1110             1997 Session Laws of Kansas             Ch. 160

An Act abolishing the Kansas state grain inspection department; relating to the transfer of
duties and powers thereof; amending K.S.A. 34-101, 34-101c, 34-102, 34-111, 34-223,
34-227b, 34-229, 34-230, 34-230a, 34-230b, 34-231, 34-233, 34-235, 34-236, 34-238, 34-
241a, 34-246, 34-249a, 34-251, 34-257a, 34-273, 34-295a, 34-295b, 34-298, 34-299, 34-
2,104 and 34-2,110 and K.S.A. 1996 Supp. 34-101b, 34-125, 34-228, 74-4911f, 75-3170a
and 77-415 and repealing the existing sections; also repealing K.S.A. 34-101a, 34-101d,
34-102a, 34-104, 34-105, 34-106, 34-107, 34-110, 34-112a, 34-113, 34-121, 34-122, 34-
123, 34-124, 34-127, 34-224, 34-227 34-227a, 34-2,100, 75-1701, 75-1702, 75-1703, 75-
1704, 75-1706, 75-1709 and 75-1711 and K.S.A. 1996 Supp. 34-102b, 34-103a and
34-2,108.

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

New Section 1. On and after September 1, 1997:

(a) The Kansas state grain inspection department established by
K.S.A. 34-101 is hereby abolished.

(b) Except as otherwise provided by this act, all of the powers, duties
and functions of the Kansas state grain inspection department and the
director of the Kansas state grain inspection department concerning pub-
lic warehouses are hereby transferred to and conferred and imposed upon
the department of agriculture and the secretary of agriculture.

(c) Except as otherwise provided by this act, all of the powers, duties
and functions of the Kansas state grain inspection department and the
director of the Kansas state grain inspection department concerning grain
inspection are hereby governed by the grain inspection, packers, stock-
yards administration of the United States department of agriculture.

New Sec. 2. On and after September 1, 1997:

(a) Except as otherwise provided by this act, the department of ag-
riculture and the secretary of agriculture shall be the successor in every
way to the powers, duties and functions of the Kansas state grain inspec-
tion department and the director of the Kansas state grain inspection
department concerning public warehouses in which the same were vested
prior to the effective date of this section. Every act performed in the
exercise of such powers, duties and functions by or under the authority
of the department of agriculture and the secretary of agriculture shall be
deemed to have the same force and effect as if performed by the Kansas
state grain inspection department and the director of the Kansas state
grain inspection department, respectively, in which such powers, duties
and functions were vested prior to the effective date of this section.

(b) Except as otherwise provided by this act, whenever the Kansas
state grain inspection department, or words of like effect concerning pub-
lic warehouses, is referred to or designated by a statute, contract or other
document, such reference or designation shall be deemed to apply to the
department of agriculture.

Ch. 160             1997 Session Laws of Kansas             1111

(c) Except as otherwise provided by this act, whenever the director
of the Kansas state grain inspection department, or words of like effect
concerning public warehouses, is referred to or designated by a statute,
contract or other document, such reference or designation shall be
deemed to apply to the secretary of agriculture.

(d) All rules and regulations of the Kansas state grain inspection de-
partment and the director of the Kansas state grain inspection department
concerning public warehouses in existence on the effective date of this
section shall continue to be effective and shall be deemed to be duly
adopted rules and regulations of the secretary of agriculture until revised,
amended, revoked or nullified pursuant to law.

(e) All orders and directives of the Kansas state grain inspection de-
partment and the director of the Kansas state grain inspection department
concerning public warehouses in existence on the effective date of this
section shall continue to be effective and shall be deemed to be orders
and directives of the department of agriculture until revised, amended or
nullified pursuant to law.

(f) On the effective date of this act, the department of agriculture
shall succeed to whatever right, title or interest the Kansas state grain
inspection department has acquired in any real property in this state con-
cerning public warehouses, and the department shall hold the same for
and in the name of the state of Kansas. On and after the effective date
of this act, whenever any statute, contract, deed or other document con-
cerns the power or authority of the Kansas state grain inspection depart-
ment and the director of the Kansas state grain inspection department
concerning public warehouses to acquire, hold or dispose of real property
or any interest therein, the department of agriculture shall succeed to
such power or authority.

(g) The department of agriculture and the secretary of agriculture
shall be continuations of the Kansas state grain inspection department
and the director of the Kansas state grain inspection department con-
cerning public warehouses.

New Sec. 3. Except as otherwise provided in this act, on September
1, 1997, officers and employees who, immediately prior to such date, were
in positions engaged in the performance of powers, duties or functions
of the Kansas state grain inspection department concerning public ware-
houses which are transferred by this act, or who become a part of the
department of agriculture, or the powers, duties and functions of which
are transferred to the department of agriculture, and if, in the opinion of
the secretary of agriculture, those positions are necessary to perform the
powers, duties and functions of the department of agriculture concerning
public warehouses, shall be transferred to, and shall become officers and
employees of the department of agriculture. Any such officer or employee
shall retain all retirement benefits and all rights of civil service which had

1112             1997 Session Laws of Kansas             Ch. 160

accrued to or vested in such officer or employee prior to the effective
date of this section. The service of each such officer and employee so
transferred shall be deemed to have been continuous. All transfers of
personnel positions in the classified service under the Kansas civil service
act shall be in accordance with civil service laws and any rules and reg-
ulations adopted thereunder.

New Sec. 4. (a) Those positions in the grain inspection department
which, in the opinion of the secretary of agriculture, are not necessary to
perform the powers, duties and functions of the department of agriculture
concerning public warehouses shall be abolished upon September 1,
1997. Thirty-day notice prior to September 1, 1997, shall be given by the
secretary to employees in those positions determined to be unnecessary
by the secretary. No bumping rights shall attach to the positions deemed
unnecessary by the secretary of agriculture. No further action shall be
required in order to abolish these positions.

(b) The provisions of this section shall take effect on and after August
1, 1997.

New Sec. 5. On and after September 1, 1997:

(a) When any conflict arises as to the disposition of any power, func-
tion or duty or the unexpended balance of any appropriation as a result
of any abolition, transfer, attachment or change made by or under au-
thority of this act, such conflict shall be resolved by the governor, whose
decision shall be final.

(b) The department of agriculture shall succeed to all property and
records concerning public warehouses which were used for or pertain to
the performance of the powers, duties and functions transferred to the
department of agriculture. Any conflict as to the proper disposition of
property or records arising under this section, and resulting from the
transfer or attachment of any state agency, or all or part of the powers,
duties and functions thereof, shall be determined by the governor, whose
decision shall be final.

New Sec. 6. On and after September 1, 1997:

(a) The department of agriculture shall have the legal custody of all
records, memoranda, writings, entries, prints, representations or combi-
nations thereof of any act, transaction, occurrence or event of the Kansas
state grain inspection department concerning public warehouses and any
agency or office transferred thereto under this act.

(b) No suit, action or other proceeding, judicial or administrative,
lawfully commenced, or which could have been commenced, by or against
any state agency 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

Ch. 160             1997 Session Laws of Kansas             1113

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.

(c) 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. 7. On and after September 1, 1997:

(a) The balance of all funds appropriated and reappropriated to the
Kansas state grain inspection department concerning public warehouses
is hereby transferred to the department of agriculture and shall be used
only for the purpose for which the appropriation was originally made.

(b) The liability for all accrued compensation or salaries of officers
and employees who, immediately prior to such date, were engaged in the
performance of powers, duties or functions of the Kansas state grain in-
spection department concerning public warehouses, or who become a
part of the department of agriculture, or the powers, duties and functions
of which are transferred to the department of agriculture, shall be as-
sumed and paid by the department of agriculture.

New Sec. 8. (a) On and after September 1, 1997, the department of
agriculture shall succeed to whatever right, title or interest the Kansas
state grain inspection department has acquired in any property in this
state concerning grain inspection, including equipment and supplies from
the protein laboratories and inspection laboratories. The director of Kan-
sas correctional industries, or the director's designee, pursuant to the
director's duties as operator of the state surplus property program, shall
place a fair market value on such property. Upon receipt of such fair
market value, the secretary shall offer for sale, at the fair market value,
all property acquired in such transfer in a single lot to the entity that has
been designated by the grain inspection, packers and stockyards admin-
istration as the official agency pursuant to the United States grain stan-
dards act. If such designated agency declines to purchase such property,
the secretary shall offer for sale such property to the general public. All
revenue received pursuant to such sale shall be deposited in the state
treasury and credited to the grain inspection fee fund.

(b) On September 1, 1997, the grain inspection fee fund and all
records of the grain inspection fee fund are hereby transferred to the
secretary of agriculture for the purposes of this section.

(c) On and after September 1, 1997, all expenditures from the grain
inspection fee fund shall be made in accordance with appropriation acts
upon warrants of the director of accounts and reports issued pursuant to
vouchers approved by the secretary of agriculture or the secretary's des-
ignee. On and after September 1, 1997, the secretary of agriculture shall
pay all outstanding liabilities of the grain inspection fee fund as evidenced
by encumbrances of moneys credited to the grain inspection fee fund.
After such payment of all outstanding liabilities of the grain inspection
fee fund, the secretary of agriculture shall transfer the amount of money

1114             1997 Session Laws of Kansas             Ch. 160

equal to the amount of money credited to the grain inspection fee fund
on December 1, 1993, from the grain inspection fee fund to the ware-
house fee fund, created in K.S.A. 34-101, and amendments thereto. The
remaining moneys credited to the grain inspection fee fund shall be main-
tained in such fund. Such moneys shall be expended only if necessary to
reestablish or designate a state agency pursuant to statute to perform the
duties and functions of grain inspection. On or before the 10th of each
month, the director of accounts and reports shall transfer from the state
general fund to the warehouse fee fund interest earnings based on:

(1) The average daily balance of moneys in the grain inspection fee
fund for the preceding month; and

(2) the net earnings rate of the pooled money investment portfolio
for the preceding month.

