An Act concerning certain governmental agency reorganizations; abolishing the agricultural value added center and the leadership council; further abolishing the division of markets and the director of marketing; creating the agriculture products development division within the department of commerce and housing; transferring certain powers and duties to the secretary of agriculture and the department of agriculture; amending K.S.A. 2- 2306, 2-3001, 2-3002, 2-3005, 2-3006, 2-3008, 2-3009, 2-3013, 74-531, 74-532, 74-534 and 74-551 and K.S.A. 1995 Supp. 2-3007, 74-552, 74-553 and 74-567 are hereby re- pealed; also repealing K.S.A. 74-530, 74-533, 74-540, 74-540a, 74-540b and 74-540c and K.S.A. 1995 Supp. 74-8117, 74-8118, 74-8119, 74-8120 and 74-8121.

Be it enacted by the Legislature of the State of Kansas:

New Section 1. (a) The agricultural value added center established by K.S.A. 1995 Supp. 74-8117 and the agricultural value added processing center leadership council created by K.S.A. 1995 Supp. 74-8118 are

hereby abolished.

(b) The division of markets within the Kansas department of agri- culture created by K.S.A. 74-530 and the director of marketing created by K.S.A. 74-533 are hereby abolished.

New Sec. 2. (a) There is hereby established within and as a part of the department of commerce and housing the agriculture products de- velopment division. The secretary of commerce and housing shall appoint a director of such division and such director shall be in the unclassified service of the Kansas civil service act. Subject to and in accordance with appropriations acts, the agriculture products development division shall include: (1) All powers, duties and functions related to the agricultural value added center pursuant to subsections (b) and (c); (2) all powers and duties created regarding the division of markets pursuant to K.S.A. 74- 530, and amendments thereto, which are hereby transferred; (3) all pow- ers and duties created regarding registered trademarks pursuant to K.S.A. 74-540a, and amendments thereto, which are hereby transferred; (4) all powers and duties regarding the trademark fund pursuant to K.S.A. 74- 540b, and amendments thereto, which are hereby transferred; and (5) all powers and duties created regarding expenditures and moneys credited to the market development fund pursuant to K.S.A. 74-540c, and amend- ments thereto, which are hereby transferred.

(b) The objectives of the agricultural value added center within the agriculture products development division shall include, but not be lim- ited to, providing technical assistance to existing and potential value added facilities, including incubator facilities; developing a network for collect- ing and distributing information to individuals involved in value added processing in Kansas; initiating pilot plant facilities to act as research and development laboratories for existing and potential small scale value added processing endeavors in Kansas; providing technical assistance to new agricultural value added businesses; developing and promoting com- munication and cooperation among private businesses; state government agencies and public and private colleges and universities in Kansas; es- tablishing research and development programs in technologies that have value added commercial potential for food and nonfood agricultural prod- ucts achieving substantial and sustainable continuing growth for the Kan- sas economy through value added products from agriculture; serving as a catalyst for industrial agriculture through technological innovation in order to expand economic opportunity for all Kansas communities; estab- lishing an industrial agriculture industry for the state of Kansas; com- mercializing the developed industrial agriculture technology in smaller communities and the rural areas of Kansas; and developing investment grade agriculture value added technologies and products.

(c) Subject to the provisions of appropriations acts, the functions of the agricultural value added center within the agriculture products de- velopment division shall include, but not be limited to, developing a mar- ket referral program, matching distribution to buyers in coordination with other state agencies concerned with marketing Kansas products; assisting private entrepreneurs in the establishment of facilities and markets for new agricultural value added endeavors; and introducing coordinated pro- grams to develop marketing skills of existing agricultural value adding processors in Kansas.

(d) (1) It shall be the duty of the agriculture products development division to perform acts and to do, or cause to be done, those things which are designed to lead to the more advantageous marketing of agricultural products of Kansas. For these purposes the division may:

(A) Investigate the subject of marketing farm products;

(B) promote their sales distribution and merchandising;

(C) furnish information and assistance to the public;

(D) study and recommend efficient and economical methods of mar- keting;

(E) provide for such studies and research as may be deemed neces- sary and proper;

(F) gather and diffuse timely and useful information concerning the supply, demand, prevailing prices and commercial movement of farm products including quantity in common storage and cold storage, in co- operation with other public or private agencies;

(G) conduct market development activities and assist and coordinate participation by companies, commodity organizations, trade organiza- tions, producer organizations and other interested organizations to de- velop new markets and sales for Kansas agricultural commodities and food products;

(H) render assistance to any of the entities listed in subsection (G) and development activities and make a reasonable service charge for such services rendered by the division; and

(I) make agreements with other states and with the United States government, or its agencies, and accept funds from the federal govern- ment, or its agencies, or any other source for research studies, investi- gation, market development and other purposes related to the duties of the division.

