3-2606

3-2606. Inspection fees; quarterly statement by
distributor; retention of records

A. An inspection fee at the rate of fifteen cents per ton shall be paid to the
department on commercial feeds distributed in this state by any person licensed pursuant
to section 3-2609 subject to the following:

1. If more than one distributor is involved in the chain of distribution the one
who sells directly to the ultimate consumer or to a distributor exempted from a license
is responsible for submitting the tonnage report and payment of inspection fees.

2. Distributors exempt from a license are not responsible for the filing of tonnage
reports or the payment of the inspection fees for products purchased from a licensee and
sold in the form in which received.

3. No inspection fees are required for commercial feeds sold or exchanged between
licensed manufacturers for further manufacturing or processing, or for commercial feeds
on which the inspection fee has been paid by a previous manufacturer or distributor in
the chain of distribution.

4. The minimum inspection fee is two dollars for each calendar quarter.

5. The inspection fee on distillers grain is prorated according to the moisture
content. If the moisture content of the distillers grain is fifty per cent or less, the
fee applies to the full weight. If the moisture content is over fifty per cent, the fee
applies to the percentage of the weight that is dry content. For the purposes of this
paragraph, "distillers grain" means the cereal by-product of the distillation process.

B. The director, after a hearing, may decrease or increase the inspection fee
provided in this section, except that the rate shall not exceed thirty cents per ton.

C. Each person who is liable for the payment of such fee shall:

1. File, not later than the last day of January, April, July and October of each
year, a quarterly statement, setting forth the number of net tons of commercial feeds
distributed in this state during the preceding calendar quarter. Upon filing the
statement such person shall pay the inspection fee at the rate stated in subsection A of
this section. Inspection fees that are due and owing and have not been remitted to the
department within thirty days following the date due shall have a penalty fee of ten per
cent or ten dollars, whichever is larger, added to the amount due when payment is finally
made. The assessment of this penalty fee shall not prevent the director from taking
other actions as provided in this article.

2. Keep such records as may be necessary or required by the director to indicate
accurately the tonnage of commercial feed distributed in this state. The director may
examine such records to verify statements of tonnage. Failure to make an accurate
statement of tonnage or to pay the inspection fee or comply as provided in this section
shall constitute cause for cancellation of any or all commercial feed licenses on file
for the distributor.