(d) The secretary may maintain the leases of the grain inspection
department until October 1, 1997.

New Sec. 9. On and after July 1, 1997, the secretary of agriculture
may adopt rules and regulations necessary for the administration and
enforcement of the provisions of this act, and amendments thereto.

Sec. 10. On and after July 1, 1997, K.S.A. 34-101 is hereby amended
to read as follows: 34-101. (a) A state department of record to be desig-
nated as the Kansas state grain inspection department is hereby estab-
lished. Such department shall have exclusive control of the official sam-
pling, inspection, grading, weighing and protein analysis and the
certification of grades, weights, and protein content of all grain at all
places where inspection stations are now or may hereafter be established.
The certificates issued by the department shall be conclusive evidence to
all parties interested and shall form the basis of all settlements between
the buyer and seller, unless an appeal is taken therefrom, in the manner
provided by law, and all freight charges shall be based on the official state
weights.

(b) The department of agriculture shall have supervision and regu-
lation of all warehouses operated under the Kansas public warehouse laws
relating to storage of grain. Such department is authorized and empow-
ered by and with the consent of the governor to establish, maintain and
operate inspection stations covering all or any part of its service at great
railway terminals and points where organized grain markets are regularly
maintained, and at other points where operating costs are guaranteed by
special arrangements with the industries served, or the managing officers
in charge. Where great railroad terminals lie partly within the state of
Kansas and partly in an adjoining state and a larger part of the depart-
ment's service at such terminal is for the account of firms having offices
in such adjoining state, it shall be lawful for the department to maintain
and operate an inspection station covering part or all of its services in
such adjoining state. No sampling or weighing of grain shall be done by

Ch. 160             1997 Session Laws of Kansas             1115

the department outside of the state of Kansas, except as provided in
K.S.A. 34-101d, and amendments thereto. Such stations shall be located
as conveniently to the interest served as practicable. The owner may di-
rect that such owner's grain may not be inspected by writing or stamping
upon the bill of lading thereof, ``no inspection desired'' or words to that
effect.

(c) (b) The department of agriculture shall have the authority to co-
operate with any private entity or organization or local, state or national
organization or agency, whether voluntary or created by the law of any
state, or by national law, engaged in work or activities similar to the work
and activities of the department, and to enter into contracts and agree-
ments with such entities, organizations or agencies for carrying on a joint
campaign of development, education and publicity.

(d) (c) No provision of this section shall be construed to prohibit or
prevent either the secretary of the state board of agriculture or the state
sealer or any of their respective or any authorized representatives from
inspecting any weighing or measuring device or otherwise performing any
of their the secretary's duties pursuant to any provision of chapter 83 of
Kansas Statutes Annotated, and amendments thereto.

(d) (1) There is hereby created the warehouse fee fund in the state
treasury. The secretary shall remit all moneys received by or for the sec-
retary from fees, charges or penalties 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 credited to the
warehouse fee fund. All expenditures from such fund 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
or by a person or persons designated by the secretary.

(2) On or before the 10th of each month, the director of accounts and
reports shall transfer from the state general fund to the warehouse fee
fund interest earnings based on:

(A) The average daily balance of moneys in the warehouse fee fund
for the preceding month; and

(B) the net earnings rate of the pooled money investment portfolio for
the preceding month.

Sec. 11. On and after September 1, 1997, K.S.A. 1996 Supp. 34-101b
is hereby amended to read as follows: 34-101b. (a) The director of the
Kansas state grain inspection department, with the approval of the state
grain advisory commission and the governor, secretary of agriculture is
authorized and empowered to enter into contracts and agreements nec-
essary to cooperate with the commodity credit corporation, a public cor-
poration organized under the laws of the United States or other federal
agencies to make uniform the procedures followed in examining state
licensed public grain warehouses and to make available to the commodity

1116             1997 Session Laws of Kansas             Ch. 160

credit corporation or other federal agencies the information acquired un-
der such examining procedures by state warehouse examiners.

(b) The director of the Kansas state grain inspection department sec-
retary of agriculture is authorized and empowered to enter into contracts
and agreements necessary to cooperate with governmental agencies of
this state, other states, agencies of the federal government and private
associations in order to carry out the purpose and provisions of this chap-
ter and the United States warehouse act, 7 U.S.C.A., section 241, et seq.
Notwithstanding any other provisions of this chapter, such agreements
may relate to a joint program for licensing, and bonding and inspecting
stations. Such a program may be designed to avoid duplication of effort
on the part of the licensing authority and requirements for operation, and
promote more efficient enforcement of the provisions of this chapter and
comparable provisions of the laws of the states of Nebraska, Colorado,
Missouri and Oklahoma.

Sec. 12. On and after September 1, 1997, K.S.A. 34-101c is hereby
amended to read as follows: 34-101c. Such Any contracts entered into
pursuant to K.S.A. 34-101b, and amendments thereto, may provide for
reimbursement to the state grain inspection department of agriculture by
the commodity credit corporation for such services so performed and
furnished, and any money received pursuant to the terms of such con-
tracts shall be deposited in the grain inspection fee warehouse fee fund.

Sec. 13. On and after September 1, 1997, K.S.A. 34-102 is hereby
amended to read as follows: 34-102. (a) The director secretary shall:

(1) Generally supervise the inspection, sampling, sampling for in-
spection and weighing of grain, as required by law;

(2) supervise the handling, inspection, sampling, sampling for in-
spection, weighing, protein analysis and storage of grain;

(3) Adopt any rules and regulations necessary to enforce the laws of
this state relating to inspection, sampling, sampling for inspection, weigh-
ing, protein analysis and storage of grain and management of public ware-
houses;

(4) keep proper records of all the inspection, sampling, sampling for
inspection, protein analysis and weighing done in and out of warehouses
licensed by law to do business in this state, for which purpose the director
shall provide books, blanks and other material needed in order to keep
perfect and proper records;

(5) (2) investigate all complaints of, and to the extent possible correct
occurrences of, fraud or oppression in the grain trade; and

(6) (3) investigate and, at the director's secretary's discretion, monitor
a grain handling facility when the director secretary believes it is operating
as a public grain warehouse without a valid federal or state warehouse
license.

Ch. 160             1997 Session Laws of Kansas             1117

(b) No person or entity shall have charge of weighing or issue official
certificates of weight on grain at any point within the state except:

(1) Private industries for the purpose of making settlement with their
own customers; and

(2) officials or employees of the Kansas state grain inspection de-
partment, on the regular form of weight certificates adopted and ap-
proved by the director.

(c) All scales over which official state weights of carlots of grain are
taken shall be equipped with type-registering beams or electronic print-
out tape, in order that an original punched scale ticket may be taken of
each draft weighed. The original punched scale ticket shall become the
property of the Kansas state grain inspection department, and shall be
filed as a record of the weight.

(d) No person or entity shall install or continue to maintain at any
elevator, mill or warehouse where official state weights are given any
blower, suction fan, cleaner or other device for the purpose of removing
dirt, seeds, sticks, chaff or similar substances from grain unloaded into
the elevator, mill or warehouse before the grain has been officially
weighed.

(e) No person shall in any manner change or alter an official state
inspection or weight certificate after it has been issued.

(f) If an official state weight certificate has been issued on any lot of
grain, the purchaser must make settlement on the basis of the amount of
grain shown on that weight certificate.

(g) Violation of any provision of this section is a class B misdemeanor.

(h) (c) No provision of this section shall be construed to prohibit or
prevent either the secretary of the state board of agriculture or the state
sealer or any of their respective the secretary's authorized representatives
from inspecting any weighing or measuring device or otherwise perform-
ing any of their the secretary's duties pursuant to any provision of chapter
83 of Kansas Statutes Annotated, and amendments thereto.

Sec. 14. On and after September 1, 1997, K.S.A. 34-111 is hereby
amended to read as follows: 34-111. (a) The attorney general of the state
of Kansas shall be attorney ex officio for the director and shall give the
director such counsel and advice as the director requires. The attorney
general shall institute and prosecute all suits which the director deems
expedient and proper to institute and shall render to the director all coun-
sel, advice and assistance necessary to carry out the provisions of this act.

(b) The director secretary shall have the duty to report in writing to
the attorney general and to the county or district attorney of the county
where the grain warehouse is located:

(1) Any finding by an examiner of the department that there is a
substantial shortage in the amount of grain in a grain warehouse and that
the shortage is not adequately accounted for; and

1118             1997 Session Laws of Kansas             Ch. 160

(2) any complaint which is referred to the director secretary pursuant
to K.S.A. 34-124 34-121 and amendments thereto and which the director
secretary reasonably believes is a basis for prosecution.

(c) (b) In any criminal prosecution against a warehouseman for a vi-
olation of any provision of this act, it shall be the duty of the attorney
general to prosecute the suit to a final determination. Upon request by
the attorney general, the county or district attorney of the county or dis-
trict where the suit is being prosecuted shall assist the attorney general
in the prosecution.

Sec. 15. On and after September 1, 1997, K.S.A. 1996 Supp. 34-125
is hereby amended to read as follows: 34-125. (a) The commission sec-
retary, prior to June 1 each year, shall determine a schedule of maximum
and minimum charges to be made by public grain warehouses, licensed
under the laws of the state of Kansas, for the storage of grain and for such
other and extraordinary services performed or to be performed by such
licensed public grain warehousemen during the ensuing license year.
Such charges made by such warehouse shall be filed with the Kansas grain
inspection department of agriculture and such warehouse shall not be
required to refile such charges unless such warehouse is changing such
charges that are posted or until such time that the charges are changed
by the commission and the director. Upon determining such schedule of
maximum and minimum charges, the commission shall recommend to
the director the adoption of such maximum and minimum charges, but
the director may increase or decrease any or all of such charges as the
director shall deem necessary in the public interest. Any or all of such
maximum or minimum charges, as may be increased or decreased by the
director, may be restored to the original maximum and minimum charges
as recommended by the commission, if such restoration is approved by a
vote of at least four members of such commission at a regular meeting
or a special meeting called as provided in K.S.A. 34-123, and amendments
thereto secretary.

