advice as the director requires. The
18 attorney general shall institute and prosecute all suits which the director
19 deems expedient and proper to institute and shall render to the director
20 all counsel, advice and assistance necessary to carry out the provisions of
21 this act.
22 (b) The director secretary shall have the duty to report in writing to
23 the attorney general and to the county or district attorney of the county
24 where the grain warehouse is located:
25 (1) Any finding by an examiner of the department that there is a
26 substantial shortage in the amount of grain in a grain warehouse and that
27 the shortage is not adequately accounted for; and
28 (2) any complaint which is referred to the director secretary pursuant
29 to K.S.A. 34-124 34-121 and amendments thereto and which the director
30 secretary reasonably believes is a basis for prosecution.
31 (c) (b) In any criminal prosecution against a warehouseman for a vi-
32 olation of any provision of this act, it shall be the duty of the attorney
33 general to prosecute the suit to a final determination. Upon request by
34 the attorney general, the county or district attorney of the county or dis-
35 trict where the suit is being prosecuted shall assist the attorney general
36 in the prosecution.
37 Sec. 15. On and after July September 1, 1997, K.S.A. 1996 Supp.
38 34-125 is hereby amended to read as follows: 34-125. (a) The commission
39 secretary, prior to June 1 each year, shall determine a schedule of maxi-
40 mum and minimum charges to be made by public grain warehouses,
41 licensed under the laws of the state of Kansas, for the storage of grain
42 and for such other and extraordinary services performed or to be per-
43 formed by such licensed public grain warehousemen during the ensuing
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1 license year. Such charges made by such warehouse shall be filed with
2 the Kansas grain inspection department of agriculture and such ware-
3 house shall not be required to refile such charges unless such warehouse
4 is changing such charges that are posted or until such time that the
5 charges are changed by the commission and the director. Upon deter-
6 mining such schedule of maximum and minimum charges, the commis-
7 sion shall recommend to the director the adoption of such maximum and
8 minimum charges, but the director may increase or decrease any or all
9 of such charges as the director shall deem necessary in the public interest.
10 Any or all of such maximum or minimum charges, as may be increased
11 or decreased by the director, may be restored to the original maximum
12 and minimum charges as recommended by the commission, if such res-
13 toration is approved by a vote of at least four members of such commis-
14 sion at a regular meeting or a special meeting called as provided in K.S.A.
15 34-123, and amendments thereto secretary.
16 (b) If any of such charges be changed from those previously in effect
17 the director secretary shall notify all currently licensed public warehouse-
18 men of such schedule of maximum and minimum charges, except that in
19 case the commission overrides increases or decreases in such schedule by
20 the director and restores the original maximum and minimum charges as
21 determined by the commission, then the director shall notify all currently
22 licensed public warehousemen of such restored schedule of maximum
23 and minimum charges within five days after the action of the commission
24 restoring the original schedule.
25 Sec. 16. On and after July September 1, 1997, K.S.A. 34-223 is
26 hereby amended to read as follows: 34-223. In this act, unless the context
27 or subject matter otherwise requires, the following words and phrases
28 have the meanings ascribed thereto in this section. As used in chapter 34
29 of Kansas Statutes Annotated, and amendments thereto:
30 (a) ``Action'' includes counterclaim, setoff and suit in equity.
31 (b) ``Delivery'' means voluntary transfer of possessions from one per-
32 son to another.
33 (c) ``Fungible grain'' means grain of which any unit is, from its nature
34 or by mercantile custom, treated as the equivalent of any other unit.
35 (d) ``Grain'' means wheat, corn, oats, barley, rye, soybeans, grain sor-
36 ghums and any grains upon which federal grain standards are established,
37 also seeds generally stored by warehouses, if special permission is granted
38 by the director secretary.
39 (e) ``Holder of a receipt'' means a person who has both actual pos-
40 session of such receipt and a right of property therein.
41 (f) ``Order'' means an order by endorsement of the receipt.
42 (g) ``Owner'' does not include mortgagee or pledgee.
43 (h) ``Person'' includes individuals, corporations, partnerships and all
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1 associations of two or more persons having a joint or common interest.
2 (i) ``To purchase'' includes to take as mortgagee or pledgee.
3 (j) ``Receipt'' means a warehouse receipt or receipts.
4 (k) ``Value'' means any consideration sufficient to support a simple
5 contract and includes an antecedent or preexisting obligation, whether
6 for money or not, where a receipt is taken either in satisfaction thereof
7 or as security therefor.
8 (l) ``Public warehouseman'' means a person lawfully engaged in the
9 business of storing grain for the public.
10 (m) ``Public warehouse'' or ``public grain warehouse'' means every
11 elevator or other building in which grain is received for storage or transfer
12 for the public.
13 (n) ``Secretary'' means the secretary of agriculture.
14 (o) ``Department'' means the department of agriculture.
15 (p) ``Grain bank grain'' means any grain that has been received into
16 any public warehouse to be held for the account of the depositor and
17 returned to the depositor at a later date either as whole or processed grain.
18 (q) ``Storage grain'' or ``stored grain'' means grain that has been re-
19 ceived in any public warehouse located in this state, and such grain is not
20 purchased by the lessee, owner or manager of such warehouse.
21 Sec. 17. On and after July September 1, 1997, K.S.A. 34-227b is
22 hereby amended to read as follows: 34-227b. Grain bank grain shall be
23 considered as storage grain as defined in K.S.A. 34-227 and shall be sub-
24 ject to the laws and rules and regulations pertaining thereto until such
25 time as said such grain is either processed or removed from the ware-
26 house. The director secretary is authorized to adopt and enforce reason-
27 able rules and regulations necessary in the conduct of grain bank opera-
28 tions in public warehouses.
29 Sec. 18. On and after July September 1, 1997, K.S.A. 1996 Supp.
30 34-228 is hereby amended to read as follows: 34-228. (a) Any person
31 desiring to engage in business as a public warehouseman in this state
32 shall, before the transaction of any such business, make written applica-
33 tion to the director of the Kansas state grain inspection department sec-
34 retary for a license for each separate warehouse (or, if the applicant owns
35 more than one warehouse at one point, all of such warehouses may be
36 incorporated in one application) at which the person desires to engage in
37 such business. The application for a license shall be on a form designated
38 by the director secretary and shall contain the individual name and ad-
39 dress of each person interested as principal in the business (and, if the
40 business is operated or to be operated by a corporation, setting forth the
41 names of the president and secretary) and such further information as
42 the director secretary may require.
43 (b) (1) Every application for a public warehouse license shall be ac-
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1 companied by a current financial statement. The statement shall include
2 such information as required by the director secretary to administer and
3 enforce the public warehouse laws of this state, including but not limited
4 to a current balance sheet, statement of income (profit and loss), state-
5 ment of retained earnings and statement of changes in financial position.
6 The applicant shall certify under oath that the statement as prepared
7 accurately reflects the financial condition of the applicant as of the date
8 specified and presents fairly the results of operations of the applicant's
9 public warehouse business for the period specified. The financial state-
10 ment shall be prepared in accordance with generally accepted accounting
11 principles and shall be accompanied by: (A) A report of audit or review
12 conducted by an independent certified public accountant or an inde-
13 pendent public accountant in accordance with standards established by
14 the American institute of certified public accountants and the account-
15 [chant's certifications, assurances, opinions, comments and notes with re-
16 spect to the statement; or (B) a compilation report of the financial state-
17 ment, prepared by a grain commission firm or management firm which
18 is authorized pursuant to rules and regulations of the federal commodity
19 credit corporation to provide compilation reports of financial statements
20 of warehousemen.
21 (2) The director secretary, upon request of an applicant, may grant
22 a waiver of the requirements of this subsection for a period of not more
23 than 30 days if the applicant furnishes evidence of good and substantial
24 reasons for the waiver.
25 (c) (1) Every applicant for a license to operate one or more public
26 warehouses and every person licensed to operate one or more warehouses
27 shall at all times maintain total net worth liable for the payment of any
28 indebtedness arising from the conduct of the warehouse or warehouses
29 equal to at least $.25 per bushel of the storage capacity of the warehouse
30 or warehouses except: (A) No person shall be granted a license or shall
31 continue to be licensed unless the person has a net worth of at least
32 $25,000 and (B) any deficiency in net worth required above the $25,000
33 minimum may be supplied by an increase in the amount of the applicant's
34 or licensee's bond as provided by K.S.A. 34-229 and amendments thereto.