(2) The department of commerce and housing shall remit all moneys received under this subsection to the state treasurer at least monthly. Upon receipt of any such remittance, the state treasurer shall deposit the entire amount thereof in the state treasury and the same shall be credited to the market development fund. All expenditures from such fund shall be made for any purpose consistent with this subsection and shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the sec- retary of commerce and housing or a person designated by the secretary.

(e) (1) In conjunction with any trademark registered by the depart- ment of commerce and housing, the agriculture products development division is hereby authorized to:

(A) Promulgate policy regarding the use of any such trademark;

(B) print, reproduce or use the trademark in or on educational, pro- motional or other material;

(C) fix, charge and collect fees for the use of the trademark provided that the fees shall be fixed in an amount necessary to recover all direct costs associated with the production of educational, promotional and other materials associated with a trademark program; and

(D) enter into any contracts necessary to carry out the purposes of this subsection, which contracts shall not be subject to the bidding requirements of K.S.A. 75-3739, and amendments thereto.

(2) The secretary of commerce and housing shall remit all moneys received under this subsection to the state treasurer at least monthly. Upon receipt of any such remittance the state treasurer shall deposit the entire amount thereof in the state treasury and the same shall be credited to the trademark fund. All expenditures from such fund shall be made for any purpose consistent with this subsection and shall be made in accordance with appropriation acts upon warrants of the director of ac- counts and reports issued pursuant to vouchers approved by the secretary of commerce and housing or a person designated by the secretary.

(f) On or before February 1 of each year, the agriculture products development division shall present an oral and written report to the house and senate agriculture committees concerning the performance indica- tors, performance outcomes, activities and functions of the division for the previous year. Such report shall include a budget of how moneys appropriated or otherwise authorized to be expended from the state gen- eral fund or any special revenue fund for the agriculture products devel- opment division of the department of commerce and housing for the previous fiscal year were spent and a projected budget of moneys appro- priated or otherwise authorized to be expended from the state general fund or any special revenue fund for the agriculture products develop- ment division of the department of commerce and housing for the current fiscal year. Such report shall further include the full-time equivalent num- ber of positions financed from appropriations and allocated for the agri- culture products development division of the department of commerce and housing for each fiscal year. In the report to the 1997 legislature, the division's report shall include a mission statement for the reorganized division.

(g) Subject to appropriation acts, the secretary of commerce and housing shall fulfill all contracts in existence on the effective date of this act between the Kansas technology enterprise corporation and the alter- native agriculture research and development center.

New Sec. 3. The following programs and functions are hereby trans- ferred from the division of marketing, department of agriculture, and conferred upon the secretary of agriculture: (a) the functions relating to standards, grades, and classifications for agricultural products and recep- tacles, pursuant to K.S.A. 74-531, 74-532, and 74-534, and amendments thereto; (b) the functions relating to labeling of agricultural products es- tablished under K.S.A. 2-2306, and amendments thereto; (c) the functions relating to grain commissions established under K.S.A. 2-3001 through 2-3013, and amendments; and (d) functions relating to the grape and wine industry advisory council established by K.S.A. 1995 Supp. 74-552, and amendments thereto.

New Sec. 4. (a) The powers, duties and functions of the existing ag- ricultural value added center are hereby transferred to and conferred and imposed upon the agricultural value added center created by this act subject to the limitations established in section 2.

(b) The agricultural value added center created by this act shall be the successor in every way to the powers, duties and functions of the agricultural value added center, subject to the limitations established in section 2, in which the same were vested prior to the effective date of this act. Every act performed under the authority of the agricultural value added center created by this act shall be deemed to have the same force and effect as if performed by the agricultural value added center in which such functions were vested prior to the effective date of this act.

(c) Whenever the ``agricultural value added center,'' or words of like effect, is referred to or designated by a statute, contract or other docu- ment, such reference or designation shall be deemed to apply to the agricultural value added center created by this act.

(d) All orders or directives of the agricultural value added center in existence on the effective date of this act shall continue to be effective and shall be deemed to be the orders or directives of the agricultural value added center created by this act until revised, amended, repealed or nullified pursuant to law.

(e) The agricultural value added center, within the department of commerce and housing, created by this act shall be a continuation of the agricultural value added center being abolished pursuant to section 1.

New Sec. 5. (a) The secretary of commerce and housing shall be the successor in every way to the powers, duties and functions of the division of marketing and the director of marketing in which the same were vested prior to the effective date of this act and which are transferred pursuant to section 2. Every act performed in the exercise of such powers, duties and functions by or under the authority of the secretary of commerce and housing shall be deemed to have the same force and effect as if performed by the division of marketing and the director of marketing in which such powers, duties and functions were vested prior to the effective date of this act.

