CHAPTER 246 Department of Agriculture

246.010. Definitions.

As used in this chapter, unless the context requires otherwise:

  1. “Board” means the state Board of Agriculture;
  2. “Commissioner” means the Commissioner of Agriculture;
  3. “Department” means the Department of Agriculture;
  4. “Structure” means a building erected as a shelter for human beings, animals or agricultural products, equipment, or supplies;
  5. “Agriculture” means the business of raising or producing:
    1. Crops, the products of which are used for food, feed, fiber, energy, or pharmaceuticals;
    2. Horticulture products;
    3. Tobacco;
    4. Aquaculture products;
    5. Livestock, poultry, and ratite birds and eggs;
    6. Milk and milk products;
    7. Eggs and egg products;
    8. Bees and bee products; and
    9. Timber;
  6. “Horticulture” means the business of raising fruits, nuts, vegetables, flowers, ornamental plants, shrubs, trees, herbs, and the starts or transplants needed to produce these items;
  7. “Aquaculture” means the science, art, and business of producing and raising aquatic organisms under controlled or semicontrolled conditions;
  8. “Livestock” means cattle, sheep, swine, goats, horses, llamas, buffaloes, or any other animals of the bovine, ovine, porcine, caprine, or equine species, deer and elk, whose regulatory requirements are under KRS Chapters 150 and 246, that are privately owned and raised in a confined area for breeding stock, food, fiber, and other products; and
  9. “Poultry” means chickens, ducks, turkeys, or other domestic fowl being raised or kept on any premises in the Commonwealth for profit.

History. Enact. Acts 1942, ch. 208, § 1, effective October 1, 1942; 1970, ch. 96, § 1; 2001, ch. 46, § 1, effective June 21, 2001; 2002, ch. 88, § 3, effective March 28, 2002.

Compiler’s Notes.

This section was originally created by the Legislative Research Commission in order to clarify the chapter.

NOTES TO DECISIONS

Cited:

Commonwealth v. Gussler, 278 S.W.3d 153, 2008 Ky. App. LEXIS 251 (Ky. Ct. App. 2008).

Research References and Practice Aids

Cross-References.

Cooperative extension service districts, KRS 164.620 .

Labor Cabinet, KRS ch. 336.

246.020. Purpose of department.

The efforts of the department shall be directed to the promotion of the interests of agriculture and horticulture.

History. 33, 4618-78: amend. Acts 1966, ch. 255, § 216.

Research References and Practice Aids

Cross-References.

Apiary law, department to administer and enforce, KRS 252.180 to 252.240 .

Supervision and licensing of frozen food locker plants, KRS 221.020 , 221.030 .

246.030. Organization of department.

The department shall consist of:

  1. The Office of the Commissioner;
  2. The Office of Agricultural Marketing, which shall include the following:
    1. The Promotion and Development Division;
    2. The Shows and Fairs Division;
    3. The Livestock Division;
    4. The Plant Division;
    5. The Education and Outreach Division;and
    6. The Direct Farm Marketing Division;
  3. The Office for Consumer and Environmental Protection, which shall include the following:
    1. The Division of Regulation and Inspection;
    2. The Division of Food Distribution; and
    3. The Division of Environmental Services;
  4. The Office of State Veterinarian, which shall include the following:
    1. The Division of Animal Health; and
    2. The Division of Producer Services;
  5. The Office of Administrative Services, which shall include the following:
    1. The Division of Human Resources;
    2. The Division of Administrative Services; and
    3. The Division of Information Technology;
  6. The Office of Communications;
  7. The Office of Legal Services; and
  8. The State Board of Agriculture.

HISTORY: 42a-3, 4618-17, 4618-18, 4618-79, 4618i-1: amend. Acts 1950, ch. 9, § 15; 1960, ch. 62, § 2; 1978, ch. 155, § 127, effective June 17, 1978; 1980, ch. 295, § 84, effective July 15, 1980; 1982, ch. 447, § 15, effective April 12, 1982; 1984, ch. 404, § 33, effective July 13, 1984; 1990, ch. 393, § 2, effective July 13, 1990; 1994, ch. 119, § 1, effective July 15, 1994; 1994, ch. 120, § 1, effective July 15, 1994; 1994, ch. 121, § 1, effective July 15, 1994; 1996, ch. 264, § 1, effective July 15, 1996; 2002, ch. 49, § 1, effective July 15, 2002; 2004, ch. 88, § 1, effective July 13, 2004; 2005, ch. 26, § 1, effective June 20, 2005; 2018 ch. 3, § 1, effective July 14, 2018.