(b) If any of such charges be changed from those previously in effect
the director secretary shall notify all currently licensed public warehouse-
men of such schedule of maximum and minimum charges, except that in
case the commission overrides increases or decreases in such schedule by
the director and restores the original maximum and minimum charges as
determined by the commission, then the director shall notify all currently
licensed public warehousemen of such restored schedule of maximum
and minimum charges within five days after the action of the commission
restoring the original schedule.

Sec. 16. On and after September 1, 1997, K.S.A. 34-223 is hereby
amended to read as follows: 34-223. In this act, unless the context or
subject matter otherwise requires, the following words and phrases have

Ch. 160             1997 Session Laws of Kansas             1119

the meanings ascribed thereto in this section. As used in chapter 34 of
Kansas Statutes Annotated, and amendments thereto:

(a) ``Action'' includes counterclaim, setoff and suit in equity.

(b) ``Delivery'' means voluntary transfer of possessions from one per-
son to another.

(c) ``Fungible grain'' means grain of which any unit is, from its nature
or by mercantile custom, treated as the equivalent of any other unit.

(d) ``Grain'' means wheat, corn, oats, barley, rye, soybeans, grain sor-
ghums and any grains upon which federal grain standards are established,
also seeds generally stored by warehouses, if special permission is granted
by the director secretary.

(e) ``Holder of a receipt'' means a person who has both actual pos-
session of such receipt and a right of property therein.

(f) ``Order'' means an order by endorsement of the receipt.

(g) ``Owner'' does not include mortgagee or pledgee.

(h) ``Person'' includes individuals, corporations, partnerships and all
associations of two or more persons having a joint or common interest.

(i) ``To purchase'' includes to take as mortgagee or pledgee.

(j) ``Receipt'' means a warehouse receipt or receipts.

(k) ``Value'' means any consideration sufficient to support a simple
contract and includes an antecedent or preexisting obligation, whether
for money or not, where a receipt is taken either in satisfaction thereof
or as security therefor.

(l) ``Public warehouseman'' means a person lawfully engaged in the
business of storing grain for the public.

(m) ``Public warehouse'' or ``public grain warehouse'' means every
elevator or other building in which grain is received for storage or transfer
for the public.

(n) ``Secretary'' means the secretary of agriculture.

(o) ``Department'' means the department of agriculture.

(p) ``Grain bank grain'' means any grain that has been received into
any public warehouse to be held for the account of the depositor and
returned to the depositor at a later date either as whole or processed grain.

(q) ``Storage grain'' or ``stored grain'' means grain that has been re-
ceived in any public warehouse located in this state, and such grain is not
purchased by the lessee, owner or manager of such warehouse.

Sec. 17. On and after September 1, 1997, K.S.A. 34-227b is hereby
amended to read as follows: 34-227b. Grain bank grain shall be consid-
ered as storage grain as defined in K.S.A. 34-227 and shall be subject to
the laws and rules and regulations pertaining thereto until such time as
said such grain is either processed or removed from the warehouse. The
director secretary is authorized to adopt and enforce reasonable rules and
regulations necessary in the conduct of grain bank operations in public
warehouses.

1120             1997 Session Laws of Kansas             Ch. 160

Sec. 18. On and after September 1, 1997, K.S.A. 1996 Supp. 34-228
is hereby amended to read as follows: 34-228. (a) Any person desiring to
engage in business as a public warehouseman in this state shall, before
the transaction of any such business, make written application to the di-
rector of the Kansas state grain inspection department secretary for a
license for each separate warehouse (or, if the applicant owns more than
one warehouse at one point, all of such warehouses may be incorporated
in one application) at which the person desires to engage in such business.
The application for a license shall be on a form designated by the director
secretary and shall contain the individual name and address of each per-
son interested as principal in the business (and, if the business is operated
or to be operated by a corporation, setting forth the names of the presi-
dent and secretary) and such further information as the director secretary
may require.

(b) (1) Every application for a public warehouse license shall be ac-
companied by a current financial statement. The statement shall include
such information as required by the director secretary to administer and
enforce the public warehouse laws of this state, including but not limited
to a current balance sheet, statement of income (profit and loss), state-
ment of retained earnings and statement of changes in financial position.
The applicant shall certify under oath that the statement as prepared
accurately reflects the financial condition of the applicant as of the date
specified and presents fairly the results of operations of the applicant's
public warehouse business for the period specified. The financial state-
ment shall be prepared in accordance with generally accepted accounting
principles and shall be accompanied by: (A) A report of audit or review
conducted by an independent certified public accountant or an inde-
pendent public accountant in accordance with standards established by
the American institute of certified public accountants and the account-
ant's certifications, assurances, opinions, comments and notes with re-
spect to the statement; or (B) a compilation report of the financial state-
ment, prepared by a grain commission firm or management firm which
is authorized pursuant to rules and regulations of the federal commodity
credit corporation to provide compilation reports of financial statements
of warehousemen.

(2) The director secretary, upon request of an applicant, may grant
a waiver of the requirements of this subsection for a period of not more
than 30 days if the applicant furnishes evidence of good and substantial
reasons for the waiver.

(c) (1) Every applicant for a license to operate one or more public
warehouses and every person licensed to operate one or more warehouses
shall at all times maintain total net worth liable for the payment of any
indebtedness arising from the conduct of the warehouse or warehouses
equal to at least $.25 per bushel of the storage capacity of the warehouse
or warehouses except: (A) No person shall be granted a license or shall

Ch. 160             1997 Session Laws of Kansas             1121

continue to be licensed unless the person has a net worth of at least
$25,000 and (B) any deficiency in net worth required above the $25,000
minimum may be supplied by an increase in the amount of the applicant's
or licensee's bond as provided by K.S.A. 34-229 and amendments thereto.

(2) In determining total net worth: (A) Credit may be given for in-
surable property such as buildings, machinery, equipment and merchan-
dise inventory only to the extent that the property is protected by insur-
ance against loss or damage by fire and (B) capital stock, as such, shall
not be considered a liability.

(d) No license shall be issued to a person or entity not previously
licensed in this state and making application for an original license who,
in this state or any other jurisdiction, within the 10 years immediately
prior to the date of the application of the person or entity for a license,
has been convicted of or has pleaded guilty or nolo contendere to any
crime which would constitute:

(1) Embezzlement;

(2) any felony defined in any statute contained in article 37 of chapter
21 of the Kansas Statutes Annotated and amendments thereto;

(3) unauthorized delivery of stored goods;

(4) any felony defined in any statute contained in chapter 34 of the
Kansas Statutes Annotated and amendments thereto; or

(5) a violation of the United States warehouse act (7 U.S.C. 241 et
seq.).

(e) The director secretary may investigate any applicant making ap-
plication for an original license for the purpose of determining if such
person would be qualified to receive such license under the provisions of
this section.

(f) (1) Every application for a public warehouse license shall be ac-
companied by a license fee which shall be determined and fixed by the
director secretary by rules and regulations. Prior to determining and fix-
ing the license fees, the director shall consider recommendations thereon
by the state grain advisory commission. The license fee shall not be more
than the applicable amount shown in the following fee schedule plus not
more than $500 for each functional unit:

      Capacity in Bushels                                           ANNUAL FEE
                                                                     Not more
                                                                        than
1 to 100,000...........................................................  $500
100,001 to 150,000.....................................................   525
150,001 to 250,000.....................................................   550
250,001 to 300,000.....................................................   600
300,001 to 350,000.....................................................   625
350,001 to 400,000.....................................................   650
400,001 to 450,000.....................................................   700
450,001 to 500,000.....................................................   725
500,001 to 600,000.....................................................   775

1122             1997 Session Laws of Kansas             Ch. 160

600,001 to 700,000.....................................................   800
700,001 to 800,000.....................................................   850
800,001 to 900,000.....................................................   875
900,001 to 1,000,000...................................................   900
1,000,001 to 1,750,000................................................. 1,225
1,750,001 to 2,500,000................................................. 1,400
2,500,001 to 5,000,000................................................. 1,750
5,000,001 to 7,500,000................................................. 2,100
7,500,001 to 10,000,000................................................ 2,375
10,000,001 to 12,500,000............................................... 2,600
12,500,001 to 15,000,000............................................... 2,800
15,000,001 to 17,500,000............................................... 3,000
17,500,001 to 20,000,000............................................... 3,225
For each 2,500,000 bushels or fraction over 20,000,000 bushels.........   350

(2) Whenever a licensed warehouseman purchases or acquires addi-
tional facilities, the warehouseman, if otherwise qualified, may acquire a
license for the remainder of an unexpired license period by paying to the
director secretary a license fee computed as follows: If the unexpired
license period is nine months or more, the annual fee; if the unexpired
license period is more than six months and less than nine months, 75%
of the annual fee; if the unexpired license period is more than three
months and not more than six months, 50% of the annual fee; and if the
unexpired license period is three months or less than three months, 25%
of the annual fee.

(3) In addition to any other applicable fee, the director secretary shall
charge and collect a fee each time a public warehouse license is amended
in an amount of not more than $300 which shall be determined and fixed
by the director secretary by rules and regulations.

(4) Nothing in this subsection shall be construed to authorize a refund
for any unused portion of an issued license.

