CHAPTER 116 HOUSE BILL No. 2674 An Act concerning agriculture; relating to grain commodity commissions; amending K.S.A.
2-3003 and 75-3170a and K.S.A. 1999 Supp. 2-3001, 2-3002, 2-3005, 2-3006, 2-3007, 2-
3008, 2-3009, 2-3013 and 74-574 and repealing the existing sections; also repealing
K.S.A. 2-2601, 2-2602, 2-2603, 2-2604, 2-2605, 2-2606, 2-2607, 2-2608, 2-2609, 2-2610
and 2-2612 and K.S.A. 1999 Supp. 2-2613.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. On and after July 1, 2000, K.S.A. 1999 Supp. 2-3001 is
hereby amended to read as follows: 2-3001. As used in this act, unless
the context clearly requires otherwise, the following words and phrases
shall have the meanings ascribed to them herein:

      (a) ``Grower'' means any natural person, partnership, association or,
corporation or other legal entity engaged in the growing of corn, grain
sorghum or, soybeans or wheat who owns or who shares in the ownership
and risk of loss of such corn, grain sorghum, soybeans or wheat, whether
as landlord or tenant. For the purposes of being an eligible voter pursuant
to K.S.A. 2-3002, and amendments thereto, a grower who is a legal entity
who owns or who shares in the ownership and risk of loss of such corn,
grain sorghum, soybeans or wheat, whether as landlord or tenant, on
which there is no individual ownership and risk of loss of such corn, grain
sorghum, soybeans or wheat, shall designate a natural person to register
to vote for such legal entity;

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

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

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

      (e) ``department'' means the Kansas department of agriculture; and

      (f) ``secretary'' means the secretary of agriculture or the secretary's
authorized representative.

      Sec.  2. On and after July 1, 2000, K.S.A. 1999 Supp. 2-3002 is hereby
amended to read as follows: 2-3002. (a) There are hereby created three
four separate and distinct commissions which shall be known as the Kan-
sas corn commission, the Kansas grain sorghum commission and, the Kan-
sas soybean commission and the Kansas wheat commission. Such com-
missions shall be attached to and be a part of the department of
agriculture. The membership of each such commission shall be appointed
by the governor in the manner prescribed by this section. One member
shall be appointed to the Kansas corn commission and the Kansas grain
sorghum commission from each district as denoted by subsection (b). One
member shall be appointed to the Kansas soybean commission from each
district as denoted by subsection (c). For each commission the members
shall serve for a term of four years, except that the members first ap-
pointed to the Kansas corn commission and the Kansas grain sorghum
commission from districts I, II and III shall serve for four years, the
members first appointed from districts IV, V and VI shall serve for three
years and the members first appointed from districts VII, VIII and IX
shall serve for two years, and except that the members first appointed to
the Kansas soybean commission from districts I, II and III shall serve for
four years, the members first appointed from districts IV, V and VI shall
serve for three years and members first appointed from district VII shall
serve for two years. Vacancies which may occur shall be filled for unex-
pired terms in the same manner. Upon the expiration of a term of a
member of a commission, such member shall continue to serve as a mem-
ber until a successor to such member is appointed and qualified. The
dean of the college of agriculture of Kansas state university shall be an
ex officio member, without the right to vote, of each such commission.
Each commission will have members elected through an election process
as provided in subsection (b) to serve three-year terms, with the exception
of transition commissioners, serving from the effective date of this act until
elections occur in 2002, 2003 and 2004, to represent a district or districts
identified in section (b) with the following requirements:

      (1) Any person meeting the requirements of K.S.A. 2-3003, and
amendments thereto, of that commodity may seek election as a commis-
sioner to that commodity's respective commission representing the district
of such person's official residence. Only a grower of each specific com-
modity shall be a member of that specific commission;

      (2) no commission shall have less than seven commissioners repre-
senting the nine crop reporting districts identified in subsection (h). If a
commission has less than nine elected commissioners representing crop
reporting districts, any commissioner representing multiple crop report-
ing districts may only represent commission districts equal to whole and
adjoining crop reporting districts that are within the same election cycle;
and

      (3) each commission may, by majority approval of the commissions,
appoint two additional at-large commissioners for added representation
for producers due to geographical, cropping pattern or other reasonable
commodity-specific needs. At-large commissioners will serve a term de-
termined by the commodity commission not to exceed three-year terms of
appointment, be a Kansas resident and must meet the definition of a
grower.

