1168             1997 Session Laws of Kansas             Ch. 167

An Act concerning the abolishment of the Kansas state grain inspection department; re-
viving K.S.A. 34-101; amending K.S.A. 34-101, as revived by section 2 of this act and
repealing the existing section; also repealing K.S.A. 34-101, as amended by section 10
of 1997 Substitute for Senate Bill No. 317 and section 9 of 1997 Substitute for Senate
Bill No. 317.

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

New Section 1. On and after September 1, 1997, the secretary of
agriculture may adopt rules and regulations necessary for the administra-
tion and enforcement of the provisions of 1997 Substitute for Senate Bill
No. 317, and amendments thereto.

Sec. 2. On and after August 1, 1997, K.S.A. 34-101 is hereby revived
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

Ch. 167             1997 Session Laws of Kansas             1169

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 shall have supervision and regulation of all ware-
houses operated under the Kansas public warehouse laws relating to stor-
age of grain. Such department is authorized and empowered 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 arrange-
ments 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 department'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 the department outside
of the state of Kansas, except as provided in K.S.A. 34-101d, and amend-
ments thereto. Such stations shall be located as conveniently to the in-
terest served as practicable. The owner may direct 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) The department shall have the authority to cooperate with any
local, state or national organization or agency, whether voluntary or cre-
ated 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 agreements with such organizations or agencies for
carrying on a joint campaign of development, education and publicity.

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

Sec. 3. On and after September 1, 1997, K.S.A. 34-101, as revived
by section 2 of this act, is hereby amended to read as follows: 34-101. (a)
A state department of record to be designated as the Kansas state grain
inspection department is hereby established. Such department shall have
exclusive control of the official sampling, 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

1170             1997 Session Laws of Kansas             Ch. 167

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
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

Ch. 167             1997 Session Laws of Kansas             1171

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. 4. On and after August 1, 1997, K.S.A. 34-101, as amended by
section 10 of 1997 Substitute for Senate Bill No. 317 and section 9 of
1997 Substitute for Senate Bill No. 317 are hereby repealed.

Sec. 5. On and after September 1, 1997, K.S.A. 34-101, as revived
by section 2 of this act is hereby repealed.

Sec. 6. 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 9, 1997.