(g) The director secretary shall examine each warehouse operated by
a licensed public warehouseman at least once in each 12-month period.
The licensed public warehouseman may request additional examinations
of any warehouse operated by the warehouseman. The cost of additional
examinations when requested by the warehouseman shall be charged to
the warehouseman requesting the examination. The cost of each addi-
tional examination requested by a warehouseman shall be an amount
determined therefor in accordance with an hourly rate fixed by the di-
rector secretary of not more than $50 per hour, subject to a minimum
charge of four hours for the examination, plus amounts for subsistence
expense at the rate fixed under K.S.A. 75-3207a and amendments thereto
and for mileage expense in accordance with the schedule of charges es-
tablished under K.S.A. 75-4607 and amendments thereto. The director
secretary, at the director's secretary's discretion, may make additional
examinations of a warehouse and if a discrepancy is found on that ex-
amination, or if one was found on the last previous examination, the cost
of the examination shall be paid by the warehouseman.

Ch. 160             1997 Session Laws of Kansas             1123

(h) When the director secretary authorizes a grain handling facility
to be physically monitored, pursuant to paragraph (6) of subsection (a)
(3) of K.S.A. 34-102, and amendments thereto, the cost and expenses of
the monitoring shall be paid by the owner of the facility at the same rates
fixed in subsection (g).

(i) As used in this section, ``functional unit'' means a public warehouse
which has the capacity to store, weigh in and weigh out grain. Any outlying
storage facility which is not a functional unit shall have its storage capacity
included as part of the combined capacity of the warehouseman's nearest
functional unit.

Sec. 19. On and after September 1, 1997, K.S.A. 34-229 is hereby
amended to read as follows: 34-229. (a) Every applicant for a public ware-
house license shall promptly, upon notification by the director secretary
of the amount of bond required, file with the director secretary a bond
with good corporate surety qualified under the laws of the state of Kansas.
The amount of the bond to be furnished for each warehouse shall be $.20
per bushel for the first 1,000,000 bushels of licensed capacity; $.15 per
bushel for the next 1,000,000 of licensed capacity; and $.10 per bushel
for all licensed capacity over 2,000,000 bushels. Except as provided fur-
ther, in no event shall the bond be for an amount less than $10,000 nor
more than $500,000.

(b) If an applicant for a license or a licensee at any time does not
have the total net worth required by K.S.A. 34-228 and amendments
thereto, an amount equal to the deficiency shall be added to the amount
of the bond required by subsection (a).

(c) The bond shall be in favor of the state of Kansas for the benefit
of all persons interested, their legal representatives, attorneys or assigns
and shall be conditioned on the faithful performance of all the licensee's
duties as a public warehouseman and such additional obligations as as-
sumed by the warehouseman under contracts with a federal agency re-
lating to storage of grain in each warehouse. Any person injured by the
breach of any obligation of the warehouseman may commence suit on
the bond in any court of competent jurisdiction to recover damages that
the person has sustained, but any suit commenced shall either be a class
action or shall join as parties plaintiff or parties defendant or other persons
who may be affected by such suit on the bond. No bond shall be canceled
by the surety on less than 60 days' notice by mail to the director secretary
and the principal except that no such notice shall be required for can-
cellation of any bond by reason of nonpayment of the premium thereon.
The liability of the surety on the bond may continue for each successive
license period the bond covers. The total liability of the surety shall be
limited to the amount stated on the current bond or on an appropriate
rider or endorsement to the current bond. It is the intent of this statute

1124             1997 Session Laws of Kansas             Ch. 160

that the bonds be nonaccumulative, that stacking of bonds not occur in
excess of the face value of the current bond.

(d) If a person applies for licenses for two or more separate public
warehouses in this state, the person may give a single bond covering all
the applications, and the amount of the bond shall be the total amounts
which would be required for the applications if separate bonds were
given. In computing the amount of the single bond the warehouseman
may add together the capacity of all warehouses to be covered by the
bond and use the aggregate capacity for the purpose of computing the
bond. If a warehouseman elects to provide a single bond for a number
of warehouses, the total assets of all the warehouses shall be subject to
liabilities of each individual warehouse.

(e) Whenever the director determines that any bond given by any
warehouseman is inadequate and insufficient security against any loss that
might arise under the terms of the bond, the director secretary shall
require any additional bond that the director secretary considers neces-
sary to provide adequate security. If the director secretary considers the
financial condition of the surety upon any warehouseman and the ware-
houseman's bond to be impaired, the director secretary shall require any
substituted or additional bond that the director secretary considers nec-
essary.

(f) In all actions hereafter commenced in which judgment is rendered
against any surety company on any surety bond furnished under the pro-
visions of this section, if it appears from the evidence that the surety
company has refused without just cause to pay the loss upon demand,
the court shall allow the plaintiff a reasonable sum as attorney fees to be
recovered and collected as a part of the costs. When a tender is made by
the surety company before the commencement of the action in which
judgment is rendered and the amount recovered is not in excess of the
tender, no such costs shall be allowed.

(g) Each licensed public warehouseman shall obtain a certificate set-
ting forth the amount and terms of the bond filed with the director sec-
retary pursuant to this section, the name of the corporate surety therefor
and such other information as the director secretary may prescribe by
rules and regulations. The certificate of bond information shall be posted
in a conspicuous place in the office room of the licensed warehouse,
adjacent to the license posted as required by K.S.A. 34-230 and amend-
ments thereto, at all times during the operation of the warehouse.

(h) Transaction of any public warehouse business at any public ware-
house without having the certificate of bond information displayed in the
office room of the public warehouse as required by this section is a class
C nonperson misdemeanor.

Sec. 20. On and after September 1, 1997, K.S.A. 34-230 is hereby
amended to read as follows: 34-230. (a) Upon receiving the application

Ch. 160             1997 Session Laws of Kansas             1125

and financial statement required by this act, the director of the state grain
inspection department secretary shall make an investigation and inspec-
tion of the warehouse or warehouses covered by the application. The
director secretary may issue a license to the applicant if:

(1) The applicant furnishes the bond required by this act;

(2) the warehouse or warehouses are found suitable for the proper
storage of grain for which a license is applied for; and

(3) the applicant complies with all requirements for licensure pre-
scribed by this act and rules and regulations adopted under this act.

(b) Every license shall be dated and shall designate the name of the
licensee and the location of the licensed warehouse or warehouses.

(c) Each license shall expire one year from the date of its issuance
except that, for the purpose of equitably distributing application dates of
warehouse licenses throughout each calendar year, the director secretary
may issue licenses for periods longer than one year but not longer than
two years. Licenses for periods longer than one year shall be charged the
annual license fee, plus a monthly fee in proportion to the annual license
fee for the number of months the license is issued beyond one year.

(d) Any licensee making application for renewal of a license shall
submit the application, together with the licensee's financial statement
and any additional information required, at least 30 days prior to the date
of expiration of the licensee's current license. For each day that the li-
censee is late in submitting the application and required information, the
licensee shall be penalized an additional fee of $5.

(e) The license shall be posted in a conspicuous place in the office
room of the licensed warehouse at all times during the operation of the
warehouse.

(f) If a licensee is convicted of any violation of the provisions of this
act or if the director secretary determines that a licensee does not comply
with any requirement for licensure or has violated any provision of this
act or of the rules and regulations adopted under this act, the director
secretary may at the director's secretary's discretion suspend or revoke
the license of the licensee. All proceedings for the suspension or revo-
cation of licenses shall be conducted in accordance with the provisions of
the Kansas administrative procedure act.

(g) The licensee, if dissatisfied with the order of the director secre-
tary, may appeal in the manner provided by law.

Sec. 21. On and after September 1, 1997, K.S.A. 34-230a is hereby
amended to read as follows: 34-230a. The director secretary shall have
power in the conduct of any hearing authorized to be held by him or her
the secretary to examine, or cause to be examined, under oath, any per-
son, and to examine or cause to be examined, books and records of any
licensee; to hear testimony and take proof material for his or her the
secretary's information in the discharge of such duties under this act; to

1126             1997 Session Laws of Kansas             Ch. 160

administer or cause to be administered oaths; and for any such purposes
to issue subpoenas, to require the attendance of witnesses and the pro-
duction of books which shall be effective in any part of this state; and.
Any district court, or any judge thereof, either in term time or in vacation,
may by order duly entered, require the attendance of witnesses and the
production of relevant books and records subpoenaed by the director,
and secretary. The court or judge may compel obedience to its or his or
her the court's or judge's order by proceedings for contempt.

Sec. 22. On and after September 1, 1997, K.S.A. 34-230b is hereby
amended to read as follows: 34-230b. The director secretary may enjoin
a warehouseman from violating or continuing to violate the provisions of
chapter 34 of the Kansas Statutes Annotated, and acts amendatory thereof
or supplemental amendments thereto, and the rules and regulations
adopted by the director secretary pursuant to said such laws by filing
injunction proceedings in the district court and. In any such proceedings
the district court, if it deems it proper, may order such warehouseman to
not receive any more grain into such warehouse or to deliver any grain
therefrom except as the court by its order shall direct. Such injunction
proceeding shall be prosecuted by the attorney general or the county
attorney of the proper county upon request of the director secretary.

Sec. 23. On and after September 1, 1997, K.S.A. 34-231 is hereby
amended to read as follows: 34-231. (a) Transaction of any public ware-
house business at any public warehouse without a currently valid public
warehouse license for that warehouse or without having the license dis-
played in the office room of the warehouse is a class C misdemeanor.

(b) The director secretary may refuse to renew any license or grant
a new one to any person whose license has been revoked within one year
from the time of the revocation.

Sec. 24. On and after September 1, 1997, K.S.A. 34-233 is hereby
amended to read as follows: 34-233. (a) Every public warehouseman shall
receive for storage or shipment, so far as the available capacity of the
warehouse shall permit, all grain in a suitable condition for storage ten-
dered to the warehouseman in the usual course of business, without dis-
crimination of any kind. A representative sample of grain offered for stor-
age shall be taken and agreed upon both by the owner and the
warehouseman as being a true and representative sample of the lot of
grain offered for storage.

