KRS 250.561: Inspection fee.

(1) An inspection fee at the rate of thirty -five cents ($0.35) per ton shall be paid on

commercial feeds distributed in this state by the person whose name appears on the

label as the manufacturer, guarantor, or distributor, except that a person other than

the manufacturer, guarantor, or distributor may assume liability for the inspection

fee, subject to the following:

(a) No fee shall be paid on a commercial feed if the payment has been made by a

previous distributor;

(b) No fee shall be paid on customer formula feeds if the inspection fee is paid on

the commercial feeds which are used as ingredients and any exempt

commodities, such as whole grain, furnished by the final purchaser. An

exempt commodity offered for sale by the custom formula feed distributor for

the intended use as an ingredient in the manufacture of custom formula feed is

subject to the inspection fee. If the fee has already been paid on the

commercial feeds, credit shall be given for that payment. No farmer -owned

exempt commodity shall be subject to a fee;

(c) No fee shall be paid on commercial feeds which are used as ingredients for the

manufacture of commercial feeds which are registered. If the fee has already

been paid, credit shall be given for that payment;

(d) In the case of a commercial f eed which is distributed in the state to the final

purchaser only in a package weight of ten (10) pounds or less, an annual fee of

fifty dollars ($50) shall be paid in lieu of the inspection fee specified above;

(e) In the case of distillers' wet grains an d other distillers' by-products containing

more than seventy -five percent (75%) moisture and brewers' wet grains and

whey distributed without further processing to the final purchaser for

consumption by the purchaser's livestock, the inspection fee shall be five cents

($0.05) per ton; and

(f) The minimum inspection fee for a feed registrant or a custom formula feed

distributor shall be twenty-five dollars ($25) per quarter.

(2) Each person who is liable for the payment of the fee shall:

(a) 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; and upon

filing the statement shall pay the inspection fee at the rate stated in subsection

(1) of this section. Inspection fees which are due and owing and have not been

remitted to the department within fifteen (15) days following the due date

shall have added a minimum penalty fee of twenty -five dollars ($25) or ten

percent (10%) of the amount due, whichever is greater, when payment is

made. The assessment of this penalty fee shall not prevent the department

from taking other actions as provided in this chapter; and

(b) Keep the records necessar y or required by the director to indicate accurately

the tonnage of commercial feed distributed in this state, and the director shall

have the right to examine the records to verify statements of tonnage.

(3) Failure to make an accurate statement of tonnag e or to pay the inspection fee or

comply as provided herein shall constitute sufficient cause for the cancellation of all

registrations on file for the distributor.

(4) Fees collected shall constitute a fund for the payment of the costs of inspection,

sampling, and analysis, and other expenses necessary for the administration of KRS

250.491 to 250.631.