35 (2) In determining total net worth: (A) Credit may be given for in-
36 surable property such as buildings, machinery, equipment and merchan-
37 dise inventory only to the extent that the property is protected by insur-
38 ance against loss or damage by fire and (B) capital stock, as such, shall
39 not be considered a liability.
40 (d) No license shall be issued to a person or entity not previously
41 licensed in this state and making application for an original license who,
42 in this state or any other jurisdiction, within the 10 years immediately
43 prior to the date of the application of the person or entity for a license,
Sub. SB 317--Am. by H
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1 has been convicted of or has pleaded guilty or nolo contendere to any
2 crime which would constitute:
3 (1) Embezzlement;
4 (2) any felony defined in any statute contained in article 37 of chapter
5 21 of the Kansas Statutes Annotated and amendments thereto;
6 (3) unauthorized delivery of stored goods;
7 (4) any felony defined in any statute contained in chapter 34 of the
8 Kansas Statutes Annotated and amendments thereto; or
9 (5) a violation of the United States warehouse act (7 U.S.C. 241 et
10 seq.).
11 (e) The director secretary may investigate any applicant making ap-
12 plication for an original license for the purpose of determining if such
13 person would be qualified to receive such license under the provisions of
14 this section.
15 (f) (1) Every application for a public warehouse license shall be ac-
16 companied by a license fee which shall be determined and fixed by the
17 director secretary by rules and regulations. Prior to determining and fix-
18 ing the license fees, the director shall consider recommendations thereon
19 by the state grain advisory commission. The license fee shall not be more
20 than the applicable amount shown in the following fee schedule plus not
21 more than $500 for each functional unit:
22 Capacity in Bushels ANNUAL FEENot morethan
23 1 to 100,000$500
24 100,001 to 150,000[nt525
25 150,001 to 250,000[nt550
26 250,001 to 300,000[nt600
27 300,001 to 350,000[nt625
28 350,001 to 400,000[nt650
29 400,001 to 450,000[nt700
30 450,001 to 500,000[nt725
31 500,001 to 600,000[nt775
32 600,001 to 700,000[nt800
33 700,001 to 800,000[nt850
34 800,001 to 900,000[nt875
35 900,001 to 1,000,000[nt900
36 1,000,001 to 1,750,000[nt1,225
37 1,750,001 to 2,500,000[nt1,400
38 2,500,001 to 5,000,000[nt1,750
39 5,000,001 to 7,500,000[nt2,100
40 7,500,001 to 10,000,000[nt2,375
41 10,000,001 to 12,500,000[nt2,600
Sub. SB 317--Am. by H
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1 12,500,001 to 15,000,000[nt2,800
2 15,000,001 to 17,500,000[nt3,000
3 17,500,001 to 20,000,000[nt3,225
4 For each 2,500,000 bushels or fraction over 20,000,000 bushels[nt350
5 (2) Whenever a licensed warehouseman purchases or acquires addi-
6 tional facilities, the warehouseman, if otherwise qualified, may acquire a
7 license for the remainder of an unexpired license period by paying to the
8 director secretary a license fee computed as follows: If the unexpired
9 license period is nine months or more, the annual fee; if the unexpired
10 license period is more than six months and less than nine months, 75%
11 of the annual fee; if the unexpired license period is more than three
12 months and not more than six months, 50% of the annual fee; and if the
13 unexpired license period is three months or less than three months, 25%
14 of the annual fee.
15 (3) In addition to any other applicable fee, the director secretary shall
16 charge and collect a fee each time a public warehouse license is amended
17 in an amount of not more than $300 which shall be determined and fixed
18 by the director secretary by rules and regulations.
19 (4) Nothing in this subsection shall be construed to authorize a refund
20 for any unused portion of an issued license.
21 (g) The director secretary shall examine each warehouse operated by
22 a licensed public warehouseman at least once in each 12-month period.
23 The licensed public warehouseman may request additional examinations
24 of any warehouse operated by the warehouseman. The cost of additional
25 examinations when requested by the warehouseman shall be charged to
26 the warehouseman requesting the examination. The cost of each addi-
27 tional examination requested by a warehouseman shall be an amount
28 determined therefor in accordance with an hourly rate fixed by the di-
29 rector secretary of not more than $50 per hour, subject to a minimum
30 charge of four hours for the examination, plus amounts for subsistence
31 expense at the rate fixed under K.S.A. 75-3207a and amendments thereto
32 and for mileage expense in accordance with the schedule of charges es-
33 tablished under K.S.A. 75-4607 and amendments thereto. The director
34 secretary, at the director's secretary's discretion, may make additional
35 examinations of a warehouse and if a discrepancy is found on that ex-
36 amination, or if one was found on the last previous examination, the cost
37 of the examination shall be paid by the warehouseman.
38 (h) When the director secretary authorizes a grain handling facility
39 to be physically monitored, pursuant to paragraph (6) of subsection (a)
40 (3) of K.S.A. 34-102, and amendments thereto, the cost and expenses of
41 the monitoring shall be paid by the owner of the facility at the same rates
42 fixed in subsection (g).
43 (i) As used in this section, ``functional unit'' means a public warehouse
Sub. SB 317--Am. by H
15
1 which has the capacity to store, weigh in and weigh out grain. Any outlying
2 storage facility which is not a functional unit shall have its storage capacity
3 included as part of the combined capacity of the warehouseman's nearest
4 functional unit.
5 Sec. 19. On and after July September 1, 1997, K.S.A. 34-229 is
6 hereby amended to read as follows: 34-229. (a) Every applicant for a
7 public warehouse license shall promptly, upon notification by the director
8 secretary of the amount of bond required, file with the director secretary
9 a bond with good corporate surety qualified under the laws of the state
10 of Kansas. The amount of the bond to be furnished for each warehouse
11 shall be $.20 per bushel for the first 1,000,000 bushels of licensed capac-
12 ity; $.15 per bushel for the next 1,000,000 of licensed capacity; and $.10
13 per bushel for all licensed capacity over 2,000,000 bushels. Except as
14 provided further, in no event shall the bond be for an amount less than
15 $10,000 nor more than $500,000.
16 (b) If an applicant for a license or a licensee at any time does not
17 have the total net worth required by K.S.A. 34-228 and amendments
18 thereto, an amount equal to the deficiency shall be added to the amount
19 of the bond required by subsection (a).
20 (c) The bond shall be in favor of the state of Kansas for the benefit
21 of all persons interested, their legal representatives, attorneys or assigns
22 and shall be conditioned on the faithful performance of all the licensee's
23 duties as a public warehouseman and such additional obligations as as-
24 sumed by the warehouseman under contracts with a federal agency re-
25 lating to storage of grain in each warehouse. Any person injured by the
26 breach of any obligation of the warehouseman may commence suit on
27 the bond in any court of competent jurisdiction to recover damages that
28 the person has sustained, but any suit commenced shall either be a class
29 action or shall join as parties plaintiff or parties defendant or other persons
30 who may be affected by such suit on the bond. No bond shall be canceled
31 by the surety on less than 60 days' notice by mail to the director secretary
32 and the principal except that no such notice shall be required for can-
33 cellation of any bond by reason of nonpayment of the premium thereon.
34 The liability of the surety on the bond may continue for each successive
35 license period the bond covers. The total liability of the surety shall be
36 limited to the amount stated on the current bond or on an appropriate
37 rider or endorsement to the current bond. It is the intent of this statute
38 that the bonds be nonaccumulative, that stacking of bonds not occur in
39 excess of the face value of the current bond.
40 (d) If a person applies for licenses for two or more separate public
41 warehouses in this state, the person may give a single bond covering all
42 the applications, and the amount of the bond shall be the total amounts
43 which would be required for the applications if separate bonds were
Sub. SB 317--Am. by H
16
1 given. In computing the amount of the single bond the warehouseman
2 may add together the capacity of all warehouses to be covered by the
3 bond and use the aggregate capacity for the purpose of computing the
4 bond. If a warehouseman elects to provide a single bond for a number
5 of warehouses, the total assets of all the warehouses shall be subject to
6 liabilities of each individual warehouse.