(b) If the owner of the grain and the warehouseman agree as to the
grade, the grain may be stored and warehouse receipt issued on the
agreed grade, but either party shall have an official inspection if such
party so elects at the time of storing the grain by submitting an agreed
sample to an inspector designated by the director secretary. The fees for
the inspection of such sample shall be paid by the warehouseman and
added to the storage charges of the grain.

Ch. 160             1997 Session Laws of Kansas             1127

(c) All grain taken into a public warehouse shall be carefully weighed
by the warehouseman or one of the warehouseman's employees and a
certificate of weight in the form approved by the director secretary shall
be issued and the weight so shown by the certificate shall be stated on
the warehouse receipt. When grain is delivered out of storage at a public
warehouse and if either of the parties to the transaction requests or if any
dispute or disagreement arises between the party receiving and the party
delivering the grain, the same method of determining the grade shall be
used as prescribed for taking grain into storage. Any warehouseman de-
siring to issue warehouse receipts against the warehouseman's own grain
in store may do so by complying with the regulations governing the meth-
ods of taking samples of grain tendered for storage and the director sec-
retary may designate the manner in which a sample shall be taken if grain
is delivered on warehouse receipts at the public warehouses.

Sec. 25. On and after September 1, 1997, K.S.A. 34-235 is hereby
amended to read as follows: 34-235. The owner, operator or manager of
any public warehouse before being licensed under the laws of this state
to conduct a grain warehouse shall file with the director secretary a sched-
ule of charges to be made by such owner, operator or manager for storage
of grain if licensed. The director secretary shall have authority to deter-
mine whether such schedule of charges is reasonable and proper, but in
no case shall such schedule of charges filed by a local public warehouse
be less than the schedule of minimum charges or exceed the schedule of
maximum charges as established by the commission and the director sec-
retary pursuant to the provisions of K.S.A. 34-125, and amendments
thereto.

The amount to be charged for storage of grain as listed on the ware-
houseman's schedule of charges filed with the director secretary as her-
einabove provided shall include the cost of receiving, unloading, loading,
insuring, handling (except extraordinary handling), storage and delivery
of grain and no additional or special charge shall be made for any such
services. Any licensee may change such licensee's schedule of charges by
sending the proposed new schedule to the director secretary in writing
and shall state the reasons therefor. It shall be unlawful for any public
warehouseman to assess any charge other than those charges listed in
such warehouseman's schedule of charges as filed with the director sec-
retary. Every public warehouseman shall keep posted and exposed at a
conspicuous place on the premises of such public warehouse, which place
shall be accessible to the public, a copy of such warehouseman's current
approved schedule of charges.

Sec. 26. On and after September 1, 1997, K.S.A. 34-236 is hereby
amended to read as follows: 34-236. (a) Every public warehouseman shall
at all times keep the grain stored in such warehouseman's warehouse
insured in some reliable insurance company authorized to do business in

1128             1997 Session Laws of Kansas             Ch. 160

the state of Kansas. Such grain is to be insured for its full market value,
less the deductible amount provided herein, against loss by fire, internal
explosion, lightning, and tornado and failure to do so shall make the public
warehouseman liable for the same on such warehouseman's bond for the
benefit of the owner or owners and the owners of warehouse receipts and
storage receipts issued by any public warehouse shall have a first lien, to
the extent of the value of the grain at the time of destruction at the place
where stored, on all such insurance for any loss or injury sustained by
them on account of the destruction or injury of such grain by fire, internal
explosion, lightning or tornado or any other cause covered by such insur-
ance policy.

(b) Fraud or criminal act of the warehouseman to which the holder
of a warehouse receipt or other interested person is not a party shall not
deprive the holder of a warehouse receipt or storage receipt or other
interested person of such person's right of recovery under such policy of
insurance. Nothing in this act shall be construed to require the insurer
to pay any loss or damage in excess of the amount of insurance effective
under its policy or to pay for any loss or damage not insured against by
its policy. In case of a fire, lightning or tornado, which shall destroy all or
part of the grain stored in any public warehouse, the public warehouse-
man shall, upon demand by the owner of the grain, or holder of any
warehouse receipt, or receipts, for such grain, and upon being presented
with the warehouse receipt, or receipts, make settlement for the value of
the grain covered by the warehouse receipt, or receipts, after deducting
the warehouse charges, at the market value of same, basing said value at
the average price paid for grain of the same grade at the station where
the public warehouse is located on the date of the destruction. Without
in any way limiting the warehouseman's liability under this section, the
warehouseman may carry a standard form of insurance policy approved
for grain warehousemen with a total deductible provision on the contents
not to exceed $10,000, except that the director secretary upon a finding
that it is necessary to protect the public may order that a warehouseman's
total deductible provision be an amount less than $10,000 as specified by
the director secretary.

Sec. 27. On and after September 1, 1997, K.S.A. 34-238 is hereby
amended to read as follows: 34-238. (a) Warehouse receipts may be issued
by any licensed public warehouseman and must be issued in the manner
and form prescribed by this act.

(b) The form of all receipts shall be approved by the director of the
state grain inspection department secretary. All of the expense incurred
shall be paid by the state grain inspection department. The director sec-
retary shall distribute the warehouse receipts to licensed public ware-
houses at cost.

Ch. 160             1997 Session Laws of Kansas             1129

(c) All warehouse receipts shall be written upon warehouse receipt
forms furnished by the state grain inspection department.

Sec. 28. On and after September 1, 1997, K.S.A. 34-241a is hereby
amended to read as follows: 34-241a. (a) ``Identity preserved grain'' means
grain which is segregated from all other grain by mutual consent of the
warehouseman and the depositor. The form of receipt to cover identity
preserved grain taken for storage by public warehouses and to be trans-
ported to, and stored in, another licensed public warehouse shall be on
a form approved by the director secretary and shall embody within its
written or printed terms: (a) (1) The date of the issuance of the receipts;
(b) (2) the name of the elevator issuing the same and its location; (c) (3)
the rate of storage or the basis for such charges; (d) (4) the net weight
and percentage of dockage, together with the grade; (e) (5) the words
``trust receipt'' and ``not negotiable'' clearly and conspicuously printed or
stamped thereon; (f) (6) the signature of the warehouseman which may
be made by his authorized agent; (g) (7) a statement of the amount of
the advances made, or the liabilities incurred, for which the warehouse
claims a lien. If the precise amount of advances made or liabilities in-
curred is, at the time of the issuance of the receipt, unknown to the
warehouseman or to his the warehouseman's agent who issues it, a state-
ment of the fact that the advances have been made, or liabilities incurred,
and the purpose thereof, is sufficient.

(b) The warehouseman, at his the warehouseman's option, may ship
carlots or trucklots of identity preserved grain to another licensed public
warehouse. The owner of the grain may designate the receiving licensed
public warehouse if a written contract to that effect has been entered
into and agreed upon between the owner of the grain and the warehouse-
man prior to the deposit of the grain. The charges for handling and stor-
age shall not exceed the current posted public warehouse charges. In
addition to the public warehouse charges, the warehouseman may make
an additional charge of one and one-half cents (11/2 cent) per bushel for risk
and shrinkage in transit and shall also assess the transportation and all
legal charges against the owner of the grain.

Sec. 29. On and after September 1, 1997, K.S.A. 34-246 is hereby
amended to read as follows: 34-246. (a) No warehouse receipt shall be
issued except upon actual delivery of grain into store in the warehouse
from which it purports to be issued. No receipt or receipts may be issued
for a greater quantity of grain than was contained in the lot or parcel so
received for storage and not more than one receipt may be issued for the
same lot of grain, except in cases where a receipt for a part of a lot is
desired and then the aggregate receipts for a particular lot shall cover
that lot and no more.

(b) In cases where a part of the grain represented by a receipt or
receipts is delivered out of store and a remainder is left, a new receipt or

1130             1997 Session Laws of Kansas             Ch. 160

receipts shall be issued in the form and manner as prescribed by the
director secretary. It shall be stated on the face of the new receipt or
receipts that such new receipt or receipts represent the balance of the
original receipt or receipts. The new receipt or receipts shall bear thereon
the number or numbers of the original receipt or receipts and the original
receipt or receipts, upon which a part of the grain has been delivered,
shall be canceled in the manner as if all of the grain has been delivered.
In case it is desirable to divide one receipt into two or more, or in case
it is desirable to consolidate two or more receipts into one and the
warehouseman consents thereto, the original receipt or receipts shall be
canceled in the same manner as if the grain had been delivered from
store. The new receipt or receipts shall express on the face thereof that
such new receipt or receipts represent a part of another receipt or the
consolidation of other receipts, as the case may be, and the number and
date of the original receipt or receipts shall also appear on the new receipt
or receipts issued in lieu thereof. No consolidation of receipts differing
more than 30 days in date shall be permitted.

(c) All new receipts issued for old ones canceled as provided in this
section shall bear the notation of the date of the receipt or receipts as
originally issued. All receipts issued on grain in special bins shall bear the
number of the bin and the notation ``special bin.'' All divisions or con-
solidations shall bear the bin number of the original receipt and the no-
tation ``special bin.'' Upon delivery of grain from store upon any receipt
issued by a public warehouse, such receipt shall be plainly marked across
its face ``canceled'' with the date and the name of the person canceling
the same and thereafter shall be void and shall not again be put in cir-
culation. No grain shall be delivered twice upon the same receipt.

Sec. 30. On and after September 1, 1997, K.S.A. 34-249a is hereby
amended to read as follows: 34-249a. (a) Every public warehouseman
conducting a public warehouse, upon demand of the director of the Kan-
sas state grain inspection department secretary, shall furnish such director
secretary, in such form as may be required, information regarding re-
ceipts issued or canceled, amounts of grain liabilities, amounts of unen-
cumbered grain and total amounts of grain in the public warehouse.

