251.640 Assessment of producers of fund-covered grains -- Deduction of
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/ky/251-640A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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 that 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 section, 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 collected 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 assessment 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.
(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 reinstate 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 shall 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 is 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.