(b) Whenever the ``department of agriculture,'' ``division of markets,'' or words of like effect, are referred to or designated by a statute, contract or other document, and such reference or designation is in regard to one of the powers and duties transferred to the agriculture products devel- opment division within the department of commerce and housing pur- suant to section 2, such reference or designation shall be deemed to apply to the agriculture products development division within the department of commerce and housing. Whenever ``director of marketing,'' ``secretary of agriculture'' or words of like effect, are referred to or designated by a statute, contract or other document, and such reference is in regard to one of the powers and duties transferred to the agriculture products de- velopment division within the department of commerce and housing pur- suant to section 2, such reference shall be deemed to apply to the sec- retary of commerce and housing.

(c) All rules and regulations, orders and directives of the division of marketing, director of marketing or department of agriculture pertaining to powers and duties transferred pursuant to section 2 shall continue to be effective and shall be deemed to be the rules and regulations, orders and directives of the department of commerce and housing until revised, amended, repealed or nullified pursuant to law.

New Sec. 6. (a) Except as otherwise provided by this act, the sec- retary of agriculture shall be the successor in every way to the powers, duties, and functions of the division of marketing and director of mar- keting in which the same were vested prior to the effective date of this act and which are transferred pursuant to section 3. Every act performed in the exercise of such powers, duties, and functions by or under the authority of the secretary of agriculture shall be deemed to have the same force and effect as if performed by the division of marketing or director of marketing in which such powers, duties, and functions were vested prior to the effective date of this act.

(b) Whenever the ``division of markets,'' or words of like effect, are referred to or designated by a statute, contract, or other document, and such reference is in regard to one of the powers and duties transferred to the department of agriculture pursuant to section 3 of this act, such reference or designation shall be deemed to apply to the department of agriculture. Whenever the ``director of marketing,'' or words of like effect, are referred to or designated by a statute, contract, or other document, and such reference is in regard to one of the powers and duties trans- ferred to the department of commerce and housing pursuant to section 3 of this act, such reference or designation shall be deemed to apply to the secretary of agriculture.

(c) All rules and regulations, orders, and directives of the division of marketing or director of marketing pertaining to powers and duties trans- ferred pursuant to section 3 of this act shall continue to be effective and shall be deemed to be rules and regulations, orders, and directives of the secretary of agriculture until revised, amended, or nullified pursuant to law.

New Sec. 7. (a) On the effective date of this act, officers and em- ployees who, immediately prior to such date, were engaged in the per- formance of any powers and duties of the department of agriculture listed in section 2 which are transferred to the department of commerce and housing, and who, in the opinion of the secretary of commerce and hous- ing, are necessary to perform the powers and duties of the department of commerce and housing, shall be transferred to, and shall become of- ficers and employees of such department.

(b) On the effective date of this act, officers and employees who, immediately prior to such date, were engaged in the performance of any powers and duties of the agricultural value added center which is abol- ished by this act and who, in the opinion of the secretary of commerce and housing, are necessary to perform the powers and duties of the de- partment of commerce and housing, agriculture products development division, shall be transferred to and become officers and employees of such department.

New Sec. 8. (a) The secretary of agriculture and the secretary of commerce and housing shall engage in consultations with the purpose of reaching agreement regarding the disposition of all property, property rights, and records which were used for or pertain to the performance of the powers and duties transferred to the department of commerce and housing pursuant to this act.

(b) Any conflict as to the proper disposition of property, personnel, records, or the unexpended balance of any appropriation arising as a result of any abolition, transfer, attachment or change made by or under this order shall be determined by the governor, whose decision shall be final.

New Sec. 9. (a) No suit, action, or other proceeding, judicial or ad- ministrative, lawfully commenced, or which could have been commenced, by or against any state agency or program mentioned in this act, or by or against any officer of the state in such officer's official capacity or in relation to the discharge of such officer's official duties, shall abate by reason of the governmental reorganization effected under the provisions of this act. The court may allow any such suit, action, or other proceeding to be maintained by or against the successor of any such state agency or any officer affected.

(b) No criminal action commenced or which could have been com- menced by the state shall abate by the taking effect of this act.

New Sec. 10. (a) On the effective date of this act, the balances of all funds appropriated or reappropriated to the department of agriculture, the agricultural value added center at the Kansas technology enterprise corporation for any of the powers and duties transferred to the depart- ment of commerce and housing pursuant to section 2 of this act are hereby transferred to the department of commerce and housing and shall be used only for the purpose for which the appropriation was originally made.

