2-2448.   Surety bond, liability insurance, letter of credit or escrowaccount required for pesticide businesslicense.(a)   Except as provided by subsection (b),the secretary shall notissue a pesticide business license until the applicant has furnished proof offinancial responsibility by one of the following:

      (1)   A surety bond in an amount not less than $6,000 per year. The bondshall be executed by a corporate surety and shall state the effective date andthe expiration date. The surety bond shall be executed on a form approved bythe secretary. The applicant shall be named as the principal in the bond. Such bond shall be to the state of Kansas and shall be conditioned uponcompliance by the principal and by the principal's officers, agents,representatives and employees, with the provisions of this act and actsamendatory thereof and supplemental thereto. It shall be unlawful for anylicensed person to use the words "bond" or "bonded" in advertising or inpublicizing such person's operations in connection with the application ofpesticides unless such bond is a performance bond and that fact and the amountof such bond are specified.

      (2)   A certificate of liability insurance. The certificate of liabilityinsurance shall be executed by an insurance company authorized to do businessin Kansas or by a licensed insurance agent operating under authority of K.S.A.40-246b, and amendments thereto, and shall state the effective date and theexpiration date of the policy. Such liability insurance shall be subject tothe insurer's policy provisions filed with and approved by the commissioner ofinsurance pursuant to K.S.A. 40-216, and amendments thereto, except asauthorized by K.S.A. 40-246b, and amendments thereto. The liability insurancepolicy shall provide: (A) Coverage for not less than $25,000 for bodily injuryliability for each occurrence; and (B) coverage for not less than $5,000 forproperty damage liability for each occurrence. In addition to the coveragespecified above, if the applicant for apesticide business license is an aerial applicator, the liability insurancepolicy shall provide coverage for any pesticide such applicant will be applyingandfor comprehensivechemical coverage. Pesticide application equipment, if required to beregistered under K.S.A. 2-2456, and amendments thereto, shall be covered. Theinsurer shall notify the secretary, in writing, of any expiration, reductionor cancellation of liability insurance, furnished as a prerequisite oflicensure, not later than 10 days before the expiration, reduction orcancellation takes effect. Upon expiration, reduction orcancellation of the liability insurance, the secretary shall suspend suchpesticide applicator's business license until the insurance requirement is metby the licensee for the current license period. The certificate shall beexecuted on a form approved by the secretary.

      (3)   A $6,000 letter of credit from a Kansas financial institution, asdefined in K.S.A. 16-117, and amendments thereto. The letter of credit shallbe executed on a form approved by the secretary. The letter of credit shallstate the effective date and the expiration date and shall be valid through theterm of the applicant's business license. Upon cancellation of theletter of credit, the secretary shall suspend such pesticide applicator'sbusiness license until the letter of credit requirement is met by the licenseefor the current license period.

      (4)   Maintaining a minimum balance of $6,000 in an escrow account in aKansas financial institution as defined in K.S.A. 16-117, and amendmentsthereto.The escrow account shall maintain the minimum balance through theterm of the applicant's business license.The secretary shall be notified in writing by the financialinstitution within 10 days if the amount in the escrow account falls below the$6,000 minimum balance. Upon notification, the secretary shall suspend suchpesticide applicator's business license until the escrow account minimumbalanceis at $6,000.

      (b)   Before June 1, 1994, the financial responsibility and proof offinancial responsibility required pursuant to this section prior to March 1,1994, shall continue to apply to any pesticide business holding a validpesticide business license on February 28, 1994, and no different or additionalfinancial responsibility or proof of financial responsibility shall be requiredof such business. On or before June 1, 1994, each pesticide business licensedbefore March 1, 1994,shall furnish to the secretary proof of financial responsibility conforming tothe requirements of this section as amended by this act.

      (c)   The requirements of this section as amended by this act shall apply toany applicant applying for an original pesticide business license on or afterMarch 1, 1994, and no different or additional financial responsibility or proofof financial responsibility shall be required of such applicant.

      History:   L. 1976, ch. 1, § 11; L. 1982, ch. 8, § 1;L. 1989, ch. 6, § 17;L. 1994, ch. 199, § 2; April 21.