7 (e) Whenever the director determines that any bond given by any
8 warehouseman is inadequate and insufficient security against any loss that
9 might arise under the terms of the bond, the director secretary shall
10 require any additional bond that the director secretary considers neces-
11 sary to provide adequate security. If the director secretary considers the
12 financial condition of the surety upon any warehouseman and the ware-
13 houseman's bond to be impaired, the director secretary shall require any
14 substituted or additional bond that the director secretary considers nec-
15 essary.
16 (f) In all actions hereafter commenced in which judgment is rendered
17 against any surety company on any surety bond furnished under the pro-
18 visions of this section, if it appears from the evidence that the surety
19 company has refused without just cause to pay the loss upon demand,
20 the court shall allow the plaintiff a reasonable sum as attorney fees to be
21 recovered and collected as a part of the costs. When a tender is made by
22 the surety company before the commencement of the action in which
23 judgment is rendered and the amount recovered is not in excess of the
24 tender, no such costs shall be allowed.
25 (g) Each licensed public warehouseman shall obtain a certificate set-
26 ting forth the amount and terms of the bond filed with the director sec-
27 retary pursuant to this section, the name of the corporate surety therefor
28 and such other information as the director secretary may prescribe by
29 rules and regulations. The certificate of bond information shall be posted
30 in a conspicuous place in the office room of the licensed warehouse,
31 adjacent to the license posted as required by K.S.A. 34-230 and amend-
32 ments thereto, at all times during the operation of the warehouse.
33 (h) Transaction of any public warehouse business at any public ware-
34 house without having the certificate of bond information displayed in the
35 office room of the public warehouse as required by this section is a class
36 C nonperson misdemeanor.
37 Sec. 20. On and after July September 1, 1997, K.S.A. 34-230 is
38 hereby amended to read as follows: 34-230. (a) Upon receiving the ap-
39 plication and financial statement required by this act, the director of the
40 state grain inspection department secretary shall make an investigation
41 and inspection of the warehouse or warehouses covered by the applica-
42 tion. The director secretary may issue a license to the applicant if:
43 (1) The applicant furnishes the bond required by this act;
Sub. SB 317--Am. by H
17
1 (2) the warehouse or warehouses are found suitable for the proper
2 storage of grain for which a license is applied for; and
3 (3) the applicant complies with all requirements for licensure pre-
4 scribed by this act and rules and regulations adopted under this act.
5 (b) Every license shall be dated and shall designate the name of the
6 licensee and the location of the licensed warehouse or warehouses.
7 (c) Each license shall expire one year from the date of its issuance
8 except that, for the purpose of equitably distributing application dates of
9 warehouse licenses throughout each calendar year, the director secretary
10 may issue licenses for periods longer than one year but not longer than
11 two years. Licenses for periods longer than one year shall be charged the
12 annual license fee, plus a monthly fee in proportion to the annual license
13 fee for the number of months the license is issued beyond one year.
14 (d) Any licensee making application for renewal of a license shall
15 submit the application, together with the licensee's financial statement
16 and any additional information required, at least 30 days prior to the date
17 of expiration of the licensee's current license. For each day that the li-
18 censee is late in submitting the application and required information, the
19 licensee shall be penalized an additional fee of $5.
20 (e) The license shall be posted in a conspicuous place in the office
21 room of the licensed warehouse at all times during the operation of the
22 warehouse.
23 (f) If a licensee is convicted of any violation of the provisions of this
24 act or if the director secretary determines that a licensee does not comply
25 with any requirement for licensure or has violated any provision of this
26 act or of the rules and regulations adopted under this act, the director
27 secretary may at the director's secretary's discretion suspend or revoke
28 the license of the licensee. All proceedings for the suspension or revo-
29 cation of licenses shall be conducted in accordance with the provisions of
30 the Kansas administrative procedure act.
31 (g) The licensee, if dissatisfied with the order of the director secre-
32 tary, may appeal in the manner provided by law.
33 Sec. 21. On and after July September 1, 1997, K.S.A. 34-230a is
34 hereby amended to read as follows: 34-230a. The director secretary shall
35 have power in the conduct of any hearing authorized to be held by him
36 or her the secretary to examine, or cause to be examined, under oath, any
37 person, and to examine or cause to be examined, books and records of
38 any licensee; to hear testimony and take proof material for his or her the
39 secretary's information in the discharge of such duties under this act; to
40 administer or cause to be administered oaths; and for any such purposes
41 to issue subpoenas, to require the attendance of witnesses and the pro-
42 duction of books which shall be effective in any part of this state; and.
43 Any district court, or any judge thereof, either in term time or in vacation,
Sub. SB 317--Am. by H
18
1 may by order duly entered, require the attendance of witnesses and the
2 production of relevant books and records subpoenaed by the director,
3 and secretary. The court or judge may compel obedience to its or his or
4 her the court's or judge's order by proceedings for contempt.
5 Sec. 22. On and after July September 1, 1997, K.S.A. 34-230b is
6 hereby amended to read as follows: 34-230b. The director secretary may
7 enjoin a warehouseman from violating or continuing to violate the pro-
8 visions of chapter 34 of the Kansas Statutes Annotated, and acts amen-
9 datory thereof or supplemental amendments thereto, and the rules and
10 regulations adopted by the director secretary pursuant to said such laws
11 by filing injunction proceedings in the district court and. In any such
12 proceedings the district court, if it deems it proper, may order such ware-
13 [chhouseman to not receive any more grain into such warehouse or to deliver
14 any grain therefrom except as the court by its order shall direct. Such
15 injunction proceeding shall be prosecuted by the attorney general or the
16 county attorney of the proper county upon request of the director sec-
17 retary.
18 Sec. 23. On and after July September 1, 1997, K.S.A. 34-231 is
19 hereby amended to read as follows: 34-231. (a) Transaction of any public
20 warehouse business at any public warehouse without a currently valid
21 public warehouse license for that warehouse or without having the license
22 displayed in the office room of the warehouse is a class C misdemeanor.
23 (b) The director secretary may refuse to renew any license or grant
24 a new one to any person whose license has been revoked within one year
25 from the time of the revocation.
26 Sec. 24. On and after July September 1, 1997, K.S.A. 34-233 is
27 hereby amended to read as follows: 34-233. (a) Every public warehouse-
28 man shall receive for storage or shipment, so far as the available capacity
29 of the warehouse shall permit, all grain in a suitable condition for storage
30 tendered to the warehouseman in the usual course of business, without
31 discrimination of any kind. A representative sample of grain offered for
32 storage shall be taken and agreed upon both by the owner and the ware-
33 [chhouseman as being a true and representative sample of the lot of grain
34 offered for storage.
35 (b) If the owner of the grain and the warehouseman agree as to the
36 grade, the grain may be stored and warehouse receipt issued on the
37 agreed grade, but either party shall have an official inspection if such
38 party so elects at the time of storing the grain by submitting an agreed
39 sample to an inspector designated by the director secretary. The fees for
40 the inspection of such sample shall be paid by the warehouseman and
41 added to the storage charges of the grain.
42 (c) All grain taken into a public warehouse shall be carefully weighed
43 by the warehouseman or one of the warehouseman's employees and a
Sub. SB 317--Am. by H
19
1 certificate of weight in the form approved by the director secretary shall
2 be issued and the weight so shown by the certificate shall be stated on
3 the warehouse receipt. When grain is delivered out of storage at a public
4 warehouse and if either of the parties to the transaction requests or if any
5 dispute or disagreement arises between the party receiving and the party
6 delivering the grain, the same method of determining the grade shall be
7 used as prescribed for taking grain into storage. Any warehouseman de-
8 siring to issue warehouse receipts against the warehouseman's own grain
9 in store may do so by complying with the regulations governing the meth-
10 ods of taking samples of grain tendered for storage and the director sec-
11 retary may designate the manner in which a sample shall be taken if grain
12 is delivered on warehouse receipts at the public warehouses.