(b) The director secretary shall require from each public warehouse-
man a monthly statement of stocks of grain as of the last day of the
preceding month for each licensed warehouse location. The statement
shall contain such information and be in such form as may be prescribed
by the director secretary and shall include a statement setting forth the
penalty for making false public warehouse reports as provided in K.S.A.
21-3754 and amendments thereto. Each such statement shall be signed
by the licensed public warehouseman.

Sec. 31. On and after September 1, 1997, K.S.A. 34-251 is hereby
amended to read as follows: 34-251. (a) All persons owning property, or

Ch. 160             1997 Session Laws of Kansas             1131

who may be interested in the same, in any public warehouse and all duly
authorized examiners of such property shall be at full liberty to inspect
and to examine any and all property stored in any public warehouse in
the state at all times during regular business hours. All proper facilities
shall be extended to such persons by the public warehouseman and the
warehouseman's agents and employees for such examinations and in-
spection. The director secretary shall inspect, or cause to be inspected
by a duly authorized examiner, every warehouse, the business thereof and
the mode of conducting the same at such times as the director secretary
deems necessary. The property, books, records, accounts, papers and pro-
ceedings kept at such warehouses, so far as they relate to the operation
or management of public storage, which have reference only to the quan-
tity, quality and insurance on grain in storage, shall be subject to exami-
nation and inspection of the director secretary or the director's secretary's
duly authorized examiner at all times during regular business hours. All
scales or weighing or measuring devices used for weighing or measuring
of property in public warehouses shall be subject to tests by any duly
authorized inspector or weighmaster or by the secretary of the state board
of agriculture or the secretary's authorized representative at any time
when required by any such officer, or by any person or agent whose
property has been or is to be weighed on such scales.

(b) Any public warehouseman who uses scales for grain weighing that
have been found on inspection to be inaccurate and that have not been
pronounced correct and properly sealed shall be liable to be proceeded
against as hereinafter provided.

(c) No inspector or employee of the state grain inspection depart-
ment shall disclose any information obtained by such inspector or em-
ployee in the course of employment which is relative to the affairs or
transactions of any warehouseman, other than as permitted by this act,
without first having obtained the express permission in writing of such
warehouseman or of the director secretary, except when ordered to do
so by a court of competent jurisdiction. Upon application of any person,
the director secretary may disclose or direct any inspector or employee
of the Kansas state grain inspection department to disclose any infor-
mation which, in the opinion of the director secretary, the person making
the application is entitled to receive. If any inspector or employee dis-
closes any such information except as permitted by this act, the inspector
or employee shall be guilty of a misdemeanor.

Sec. 32. On and after September 1, 1997, K.S.A. 34-257a is hereby
amended to read as follows: 34-257a. Where a negotiable warehouse re-
ceipt has been lost or destroyed, the warehouseman shall issue a new
receipt upon the same terms, subject to the same conditions, and bearing
on its face the number and the date of the receipt in lieu of which it is
issued, and a plain and conspicuous statement that it is a duplicate receipt

1132             1997 Session Laws of Kansas             Ch. 160

issued in lieu of a lost or destroyed receipt, upon compliance by the
claimant with the following conditions: (a) Before issuing a duplicate re-
ceipt, the warehouseman shall require the claimant therefor to make and
file with him the warehouseman (1) an affidavit stating that the applicant
is lawfully entitled to the possession of the original receipt; that he the
applicant has not negotiated or assigned it; how the original receipt was
lost or destroyed; and if lost, that diligent effort has been made to find
the receipt without success, and (2) a bond in the amount double the
value, at the time the bond is given, of the grain represented by the lost
or destroyed receipt. Such bond shall be in the form approved by the
director secretary and shall be conditioned to indemnify the warehouse-
man or any holder or other person entitled to the grain against all loss,
liability or expense which he may sustain by reason of the issuance of such
duplicate receipt. Such bond shall have as surety thereon a corporate
surety company which is authorized to do business under the laws of the
state of Kansas and is subject to service of process in this state in a suit
on the bond.

Sec. 33. On and after September 1, 1997, K.S.A. 34-273 is hereby
amended to read as follows: 34-273. (a) In case any public warehouseman
discovers that any grain stored in such warehouseman's warehouse, other
than in special bins, is out of condition or is becoming so and that it is
not in such warehouseman's power to preserve the grain, such ware-
houseman shall immediately give such notice of that fact as is reasonable
and possible under the circumstances to the owner of such grain or to
the person in whose name the grain is stored and shall also give notice
of that fact to the director secretary.

(b) The director secretary, unless otherwise requested by the owner
of such grain or the person in whose name the grain is stored, shall cause
an inspection to be made of the grain. If it is found on such inspection
that the grain is out of condition, or is becoming so, and the owner of the
grain fails to promptly remove it, the warehouseman may sell the grain
upon giving the same public notice of sale as is required by this act for
the sale of grain to satisfy the lien of a warehouseman, except that the
grain may be sold at either public or private sale without advertising if,
in the opinion of the director secretary, such grain should be sold without
delay and written authority to make sale without advertisement is given
by the director secretary to the warehouseman. For the purpose of this
section, the owner of such grain shall be deemed to be the holder of
warehouse receipts of the oldest dates then in circulation or uncanceled
and the grain represented by which has not previously been declared out
of condition.

(c) Nothing herein contained shall be held to relieve any warehouse-
man from exercising due care and vigilance in preserving any such grain
after discovery that the same is out of condition, or is becoming so, but

Ch. 160             1997 Session Laws of Kansas             1133

such grain shall be kept separate and apart from all direct contact with
other grain and shall not be mixed with other grain while in store in such
warehouse. Any public warehouseman guilty of any act of neglect which
has the effect of depreciating property stored in a public warehouse under
the warehouseman's control, shall be liable on the warehouseman's bond
therefor to the person damaged thereby. After grain has been sold as
authorized by this section, the warehouseman shall not be liable there-
after for the delivery of such grain even though the receipt therefor is
negotiable, but shall be liable as a trustee for the amount of the proceeds
of such sale in excess of the amount of any lawful charges for which the
warehouseman had a lien at the time of such sale.

Sec. 34. On and after September 1, 1997, K.S.A. 34-295a is hereby
amended to read as follows: 34-295a. (a) Every public warehouseman
conducting a warehouse under the statutes contained in article 2 of chap-
ter 34 of the Kansas Statutes Annotated and amendments thereto shall
keep in a place of safety complete and correct records and accounts per-
taining to the licensed warehouse including, but not limited to:

(1) Records and accounts of all commodities received therein and
withdrawn therefrom;

(2) all unissued receipts and tickets in the public warehouseman's
possession;

(3) all receipts and tickets issued by the public warehouseman; and

(4) the receipts and tickets returned and cancelled by the public
warehouseman.

(b) Such accounts and records shall be sufficient to provide all infor-
mation required to prepare a current financial statement and other re-
ports required under subsection (b) of K.S.A. 34-228 and amendments
thereto and to determine the total net worth of the public warehouseman
under subsection (c) of that statute K.S.A. 34-228, and amendments
thereto. Such accounts and records may be kept and maintained on paper
or on computer disks, tapes or other electronically accessed media, or
any combination thereof, and shall be available for inspection and review
by the director, assistant director or any other officer of the Kansas state
grain inspection department secretary or an authorized representative of
the secretary at all times during business hours. The capability to provide
a computer printout or other printed version of any such accounts and
records that are kept and maintained on computer disks, tapes or other
electronically accessed media shall be maintained to make copies of such
accounts and records for examination by the director, assistant director
or any other officer of the Kansas state grain inspection department sec-
retary or an authorized representative of the secretary.

(c) Such records and accounts shall be retained by the public ware-
houseman for such period as may be prescribed by the director secretary.
Copies of receipts or other documents evidencing ownership of any com-

1134             1997 Session Laws of Kansas             Ch. 160

modity or liability as a warehouseman shall be retained so long as such
documents are outstanding and any such document which has been can-
celled shall be retained for a period of not less than six years from the
date of cancellation.

Sec. 35. On and after September 1, 1997, K.S.A. 34-295b is hereby
amended to read as follows: 34-295b. All such records and accounts shall
be kept separate and distinct from the records and accounts of any other
business, and shall be subject to the inspection by the director or his duly
authorized representative secretary or an authorized representative of the
secretary at all reasonable times.

Sec. 36. On and after September 1, 1997, K.S.A. 34-298 is hereby
amended to read as follows: 34-298. (a) Unless otherwise provided in this
act, any person or entity that violates any provision of this act is guilty of
a class A nonperson misdemeanor.

(b) If, after a hearing conducted in accordance with the provisions of
the Kansas administrative procedure act, the director of the state grain
inspection department secretary finds that the provisions of this act have
been violated by any person holding a license to conduct a public ware-
house in this state, the director secretary shall revoke the person's license.
No new license shall be granted to the person whose license is revoked
or to anyone engaged, either directly or indirectly, in the public ware-
house business with that person for a period of one year.

Sec. 37. On and after September 1, 1997, K.S.A. 34-299 is hereby
amended to read as follows: 34-299. (a) It shall be the duty of any person
operating a public warehouse in Kansas under this act, who desires to
discontinue the operation of a public warehouse at least 30 days prior to
the expiration of his such warehouse license, to notify: (1) all holders of
warehouse receipts and all parties storing grain in said such warehouse,
if known; (2) if not known, by public notice, by advertising in a newspaper
of general circulation in the city in which such warehouse is situated, also
the director of the state grain inspection department, at least thirty (30)
days prior to the date of the expiration of his license, his; and (3) the
secretary, of such person's intention to discontinue the public warehouse
business. And

(b) It shall be the duty of the owners of such grain to remove, or
cause to be removed, their grain from said the warehouse, before the
expiration of the license. If for any cause said the grain is not removed
from the warehouse, it shall be the duty of the warehouseman to sell for
the account of the depositor said the grain at the best market price ob-
tainable and remit said the funds to the director of the state grain in-
spection department secretary. The director secretary shall deposit said
the funds with the state treasurer to be held for the account of the de-
positor. If and when said the depositor, or holder of claim, shall appear
and present a valid claim to the director secretary for the funds so de-

Ch. 160             1997 Session Laws of Kansas             1135

posited, the director secretary shall issue a voucher to the state treasurer
withdrawing said funds to the order of the claimant.