NOTES TO DECISIONS

Cited:

Ferguson v. Chandler, 266 Ky. 694 , 99 S.W.2d 732, 1936 Ky. LEXIS 709 ( Ky. 1936 ); Brown v. Barkley, 628 S.W.2d 616, 1982 Ky. LEXIS 232 ( Ky. 1982 ).

Research References and Practice Aids

Cross-References.

Board of agriculture, KRS 246.120 .

Board of veterinary examiners, KRS 321.230 .

Office for Agricultural Marketing and Product Promotion, KRS 260.020 .

State fair board, KRS 247.090 .

246.040. Commissioner.

  1. The Commissioner shall be the head of the department. He shall keep his office at the seat of government and devote his entire time to the duties of his office.
  2. The Commissioner may employ necessary personnel to assist in carrying out his duties.

History. 32, 41, 4618-78, 4618-79: amend. Acts 1946, ch. 26, § 6; 1946, ch. 27, § 24; 1950, ch. 123, § 29, effective January 7, 1952; 2002, ch. 88, § 4, effective March 28, 2002.

Compiler’s Notes.

Former subsection (2) was repealed by Acts 1946, ch. 27, § 24, former subsection (3) was repealed by Acts 1950, ch. 123, § 29, effective January 7, 1952, and the remaining subsections renumbered.

NOTES TO DECISIONS

1. Powers.

Powers and duties of commissioner are fixed by legislature. Ferguson v. Chandler, 266 Ky. 694 , 99 S.W.2d 732, 1936 Ky. LEXIS 709 ( Ky. 1936 ).

Research References and Practice Aids

Cross-References.

Bond of commissioner, amount and conditions, KRS 62.160 , 62.180 .

Commissioner to be:

Commissioned by governor, KRS 61.020 .

Elected by voters, Ky. Const., § 91.

Member of board of agriculture, KRS 246.120 .

Member of board of veterinary examiners, KRS 321.230 .

Member of fair council, KRS 247.220 .

Department heads to control departments, KRS 12.040 .

Salary of commissioner, KRS 64.480 .

State apiarist and deputies, commissioner of agriculture to appoint, KRS 252.180 .

246.043. Executive director of Office of Agri-Business Standards. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 393, § 6, effective July 13, 1990) was repealed by Acts 1996, ch. 264, § 2, effective July 15, 1996.

246.046. Executive director of Office of Environmental Advocacy. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1990, ch. 393, § 7, effective July 13, 1990; 1994, ch. 119, § 2, effective July 15, 1994) was repealed by Acts 1996, ch. 264, § 2, effective July 15, 1996.

246.050. Department may engage in field demonstration and educational work. [Repealed.]

Compiler’s Notes.

This section (42c-1, 42c-2) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.055. Acceptance of federal aid, gifts — Distribution — Agreement with federal government.

  1. The Department of Agriculture may accept federal aid, gifts, donations, or devises. The Department of Agriculture is authorized in its discretion to accept the provisions of any Act of Congress appropriating, granting, or apportioning funds or commodities to the state for use in connection with any program of the Department of Agriculture. The Commissioner shall prescribe for the proper apportionment and distribution of these funds, property or commodities in accordance with the state and federal laws.
  2. The Commissioner of Agriculture may enter into any agreement and carry out the terms of such agreement with any department of the federal government to handle funds, commodities or any devise under any program assigned to or handled by the Department of Agriculture.

History. Enact. Acts 1960, ch. 158, effective June 16, 1960.

246.057. Metrology lab fees.

  1. The department may promulgate administrative regulations establishing license fees, testing fees, and any other fees necessary to operate and maintain a metrology lab within the department. Fees shall be established at a level that shall not exceed the actual cost of operating and maintaining the metrology lab.
  2. All amounts received from any fees imposed under subsection (1) of this section shall be deposited in a restricted fund and shall not be used for any other purpose.

History. Enact. Acts 2010 (1st Ex. Sess.), ch. 2, § 9, effective June 4, 2010.

246.060. Department to furnish information as to credit unions. [Repealed.]

Compiler’s Notes.

This section (883g-7) was repealed by Acts 1996, ch. 264, § 2, effective July 15, 1996.