13 Sec. 25. On and after July September 1, 1997, K.S.A. 34-235 is
14 hereby amended to read as follows: 34-235. The owner, operator or man-
15 ager of any public warehouse before being licensed under the laws of this
16 state to conduct a grain warehouse shall file with the director secretary a
17 schedule of charges to be made by such owner, operator or manager for
18 storage of grain if licensed. The director secretary shall have authority to
19 determine whether such schedule of charges is reasonable and proper,
20 but in no case shall such schedule of charges filed by a local public ware-
21 house be less than the schedule of minimum charges or exceed the sched-
22 ule of maximum charges as established by the commission and the direc-
23 tor secretary pursuant to the provisions of K.S.A. 34-125, and
24 amendments thereto.
25 The amount to be charged for storage of grain as listed on the ware-
26 houseman's schedule of charges filed with the director secretary as here-
27 [chinabove provided shall include the cost of receiving, unloading, loading,
28 insuring, handling (except extraordinary handling), storage and delivery
29 of grain and no additional or special charge shall be made for any such
30 services. Any licensee may change such licensee's schedule of charges by
31 sending the proposed new schedule to the director secretary in writing
32 and shall state the reasons therefor. It shall be unlawful for any public
33 warehouseman to assess any charge other than those charges listed in
34 such warehouseman's schedule of charges as filed with the director sec-
35 retary. Every public warehouseman shall keep posted and exposed at a
36 conspicuous place on the premises of such public warehouse, which place
37 shall be accessible to the public, a copy of such warehouseman's current
38 approved schedule of charges.
39 Sec. 26. On and after July September 1, 1997, K.S.A. 34-236 is
40 hereby amended to read as follows: 34-236. (a) Every public warehouse-
41 man shall at all times keep the grain stored in such warehouseman's ware-
42 house insured in some reliable insurance company authorized to do busi-
43 ness in the state of Kansas. Such grain is to be insured for its full market
Sub. SB 317--Am. by H
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1 value, less the deductible amount provided herein, against loss by fire,
2 internal explosion, lightning, and tornado and failure to do so shall make
3 the public warehouseman liable for the same on such warehouseman's
4 bond for the benefit of the owner or owners and the owners of warehouse
5 receipts and storage receipts issued by any public warehouse shall have
6 a first lien, to the extent of the value of the grain at the time of destruction
7 at the place where stored, on all such insurance for any loss or injury
8 sustained by them on account of the destruction or injury of such grain
9 by fire, internal explosion, lightning or tornado or any other cause covered
10 by such insurance policy.
11 (b) Fraud or criminal act of the warehouseman to which the holder
12 of a warehouse receipt or other interested person is not a party shall not
13 deprive the holder of a warehouse receipt or storage receipt or other
14 interested person of such person's right of recovery under such policy of
15 insurance. Nothing in this act shall be construed to require the insurer
16 to pay any loss or damage in excess of the amount of insurance effective
17 under its policy or to pay for any loss or damage not insured against by
18 its policy. In case of a fire, lightning or tornado, which shall destroy all or
19 part of the grain stored in any public warehouse, the public warehouse-
20 man shall, upon demand by the owner of the grain, or holder of any
21 warehouse receipt, or receipts, for such grain, and upon being presented
22 with the warehouse receipt, or receipts, make settlement for the value of
23 the grain covered by the warehouse receipt, or receipts, after deducting
24 the warehouse charges, at the market value of same, basing said value at
25 the average price paid for grain of the same grade at the station where
26 the public warehouse is located on the date of the destruction. Without
27 in any way limiting the warehouseman's liability under this section, the
28 warehouseman may carry a standard form of insurance policy approved
29 for grain warehousemen with a total deductible provision on the contents
30 not to exceed $10,000, except that the director secretary upon a finding
31 that it is necessary to protect the public may order that a warehouseman's
32 total deductible provision be an amount less than $10,000 as specified by
33 the director secretary.
34 Sec. 27. On and after July September 1, 1997, K.S.A. 34-238 is
35 hereby amended to read as follows: 34-238. (a) Warehouse receipts may
36 be issued by any licensed public warehouseman and must be issued in
37 the manner and form prescribed by this act.
38 (b) The form of all receipts shall be approved by the director of the
39 state grain inspection department secretary. All of the expense incurred
40 shall be paid by the state grain inspection department. The director sec-
41 retary shall distribute the warehouse receipts to licensed public ware-
42 houses at cost.
43 (c) All warehouse receipts shall be written upon warehouse receipt
Sub. SB 317--Am. by H
21
1 forms furnished by the state grain inspection department.
2 Sec. 28. On and after July September 1, 1997, K.S.A. 34-241a is
3 hereby amended to read as follows: 34-241a. (a) ``Identity preserved
4 grain'' means grain which is segregated from all other grain by mutual
5 consent of the warehouseman and the depositor. The form of receipt to
6 cover identity preserved grain taken for storage by public warehouses and
7 to be transported to, and stored in, another licensed public warehouse
8 shall be on a form approved by the director secretary and shall embody
9 within its written or printed terms: (a) (1) The date of the issuance of the
10 receipts; (b) (2) the name of the elevator issuing the same and its location;
11 (c) (3) the rate of storage or the basis for such charges; (d) (4) the net
12 weight and percentage of dockage, together with the grade; (e) (5) the
13 words ``trust receipt'' and ``not negotiable'' clearly and conspicuously
14 printed or stamped thereon; (f) (6) the signature of the warehouseman
15 which may be made by his authorized agent; (g) (7) a statement of the
16 amount of the advances made, or the liabilities incurred, for which the
17 warehouse claims a lien. If the precise amount of advances made or lia-
18 bilities incurred is, at the time of the issuance of the receipt, unknown to
19 the warehouseman or to his the warehouseman's agent who issues it, a
20 statement of the fact that the advances have been made, or liabilities
21 incurred, and the purpose thereof, is sufficient.
22 (b) The warehouseman, at his the warehouseman's option, may ship
23 carlots or trucklots of identity preserved grain to another licensed public
24 warehouse. The owner of the grain may designate the receiving licensed
25 public warehouse if a written contract to that effect has been entered
26 into and agreed upon between the owner of the grain and the warehouse-
27 man prior to the deposit of the grain. The charges for handling and stor-
28 age shall not exceed the current posted public warehouse charges. In
29 addition to the public warehouse charges, the warehouseman may make
30 an additional charge of one and one-half cents (1 1/2 cent) per bushel for risk
31 and shrinkage in transit and shall also assess the transportation and all
32 legal charges against the owner of the grain.
33 Sec. 29. On and after July September 1, 1997, K.S.A. 34-246 is
34 hereby amended to read as follows: 34-246. (a) No warehouse receipt
35 shall be issued except upon actual delivery of grain into store in the ware-
36 house from which it purports to be issued. No receipt or receipts may be
37 issued for a greater quantity of grain than was contained in the lot or
38 parcel so received for storage and not more than one receipt may be
39 issued for the same lot of grain, except in cases where a receipt for a part
40 of a lot is desired and then the aggregate receipts for a particular lot shall
41 cover that lot and no more.
42 (b) In cases where a part of the grain represented by a receipt or
43 receipts is delivered out of store and a remainder is left, a new receipt or
Sub. SB 317--Am. by H
22
1 receipts shall be issued in the form and manner as prescribed by the
2 director secretary. It shall be stated on the face of the new receipt or
3 receipts that such new receipt or receipts represent the balance of the
4 original receipt or receipts. The new receipt or receipts shall bear thereon
5 the number or numbers of the original receipt or receipts and the original
6 receipt or receipts, upon which a part of the grain has been delivered,
7 shall be canceled in the manner as if all of the grain has been delivered.
8 In case it is desirable to divide one receipt into two or more, or in case
9 it is desirable to consolidate two or more receipts into one and the war-
10 ehouseman consents thereto, the original receipt or receipts shall be can-
11 celed in the same manner as if the grain had been delivered from store.
12 The new receipt or receipts shall express on the face thereof that such
13 new receipt or receipts represent a part of another receipt or the con-
14 solidation of other receipts, as the case may be, and the number and date
15 of the original receipt or receipts shall also appear on the new receipt or
16 receipts issued in lieu thereof. No consolidation of receipts differing more
17 than 30 days in date shall be permitted.