      (b)  (1) Prior to the first election as provided by this act, each com-
modity commission shall notify all growers of its respective commodity of
the commission election and all appropriate election procedures.

      (2) Any grower of corn, grain sorghum, soybeans or wheat who is a
resident of this state, of legal voting age and has been actively engaged in
growing corn, grain sorghum, soybeans or wheat within the preceding
three years shall become an eligible voter upon registering to vote in a
commission election. Registration shall be on a single form allowing reg-
istration to any or all commission elections. Forms shall be provided by
the commissions and made available at all county extension offices, county
conservation district offices and through the office of the secretary. Any
grower also shall become registered by signing a petition for a candidate
to be placed on the election ballot, upon the filing of such petition. Can-
didate petition forms shall be provided by the office of the secretary.
Registration by internet or other means shall also be allowed upon the
approval of the secretary. No grower shall cast more than one ballot for
any commission election.

      (3) Any person meeting the qualifications to serve as a commissioner
may appear on the election ballot for their respective commission district
by submitting a petition to be placed on the ballot on or before October
31 in the year immediately preceding the election. The petition shall con-
tain the signatures of 20 eligible voters of that commodity commission
election to be a valid petition. However, no more than five petition sig-
natures shall be used to qualify any candidate from any one county.

      (4) Commission election ballots shall be mailed to eligible voters by
January 15 and shall be returned to the election officer, as provided
through the common election procedure required in subsection (e), on or
before March 1 in the year of any election. Successful candidates in any
election will have received the highest number of the votes cast. Election
results will be announced as soon as the election has been determined with
successful candidates taking office with terms effective April 1 in the year
of the election.

      (c) Upon the effective date of this act, each commission created shall
meet as soon as feasible to organize, elect officers and ratify the number
of commissioners and representative districts that commission shall main-
tain. Commissioners currently serving these commissions immediately
prior to the effective date of this act are appointed to transition terms as
follows: (1) Commissioners whose terms expire in June, 2000, shall have
their terms extended until April, 2002; (2) commissioners whose terms
expire in June, 2001, shall have their terms extended until April, 2003;
and (3) commissioners whose terms expire in June, 2003, shall have their
terms extended until April, 2004.

      (d) Annual elections for up to three commissioners representing dis-
tricts shall begin in January and February of 2002. Commissioners elected
shall take office April 1 of the year elected and serve a three-year term.
Elections will occur as follows and continue on a three-year cycle there-
after: (1) In districts IV, V and VI, the initial election year shall be 2002;
(2) in districts I, II and III, the initial election year shall be 2003; and (3)
in districts VII, VIII and IX, the initial election year shall be 2004.

      (e) The four grain commissions, as provided in this act shall maintain
on file a common election procedure with the secretary of the Kansas
department of agriculture, who will serve as the final arbitrator of any
dispute regarding the election procedure.

      (f) Any grower who appropriately registers to vote shall be able to do
so in an election for any commissioner representing that commodity and
district where the grower maintains such grower's official residence.

      (g) Any challenge to election results for the position of commodity
commissioner representing a district shall be initially reviewed by a panel
of commissioners, not standing for election that year, and representing all
four grain commissions. If the challenge is not resolved before the panel
of commissioners, the secretary shall serve as the final arbitrator of the
challenge to the election results.

      (h) Vacancies which may occur shall be filled for unexpired terms by
appointment by the remaining commissioners.

      (i) The dean of the college of agriculture of Kansas state university
and the secretary of the Kansas department of agriculture shall be ex
officio members, without the right to vote, of each such commission. Dis-
tricts are the same as crop reporting districts established for Kansas by
the U.S. department of agriculture national agricultural statistic service
and are as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

      (k) Meetings and any records of any commission created by this act
shall be open to the public to the same extent as is required by law of
public boards and commissions pursuant to the open records act and the
open meetings act. Records shall include contracts entered into by any
commission.

      Sec.  3. On and after July 1, 2000, K.S.A. 2-3003 is hereby amended
to read as follows: 2-3003. Members of each commission created pursuant
to K.S.A. 2-3002, and amendments thereto, shall be residents of this state
who have been actively engaged in growing corn, grain sorghums sorghum
or, soybeans or wheat, as applicable, in this state for at least five (5) years
immediately preceding his or her appointment. No more than a simple
majority of the members of any such commission shall be of the same
political party. Members of each such commission attending meetings of
such commission shall be paid compensation, subsistence allowances,
mileage and other expenses as provided by K.S.A. 75-3223 such member's
election.