246.065. Identification of lands of statewide agricultural importance.

  1. The State Department of Agriculture shall identify lands of statewide agricultural importance through the use of the United States Department of Agriculture’s land evaluation and site assessment program and the state’s geographic information system. The department shall provide information on the location of agricultural lands of statewide importance to each local planning unit operating under the requirements of KRS Chapter 100.
  2. The department is authorized to promulgate administrative regulations to implement this section.

History. Enact. Acts 1994, ch. 390, § 30, effective July 15, 1994.

246.070. Functions of Commissioner.

  1. The Commissioner shall promote and encourage, as far as practicable, the organization of agricultural organizations and associations. He shall ascertain in detail the quality and quantity of land under cultivation; the kinds, amounts and value of the annual field crops; the annual production of orchards, gardens, and dairies; the kinds, value, and increase of livestock; the character and wages of labor employed in the cultivation of the soil; and the value of agricultural exports and imports.
  2. The Commissioner may, if he thinks it will promote the objects of the department, expend such sums as are available in the payment of premiums that he offers to encourage the agricultural industry of the state.

History. 33, 39: amend. Acts 2002, ch. 88, § 5, effective March 28, 2002.

Research References and Practice Aids

Cross-References.

Apiary law, commissioner of agriculture to administer and enforce, KRS 252.180 to 252.240 .

Soybean promotion law, duties, KRS 247.510 to 247.595 .

Supervision and licensing of frozen food locker plants, KRS 221.020 , 221.030 .

246.080. Officers to furnish Commissioner information.

All officers of the state and counties shall furnish the Commissioner with such information within their power as he may require in regard to the matters connected with the department. The Commissioner shall also put himself in communication with the different agricultural associations and organizations and such other organizations or persons in or out of the state, as he may deem proper, in order to secure information.

History. 34: amend. Acts 2002, ch. 88, § 6, effective March 28, 2002.

246.090. Commissioner to issue monthly reports — Publication. [Repealed.]

Compiler’s Notes.

This section (35) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.100. Annual report on state, to induce immigration. [Repealed.]

Compiler’s Notes.

This section (36) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.105. Report of ownership of agricultural land by foreign investors. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1980, ch. 94, § 1, effective July 15, 1980) was repealed by Acts 1996, ch. 264, § 2, effective July 15, 1996.

246.110. Report to General Assembly. [Repealed.]

Compiler’s Notes.

This section (36, 4618-78) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.120. State Board of Agriculture.

  1. The board shall consist of eighteen (18) members as follows:
    1. The commissioner or the commissioner’s designee, who shall be a voting member and serve as chairman;
    2. The dean of the University of Kentucky College of Agriculture, Food and Environment or the dean’s designee, who shall be a voting member and serve as vice chairman;
    3. Thirteen (13) citizens of the Commonwealth appointed by the Governor who shall serve as voting members, specifically:
      1. Four (4) members who are farmers with experience in crop production, each of whom shall be selected from a list of at least three (3) individuals nominated by the Kentucky Corn Growers Association, the Kentucky Small Grain Growers Association, the Kentucky Soybean Association, or other similar trade organizations or commodity groups;
      2. Four (4) members who are farmers with experience in animal agriculture, each of whom shall be selected from a list of at least three (3) individuals nominated by the Kentucky Cattlemen’s Association, the Kentucky Dairy Development Council, the Kentucky Pork Producers Association, the Kentucky Poultry Federation, the Kentucky Sheep and Goat Development Office, or other similar trade organizations or commodity groups;
      3. Three (3) members who shall be appointed from the state at large who are farmers with due consideration to geographical distribution throughout the state and industry representation;
      4. One (1) member who shall be appointed from a list of at least three (3) individuals nominated by the AgriBusiness Association of Kentucky or other similar trade organizations representing agribusiness; and

        (5) One (1) member who shall be appointed from a list of at least three (3) individuals nominated by the Kentucky Farm Bureau Federation;

    4. The state president of the Kentucky FFA Association who shall serve as a nonvoting member for the duration of his or her term;
    5. The state president of the Kentucky Young Farmers Association who shall serve as a nonvoting member for the duration of his or her term; and
    6. The state president of the Kentucky 4-H who shall serve as a nonvoting member for the duration of his or her term.
  2. The members who serve on the board and were appointed by the Governor shall serve four (4) year terms and shall serve until their successors are duly appointed and qualified. The initial appointments shall be for staggered terms, as follows:
    1. Three (3) members shall be appointed for one (1) year;
    2. Three (3) members shall be appointed for two (2) years;
    3. Three (3) members shall be appointed for three (3) years; and
    4. Four (4) members shall be appointed for four (4) years. No more than eight (8) of the thirteen (13) shall belong to the same political party.
  3. Upon the expiration of the term of a member of the board, the Governor shall appoint a successor. A board member whose term has expired shall serve until a replacement has been appointed and qualified. No person shall serve on the board for more than twelve (12) years.
  4. The board shall be a body corporate under the corporate name “State Board of Agriculture” and shall have the usual corporate powers.