(b) On the effective date of this act, the liability for all accrued com- pensation, wages or salaries of officers and employees who, immediately prior to such date, were engaged in the performance of powers, duties or functions of the department of agriculture, the agricultural value added center at the Kansas technology enterprise corporation which are trans- ferred to the department of commerce and housing pursuant to section 2 of this act shall be assumed and paid by the department of commerce and housing.

New Sec. 11. (a) There is hereby created an agriculture products development advisory board. Members shall be appointed by the gover- nor as follows, one member shall be a representative of the livestock industry, one member shall be a representative of a farmer's cooperative active in community economic development, one member shall be a rep- resentative of a commodity group, two members shall be representatives of entrepreneurs in a value added business, one member shall be a fi- nancial or investment banker or a seed capital fund manager and one member shall be from the marketing section of the agriculture products development division of the department of commerce and housing.

(b) Of the members first appointed to the board, the governor shall designate four whose terms shall expire June 30, 1998, and three whose terms shall expire on June 30, 2000. After the expiration of such terms, each member shall be appointed for a term of four years until a successor is appointed and qualified.

(c) A vacancy on the board of a member shall be filled for the unex- pired term by appointment by the governor.

(d) The governor shall appoint a chairperson.

(e) The board shall meet as the chairperson or a majority of the board members determine.

(f) The board shall advise the secretary of commerce and housing and the agriculture products development division on issues and concerns of agriculture product development and technical assistance for such de- velopment.

Sec./007006/K.S.A. 2-2306 is hereby amended to read as follows: 2-2306. The marketing division of the Kansas state board secretary of agriculture shall be charged with the administration and enforcement of the provi- sions of this act article 23 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto.

Sec./007006/K.S.A. 2-3001 is hereby amended to read as follows: 2-3001. As used in this act, unless the context clearly requires otherwise, the following words and phrases shall have the meanings ascribed to them herein:

(a) ``Grower'' means any natural person, partnership, association or corporation engaged in the growing of corn, grain sorghum or soybeans, whether as landlord or tenant;

(b) ``first purchaser'' means any person, public or private corporation, association or partnership buying or otherwise acquiring after harvest, the property in or to corn, grain sorghum or soybeans from a grower. A mort- gagee, pledgee, lienor or other person, public or private, having a claim against the grower under a nonrecourse loan made against such corn, grain sorghum or soybeans after harvest thereof shall be deemed a pur- chaser hereunder. The term ``first purchaser'' shall not include a har- vesting or threshing lienor;

(c) ``commercial channels'' means the sale of corn, grain sorghum or soybeans for use as food, feed, seed or any industrial or chemurgic use, when sold to any commercial buyer, dealer, processor, cooperative, or to any person, public or private, who resells any corn, grain sorghum or soybeans or product produced from corn, grain sorghum or soybeans;

(d) ``sale'' means and includes any pledge or mortgage of corn, grain sorghum or soybeans, after harvest, to any person, public or private;

(e) ``division'' means the division of markets of the state board of agriculture and the director thereof;

(f) ``secretary'' means the secretary of the state board of agriculture or his or her the secretary's authorized representative.

Sec./007006/K.S.A. 2-3002 is hereby amended to read as follows: 2-3002. (a) There are hereby created three separate and distinct commissions which shall be known as the Kansas corn commission, the Kansas grain sorghum commission and the Kansas soybean commission. Such com- missions shall be attached to and be a part of the division of markets of the state board department of agriculture. The membership of each such commission shall be appointed by the governor in the manner prescribed by this section. One member shall be appointed to the Kansas corn com- mission and the Kansas grain sorghum commission from each district as denoted by subsection (b). One member shall be appointed to the Kansas soybean commission from each district as denoted by subsection (c). For each commission the members shall serve for a term of four years, except that the members first appointed to the Kansas corn commission and the Kansas grain sorghum commission from districts I, II and III shall serve for four years, the members first appointed from districts IV, V and VI shall serve for three years and the members first appointed from districts VII, VIII and IX shall serve for two years, and except that the members first appointed to the Kansas soybean commission from districts I, II and III shall serve for four years, the members first appointed from districts IV, V and VI shall serve for three years and members first appointed from district VII shall serve for two years. Vacancies which may occur shall be filled for unexpired terms in the same manner. Upon the expiration of a term of a member of a commission, such member shall continue to serve as a member until a successor to such member is appointed and qualified. The dean of the college of agriculture of Kansas state university shall be an ex officio member, without the right to vote, of each such commission.

(b) District I shall consist of the following counties: Cheyenne, De- catur, Graham, Norton, Rawlins, Sheridan, Sherman and Thomas.

