CHAPTER 111 SENATE BILL No. 664 An Act concerning agriculture; relating to inspection fees; funding for plant pest activities;
relating to electronic livestock auctions; concerning brand inspection areas and fees;
amending K.S.A. 2-2911, 47-434, 47-437, 47-1001e and 47-1011 and K.S.A. 1999 Supp.
2-1012, 2-1205, 47-1001 and 47-1008 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 1999 Supp. 2-1012 is hereby amended to read as
follows: 2-1012. The secretary shall remit all moneys received by or for
the secretary under article 10 of chapter 2 of Kansas Statutes Annotated
and amendments thereto to the state treasurer at least monthly. On and
after the effective date of this act through June 30, 1999, upon receipt of
any such remittance the state treasurer shall deposit the entire amount
thereof in the state treasury and an amount equal to $.005 per ton of
2,000 pounds or fraction thereto for each commercial feeding stuffs sold,
offered or exposed for sale or distribution in this state shall be credited
to the laboratory equipment fund created by K.S.A. 1999 Supp. 74-554,
and amendments thereto, and the remainder shall be credited to the
feeding stuffs fee fund. On and after July 1, 1999, Upon receipt of any
such remittance the state treasurer shall deposit the entire amount
thereof in the state treasury and the same shall be credited to the feeding
stuffs fee fund. On and after July 1, 2000, through June 30, 2002, an
amount not to exceed $35,000 per year may be used to fund plant pest
activities. All expenditures from the feeding stuffs 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 sec-
retary of the state board department of agriculture or by a person or
persons designated by the secretary.

      Sec.  2. K.S.A. 1999 Supp. 2-1205 is hereby amended to read as fol-
lows: 2-1205. An inspection fee shall be collected upon all commercial
fertilizers sold, offered or exposed for sale, or distributed in Kansas, which
shall be at a rate per ton of 2,000 pounds fixed by rules and regulations
adopted by the secretary of agriculture, except that such rate shall not
exceed $1.67 per ton of 2,000 pounds. The inspection fee rate per ton of
2,000 pounds in effect on the day preceding the effective date of this act
shall continue in effect until The secretary of agriculture adopts may
adopt rules and regulations fixing a different establishing the inspection
fee rate under this section. Each person registering any commercial fer-
tilizer shall pay the inspection fee on such commercial fertilizer sold,
offered or exposed for sale, or distributed in Kansas, and shall keep ad-
equate records showing the tonnage of each commercial fertilizer shipped
to or sold, offered or exposed for sale, or distributed in Kansas, and the
secretary, and duly authorized representatives of the secretary, shall have
authority to examine such records and other pertinent records necessary
to verify the statement of tonnage.

      Each person registering any commercial fertilizer shall file an affidavit
semiannually, with the secretary, within 30 days after each January 1 and
each July 1, showing the tonnage of commercial fertilizer sold or distrib-
uted in Kansas for the preceding six-month period, and shall pay to the
secretary the inspection fee due thereon for such six-month period, except
that the registrant shall not be required to pay the inspection fee or report
the tonnage of commercial fertilizers or fertilizer materials sold and
shipped directly to fertilizer manufacturers or mixers, but the fertilizer
manufacturers or mixers shall keep adequate records of the commercial
fertilizers sold or distributed in this state, and report to the secretary the
tonnage thereof and pay the inspection fee due thereon. If the affidavit
is not filed and the inspection fee is not paid within the thirty-day period,
or if the report of tonnage is false, the secretary may revoke the registra-
tions filed by such person; and if the affidavit is not filed and the inspec-
tion fee is not paid within the thirty-day period, or any extension thereof
granted by the secretary, a penalty of $5 per day shall be assessed against
the registrant and the inspection fee and penalty shall constitute a debt
and become the basis for a judgment against such person. The secretary
may grant a reasonable extension of time.