18 (c) All new receipts issued for old ones canceled as provided in this
19 section shall bear the notation of the date of the receipt or receipts as
20 originally issued. All receipts issued on grain in special bins shall bear the
21 number of the bin and the notation ``special bin.'' All divisions or con-
22 solidations shall bear the bin number of the original receipt and the no-
23 tation ``special bin.'' Upon delivery of grain from store upon any receipt
24 issued by a public warehouse, such receipt shall be plainly marked across
25 its face ``canceled'' with the date and the name of the person canceling
26 the same and thereafter shall be void and shall not again be put in cir-
27 culation. No grain shall be delivered twice upon the same receipt.
28 Sec. 30. On and after July September 1, 1997, K.S.A. 34-249a is
29 hereby amended to read as follows: 34-249a. (a) Every public warehouse-
30 man conducting a public warehouse, upon demand of the director of the
31 Kansas state grain inspection department secretary, shall furnish such
32 director secretary, in such form as may be required, information regard-
33 ing receipts issued or canceled, amounts of grain liabilities, amounts of
34 unencumbered grain and total amounts of grain in the public warehouse.
35 (b) The director secretary shall require from each public warehouse-
36 man a monthly statement of stocks of grain as of the last day of the
37 preceding month for each licensed warehouse location. The statement
38 shall contain such information and be in such form as may be prescribed
39 by the director secretary and shall include a statement setting forth the
40 penalty for making false public warehouse reports as provided in K.S.A.
41 21-3754 and amendments thereto. Each such statement shall be signed
42 by the licensed public warehouseman.
43 Sec. 31. On and after July September 1, 1997, K.S.A. 34-251 is
Sub. SB 317--Am. by H
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1 hereby amended to read as follows: 34-251. (a) All persons owning prop-
2 erty, or who may be interested in the same, in any public warehouse and
3 all duly authorized examiners of such property shall be at full liberty to
4 inspect and to examine any and all property stored in any public ware-
5 house in the state at all times during regular business hours. All proper
6 facilities shall be extended to such persons by the public warehouseman
7 and the warehouseman's agents and employees for such examinations and
8 inspection. The director secretary shall inspect, or cause to be inspected
9 by a duly authorized examiner, every warehouse, the business thereof and
10 the mode of conducting the same at such times as the director secretary
11 deems necessary. The property, books, records, accounts, papers and pro-
12 ceedings kept at such warehouses, so far as they relate to the operation
13 or management of public storage, which have reference only to the quan-
14 tity, quality and insurance on grain in storage, shall be subject to exami-
15 nation and inspection of the director secretary or the director's secretary's
16 duly authorized examiner at all times during regular business hours. All
17 scales or weighing or measuring devices used for weighing or measuring
18 of property in public warehouses shall be subject to tests by any duly
19 authorized inspector or weighmaster or by the secretary of the state board
20 of agriculture or the secretary's authorized representative at any time
21 when required by any such officer, or by any person or agent whose
22 property has been or is to be weighed on such scales.
23 (b) Any public warehouseman who uses scales for grain weighing that
24 have been found on inspection to be inaccurate and that have not been
25 pronounced correct and properly sealed shall be liable to be proceeded
26 against as hereinafter provided.
27 (c) No inspector or employee of the state grain inspection depart-
28 ment shall disclose any information obtained by such inspector or em-
29 ployee in the course of employment which is relative to the affairs or
30 transactions of any warehouseman, other than as permitted by this act,
31 without first having obtained the express permission in writing of such
32 warehouseman or of the director secretary, except when ordered to do
33 so by a court of competent jurisdiction. Upon application of any person,
34 the director secretary may disclose or direct any inspector or employee
35 of the Kansas state grain inspection department to disclose any infor-
36 mation which, in the opinion of the director secretary, the person making
37 the application is entitled to receive. If any inspector or employee dis-
38 closes any such information except as permitted by this act, the inspector
39 or employee shall be guilty of a misdemeanor.
40 Sec. 32. On and after July September 1, 1997, K.S.A. 34-257a is
41 hereby amended to read as follows: 34-257a. Where a negotiable ware-
42 house receipt has been lost or destroyed, the warehouseman shall issue
43 a new receipt upon the same terms, subject to the same conditions, and
Sub. SB 317--Am. by H
24
1 bearing on its face the number and the date of the receipt in lieu of which
2 it is issued, and a plain and conspicuous statement that it is a duplicate
3 receipt issued in lieu of a lost or destroyed receipt, upon compliance by
4 the claimant with the following conditions: (a) Before issuing a duplicate
5 receipt, the warehouseman shall require the claimant therefor to make
6 and file with him the warehouseman (1) an affidavit stating that the ap-
7 plicant is lawfully entitled to the possession of the original receipt; that
8 he the applicant has not negotiated or assigned it; how the original receipt
9 was lost or destroyed; and if lost, that diligent effort has been made to
10 find the receipt without success, and (2) a bond in the amount double
11 the value, at the time the bond is given, of the grain represented by the
12 lost or destroyed receipt. Such bond shall be in the form approved by the
13 director secretary and shall be conditioned to indemnify the warehouse-
14 man or any holder or other person entitled to the grain against all loss,
15 liability or expense which he may sustain by reason of the issuance of such
16 duplicate receipt. Such bond shall have as surety thereon a corporate
17 surety company which is authorized to do business under the laws of the
18 state of Kansas and is subject to service of process in this state in a suit
19 on the bond.
20 Sec. 33. On and after July September 1, 1997, K.S.A. 34-273 is
21 hereby amended to read as follows: 34-273. (a) In case any public ware-
22 houseman discovers that any grain stored in such warehouseman's ware-
23 house, other than in special bins, is out of condition or is becoming so
24 and that it is not in such warehouseman's power to preserve the grain,
25 such warehouseman shall immediately give such notice of that fact as is
26 reasonable and possible under the circumstances to the owner of such
27 grain or to the person in whose name the grain is stored and shall also
28 give notice of that fact to the director secretary.
29 (b) The director secretary, unless otherwise requested by the owner
30 of such grain or the person in whose name the grain is stored, shall cause
31 an inspection to be made of the grain. If it is found on such inspection
32 that the grain is out of condition, or is becoming so, and the owner of the
33 grain fails to promptly remove it, the warehouseman may sell the grain
34 upon giving the same public notice of sale as is required by this act for
35 the sale of grain to satisfy the lien of a warehouseman, except that the
36 grain may be sold at either public or private sale without advertising if,
37 in the opinion of the director secretary, such grain should be sold without
38 delay and written authority to make sale without advertisement is given
39 by the director secretary to the warehouseman. For the purpose of this
40 section, the owner of such grain shall be deemed to be the holder of
41 warehouse receipts of the oldest dates then in circulation or uncanceled
42 and the grain represented by which has not previously been declared out
43 of condition.
Sub. SB 317--Am. by H
25
1 (c) Nothing herein contained shall be held to relieve any warehouse-
2 man from exercising due care and vigilance in preserving any such grain
3 after discovery that the same is out of condition, or is becoming so, but
4 such grain shall be kept separate and apart from all direct contact with
5 other grain and shall not be mixed with other grain while in store in such
6 warehouse. Any public warehouseman guilty of any act of neglect which
7 has the effect of depreciating property stored in a public warehouse under
8 the warehouseman's control, shall be liable on the warehouseman's bond
9 therefor to the person damaged thereby. After grain has been sold as
10 authorized by this section, the warehouseman shall not be liable there-
11 after for the delivery of such grain even though the receipt therefor is
12 negotiable, but shall be liable as a trustee for the amount of the proceeds
13 of such sale in excess of the amount of any lawful charges for which the
14 warehouseman had a lien at the time of such sale.
15 Sec. 34. On and after July September 1, 1997, K.S.A. 34-295a is
16 hereby amended to read as follows: 34-295a. (a) Every public warehouse-
17 man conducting a warehouse under the statutes contained in article 2 of
18 chapter 34 of the Kansas Statutes Annotated and amendments thereto
19 shall keep in a place of safety complete and correct records and accounts
20 pertaining to the licensed warehouse including, but not limited to:
21 (1) Records and accounts of all commodities received therein and
22 withdrawn therefrom;
23 (2) all unissued receipts and tickets in the public warehouseman's
24 possession;
25 (3) all receipts and tickets issued by the public warehouseman; and
26 (4) the receipts and tickets returned and cancelled by the public
27 ware[chhouseman.