District II shall consist of the following counties: Gove, Greeley, Lane, Logan, Ness, Scott, Trego, Wallace and Wichita.

District III shall consist of the following counties: Clark, Finney, Ford, Grant, Gray, Hamilton, Haskell, Hodgeman, Kearny, Meade, Morton, Seward, Stanton and Stevens.

District IV shall consist of the following counties: Clay, Cloud, Jewell, Mitchell, Osborne, Ottawa, Phillips, Republic, Rooks, Smith and Wash- ington.

District V shall consist of the following counties: Barton, Dickinson, Ellis, Ellsworth, Lincoln, McPherson, Marion, Rice, Rush, Russell and Saline.

District VI shall consist of the following counties: Barber, Comanche, Edwards, Harper, Harvey, Kingman, Kiowa, Pawnee, Pratt, Reno, Sedg- wick, Stafford and Sumner.

District VII shall consist of the following counties: Atchison, Brown, Doniphan, Jackson, Jefferson, Leavenworth, Marshall, Nemaha, Potta- watomie, Riley and Wyandotte.

District VIII shall consist of the following counties: Anderson, Chase, Coffey, Douglas, Franklin, Geary, Johnson, Linn, Lyon, Miami, Morris, Osage, Shawnee and Wabaunsee.

District IX shall consist of the following counties: Allen, Bourbon, But- ler, Chautauqua, Cherokee, Cowley, Crawford, Elk, Greenwood, Labette, Montgomery, Neosho, Wilson and Woodson.

(c) District I shall consist of the following counties: Nemaha, Brown, Doniphan, Jackson, Atchison, Jefferson, Leavenworth and Wyandotte.

District II shall consist of the following counties: Shawnee, Douglas, Johnson, Osage, Franklin and Miami.

District III shall consist of the following counties: Coffey, Anderson, Linn, Woodson, Allen and Bourbon.

District IV shall consist of the following counties: Wilson, Neosho, Crawford, Montgomery, Labette and Cherokee.

District V shall consist of the following counties: Jewell, Republic, Washington, Marshall, Mitchell, Cloud, Clay, Riley, Pottawatomie, Lin- coln, Ottawa, Dickinson, Geary, Wabaunsee, Ellsworth, Saline, Morris and Lyon.

District VI shall consist of the following counties: Rice, McPherson, Marion, Chase, Stafford, Reno, Harvey, Butler, Greenwood, Pratt, King- man, Sedgwick, Barber, Harper, Sumner, Cowley, Elk and Chautauqua.

District VII shall consist of the following counties: Cheyenne, Rawlins, Decatur, Norton, Phillips, Smith, Sherman, Thomas, Sheridan, Graham, Rooks, Osborne, Wallace, Logan, Gove, Trego, Ellis, Russell, Greeley, Wichita, Scott, Lane, Ness, Rush, Barton, Hamilton, Kearny, Finney, Hodgeman, Pawnee, Edwards, Stanton, Grant, Haskell, Gray, Ford, Ki- owa, Morton, Stevens, Seward, Meade, Clark and Comanche.

Sec./007006/K.S.A. 2-3005 is hereby amended to read as follows: 2-3005. (a) In the administration of this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto, each commission shall have the following duties, authorities and powers:

(1) To recommend to the secretary policy regarding marketing, cam- paigns of development, education and publicity for the Kansas grain com- modity and products made therefrom represented by it;

(2) to recommend to the secretary the acceptance of grants and do- nations;

(3) to recommend the secretary enter into such contracts as may be necessary or advisable for the purposes of this act;

(4) to recommend that the secretary cooperate with any local, state, national or international organization or agency, whether voluntary or created by the law of any state or by federal law, engaged in work or activities similar to the work and activities of each commission, and to direct the division secretary to enter into contracts with such agencies or organizations for carrying on campaigns of development, education or publicity;

(5) to be advisory to and cooperate and work with Kansas state uni- versity or other educational or research facilities regarding research and development connected with the grain commodities represented by each commission;

(6) to recommend that the secretary submit to the national board, established pursuant to public law 101-624, any reports required describ- ing the manner and procedure for collection of the voluntary assessments established on soybeans pursuant to public law 101-624;

(7) to recommend that the secretary certify to the national board, established pursuant to public law 101-624, that assessments will be col- lected on all of the soybeans sold within the state;

(8) to recommend that the secretary certify to the national board, established pursuant to public law 101-624, that funds collected pursuant to the nationally established assessment will be remitted as required by the national board;

(9) to recommend that the secretary certify to the national board, established pursuant to public law 101-624, that requests for refunds will be honored; and

(10) to recommend that the secretary and division perform such other duties as may be necessary to comply with public law 101-624 per- taining to the national checkoff program for soybeans and any rules, reg- ulations or marketing orders promulgated or issued thereunder.