      The secretary of the department of agriculture is hereby authorized
and empowered to reduce the inspection fee by adopting rules and reg-
ulations under this section whenever it shall determine that the inspection
fee is yielding more than is necessary for the purpose of administering
the provisions of this act as listed below and the plant pest act, and the
secretary is hereby authorized and empowered to increase the inspection
fee by adopting rules and regulations under this section when it finds that
such is necessary to produce sufficient revenues for the purposes of ad-
ministering the provisions of this act, but not in excess of the maximum
fee prescribed by this section. The secretary shall remit all moneys re-
ceived by or for the secretary under article 12 of chapter 2 of Kansas
Statutes Annotated and amendments thereto to the state treasurer at least
monthly. Upon receipt of any such remittance the state treasurer shall
credit the remittance as follows: (1) An amount equal to $1.40 per ton
shall be credited to the state water plan fund created by K.S.A. 82a-951,
and amendments thereto; (2) an amount equal to $.04 per ton shall be
credited to the fertilizer research fund; and (3) the remainder shall be
credited to the fertilizer fee fund. An amount of $100,000 from the fer-
tilizer fee fund shall be authorized for the purpose of conducting a pes-
ticide use survey. On and after July 1, 2000, through June 30, 2002, an
amount not to exceed $35,000 per year may be used to fund plant pest
activities. All expenditures from the fertilizer fee 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
of the department of agriculture or by a person or persons designated by
the secretary.

      Sec.  3. K.S.A. 2-2911 is hereby amended to read as follows: 2-2911.
The secretary shall remit all moneys received by or for him or her the
secretary under this act to the state treasurer at least monthly. Upon
receipt of any such remittance the state treasurer shall deposit the entire
amount thereof in the state treasury and the same shall be credited to
the agricultural liming materials fee fund, which fund is hereby created.
On and after July 1, 2000, through June 30, 2002, an amount not to exceed
$5,000 per year may be used to fund plant pest activities. All expenditures
from such fund shall be made in accordance with appropriation acts upon
warrants of the director of accounts and reports issued pursuant to vouch-
ers approved by the secretary of the state board department of agriculture
or by a person or persons designated by him or her the secretary.

      Sec.  4. K.S.A. 47-434 is hereby amended to read as follows: 47-434.
As used in this act:

      (a) ``Commissioner'' means the state livestock commissioner;

      (b) ``brand inspection area'' means any county which has been des-
ignated as such by the board of county commissioners of such county in
the manner provided by K.S.A. 47-435 and amendments thereto;

      (c) ``resident owner of cattle or sheep'' means any resident of a county
who listed has owned one or more head of cattle or sheep, or both, for
taxation during the preceding tax assessment period at any time during
the 12 preceding months;

      (d) ``brand inspection'' means the inspection of brands, marks, and
other identifying characteristics of cattle or sheep, or both, for the pur-
pose of determining the ownership thereof; and

      (e) ``person'' means any individual, firm, association, partnership or
corporation; and

      (f) ``board'' means the board of directors of the Kansas livestock as-
sociation.

      Sec.  5. K.S.A. 47-437 is hereby amended to read as follows: 47-437.
(a) The livestock commissioner shall charge and collect a fee of not to
exceed $.75 per head on all cattle and not to exceed $.05 per head on all
sheep inspected in brand inspection areas of the state. In addition to the
per head fee, the livestock commissioner may charge and collect an on-
site inspection fee and a mileage fee for each mile necessarily and actually
traveled in going to and returning from the place of inspection. The live-
stock commissioner may, when brand inspectors are available, may pro-
vide brand inspection in other areas where brand inspection is requested
and the commissioner shall charge and collect inspection fees in the same
manner as prescribed for the collection of such fees in brand inspection
areas. The owner or seller of cattle or sheep inspected shall be responsible
for the payment of the inspection fees and such fees shall be collected in
such manner as the livestock commissioner shall prescribe or authorize
by rule or regulation.

      (b) When the livestock commissioner determines that the fees col-
lected under this section are yielding more than is required for the pur-
poses for which such fees are collected, the commissioner may reduce
such fees for such period as the commissioner deems justified. In the
event the livestock commissioner, after reducing such fees, finds that
sufficient revenues are not being produced by the reduced fees to prop-
erly administer and enforce this act and acts of which this section is amen-
datory or supplemental, the commissioner may increase such fees to such
rate as will, in the commissioner's judgment, produce sufficient revenue
for the purposes provided in this section, but not exceeding $.75 per head
on cattle and not to exceed $.05 per head on sheep.