History. 37-2, 37-3: amend. Acts 1960, ch. 122, § 1; 1994, ch. 122, § 1, effective July 15, 1994; 2019 ch. 88, § 1, effective August 1, 2019.

NOTES TO DECISIONS

1. Acts of Officers or Servants.

State board of agriculture is not liable for the tortious acts of its officers or servants. Zoeller v. State Bd. of Agriculture, 163 Ky. 446 , 173 S.W. 1143, 1915 Ky. LEXIS 251 ( Ky. 1915 ).

246.130. Meetings of board — Quorum.

The board shall meet at least four (4) times per year to consider the general agricultural, horticultural, and forestry interests of the state, and to take the necessary steps for carrying out the purpose of the board. The Commissioner may, and at the request of eight (8) of its voting members, call its meetings and the board may adjourn any meeting to a time and place as may be determined. Eight (8) voting members shall constitute a quorum. Eight (8) members may call the board together for the transaction of business if the Commissioner, upon their request, refuses to do so.

HISTORY: 37-4: amend. Acts 1994, ch. 122, § 2, effective July 15, 1994; 2002, ch. 88, § 7, effective March 28, 2002; 2018 ch. 3, § 2, effective July 14, 2018; 2019 ch. 88, § 2, effective August 1, 2019.

NOTES TO DECISIONS

Cited:

Ferguson v. Chandler, 266 Ky. 694 , 99 S.W.2d 732, 1936 Ky. LEXIS 709 ( Ky. 1936 ).

246.140. Compensation of board — Limitation on days of session.

Except as provided in KRS 18A.200 , members of the board shall receive fifty dollars ($50) per day and actual traveling expenses while attending meetings of the board, but the total number of days the board may be in session shall not exceed thirty-six (36) per year.

History. 37-12: amend. Acts 1960, ch. 122, § 2; 1978, ch. 154, § 27, effective June 17, 1978; 1994, ch. 122, § 3, effective July 15, 1994.

246.150. Clerk and stenographers for board. [Repealed.]

Compiler’s Notes.

This section (37-11: amend. Acts 1974, ch. 386, § 50) was repealed by Acts 1996, ch. 264, § 2, effective July 15, 1996.

246.160. Board to advise Commissioner.

The board shall act as an advisory board to the Commissioner.

History. 37-8: amend. Acts 2002, ch. 88, § 8, effective March 28, 2002.

Research References and Practice Aids

Cross-References.

Grain warehouses, duty of board in connection with, KRS 251.020 .

246.170. Board to report to General Assembly. [Repealed.]

Compiler’s Notes.

This section (63c-22) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.180. Duties of board as to immigration and emigration. [Repealed.]

Compiler’s Notes.

This section (37-10) was repealed by Acts 1996, ch. 264, § 2, effective July 15, 1996.

246.190. State farmers’ institute. [Repealed.]

Compiler’s Notes.

This section (37-6) was repealed by Acts 1996, ch. 264, § 2, effective January 1, 1996.

246.200. Delegates to institute — Crop reporters — Report on institute. [Repealed.]

Compiler’s Notes.

This section (37-5, 37-11) was repealed by Acts 1996, ch. 264, § 2, effective July 1, 1996.

246.210. Access of department and agents, board and members, and others to premises — Destruction or slaughter of diseased livestock.