(b) Notwithstanding any provision of this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto, or other law to the contrary, any determination by the secretary regarding any rec- ommendation by a commission pursuant to subsection (a) may be dis- approved by a vote of 2/3 of the members of the commission but nothing herein shall be construed as authorizing such commission to abrogate, limit or otherwise affect the power of the secretary to administer and supervise the internal operations and management of the division de- partment of agriculture.

Sec./007006/K.S.A. 2-3006 is hereby amended to read as follows: 2-3006. The division secretary shall have the following duties, authorities and powers to:

(1) Implement and coordinate the policies and practices of each grain commission represented by it;

(2) sue and be sued;

(3) prosecute in the name of Kansas any suit or action for the collec- tion of the assessments provided under this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto;

(4) adopt rules and regulations deemed necessary for the exercise of its powers and the performance of its duties under this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto;

(5) hire, subject to the approval of a majority of the members of the commission affected, an administrator for such commission;

(6) hire such clerical and other personnel deemed necessary to carry out the provisions of this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto;

(7) establish recordkeeping requirements deemed necessary by the commodity commission affected; and

(8) inspect and audit any records required to be kept pursuant to this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amend- ments thereto.

Sec./007006/K.S.A. 1995 Supp. 2-3007 is hereby amended to read as follows: 2-3007. (a) There is hereby levied an assessment of five mills per bushel upon grain sorghum marketed through commercial channels in the state of Kansas. There is hereby levied an assessment of five mills per bushel upon corn marketed through commercial channels in the state of Kansas. There is hereby levied an assessment upon soybeans marketed through commercial channels in the state of Kansas. The soybean com- mission shall set the assessment at a rate of not more than 20 mills per bushel. The soybean commission shall not change the assessment rate, either to increase or reduce, more than once a year. Such assessment shall be levied and assessed to the grower at the time of sale, and shall be shown as a deduction by the first purchaser from the price paid in settlement to the grower. Under the provisions of this act, no corn, grain sorghum or soybeans shall be subject to the assessment more than once. The division secretary shall furnish to every first purchaser receipt forms which shall be issued by such first purchaser to the grower upon the payment of such assessment. The form shall indicate thereon the pro- cedure by which the grower may obtain a refund of any such assessment, except a refund shall not be issued unless the amount of the refund is $5 or more. Within one year after any and all sales during such period the grower may upon submission of a request therefor to the division secre- tary, obtain a refund in the amount of the assessments deducted by the first purchaser. Such request shall be accompanied by evidence of the payment of the assessments which need not be verified.

(b) The division secretary shall keep complete records of all refunds made under the provisions of this section. Records of refunds may be destroyed two years after the refund is made. All funds expended in the administration of this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto, and for the payment of all claims whatsoever growing out of the performance of any duties or activities pursuant to this act article 30 of chapter 2 of the Kansas Statutes Anno- tated, and amendments thereto, shall be paid from the proceeds derived from such assessment. In the case of a lien holder who is a first purchaser as defined herein, the assessment shall be deducted by the lien holder from the proceeds of the claim secured by such lien at the time the corn, grain sorghum or soybeans are pledged or mortgaged. The assessment shall constitute a preferred lien and shall have priority over all other liens and encumbrances upon such corn, grain sorghum or soybeans. The as- sessment shall be deducted and paid as herein provided whether such corn, grain sorghum or soybeans are stored in this or any other state.

(c) Any corn or grain sorghum acquired by a grower as defined in K.S.A. 2-3001, and amendments thereto, under the provisions of any fed- eral payment-in-kind (PIK) program shall be subject to the provisions of this section.

(d) No assessments for soybeans shall be collected pursuant to sub- section (a) while the national checkoff program for soybeans, established pursuant to public law 101-624, remains in effect. Collection of assess- ments pursuant to subsection (a) shall be reinstated upon the withdrawal of the national checkoff program for soybeans, established pursuant to public law 101-624.

Sec./007006/K.S.A. 2-3008 is hereby amended to read as follows: 2-3008. (a) Except as provided in K.S.A. 2-3012, and amendments thereto, the assessment hereby imposed shall on or before the 20th day of the calendar month following the date of settlement be paid by the purchaser to the division secretary. The division secretary shall issue a receipt to the pur- chaser therefor and shall remit all moneys received in payment of such assessment to the state treasurer at least monthly. Upon receipt of each such remittance the state treasurer shall deposit the entire amount thereof in the state treasury. Twenty percent of each such deposit shall be credited to the state general fund and the amount of the balance of each such deposit which is derived from the assessment of each respective grain shall be credited to the Kansas corn commission fund, the Kansas grain sorghum commission fund and the Kansas soybean commission fund, respectively. Money derived from the assessment of each respective grain shall be credited only to the fund established for such grain. When- ever refunds are made from the Kansas corn commission fund, the Kansas grain sorghum commission fund or the Kansas soybean commission fund, the amounts credited to the state general fund from subsequent deposits in the state treasury pursuant to this section shall be reduced by amounts which equal 20% of such refunds.