      Sec.  4. On and after July 1, 2000, K.S.A. 1999 Supp. 2-3005 is hereby
amended to read as follows: 2-3005. (a) In the administration of article
30 of chapter 2 of the Kansas Statutes Annotated, and amendments
thereto this act, each commission as provided in this act shall have the
following duties, authorities and powers:

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

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

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

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

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

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

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

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

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

      (10) to recommend that the secretary perform such other duties as
may be necessary to comply with public law 101-624 pertaining to the
national checkoff program for soybeans and any rules, regulations or mar-
keting orders promulgated or issued thereunder.

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

      (a) To conduct a campaign of grain commodity promotion and market
development through research, education and information;

      (b) to accept grants and donations;

      (c) to sue and be sued;

      (d) to contract with the secretary for the collection of assessments
pursuant to the provisions of this act and to enter into any other such
contracts as may be necessary or advisable for the purpose of this act;

      (e) to appoint an administrator who is knowledgeable about the grain
commodity and fix the compensation. With the approval of the commis-
sion, the administrator may appoint such other personnel as needed. The
administrator and any other personnel appointed as provided in this sub-
section shall not be employees of the state of Kansas;

      (f) to cooperate or contract with any local, state or national organi-
zation 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 commission, and to enter into contracts and agreements
with such organizations or agencies for carrying on a joint campaign of
research, education and promotion;

      (g) to bring any suit or action for the collection of assessments pro-
vided under this act;

      (h) to establish an office of administrator at any place in this state the
commission may select;

      (i) to adopt, rescind, modify and amend all necessary and proper
orders, resolutions and rules and regulations for the procedure and ex-
ercise of its powers and the performance of its duties;

      (j) to approve an annual budget and establish a reserve. Each project
budgeted and approved by the commission shall include a stated objective
and anticipated results; and

      (k) to report annually to their respective commodity growers, the sec-
retary and house and senate agriculture committees of the Kansas legis-
lature. Such annual report shall include details of commission projects,
programs and supported research including expenditures and the results
of an annual audit performed by a person or entity that is a certified
public accountant. Any commission year end reserve balance exceeding
125% of the previous five-year rolling average for annual expenditures
for such commission also shall be reported.

      Sec.  5. On and after July 1, 2000, K.S.A. 1999 Supp. 2-3006 is hereby
amended to read as follows: 2-3006. The secretary shall have the following
duties, authorities and powers to:

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

      (2) sue and be sued;

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

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

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

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

      (7) Hire such clerical and other personnel deemed necessary to carry
out the provisions of this act;

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

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

      (4) contract with the corn, grain sorghum, soybean and wheat com-
missions for the collection of assessment as provided by this act and enter
into any other contracts necessary to carry out the provisions of this act.

      Sec.  6. On and after July 1, 2000, K.S.A. 1999 Supp. 2-3007 is hereby
amended to read as follows: 2-3007. (a) There is hereby levied an assess-
ment of five mills per bushel upon grain sorghum marketed through com-
mercial channels in the state of Kansas. The grain sorghum commission
shall set the assessment at a rate of not more than five mills per bushel.
There is hereby levied an assessment of five mills per bushel upon corn
marketed through commercial channels in the state of Kansas. The corn
commission shall set the assessment at a rate of not more than five mills
per bushel. There is hereby levied an assessment upon soybeans marketed
through commercial channels in the state of Kansas. The soybean com-
mission shall set the assessment at a rate of not more than 20 mills per
bushel. The soybean commission shall not change the assessment rate,
either to increase or reduce, more than once a year. The soybean com-
mission shall set the assessment at a rate of not more than 20 mills per
bushel. There is hereby levied an assessment upon wheat marketed
through commercial channels in the state of Kansas. The wheat commis-
sion shall set the assessment at a rate of not more than 10 mills per bushel.
Any commission shall not change the assessment rate, either to increase
or reduce, more than once a year. Such assessment shall be levied and
assessed to the grower at the time of sale, and shall be shown as a de-
duction by the first purchaser from the price paid in settlement to the
grower. Under the provisions of this act, no corn, grain sorghum or, soy-
beans or wheat shall be subject to the assessment more than once. The
secretary commission shall furnish to every first purchaser receipt forms
which shall be issued by such first purchaser to the grower upon the
payment of such assessment. The form shall indicate thereon the pro-
cedure by which the grower may obtain a refund of any such assessment,
except a refund shall not be issued unless the amount of the refund is $5
or more. Within one year after any and all sales during such period the
grower may upon submission of a request therefor to the secretary com-
mission, obtain a refund in the amount of the assessments deducted by
the first purchaser. Such request shall be accompanied by evidence of
the payment of the assessments which need not be verified.