28 (b) Such accounts and records shall be sufficient to provide all infor-
29 mation required to prepare a current financial statement and other re-
30 ports required under subsection (b) of K.S.A. 34-228 and amendments
31 thereto and to determine the total net worth of the public warehouseman
32 under subsection (c) of that statute K.S.A. 34-228, and amendments
33 thereto. Such accounts and records may be kept and maintained on paper
34 or on computer disks, tapes or other electronically accessed media, or
35 any combination thereof, and shall be available for inspection and review
36 by the director, assistant director or any other officer of the Kansas state
37 grain inspection department secretary or an authorized representative of
38 the secretary at all times during business hours. The capability to provide
39 a computer printout or other printed version of any such accounts and
40 records that are kept and maintained on computer disks, tapes or other
41 electronically accessed media shall be maintained to make copies of such
42 accounts and records for examination by the director, assistant director
43 or any other officer of the Kansas state grain inspection department sec-
Sub. SB 317--Am. by H
26
1 retary or an authorized representative of the secretary.
2 (c) Such records and accounts shall be retained by the public ware-
3 houseman for such period as may be prescribed by the director secretary.
4 Copies of receipts or other documents evidencing ownership of any com-
5 modity or liability as a warehouseman shall be retained so long as such
6 documents are outstanding and any such document which has been can-
7 celled shall be retained for a period of not less than six years from the
8 date of cancellation.
9 Sec. 35. On and after July September 1, 1997, K.S.A. 34-295b is
10 hereby amended to read as follows: 34-295b. All such records and ac-
11 counts shall be kept separate and distinct from the records and accounts
12 of any other business, and shall be subject to the inspection by the director
13 or his duly authorized representative secretary or an authorized repre-
14 sentative of the secretary at all reasonable times.
15 Sec. 36. On and after July September 1, 1997, K.S.A. 34-298 is
16 hereby amended to read as follows: 34-298. (a) Unless otherwise provided
17 in this act, any person or entity that violates any provision of this act is
18 guilty of a class A nonperson misdemeanor.
19 (b) If, after a hearing conducted in accordance with the provisions of
20 the Kansas administrative procedure act, the director of the state grain
21 inspection department secretary finds that the provisions of this act have
22 been violated by any person holding a license to conduct a public ware-
23 house in this state, the director secretary shall revoke the person's license.
24 No new license shall be granted to the person whose license is revoked
25 or to anyone engaged, either directly or indirectly, in the public ware-
26 house business with that person for a period of one year.
27 Sec. 37. On and after July September 1, 1997, K.S.A. 34-299 is
28 hereby amended to read as follows: 34-299. (a) It shall be the duty of any
29 person operating a public warehouse in Kansas under this act, who desires
30 to discontinue the operation of a public warehouse at least 30 days prior
31 to the expiration of his such warehouse license, to notify: (1) all holders
32 of warehouse receipts and all parties storing grain in said such warehouse,
33 if known; (2) if not known, by public notice, by advertising in a newspaper
34 of general circulation in the city in which such warehouse is situated, also
35 the director of the state grain inspection department, at least thirty (30)
36 days prior to the date of the expiration of his license, his; and (3) the
37 secretary, of such person's intention to discontinue the public warehouse
38 business. And
39 (b) It shall be the duty of the owners of such grain to remove, or
40 cause to be removed, their grain from said the warehouse, before the
41 expiration of the license. If for any cause said the grain is not removed
42 from the warehouse, it shall be the duty of the warehouseman to sell for
43 the account of the depositor said the grain at the best market price ob-
Sub. SB 317--Am. by H
27
1 tainable and remit said the funds to the director of the state grain in-
2 spection department secretary. The director secretary shall deposit said
3 the funds with the state treasurer to be held for the account of the de-
4 positor. If and when said the depositor, or holder of claim, shall appear
5 and present a valid claim to the director secretary for the funds so de-
6 posited, the director secretary shall issue a voucher to the state treasurer
7 withdrawing said funds to the order of the claimant.
8 Sec. 38. On and after July September 1, 1997, K.S.A. 34-2,104 is
9 hereby amended to read as follows: 34-2,104. (a) Whenever it appears to
10 the satisfaction of the director of the state grain inspection department
11 secretary that a licensed warehouseman does not have possession of suf-
12 ficient commodities to cover the outstanding receipts and scale tickets
13 issued or assumed by the warehouseman or when a licensed warehouse-
14 man refuses to submit records or property to a lawful examination, the
15 director secretary may give notice to the warehouseman to comply with
16 all or any of the following requirements:
17 (1) Cover any existing shortage;
18 (2) give additional bond as requested by the director secretary;
19 (3) submit to any examination that the director secretary considers
20 necessary.
21 If the warehouseman fails to comply with the terms of the notice within
22 24 hours from the date of its issuance or within such further time as the
23 director secretary allows, the director secretary may petition the district
24 court of any county in which is located one of the principal places of
25 business of the licensed warehouseman for an order authorizing the state
26 grain inspection department to take possession of and maintain all or a
27 portion of any and all commodities located in the licensed warehouse or
28 warehouses of the warehouseman and all pertinent records and property.
29 Upon receipt of the director's secretary's verified petition setting forth
30 the circumstances of the warehouseman's failure to comply and further
31 stating reasons why immediate possession and maintenance by the grain
32 inspection department is necessary for the protection of depositors, ware-
33 house receipt holders or sureties, the court shall forthwith issue an order
34 authorizing the department to take immediate possession of and maintain
35 the commodities, records and property for the purposes stated in this
36 section. A copy of the petition and order shall be sent to the warehouse-
37 man.
38 (b) At any time within 10 days after the grain inspection department
39 takes possession, the warehouseman may file with the court a response
40 to the petition of the director secretary stating reasons why the depart-
41 ment should not be allowed to retain possession. The court shall set the
42 matter for hearing on a date not less than five nor more than 15 days
43 from the date of the filing of the warehouseman's response. The order
Sub. SB 317--Am. by H
28
1 placing the department in possession shall not be stayed nor set aside
2 until the court after hearing determines that possession should be re-
3 stored to the warehouseman.
4 (c) Upon taking possession, the director secretary shall give written
5 notice of its action to the surety on the bond of the warehouseman and
6 may notify the holders of record, as shown by the warehouseman's rec-
7 [chords, of all receipts and scale tickets issued for commodities, to present
8 their receipts or scale tickets for inspection or to account for them. The
9 director secretary then may cause an audit and other investigation to be
10 made of the affairs of the warehouse, especially with respect to the com-
11 modities in which there is an apparent shortage, to determine the amount
12 of the shortage and compute the shortage as to each depositor as shown
13 in the warehouseman's records, if practicable. The director secretary shall
14 notify the warehouseman and the surety on the warehouseman's bond of
15 the approximate amount of the shortage and notify each depositor af-
16 fected by the shortage by sending notice to the depositor's last known
17 address as shown by the records of the warehouse.
18 The grain inspection department shall retain possession and continue
19 maintenance of commodities, records and property under this section
20 until the warehouseman or the surety on the warehouseman's bond has
21 satisfied the claims of all depositors or until the grain inspection depart-
22 ment is ordered by the court to surrender possession.
23 (d) If during or after the audit or other investigation provided for in
24 this section, or at any other time, the director secretary has evidence that
25 the warehouseman is insolvent or is unable to satisfy the claims of all
26 depositors, or the grain handling facility is operating without a valid fed-
27 eral or state license, the director secretary shall forthwith petition the
28 district court for an order appointing a receiver, under article 13 of chap-
29 ter 60 of the Kansas Statutes Annotated, and amendments thereto, to
30 operate or liquidate the business of the warehouseman or unlicensed
31 facility in accordance with the law. The petition may be accompanied by
32 a verified application requesting that the court appoint the director sec-
33 retary to act as temporary receiver until a receiver is appointed. The court
34 may appoint the director secretary as temporary receiver in an ex parte
35 proceeding.
36 (e) While acting as temporary receiver, the director secretary shall
37 have all the powers of a receiver and may appoint a special deputy director
38 to take charge of the affairs of the warehouse until a receiver is appointed.
39 The special deputy shall qualify, give bond and receive reasonable com-
40 pensation as determined by the director secretary, subject to the approval
41 of the district court. The compensation shall be paid by the insolvent
42 warehouse or unlicensed facility or, upon appointment of a receiver, may
43 be allowed by the court as costs in the case.