(b) All money so credited to the Kansas corn commission fund, Kan- sas grain sorghum commission fund and Kansas soybean commission fund shall be expended for the respective grain commissions in the adminis- tration of this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto, and for the payment of claims based upon ob- ligations incurred in the performance of the activities and functions set forth in this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto, and for no other purpose.

(c) All expenditures from such funds shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the director of the di- vision of markets of the state board of agriculture secretary for each re- spective grain commission or by a person or persons designated by the director secretary.

(d) Assessments collected pursuant to the national checkoff program for soybeans, established pursuant to public law 101-624 shall be depos- ited in the soybean promotion and research fee fund, created in K.S.A. 2-3013, and amendments thereto.

Sec. 19. K.S.A. 2-3009 is hereby amended to read as follows: 2-3009. If any assessment is not paid to the division secretary as provided in this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amend- ments thereto, or within 10 days thereafter, the lien thereby created shall be foreclosed after the expiration of such ten-day period in the district court of the county in which the grain was grown, or sold, or in which such grain may be found, or in which such grain may have been com- mingled with other like grain.

Sec. 20. K.S.A. 2-3013 is hereby amended to read as follows: 2-3013. (a) Any assessment collected pursuant to the national checkoff program for soybeans, established pursuant to public law 101-624, shall be paid to the division on or before the 20th day of the calendar year following the date of settlement and shall be paid by the purchaser of the soybeans to the division secretary. The division secretary shall issue a receipt to the purchaser and shall remit all moneys received in payment of such assess- ment to the state treasurer at least monthly. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount thereof in the state treasury. Twenty percent of that portion of each deposit that will be retained by the state soybean commission shall be credited to the state general fund pursuant to subsection (d)(4) of K.S.A. 75-3170a, and amendments thereto, and the amount of the balance of each deposit which is derived from the assessment shall be credited to the soybean promotion and research fee fund which is hereby created.

(b) Whenever refunds are made from the national checkoff program for soybeans, established pursuant to public law 101-624, such refunds shall be made as authorized by public law 101-624.

(c) All money so credited to the soybean promotion and research fee fund shall be expended for the soybean commission in the administration of the national checkoff program for soybeans, established pursuant to public law 101-624, the administration of this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto, and for the payment of claims upon obligations incurred in the performance of the activities and functions set forth in this act article 30 of chapter 2 of the Kansas Statutes Annotated, and amendments thereto, and for no other purpose.

(d) All expenditures made from these funds shall be in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the director of the di- vision of markets of the state board of agriculture secretary for the soy- bean commission or by a person or persons designated by the director secretary.

(e) The Kansas soybean commission shall have the ability to pay and transfer portions of the assessments collected pursuant to the national checkoff program for soybeans, established pursuant to public law 101- 624, to the national board as required.

Sec. 21. K.S.A. 74-531 is hereby amended to read as follows: 74-531. The state board of agriculture hereinafter referred to as ``the board'' sec- retary of agriculture may adopt rules and regulations necessary to carry out provisions of this act K.S.A. 74-532, 74-534, 74-535, 74-536, 74-538 and 74-539, and amendments thereto, and to make and promulgate stan- dards, both for receptacles and for the grade and classification of agri- cultural products, by which their identity, quantity, quality, and value may be determined, and recommend the same for voluntary use by producers, distributors, vendors and others as the standards, grades or classifications to be adopted for the marketing of same. Such standards, grades or clas- sifications shall not be lower in their requirements than the minimum requirements of the official standards for corresponding standards, grades and classifications commonly known as United States grades promulgated from time to time by the secretary of agriculture of the United States. Such rules and regulations shall be duly promulgated and filed as required by law.

Sec. 22. K.S.A. 74-532 is hereby amended to read as follows: 74-532. The grading and inspection services provided for in this act K.S.A. 74- 531, and amendments thereto, shall be furnished either independently or in cooperation with any federal or state agency, to any person, group of persons, partnership, firm, company, corporation or association engaged in the production, marketing or processing of farm products who requests such services for his or their such person's products when in the judgment of the director of marketing secretary, such services are warranted.

