KRS 251.640: Assessment of producers of fund -covered grains -- Deduction of

assessment -- Assessments dependent upon balance in fund.

(1) It is declared to be in the public interest and highly advantageous to the agricultural

economy of the Commonwealth tha t producers of fund -covered grains delivered to

licensed grain dealers and licensed grain warehouse operators shall be assessed at a

rate of .0025 times the gross value of the fund -covered grain. The board or the

department shall provide for the collection of the assessment, under the provisions

of this section, for the purpose of financing the Kentucky grain insurance fund,

which is hereby created. Assessments shall be levied only on fund-covered grains.

(2) Except as provided in subsection (3) of this sec tion, beginning on or after August 1,

2019, all persons in this state who are licensed grain dealers or licensed grain

warehouse operators shall deduct the levied assessment from each producer's

payment for fund -covered grain. The total assessment collecte d by each licensee

shall, on or before the fifteenth day of the month following the end of the month in

which the grains are sold to the purchaser, be remitted to the grain insurance fund.

The books and records shall clearly indicate the producer assessmen t and shall be

open for inspection by the board or the department. The board or the department

may take steps as are reasonably necessary to verify the accuracy of books and

records of purchasers of grain.

(3) (a) Beginning on August 1, 2019, no assessment shall be collected if the board

has certified that the fund is greater than three million dollars ($3,000,000). If

the board receives notification the fund is less than three million dollars

($3,000,000), then the board shall within sixty (60) days reinst ate the

assessment fee of .0025 times the gross value of the fund -covered grain

purchased. Assessments shall continue until the board certifies the fund is in

excess of ten million dollars ($10,000,000).

(b) No later than April 30 of each year, the board s hall meet and certify the

amount in the fund. If the board certifies the fund's current balance is more

than ten million dollars ($10,000,000), then no assessment shall be levied. If,

at any time after the board has certified that the balance in the fund i s more

than ten million dollars ($10,000,000), the board receives notification that the

fund balance is less than six million dollars ($6,000,000), then the board shall

reinstate the assessment within sixty (60) days. Upon notification from the

board, the department shall notify each licensee and shall begin collecting the

assessment within sixty (60) days.

(4) The assessments by the board in accordance with this section are in addition to any

other fees or assessments required by law.