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

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

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

      Sec.  7. On and after July 1, 2000, K.S.A. 1999 Supp. 2-3008 is hereby
amended to read as follows: 2-3008. (a) Except as provided in K.S.A. 2-
3012, and amendments thereto, The assessment hereby imposed pursu-
ant to this act shall on or before the 20th day of the calendar month
following the date of settlement be paid by the purchaser to the secretary.
The secretary shall issue a receipt to the purchaser therefor and shall
remit all moneys received in payment of such assessment to the state
treasurer at least monthly. Upon receipt of each such remittance the state
treasurer shall deposit the entire amount thereof in the state treasury.
Twenty percent of each such deposit shall be credited to the state general
fund and the amount of the balance of each such deposit which is derived
from the assessment of each respective grain shall be credited to the
Kansas corn commission fund, the Kansas grain sorghum commission
fund and the Kansas soybean commission fund, respectively. Money de-
rived from the assessment of each respective grain shall be credited only
to the fund established for such grain. Whenever refunds are made from
the Kansas corn commission fund, the Kansas grain sorghum commission
fund or the Kansas soybean commission fund, the amounts credited to
the state general fund from subsequent deposits in the state treasury
pursuant to this section shall be reduced by amounts which equal 20%
of such refunds.

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

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

      (d) Assessments collected pursuant to the national checkoff program
for soybeans, established pursuant to public law 101-624 shall be depos-
ited in the soybean promotion and research fee fund, created in K.S.A.
2-3013, and amendments thereto. for such assessment. The secretary shall
deposit all moneys received in payment of such assessment in a bank
account established in the name of the commission in accordance with the
provisions of this act.

      (b) Each bank account used in operating and conducting the com-
mission's duties shall be secured by a pledge of securities in the manner
prescribed for state bank accounts as provided under K.S.A. 75-4218, and
amendments thereto.

      Sec.  8. On and after July 1, 2000, K.S.A. 1999 Supp. 2-3009 is hereby
amended to read as follows: 2-3009. If any the grain assessment is not
paid to the secretary as provided in article 30 of chapter 2 of the Kansas
Statutes Annotated K.S.A. 2-3007, and amendments thereto, or within 10
days thereafter, the lien thereby created shall may within one year after
the expiration of such 10-day period be foreclosed after the expiration of
such ten-day period in the district court of in any court having jurisdiction
in the county in which the grain was grown, or sold, or in which such
grain may be found, or in which such grain may have been commingled
with other like grain.

      Sec.  9. On and after July 1, 2000, K.S.A. 1999 Supp. 2-3013 is hereby
amended to read as follows: 2-3013. (a) Any assessment collected pur-
suant to the national checkoff program for soybeans, established pursuant
to public law 101-624, shall be paid to the division commission on or
before the 20th day of the calendar year following the date of settlement
and shall be paid by the purchaser of the soybeans to the secretary. The
secretary shall issue a receipt to the purchaser and shall remit all moneys
received in payment of such assessment to the state treasurer at least
monthly. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount thereof in the state treasury. Twenty percent
of that portion of each deposit that will be retained by the state soybean
commission shall be credited to the state general fund pursuant to sub-
section (d)(4) of K.S.A. 75-3170a, and amendments thereto, and the
amount of the balance of each deposit which is derived from the assess-
ment shall be credited to the soybean promotion and research fee fund
which is hereby created. commission.

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

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

      (d) All expenditures made from these funds shall be in accordance
with appropriation acts upon warrants of the director of accounts and
reports issued pursuant to vouchers approved by the secretary for the
soybean commission or by a person or persons designated by the secre-
tary.

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

      New Sec.  10. (a) Except for funds necessary to pay payroll expenses
incurred through June 30, 2000, and payable in July, 2000, on and after
July 1, 2000, the balance of all funds and all liabilities associated with the
grain commodities pursuant to K.S.A. 2-2601 et seq. as in effect prior to
July 1, 2000, and K.S.A. 2-3001 et seq., and amendments thereto, shall
be paid and liabilities be transferred to each respective commission cre-
ated by this act. Any remaining funds of the money retained for payroll
expenses shall be paid to the respective commission created by this act.