Sec. 23. K.S.A. 74-534 is hereby amended to read as follows: 74-534. The board secretary of agriculture is authorized to employ, license, or designate qualified persons to inspect and classify agricultural products, and to certify as to grade or classification of such products in accordance with the standards made effective under this act K.S.A. 74-531 and 74- 532, and amendments thereto, and shall fix, assess, and collect necessary and reasonable fees for such service. The state board secretary of agri- culture shall remit all moneys received by or for it under this section to the treasurer at least monthly. Upon receipt of any such remittance the state treasurer shall deposit the entire amount thereof in the state treasury and the same shall be credited to the market division fee fund. All ex- penditures from such fund shall be made in accordance with appropria- tion acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the board secretary of agriculture or by a person or persons designated by it the secretary.

Sec. 24. K.S.A. 74-551 is hereby amended to read as follows: 74-551. The secretary of the state board of agriculture may establish a grape growing and wine making advisory program to aid in the technology, promotion and marketing of Kansas grape growing and Kansas farm win- eries.

Sec. 25. K.S.A. 1995 Supp. 74-552 is hereby amended to read as follows: 74-552. (a) There is hereby established within the division of markets of the state board department of agriculture a grape and wine industry advisory council consisting of nine members who shall be ap- pointed by the secretary of agriculture. The membership of such council shall include:

(1) One member representing the college of agriculture at Kansas State University;

(2) two members representing the commercial grape growing indus- try;

(3) two members representing the licensed farm winery industry;

(4) one member representing the licensed wine distributors industry;

(5) one member representing the licensed retail liquor industry;

(6) one member representing the tourism industry of Kansas; and

(7) one member representing the public at large having experience in marketing.

(b) The members of the advisory council shall be appointed for terms as follows: (1) Four members shall be appointed for terms ending on June 30, 1995, and (2) five members shall be appointed for terms ending on June 30, 1996. After the expiration of the initial terms of such members all members shall be appointed for terms of two years. All vacancies shall be filled by appointment for the remainder of the unexpired term of the member creating the vacancy.

(c) The advisory council shall organize annually by the election from the council's membership a chairperson and a vice-chairperson. The ad- visory council shall adopt such rules of procedure as the council deems necessary for conducting the council's business.

Sec. 26. K.S.A. 1995 Supp. 74-553 is hereby amended to read as follows: 74-553. The grape and wine industry advisory council shall have the following duties, authorities and powers:

(a) Advise the state board department of agriculture and other state agencies on the grape and wine industry initiatives, problems and needs;

(b) determine and recommend specific research programs and pri- orities at Kansas state university;

(c) facilitate improved communication and interaction among grape and wine producers, wine and liquor wholesalers and retailers, govern- mental agencies, both federal and state, and state tourism interests;

(d) determine and recommend specific marketing program priorities to assist in promoting and marketing the state's grape and wine industry;

(e) develop and recommend a long-term plan for financing continued programs for promotion, marketing, research and extension in support of the Kansas grape and wine industry; and

(f) report to the state board department of agriculture and the stand- ing committees on agriculture of the senate and house of representatives on the status of the Kansas grape and wine industry.

New Sec. 27. The provisions of sections 1 through 11 shall be and hereby are abolished on July 1, 1998.

Sec. 28. K.S.A. 1995 Supp. 74-567 is hereby amended to read as follows: 74-567. (a) The state board of agriculture shall have such powers, duties and functions as prescribed by this section. The board shall serve in an advisory capacity to the governor and the secretary to review and make recommendations on department legislative initiatives and pro- posed rules and regulations or proposed revised rules and regulations prior to the submission of such rules and regulations to the secretary of administration pursuant to K.S.A. 77-420, and amendments thereto, other than rules and regulations pertaining to personnel matters of the depart- ment and rules and regulations of the division of water resources. The board shall not have any powers, duties or functions concerning the day- to-day operations of the department of agriculture.

(b) The board shall serve in an advisory capacity to the agriculture products development division of the department of commerce and hous- ing. The board shall advise the division on issues and concerns relating to agriculture products development and marketing.

(c) The agriculture products development division of the department of commerce and housing shall report to the board, at not less than two meetings of such board each year, on the activities and functions of the division.

Sec. 29. K.S.A. 2-2306, 2-3001, 2-3002, 2-3005, 2-3006, 2-3008, 2- 3009, 2-3013, 74-530, 74-531, 74-532, 74-533, 74-534, 74-540, 74-540a, 74-540b, 74-540c and 74-551 and K.S.A. 1995 Supp. 2-3007, 74-552, 74- 553, 74-567, 74-8117, 74-8118, 74-8119, 74-8120 and 74-8121 are hereby repealed.

Sec. 30. This act shall take effect and be in force from and after its publication in the statute book.

Approved May 11, 1996.