Sec. 38. On and after September 1, 1997, K.S.A. 34-2,104 is hereby
amended to read as follows: 34-2,104. (a) Whenever it appears to the
satisfaction of the director of the state grain inspection department sec-
retary that a licensed warehouseman does not have possession of suffi-
cient commodities to cover the outstanding receipts and scale tickets is-
sued or assumed by the warehouseman or when a licensed warehouseman
refuses to submit records or property to a lawful examination, the director
secretary may give notice to the warehouseman to comply with all or any
of the following requirements:

(1) Cover any existing shortage;

(2) give additional bond as requested by the director secretary;

(3) submit to any examination that the director secretary considers
necessary.

If the warehouseman fails to comply with the terms of the notice within
24 hours from the date of its issuance or within such further time as the
director secretary allows, the director secretary may petition the district
court of any county in which is located one of the principal places of
business of the licensed warehouseman for an order authorizing the state
grain inspection department to take possession of and maintain all or a
portion of any and all commodities located in the licensed warehouse or
warehouses of the warehouseman and all pertinent records and property.

Upon receipt of the director's secretary's verified petition setting forth
the circumstances of the warehouseman's failure to comply and further
stating reasons why immediate possession and maintenance by the grain
inspection department is necessary for the protection of depositors, ware-
house receipt holders or sureties, the court shall forthwith issue an order
authorizing the department to take immediate possession of and maintain
the commodities, records and property for the purposes stated in this
section. A copy of the petition and order shall be sent to the warehouse-
man.

(b) At any time within 10 days after the grain inspection department
takes possession, the warehouseman may file with the court a response
to the petition of the director secretary stating reasons why the depart-
ment should not be allowed to retain possession. The court shall set the
matter for hearing on a date not less than five nor more than 15 days
from the date of the filing of the warehouseman's response. The order
placing the department in possession shall not be stayed nor set aside
until the court after hearing determines that possession should be re-
stored to the warehouseman.

(c) Upon taking possession, the director secretary shall give written
notice of its action to the surety on the bond of the warehouseman and
may notify the holders of record, as shown by the warehouseman's

1136             1997 Session Laws of Kansas             Ch. 160

records, of all receipts and scale tickets issued for commodities, to present
their receipts or scale tickets for inspection or to account for them. The
director secretary then may cause an audit and other investigation to be
made of the affairs of the warehouse, especially with respect to the com-
modities in which there is an apparent shortage, to determine the amount
of the shortage and compute the shortage as to each depositor as shown
in the warehouseman's records, if practicable. The director secretary shall
notify the warehouseman and the surety on the warehouseman's bond of
the approximate amount of the shortage and notify each depositor af-
fected by the shortage by sending notice to the depositor's last known
address as shown by the records of the warehouse.

The grain inspection department shall retain possession and continue
maintenance of commodities, records and property under this section
until the warehouseman or the surety on the warehouseman's bond has
satisfied the claims of all depositors or until the grain inspection depart-
ment is ordered by the court to surrender possession.

(d) If during or after the audit or other investigation provided for in
this section, or at any other time, the director secretary has evidence that
the warehouseman is insolvent or is unable to satisfy the claims of all
depositors, or the grain handling facility is operating without a valid fed-
eral or state license, the director secretary shall forthwith petition the
district court for an order appointing a receiver, under article 13 of chap-
ter 60 of the Kansas Statutes Annotated, and amendments thereto, to
operate or liquidate the business of the warehouseman or unlicensed
facility in accordance with the law. The petition may be accompanied by
a verified application requesting that the court appoint the director sec-
retary to act as temporary receiver until a receiver is appointed. The court
may appoint the director secretary as temporary receiver in an ex parte
proceeding.

(e) While acting as temporary receiver, the director secretary shall
have all the powers of a receiver and may appoint a special deputy director
to take charge of the affairs of the warehouse until a receiver is appointed.
The special deputy shall qualify, give bond and receive reasonable com-
pensation as determined by the director secretary, subject to the approval
of the district court. The compensation shall be paid by the insolvent
warehouse or unlicensed facility or, upon appointment of a receiver, may
be allowed by the court as costs in the case.

(f) All necessary expenses incurred by the grain inspection depart-
ment or any receiver appointed under this section in carrying out the
provisions of this section may be recovered from the warehouseman,
owner or operator of the unlicensed grain handling facility in a separate
civil action brought by the director secretary in the district court or may
be recovered at the same time and as a part of the seizure or receivership
action filed under this section. As a part of the expenses so incurred, there
is authorized to be included the cost of adequate liability insurance nec-

Ch. 160             1997 Session Laws of Kansas             1137

essary to protect the grain inspection department, the receiver, and others
engaged in carrying out the provisions of this section.

(g) A receiver shall have five months from the date of the receiver's
appointment for the settlement and completion of the receivership. For
cause shown, this period may be extended by the court, not exceeding
three months at a time.

Sec. 39. On and after September 1, 1997, K.S.A. 34-2,110 is hereby
amended to read as follows: 34-2,110. Every public warehouseman shall
make available to the director secretary a verified composite statement
of depositors of open storage grain or grain bank grain. The composite
statement shall contain the same information as in K.S.A. 34-2,109, and
amendments thereto.

Sec. 40. On and after September 1, 1997, K.S.A. 1996 Supp. 74-
4911f is hereby amended to read as follows: 74-4911f. (a) Subject to
procedures or limitations prescribed by the governor, any state officer
may elect to not become a member of the system.

(b) (1) Any such state officer described in subsection (a) who is a
member of the Kansas public employees retirement system, on or after
the effective date of this act, may elect to not be a member by filing an
election with the office of the retirement system. Each state officer filing
such election may withdraw the state officer's accumulated contributions
then on deposit with the system in the same manner as prescribed in
K.S.A. 74-4917 and amendments thereto for employees upon termina-
tion.

(2) Any state officer who has filed an election and received a refund
of contributions shall be entitled to again become a member of the system
upon the filing of proper notice in such form as prescribed by the system
and upon the making of a single lump-sum payment in an amount equal
to all withdrawn contributions, plus interest at a rate specified by the
system.

(c) Subject to limitations prescribed by the secretary of administra-
tion, the state agency employing any employee who has filed an election
as provided under subsection (a) or (b) and who has entered into an
employee participation agreement, as provided in K.S.A. 75-5524 and
amendments thereto for deferred compensation pursuant to the Kansas
public employees deferred compensation plan shall contribute to such
plan on such employee's behalf an amount equal to 8% of the employee's
salary, as such salary has been approved pursuant to K.S.A. 75-2935b and
amendments thereto or as otherwise prescribed by law.

(d) As used in this section and K.S.A. 74-4927k and amendments
thereto, ``state officer'' means the secretary of administration, secretary
on aging, secretary of commerce and housing, secretary of corrections,
secretary of health and environment, secretary of human resources, sec-
retary of revenue, secretary of social and rehabilitation services, secretary

1138             1997 Session Laws of Kansas             Ch. 160

of transportation, secretary of wildlife and parks, superintendent of the
Kansas highway patrol, secretary of agriculture, state grain inspector, ex-
ecutive director of the Kansas lottery, executive director of the Kansas
racing commission, president of the Kansas development finance author-
ity, state fire marshal, state librarian, securities commissioner, adjutant
general, members of the state board of tax appeals, members of the Kan-
sas parole board, members of the state corporation commission, any un-
classified employee on the staff of officers of both houses of the legisla-
ture, any unclassified employee appointed to the governor's or lieutenant
governor's staff and any person employed by the legislative branch of the
state of Kansas, other than any such person receiving service credited
under the Kansas public employees retirement system or any other re-
tirement system of the state of Kansas therefor, who elected to be covered
by the provisions of this section as provided in subsection (e) of K.S.A.
46-1302 and amendments thereto or who is first employed on or after
July 1, 1996, by the legislative branch of the state of Kansas.

(e) The provisions of this section shall not apply to any state officer
who has elected to remain eligible for assistance by the state board of
regents as provided in subsection (a) of K.S.A. 74-4925 and amendments
thereto.

Sec. 41. On and after September 1, 1997, K.S.A. 1996 Supp. 75-
3170a is hereby amended to read as follows: 75-3170a. (a) The 20% credit
to the state general fund required by K.S.A. 1-204, 2-2609, 2-3008, 2-
3013, 9-1703, 16-609, 16a-2-302, 17-1271, 17-2236, 17-5609, 17-5610,
17-5612, 17-5701, 20-1a02, 20-1a03, 31-133a, 33-134, 31-134, 34-102b,
44-324, 44-926, 47-820, 49-420, 55-155, 55-176, 55-609, 55-711, 55-901,
58-2011, 58-3074, 58-4107, 65-6b10, 65-1718, 65-1817a, 65-2011, 65-
2855, 65-2911, 65-4610, 65-5413, 65-5513, 66-1,155, 66-1503, 74-715,
74-1108, 74-1405, 74-1503, 74-1609, 74-2704, 74-3903, 74-5805, 74-
7009, 74-7506, 75-1119b, 75-1308 and 75-1514 and K.S.A. 1996 Supp.
2-3506, 84-9-411 and 84-9-413, and amendments thereto, is to reimburse
the state general fund for accounting, auditing, budgeting, legal, payroll,
personnel and purchasing services, and any and all other state govern-
mental services, which are performed on behalf of the state agency in-
volved by other state agencies which receive appropriations from the state
general fund to provide such services.