      (c) The livestock commissioner shall remit all moneys received under
K.S.A. 47-434 through 47-445, and amendments thereto, to the state trea-
surer at least monthly. Upon receipt of any such remittance the state
treasurer shall deposit the entire amount thereof in the state treasury and
the same shall be credited to the county option brand fee fund, except
any amounts received for brand inspection services of livestock outside
of a county option area. All expenditures from such 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 live-
stock commissioner or by a person or persons designated by the com-
missioner. All amounts received for inspection of livestock outside of a
county option area shall be deposited to the credit of the livestock brand
fee fund.

      Sec.  6. K.S.A. 1999 Supp. 47-1001 is hereby amended to read as
follows: 47-1001. As used in this act, except where the context clearly
indicates a different meaning:

      (a) ``Commissioner'' means the livestock commissioner of the state of
Kansas.

      (b) ``Livestock'' means and includes cattle, swine, sheep, goats,
horses, mules, domesticated deer, all creatures of the ratite family that
are not indigenous to this state, including but not limited to ostriches,
emus and rheas, and any other animal as deemed necessary by the com-
missioner established through rules and regulations.

      (c) ``Person'' means and includes any individual, partnership, corpo-
ration or association.

      (d) ``Producer'' means any person engaged in the business of breed-
ing, grazing or feeding livestock.

      (e) ``Consignor'' means any person who ships or delivers to any public
livestock market livestock for handling, sale or resale at a public livestock
market.

      (f) ``Public livestock market'' means any place, establishment or fa-
cility commonly known as a ``livestock market,'' ``livestock auction mar-
ket,'' ``sales ring,'' ``stockyard,'' ``community sale'' as such term is used in
article 10 of chapter 47 of the Kansas Statutes Annotated, which includes
any business conducted or operated for compensation or profit as a public
market for livestock, consisting of pens, or other enclosures, and their
appurtenances, in which livestock are received, held, sold or kept for sale
or shipment except that this term shall not apply to any livestock market
where federal veterinary inspection is regularly maintained.

      (g) ``Public livestock market operator'' means any person who, in this
state, receives on consignment, or solicits from the producer or consignor
thereof, or holds in trust or custody for another, any livestock for sale or
exchange, on behalf of such producer or consignor at a public livestock
market, or sells, or offer for sale, at a public livestock market, for the
account of the producer or consignor thereof, any livestock or directly or
indirectly owns, conducts or operates a public livestock market. The term
``public livestock market operator'' shall not be construed to include any
packer or agent of a packer who receives or purchases livestock for
prompt slaughter.

      (h) ``Packer'' means any person engaged in the business of buying
livestock for purposes of slaughter, or of manufacturing or preparing
meats or meat food products for sale or shipment, or of manufacturing
or preparing livestock products for sale or shipment, or of marketing
meats, meat food products, livestock products, dairy products, poultry or
poultry products.

      (i) ``Board'' means any three members of the Kansas animal health
board designated by the chairperson of the Kansas animal health board
for each particular hearing. The chairperson may be included in such
designation.

      (j) ``Dealer'' as used in article 10 of chapter 47 of the Kansas Statutes
Annotated, to which this act is amendatory and supplemental, shall have
the same meaning as the term ``public livestock market operator.''

      (k) ``Domesticated deer'' means any member of the family cervidae
which was legally obtained and is being sold or raised in a confined area
for breeding stock; for any carcass, skin or part of such animal; for exhi-
bition; or for companionship.

      (l) ``Occasional livestock sale'' means livestock auctions or sales, that
receive on consignment, or solicits from the producer or consignor
thereof, or holds in trust or custody for another, any livestock for sale or
exchange, on behalf of such producer or consignor at such auction or sale,
or sells, or offers for sale, at such auction or sale, for the account of the
producer or consignor thereof, any livestock or directly or indirectly owns,
conducts or operates such auction or sale and such auctions or sales are
held 12 or less times per year.