Sub. SB 317--Am. by H
29
1 (f) All necessary expenses incurred by the grain inspection depart-
2 ment or any receiver appointed under this section in carrying out the
3 provisions of this section may be recovered from the warehouseman,
4 owner or operator of the unlicensed grain handling facility in a separate
5 civil action brought by the director secretary in the district court or may
6 be recovered at the same time and as a part of the seizure or receivership
7 action filed under this section. As a part of the expenses so incurred, there
8 is authorized to be included the cost of adequate liability insurance nec-
9 essary to protect the grain inspection department, the receiver, and others
10 engaged in carrying out the provisions of this section.
11 (g) A receiver shall have five months from the date of the receiver's
12 appointment for the settlement and completion of the receivership. For
13 cause shown, this period may be extended by the court, not exceeding
14 three months at a time.
15 Sec. 39. On and after July September 1, 1997, K.S.A. 34-2,110 is
16 hereby amended to read as follows: 34-2,110. Every public warehouse-
17 man shall make available to the director secretary a verified composite
18 statement of depositors of open storage grain or grain bank grain. The
19 composite statement shall contain the same information as in K.S.A. 34-
20 2,109, and amendments thereto.
21 Sec. 40. On and after July September 1, 1997, K.S.A. 1996 Supp.
22 74-4911f is hereby amended to read as follows: 74-4911f. (a) Subject to
23 procedures or limitations prescribed by the governor, any state officer
24 may elect to not become a member of the system.
25 (b) (1) Any such state officer described in subsection (a) who is a
26 member of the Kansas public employees retirement system, on or after
27 the effective date of this act, may elect to not be a member by filing an
28 election with the office of the retirement system. Each state officer filing
29 such election may withdraw the state officer's accumulated contributions
30 then on deposit with the system in the same manner as prescribed in
31 K.S.A. 74-4917 and amendments thereto for employees upon termina-
32 tion.
33 (2) Any state officer who has filed an election and received a refund
34 of contributions shall be entitled to again become a member of the system
35 upon the filing of proper notice in such form as prescribed by the system
36 and upon the making of a single lump-sum payment in an amount equal
37 to all withdrawn contributions, plus interest at a rate specified by the
38 system.
39 (c) Subject to limitations prescribed by the secretary of administra-
40 tion, the state agency employing any employee who has filed an election
41 as provided under subsection (a) or (b) and who has entered into an
42 employee participation agreement, as provided in K.S.A. 75-5524 and
43 amendments thereto for deferred compensation pursuant to the Kansas
Sub. SB 317--Am. by H
30
1 public employees deferred compensation plan shall contribute to such
2 plan on such employee's behalf an amount equal to 8% of the employee's
3 salary, as such salary has been approved pursuant to K.S.A. 75-2935b and
4 amendments thereto or as otherwise prescribed by law.
5 (d) As used in this section and K.S.A. 74-4927k and amendments
6 thereto, ``state officer'' means the secretary of administration, secretary
7 on aging, secretary of commerce and housing, secretary of corrections,
8 secretary of health and environment, secretary of human resources, sec-
9 retary of revenue, secretary of social and rehabilitation services, secretary
10 of transportation, secretary of wildlife and parks, superintendent of the
11 Kansas highway patrol, secretary of agriculture, state grain inspector, ex-
12 ecutive director of the Kansas lottery, executive director of the Kansas
13 racing commission, president of the Kansas development finance author-
14 ity, state fire marshal, state librarian, securities commissioner, adjutant
15 general, members of the state board of tax appeals, members of the Kan-
16 sas parole board, members of the state corporation commission, any un-
17 classified employee on the staff of officers of both houses of the legisla-
18 ture, any unclassified employee appointed to the governor's or lieutenant
19 governor's staff and any person employed by the legislative branch of the
20 state of Kansas, other than any such person receiving service credited
21 under the Kansas public employees retirement system or any other re-
22 tirement system of the state of Kansas therefor, who elected to be covered
23 by the provisions of this section as provided in subsection (e) of K.S.A.
24 46-1302 and amendments thereto or who is first employed on or after
25 July 1, 1996, by the legislative branch of the state of Kansas.
26 (e) The provisions of this section shall not apply to any state officer
27 who has elected to remain eligible for assistance by the state board of
28 regents as provided in subsection (a) of K.S.A. 74-4925 and amendments
29 thereto.
30 Sec. 41. On and after July September 1, 1997, K.S.A. 1996 Supp.
31 75-3170a is hereby amended to read as follows: 75-3170a. (a) The 20%
32 credit to the state general fund required by K.S.A. 1-204, 2-2609, 2-3008,
33 2-3013, 9-1703, 16-609, 16a-2-302, 17-1271, 17-2236, 17-5609, 17-5610,
34 17-5612, 17-5701, 20-1a02, 20-1a03, 31-133a, 33-134, 31-134, 34-102b,
35 44-324, 44-926, 47-820, 49-420, 55-155, 55-176, 55-609, 55-711, 55-901,
36 58-2011, 58-3074, 58-4107, 65-6b10, 65-1718, 65-1817a, 65-2011, 65-
37 2855, 65-2911, 65-4610, 65-5413, 65-5513, 66-1,155, 66-1503, 74-715,
38 74-1108, 74-1405, 74-1503, 74-1609, 74-2704, 74-3903, 74-5805, 74-
39 7009, 74-7506, 75-1119b, 75-1308 and 75-1514 and K.S.A. 1996 Supp.
40 2-3506, 84-9-411 and 84-9-413, and amendments thereto, is to reimburse
41 the state general fund for accounting, auditing, budgeting, legal, payroll,
42 personnel and purchasing services, and any and all other state govern-
43 mental services, which are performed on behalf of the state agency in-
Sub. SB 317--Am. by H
31
1 volved by other state agencies which receive appropriations from the state
2 general fund to provide such services.
3 (b) Nothing in this act or in the sections amended by this act or
4 referred to in subsection (a), shall be deemed to authorize remittances to
5 be made less frequently than is authorized under K.S.A. 75-4215 and
6 amendments thereto.
7 (c) Notwithstanding any provision of any statute referred to in or
8 amended by this act or referred to in subsection (a), whenever in any
9 fiscal year such 20% credit to the state general fund in relation to any
10 particular fee fund is $200,000, in that fiscal year the 20% credit no longer
11 shall apply to moneys received from sources applicable to such fee fund
12 and for the remainder of such year the full 100% so received shall be
13 credited to such fee fund, except as otherwise provided in subsection (d)
14 and except that during the fiscal year ending June 30, 1993, with respect
15 to the fire marshal fee fund, when the 20% credit to the state general
16 fund prescribed by K.S.A. 31-133a, 31-134 and 75-1514 and amendments
17 thereto, in the aggregate, is $400,000, then in that fiscal year such 20%
18 credit no longer shall apply to moneys received from sources applicable
19 to the fire marshal fee fund and for the remainder of such fiscal year the
20 full 100% so received shall be credited to the fire marshal fee fund.