(b) Nothing in this act or in the sections amended by this act or
referred to in subsection (a), shall be deemed to authorize remittances to
be made less frequently than is authorized under K.S.A. 75-4215 and
amendments thereto.

(c) Notwithstanding any provision of any statute referred to in or
amended by this act or referred to in subsection (a), whenever in any
fiscal year such 20% credit to the state general fund in relation to any
particular fee fund is $200,000, in that fiscal year the 20% credit no longer

Ch. 160             1997 Session Laws of Kansas             1139

shall apply to moneys received from sources applicable to such fee fund
and for the remainder of such year the full 100% so received shall be
credited to such fee fund, except as otherwise provided in subsection (d)
and except that during the fiscal year ending June 30, 1993, with respect
to the fire marshal fee fund, when the 20% credit to the state general
fund prescribed by K.S.A. 31-133a, 31-134 and 75-1514 and amendments
thereto, in the aggregate, is $400,000, then in that fiscal year such 20%
credit no longer shall apply to moneys received from sources applicable
to the fire marshal fee fund and for the remainder of such fiscal year the
full 100% so received shall be credited to the fire marshal fee fund.

(d) Notwithstanding any provision of K.S.A. 2-2609 and 2-3008 and
amendments thereto or any provision of any statute referred to in sub-
section (a), the 20% credit to the state general fund no longer shall apply
to moneys received from sources applicable to the grain research and
market development agencies funds, as specified for each such fund by
this subsection, and for the remainder of a fiscal year the full 100% of
the moneys so received shall be credited to the appropriate fund of such
funds, whenever in any fiscal year:

(1) With respect to the Kansas wheat commission fund, such 20%
credit to the state general fund in relation to such fund in that fiscal year
is equal to that portion of $100,000 that bears the same proportion to
$100,000 as the amount credited to the Kansas wheat commission fund
during the preceding fiscal year bears to the total of the amounts credited
to the Kansas wheat commission fund, the Kansas corn commission fund,
the Kansas grain sorghum commission fund and the Kansas soybean com-
mission fund during the preceding fiscal year;

(2) with respect to the Kansas corn commission fund, such 20% credit
to the state general fund in relation to such fund in that fiscal year is
equal to that portion of $100,000 that bears the same proportion to
$100,000 as the amount credited to the Kansas corn commission fund
during the preceding fiscal year bears to the total of the amounts credited
to the Kansas wheat commission fund, the Kansas corn commission fund,
the Kansas grain sorghum commission fund and the Kansas soybean com-
mission fund during the preceding year;

(3) with respect to the Kansas grain sorghum commission fund, such
20% credit to the state general fund in relation to such fund in that fiscal
year is equal to that portion of $100,000 that bears the same proportion
to $100,000 as the amount credited to the Kansas grain sorghum com-
mission fund during the preceding fiscal year bears to the total of the
amounts credited to the Kansas wheat commission fund, the Kansas corn
commission fund, the Kansas grain sorghum commission fund and the
Kansas soybean commission fund during the preceding fiscal year; and

(4) with respect to the Kansas soybean commission fund, such 20%
credit to the state general fund in relation to such fund in that fiscal year
is equal to that portion of $100,000 that bears the same proportion to

1140             1997 Session Laws of Kansas             Ch. 160

$100,000 as the amount credited to the Kansas soybean commission fund
during the preceding fiscal year bears to the total of the amounts credited
to the Kansas wheat commission fund, the Kansas corn commission fund,
the Kansas grain sorghum commission fund and the Kansas soybean com-
mission fund during the preceding fiscal year.

(e) As used in this section, ``grain research and market development
agencies'' means the Kansas wheat commission, the Kansas corn com-
mission, the Kansas grain sorghum commission and the Kansas soybean
commission. Such agencies have been created to fund appropriate re-
search projects; to conduct campaigns of development, education and
publicity; and to find new markets or maintain existing markets for com-
modities and products made from those commodities, among their other
duties. Such grain research and market development agencies shall be
funded by an assessment collected from the grower at the time of the
sale of such commodity by the first purchaser. The assessment shall be
sent to the proper grain research and market development agency.

Sec. 42. On and after September 1, 1997, K.S.A. 1996 Supp. 77-415
is hereby amended to read as follows: 77-415. As used in K.S.A. 77-415
through 77-437, and amendments thereto, unless the context clearly re-
quires otherwise:

(1) ``State agency'' means any officer, department, bureau, division,
board, authority, agency, commission or institution of this state, except
the judicial and legislative branches, which is authorized by law to prom-
ulgate rules and regulations concerning the administration, enforcement
or interpretation of any law of this state.

(2) ``Person'' means firm, association, organization, partnership, busi-
ness trust, corporation or company.

(3) ``Board'' means the state rules and regulations board established
under the provisions of K.S.A. 77-423 and amendments thereto.

(4) ``Rule and regulation,'' ``rule,'' ``regulation'' and words of like ef-
fect mean a standard, statement of policy or general order, including
amendments or revocations thereof, of general application and having the
effect of law, issued or adopted by a state agency to implement or inter-
pret legislation enforced or administered by such state agency or to gov-
ern the organization or procedure of such state agency. Every rule and
regulation adopted by a state agency to govern its enforcement or ad-
ministration of legislation shall be adopted by the state agency and filed
as a rule and regulation as provided in this act. The fact that a statement
of policy or an interpretation of a statute is made in the decision of a case
or in a state agency decision upon or disposition of a particular matter as
applied to a specific set of facts does not render the same a rule and
regulation within the meaning of the foregoing definition, nor shall it
constitute specific adoption thereof by the state agency so as to be re-
quired to be filed. A rule and regulation as herein defined shall not in-

Ch. 160             1997 Session Laws of Kansas             1141

clude any rule and regulation which: (a) Relates to the internal manage-
ment or organization of the agency and does not affect private rights or
interest; (b) is an order directed to specifically named persons or to a
group which does not constitute a general class and the order is served
on the person or persons to whom it is directed by appropriate means.
The fact that the named person serves a group of unnamed persons who
will be affected does not make such an order a rule and regulation; (c)
relates to the use of highways and is made known to the public by means
of signs or signals; (d) relates to the construction and maintenance of
highways or bridges or the laying out or relocation of a highway other
than bidding procedures or the management and regulation of rest areas;
(e) relates to the curriculum of public educational institutions or to the
administration, conduct, discipline, or graduation of students from such
institutions or relates to parking and traffic regulations of state educa-
tional institutions under the control and supervision of the state board of
regents; (f) relates to the emergency or security procedures of a correc-
tional institution, as defined in subsection (d) of K.S.A. 75-5202 and
amendments thereto; (g) relates to the use of facilities by public libraries;
(h) relates to military or naval affairs other than the use of armories; (i)
relates to the form and content of reports, records or accounts of state,
county or municipal officers, institutions, or agencies; (j) relates to ex-
penditures by state agencies for the purchase of materials, equipment, or
supplies by or for state agencies, or for the printing or duplicating of
materials for state agencies; (k) establishes personnel standards, job clas-
sifications, or job ranges for state employees who are in the classified civil
service; (l) fixes or approves rates, prices, or charges, or rates, joint rates,
fares, tolls, charges, rules, regulations, classifications or schedules of com-
mon carriers or public utilities subject to the jurisdiction of the state
corporation commission, except when a statute specifically requires the
same to be fixed by rule and regulation; (m) determines the valuation of
securities held by insurance companies; (n) is a statistical plan relating to
the administration of rate regulation laws applicable to casualty insurance
or to fire and allied lines insurance; (o) is a form, the content or substan-
tive requirements of which are prescribed by rule and regulation or stat-
ute; (p) is a pamphlet or other explanatory material not intended or de-
signed as interpretation of legislation enforced or adopted by a state
agency but is merely informational in nature; (q) establishes seasons and
fixes bag, creel, possession, size or length limits for the taking or posses-
sion of wildlife, if such seasons and limits are made known to the public
by other means; or (r) establishes records retention and disposition sched-
ules for any or all state agencies; or (s) fixes or approves fees for services
rendered by the Kansas state grain inspection department pursuant to
K.S.A. 34-103a, and amendments thereto.

(5) ``Environmental rule and regulation'' means:

(A) A rule and regulation adopted by the state board of agriculture,

1142             1997 Session Laws of Kansas             Ch. 160

the secretary of the state board of agriculture, the secretary of health and
environment or the state corporation commission, which has as a primary
purpose the protection of the environment; or

(B) a rule and regulation adopted by the secretary of wildlife and
parks concerning threatened or endangered species of wildlife as defined
in K.S.A. 32-958 and amendments thereto.

Sec. 43. On and after September 1, 1997, K.S.A. 34-101, 34-101a,
34-101c, 34-101d, 34-102, 34-102a, 34-104, 34-105, 34-106, 34-107, 34-
110, 34-111, 34-112a, 34-113, 34-121, 34-122, 34-123, 34-124, 34-127,
34-223, 34-224, 34-227, 34-227a, 34-227b, 34-229, 34-230, 34-230a,
34-230b, 34-231, 34-233, 34-235, 34-236, 34-238, 34-241a, 34-246, 34-
249a, 34-251, 34-257a, 34-273, 34-295a, 34-295b, 34-298, 34-299, 34-
2,100, 34-2,104, 34-2,110, 75-1701, 75-1702, 75-1703, 75-1704, 75-1706,
75-1709 and 75-1711 and K.S.A. 1996 Supp. 34-101b, 34-102b, 34-103a,
34-125, 34-228, 34-2,108, 74-4911f, 75-3170a and 77-415 are hereby re-
pealed.

Sec. 44. This act shall take effect and be in force from and after
August 1, 1997, its publication in the statute book and the issuance by
the grain inspection, packers and stockyards administration, pursuant to
the United States grain standards act, of the official agency designation
of an entity that is not the state of Kansas grain inspection department.

Approved May 13, 1997.