      (m) ``Electronic auction'' means a live audio-visual broadcast of an
actual auction where livestock are offered for sale and shall include auc-
tions conducted by satellite communications and over the internet.

      Sec.  7. K.S.A. 47-1001e is hereby amended to read as follows: 47-
1001e. (a) Each livestock market operator shall pay annually, on or before
June 30, a renewal market license fee in an amount set by the Kansas
animal health board and adopted by rules and regulations of the com-
missioner of not more than $40 to the commissioner for each public
livestock market operated by such operator, which payment shall consti-
tute a renewal until June 30 of the following year. The renewal market
license fee established by this section on the day preceding the effective
date of this act shall continue in effect until a different renewal market
license fee is set as provided under this section.

      (b) Any person who owns or operates an electronic auction which is
simulcast into the state of Kansas and at which livestock located in the
state of Kansas are offered for sale, shall apply to the livestock commis-
sioner for an electronic auction license. A license shall be granted to such
person upon a showing that such person meets the bond requirements, as
established in K.S.A. 47-1002, and amendments thereto, and has paid an
annual fee in an amount set by the Kansas animal health board and
adopted by rules and regulations of the commissioner of not more than
$40. Any such license shall expire on June 30 of each year.

      Sec.  8. K.S.A. 1999 Supp. 47-1008 is hereby amended to read as
follows: 47-1008. (a) Livestock shall not be offered for sale or sold at any
licensed public livestock market if such livestock:

      (1) Is infected with a disease that permanently renders the livestock
unfit for human consumption;

      (2) has severe neoplasia;

      (3) has severe actinomycosis;

      (4) is unable to rise to its feet by itself; or

      (5) has an obviously fractured long bone or other fractures or dislo-
cation of a joint that renders the livestock unable to bear weight on the
affected limb without that limb collapsing.

      (b) If, in the judgment of an accredited veterinarian, the livestock
consigned and delivered on the premises of any licensed public livestock
market is in any of the conditions described in subsection (a), such vet-
erinarian shall euthanize humanely the livestock or direct the consignor
to immediately remove the livestock from the premises of the public
livestock market. All expenses incurred for euthanasia and disposal of the
livestock under the provisions of this subsection shall be the responsibility
of the consignor. Collection of expenses shall not be the responsibility of
the consignee.

      (c)  All livestock consigned and delivered on the premises of any
licensed public livestock market, before being offered for sale, shall be
inspected by a veterinarian authorized by the commissioner who shall
visually examine or test, or both, each animal consigned to such market,
for the purpose of determining its condition of health and freedom of
clinical signs of infectious or contagious animal diseases that are deter-
mined to be reportable by the livestock commissioner. Such regulatory
veterinary services shall be contracted for by the livestock commissioner
who shall select an accredited veterinarian for each public livestock mar-
ket. The public livestock market operator, for each public livestock mar-
ket, shall submit to the livestock commissioner a list of accredited vet-
erinarians to be considered for the position or positions. Such veterinarian
shall be authorized to make all required examinations and tests, and to
issue certificates of inspection at the public livestock market where such
veterinarian serves. All livestock sold, resold, exchanged or transferred,
or offered for sale or exchange at a livestock market shall be treated as
may be necessary to prevent the spread of contagious or infectious dis-
eases. A certificate of inspection, on a form to be approved by the com-
missioner, shall be issued to the purchaser by the inspector. For the visual
inspection of livestock offered for sale, there shall be collected by the
market operator from the consignor a fee which shall be determined by
negotiation between the market operator and the market veterinarian but
shall not be less than $.07 per head, except that no fee for inspection shall
be collected unless the inspection actually has been made. If the charges
per head collected on all livestock inspected at a livestock market on any
sales day do not amount to a minimum per diem of $40 or any amount
greater than $40 negotiated by the operator, the market operator shall
be required to supply sufficient funds to provide such amount. Any
amount lesser or greater than the $40 amount specified, shall be deter-
mined by negotiation between the market operator and the market vet-
erinarian. A copy of any agreement or contract shall be on file with the
commissioner. Payments for veterinary services rendered under a con-
tract as provided in this section shall be paid from the veterinary inspec-
tion fee fund, and for such services rendered prior to the end of a fiscal
year, payment may be made within 90 days after the end of the fiscal
year.