21 (d) Notwithstanding any provision of K.S.A. 2-2609 and 2-3008 and
22 amendments thereto or any provision of any statute referred to in sub-
23 section (a), the 20% credit to the state general fund no longer shall apply
24 to moneys received from sources applicable to the grain research and
25 market development agencies funds, as specified for each such fund by
26 this subsection, and for the remainder of a fiscal year the full 100% of
27 the moneys so received shall be credited to the appropriate fund of such
28 funds, whenever in any fiscal year:
29 (1) With respect to the Kansas wheat commission fund, such 20%
30 credit to the state general fund in relation to such fund in that fiscal year
31 is equal to that portion of $100,000 that bears the same proportion to
32 $100,000 as the amount credited to the Kansas wheat commission fund
33 during the preceding fiscal year bears to the total of the amounts credited
34 to the Kansas wheat commission fund, the Kansas corn commission fund,
35 the Kansas grain sorghum commission fund and the Kansas soybean com-
36 mission fund during the preceding fiscal year;
37 (2) with respect to the Kansas corn commission fund, such 20% credit
38 to the state general fund in relation to such fund in that fiscal year is
39 equal to that portion of $100,000 that bears the same proportion to
40 $100,000 as the amount credited to the Kansas corn commission fund
41 during the preceding fiscal year bears to the total of the amounts credited
42 to the Kansas wheat commission fund, the Kansas corn commission fund,
43 the Kansas grain sorghum commission fund and the Kansas soybean com-
Sub. SB 317--Am. by H
32
1 mission fund during the preceding year;
2 (3) with respect to the Kansas grain sorghum commission fund, such
3 20% credit to the state general fund in relation to such fund in that fiscal
4 year is equal to that portion of $100,000 that bears the same proportion
5 to $100,000 as the amount credited to the Kansas grain sorghum com-
6 mission fund during the preceding fiscal year bears to the total of the
7 amounts credited to the Kansas wheat commission fund, the Kansas corn
8 commission fund, the Kansas grain sorghum commission fund and the
9 Kansas soybean commission fund during the preceding fiscal year; and
10 (4) with respect to the Kansas soybean commission fund, such 20%
11 credit to the state general fund in relation to such fund in that fiscal year
12 is equal to that portion of $100,000 that bears the same proportion to
13 $100,000 as the amount credited to the Kansas soybean commission fund
14 during the preceding fiscal year bears to the total of the amounts credited
15 to the Kansas wheat commission fund, the Kansas corn commission fund,
16 the Kansas grain sorghum commission fund and the Kansas soybean com-
17 mission fund during the preceding fiscal year.
18 (e) As used in this section, ``grain research and market development
19 agencies'' means the Kansas wheat commission, the Kansas corn com-
20 mission, the Kansas grain sorghum commission and the Kansas soybean
21 commission. Such agencies have been created to fund appropriate re-
22 search projects; to conduct campaigns of development, education and
23 publicity; and to find new markets or maintain existing markets for com-
24 modities and products made from those commodities, among their other
25 duties. Such grain research and market development agencies shall be
26 funded by an assessment collected from the grower at the time of the
27 sale of such commodity by the first purchaser. The assessment shall be
28 sent to the proper grain research and market development agency.
29 Sec. 42. On and after July September 1, 1997, K.S.A. 1996 Supp.
30 77-415 is hereby amended to read as follows: 77-415. As used in K.S.A.
31 77-415 through 77-437, and amendments thereto, unless the context
32 clearly requires otherwise:
33 (1) ``State agency'' means any officer, department, bureau, division,
34 board, authority, agency, commission or institution of this state, except
35 the judicial and legislative branches, which is authorized by law to prom-
36 ulgate rules and regulations concerning the administration, enforcement
37 or interpretation of any law of this state.
38 (2) ``Person'' means firm, association, organization, partnership, busi-
39 ness trust, corporation or company.
40 (3) ``Board'' means the state rules and regulations board established
41 under the provisions of K.S.A. 77-423 and amendments thereto.
42 (4) ``Rule and regulation,'' ``rule,'' ``regulation'' and words of like ef-
43 fect mean a standard, statement of policy or general order, including
Sub. SB 317--Am. by H
33
1 amendments or revocations thereof, of general application and having the
2 effect of law, issued or adopted by a state agency to implement or inter-
3 pret legislation enforced or administered by such state agency or to gov-
4 ern the organization or procedure of such state agency. Every rule and
5 regulation adopted by a state agency to govern its enforcement or ad-
6 ministration of legislation shall be adopted by the state agency and filed
7 as a rule and regulation as provided in this act. The fact that a statement
8 of policy or an interpretation of a statute is made in the decision of a case
9 or in a state agency decision upon or disposition of a particular matter as
10 applied to a specific set of facts does not render the same a rule and
11 regulation within the meaning of the foregoing definition, nor shall it
12 constitute specific adoption thereof by the state agency so as to be re-
13 quired to be filed. A rule and regulation as herein defined shall not in-
14 clude any rule and regulation which: (a) Relates to the internal manage-
15 ment or organization of the agency and does not affect private rights or
16 interest; (b) is an order directed to specifically named persons or to a
17 group which does not constitute a general class and the order is served
18 on the person or persons to whom it is directed by appropriate means.
19 The fact that the named person serves a group of unnamed persons who
20 will be affected does not make such an order a rule and regulation; (c)
21 relates to the use of highways and is made known to the public by means
22 of signs or signals; (d) relates to the construction and maintenance of
23 highways or bridges or the laying out or relocation of a highway other
24 than bidding procedures or the management and regulation of rest areas;
25 (e) relates to the curriculum of public educational institutions or to the
26 administration, conduct, discipline, or graduation of students from such
27 institutions or relates to parking and traffic regulations of state educa-
28 tional institutions under the control and supervision of the state board of
29 regents; (f) relates to the emergency or security procedures of a correc-
30 tional institution, as defined in subsection (d) of K.S.A. 75-5202 and
31 amendments thereto; (g) relates to the use of facilities by public libraries;
32 (h) relates to military or naval affairs other than the use of armories; (i)
33 relates to the form and content of reports, records or accounts of state,
34 county or municipal officers, institutions, or agencies; (j) relates to ex-
35 penditures by state agencies for the purchase of materials, equipment, or
36 supplies by or for state agencies, or for the printing or duplicating of
37 materials for state agencies; (k) establishes personnel standards, job clas-
38 sifications, or job ranges for state employees who are in the classified civil
39 service; (l) fixes or approves rates, prices, or charges, or rates, joint rates,
40 fares, tolls, charges, rules, regulations, classifications or schedules of com-
41 mon carriers or public utilities subject to the jurisdiction of the state
42 corporation commission, except when a statute specifically requires the
43 same to be fixed by rule and regulation; (m) determines the valuation of
Sub. SB 317--Am. by H
34
1 securities held by insurance companies; (n) is a statistical plan relating to
2 the administration of rate regulation laws applicable to casualty insurance
3 or to fire and allied lines insurance; (o) is a form, the content or substan-
4 tive requirements of which are prescribed by rule and regulation or stat-
5 ute; (p) is a pamphlet or other explanatory material not intended or de-
6 signed as interpretation of legislation enforced or adopted by a state
7 agency but is merely informational in nature; (q) establishes seasons and
8 fixes bag, creel, possession, size or length limits for the taking or posses-
9 sion of wildlife, if such seasons and limits are made known to the public
10 by other means; or (r) establishes records retention and disposition sched-
11 ules for any or all state agencies; or (s) fixes or approves fees for services
12 rendered by the Kansas state grain inspection department pursuant to
13 K.S.A. 34-103a, and amendments thereto.
14 (5) ``Environmental rule and regulation'' means:
15 (A) A rule and regulation adopted by the state board of agriculture,
16 the secretary of the state board of agriculture, the secretary of health and
17 environment or the state corporation commission, which has as a primary
18 purpose the protection of the environment; or
19 (B) a rule and regulation adopted by the secretary of wildlife and
20 parks concerning threatened or endangered species of wildlife as defined
21 in K.S.A. 32-958 and amendments thereto.
22 Sec. 43. On and after July September 1, 1997, K.S.A. 34-101, 34-
23 101a, 34-101c, 34-101d, 34-102, 34-102a, 34-104, 34-105, 34-106, 34-107,
24 34-110, 34-111, 34-112a, 34-113, 34-121, 34-122, 34-123, 34-124, 34-127,
25 34-223, 34-224, 34-227, 34-227a, 34-227b, 34-229, 34-230, 34-230a,
26 34-230b, 34-231, 34-233, 34-235, 34-236, 34-238, 34-241a, 34-246, 34-
27 249a, 34-251, 34-257a, 34-273, 34-295a, 34-295b, 34-298, 34-299, 34-
28 2,100, 34-2,104, 34-2,110, 75-1701, 75-1702, 75-1703, 75-1704, 75-1706,
29 75-1709 and 75-1711 and K.S.A. 1996 Supp. 34-101b, 34-102b, 34-103a,
30 34-125, 34-228, 34-2,108, 74-4911f, 75-3170a and 77-415 are hereby re-
31 pealed.
32 Sec. 44. This act shall take effect and be in force from and after June
33 August 1, 1997 and, its publication in the statute book and the issuance
34 by the grain inspection, packers and stockyards administration,
35 pursuant to the United States grain standards act, of the official
36 agency designation of an entity that is not the state of Kansas grain
37 inspection department.