      (b) Except as otherwise provided by this act, all of the powers, duties
and functions of the department of agriculture with regard to the corn,
grain sorghum and soybean commission and the Kansas wheat commis-
sion are hereby transferred to and conferred and imposed upon the re-
spective corn, grain sorghum, soybean and wheat commissions estab-
lished by the act.

      (c) Except as otherwise provided by this act, the corn, grain sorghum,
soybean and wheat commissions established by this act shall be the suc-
cessor in every way to the powers, duties and functions of the department
of agriculture with regard to the corn, grain sorghum and soybean com-
missions and the Kansas wheat commission in which the same were vested
prior to July 1, 2000. Every act performed in the exercise of such powers,
duties and functions by or under the authority of the department of ag-
riculture with regard to the corn, grain sorghum and soybean commissions
and the Kansas wheat commission established by this act shall be deemed
to have the same force and effect as if performed by the respective corn,
grain sorghum, soybean and wheat commission, respectively in which
such powers, duties and functions were vested prior to July 1, 2000.

      (d) Except as otherwise provided by this act, whenever the depart-
ment of agriculture with regard to the corn, grain sorghum and soybean
commissions and the Kansas wheat commission, or words of like effect,
is referred to or designated by a statute, contract or other document, such
reference or designation shall be deemed to apply to the respective corn,
grain sorghum, soybean and wheat commission established by this act.

      (e) On the effective date of this act, all property of the Kansas wheat
commission prior to July 1, 2000, shall become the property of the wheat
commission established by this act.

      New Sec.  11. On and after July 1, 2000, there is hereby created in
the state treasury the grain commodities commission services fund. All
moneys received by the department of agriculture for services performed
by the department for the grain commodities commission created pur-
suant to the provisions of K.S.A. 2-3001 et seq. and section 10, and amend-
ments thereto, shall be remitted to the state treasurer. The state treasurer
shall deposit the entire amount in the state treasury and credit it to the
grain commodities commission services fund. All costs and expenses in-
curred by the department in providing services to the grain commodities
commissions shall be paid from the grain commodities commission serv-
ices fund. All expenditures from the grain commodities commission serv-
ices fund shall be made in accordance with appropriation acts upon war-
rants of the director of accounts and reports issued pursuant to vouchers
approved by the secretary.

      Sec.  12. On and after July 1, 2000, K.S.A. 1999 Supp. 74-574 is
hereby amended to read as follows: 74-574. The following programs and
functions are hereby transferred from the division of marketing, depart-
ment of agriculture, and conferred upon the secretary of agriculture: (a)
The functions relating to standards, grades, and classifications for agri-
cultural products and receptacles, pursuant to K.S.A. 74-531, 74-532, and
74-534, and amendments thereto; (b) the functions relating to labeling of
agricultural products established under K.S.A. 2-2306, and amendments
thereto; and (c) the functions relating to grain commissions established
under K.S.A. 2-3001 through 2-3013, and amendments; and (d) functions
relating to the grape and wine industry advisory council established by
K.S.A. 1999 Supp. 74-552, and amendments thereto.

      Sec.  13. K.S.A. 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,
31-134, 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 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 governmental services,
which are performed on behalf of the state agency involved by other state
agencies which receive appropriations from the state general fund to pro-
vide 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
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
$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.

      New Sec.  14. (a) Employment positions in the Kansas wheat com-
mission shall be abolished effective June 30, 2000. Thirty-day notice prior
to June 30, 2000, shall be given by the chairman of the wheat commission
to employees in the positions abolished by this act. No bumping rights
shall attach to the abolished positions. No further action shall be required
in order to abolish these positions.

      (b) The provisions of this section shall take effect May 31, 2000.

      New Sec.  15. (a) Those positions in the department of agriculture
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 administration of the grain commodity commissions shall be
abolished on June 30, 2000. Thirty-day notice prior to June 30, 2000, shall
be given by the secretary of agriculture 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 agricul-
ture. No further action shall be required in order to abolish these posi-
tions.

      (b) The provisions of this section shall take effect May 31, 2000.

 Sec.  16. On and after July 1, 2000, K.S.A. 2-2601, 2-2602, 2-2603, 2-
2604, 2-2605, 2-2606, 2-2607, 2-2608, 2-2609, 2-2610, 2-2612, 2-3003
and 75-3170a and K.S.A. 1999 Supp. 2-2613, 2-3001, 2-3002, 2-3005, 2-
3006, 2-3007, 2-3008, 2-3009, 2-3013 and 74-574 are hereby repealed.
 Sec.  17. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 19, 2000.
 Published in the Kansas Register April 27, 2000.
__________