      (d) Livestock market operators shall pay amounts received and
amounts due under this section to the livestock commissioner. The com-
missioner shall remit all such amounts received to the state treasurer at
least monthly. Upon receipt of any such remittance the state treasurer
shall deposit the entire amount thereof in the state treasury and the same
shall be credited to the veterinary inspection fee fund. All expenditures
from such fund shall be made in accordance with appropriation acts upon
warrants of the director of accounts and reports issued pursuant to vouch-
ers approved by the commissioner or by a person or persons designated
by such commissioner.

      (e) The livestock commissioner shall promulgate rules and regula-
tions as may be necessary to carry out the purposes of this section, in-
cluding, but not limited to, rules and regulations designating any disease
as a disease that renders livestock or the carcasses thereof permanently
unfit for human consumption. The livestock commissioner shall prom-
ulgate all such rules and regulations in accordance with existing ante-
mortem inspection regulations promulgated by the United States de-
partment of agriculture food safety and inspection service, as in effect on
July 1, 1997.

      (f) All livestock sold by a licensed electronic auction, before being
delivered to an out-of-state buyer, shall have a health certificate issued
by a licensed, accredited veterinarian. Kansas buyers shall be furnished
a health certificate upon request.

      Sec.  9. K.S.A. 47-1011 is hereby amended to read as follows: 47-
1011. (a) The public livestock market operator shall collect from the con-
signor of horses, mules, cattle, hogs, sheep and goats the fee per head on
all such livestock sold at a public livestock market in the amount fixed by
the commissioner under this section. The public livestock market oper-
ator shall remit to the commissioner on or before the 15th day of each
month the amounts collected during the preceding calendar month.

      (b) The electronic auction operator shall collect from the consignor of
horses, mules, cattle, hogs, sheep and goats the fee per head in an amount
fixed by the commissioner under this section on all such livestock sold at
an electronic auction if such livestock is located in the state of Kansas.
The electronic auction operator shall remit to the commissioner on or
before the 15th day of each month the amounts collected during the pre-
ceding calendar month.

      (b) (c) The fee per head provided for in this section shall be in ad-
dition to the inspection fee stated in K.S.A. 47-1008, and amendments
thereto, to the license fee payable to the commissioner for licenses men-
tioned and described in K.S.A. 47-1002, and amendments thereto, and
to the fee provided for in K.S.A. 74-534, and amendments thereto.

      (c) (d) The commissioner shall determine annually the amount of
funds which will be required, in addition to the funds received for fees
imposed under K.S.A. 47-1001a and 47-1001e, and amendments thereto,
to properly enforce and administer the laws contained in article 10 of
chapter 47 of the Kansas Statutes Annotated, and amendments thereto,
and shall fix and adjust from time to time the fee per head imposed under
this section in such reasonable sum as may be necessary for such pur-
poses, except that the fee per head fixed under this section shall not be
more than $.15. The fee per head in effect on the day preceding the
effective date of this act shall continue in effect until the commissioner
fixes a different fee per head under this section.

      (d) (e) The commissioner shall remit all moneys received by or for
the commissioner under K.S.A. 47-1001a, 47-1001e and this section, and
amendments thereto, to the state treasurer at least monthly. Upon receipt
of each such remittance, the state treasurer shall deposit the entire
amount thereof in the state treasury and such amount shall be credited
to the animal disease control fund.

      Sec.  10. K.S.A. 2-2911, 47-434, 47-437, 47-1001e and 47-1011 and
K.S.A. 1999 Supp. 2-1012, 2-1205, 47-1001 and 47-1008 are hereby re-
pealed.

 Sec.  11. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 19, 2000.
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