  1. The department or its agents or employees shall have free access within reasonable hours to any farm, orchard, garden, elevator, warehouse, building, cellar, freight or express office or car, freight yard, vehicle, vessel, boat, container, or any other place which, for probable cause, it may be necessary or desirable for the agents to enter in order to enforce a quarantine against the European corn borer (Pyrausta nubilaslis).
  2. The department or any of its agents or employees may, after reasonable notice, enter any premises for the purpose of inspecting or testing livestock to determine the existence of, or to combat in any way, communicable diseases. The owner of the livestock to be tested or inspected shall, after reasonable notice, confine and present the livestock to the agents or employees of the department. When the department or any of its agents or employees determines through inspection or testing that any livestock is infected with a communicable disease, they may enter any premises, after reasonable notice, and remove the diseased livestock, and have the livestock destroyed or slaughtered and the owner indemnified as provided in KRS 257.120 to 257.150 . When necessary the department or any of its agents or employees may call upon peace officers for assistance.
  3. The state entomologist or his authorized agent shall, upon previous application, have free access within reasonable hours to any premises or containers for purposes of trapping, inspecting for, investigating, or treating the premises for the control of Japanese beetles (Popillia japonica).
  4. The director of the agricultural experiment station and his agents shall have free access at all reasonable hours to any premises, vehicle, elevator, or steamship company, in the discharge of his duties under KRS 250.081 .

History. 30c-21, 42f-3, 42g-2, 63c-13, 68n-4, 1376b-22: amend. Acts 1962, ch. 248, § 2; 1966, ch. 255, § 217; 1990, ch. 97, § 5, effective July 13, 1990; 1994, ch. 370, § 12, effective April 8, 1994; 2002, ch. 88, § 9, effective March 28, 2002; 2002, ch. 240, § 3, effective July 15, 2002.

Legislative Research Commission Note.

(7/15/2002). This section was amended by 2002 Ky. Acts chs. 88 and 240, which do not appear to be in conflict and have been codified together.

NOTES TO DECISIONS

1. Diseased Animals.

The statutes governing control and eradication of communicable diseases of animals granted authority to the department to kill diseased animals. Spillman v. Beauchamp, 362 S.W.2d 33, 1962 Ky. LEXIS 253 ( Ky. 1962 ).

Opinions of Attorney General.

The state board of agriculture has authority to promulgate a regulation requiring any cattle owner of beef stock under quarantine to round up the herd with reasonable notice and at a specified time for the purpose of permitting a representative of the department to inspect the cattle individually for any violation of the quarantine. OAG 60-416 .

The state veterinarian and his representatives have the authority and power to proceed to inspect and test cattle, wherever found, for contagious or communicable disease and any person who refuses to permit such inspection or testing will be subject to prosecution under KRS 246.990(2), KRS 257.990(1) or KRS 257.990(10). OAG 60-973 .

Research References and Practice Aids

Cross-References.

Apiaries, right of access to, KRS 252.240 .

246.220. Interference with officers prohibited.

  1. No person shall in any way hinder, refuse, or defeat entrance or inspection by an agent or employee of the department who is performing the duties of his office for the purpose of combating the European corn borer under subsection (1) of KRS 246.210 .
  2. No person shall interfere in any way with the department or any of its agents or employees in the inspection of premises and livestock, or in the testing of livestock on any premises when the object of the inspection or testing is to determine the existence of, or to combat in any way, communicable disease in livestock. No person shall interfere in any way with the department or any of its agents or employees in the removal from any premises of livestock found to be infected with a communicable disease.
  3. No person shall hinder the efforts of the state entomologist or his agents in combating Japanese beetles under KRS 246.210 .
  4. No person shall hinder the entomologist in the performance of any of his duties.
  5. No person shall interfere in any way with inspectors or assistants while they are discharging their duties under KRS 250.021 to 250.111 .
  6. No person shall hinder, prevent, or attempt to prevent any person from discharging his duties under KRS 250.491 to 250.631 .
  7. No person shall in any way impersonate, hinder, or obstruct the department or its inspectors in the performance of their official duties under KRS 248.280 to 248.440 or 261.220 .

History. 42c-7, 42f-3, 42g-3, 63c-5, 63d-11, 68n-11, 1376b-23, 1719a-11, 4814c-18: amend. Acts 1958, ch. 126, § 31; 1962, ch. 248, § 3; 1966, ch. 255, § 218; 1980, ch. 188, § 230, effective July 15, 1980; 1994, ch. 370, § 13, effective April 8, 1994; 1996, ch. 142, § 17, effective July 15, 1996; 2002, ch. 88, § 10, effective March 28, 2002.

Research References and Practice Aids

Cross-References.

Penalty for interference with enforcement of apiary law, KRS 252.240 , 252.990 .

Penalty for interference with enforcement of baby chick law, KRS 257.990 .

246.230. Study and survey of agricultural production and marketing. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1950, ch. 8) was repealed by Acts 1996, ch. 264, § 2, effective July 15, 1996.

246.240. Dairy products, collection and publication of information concerning. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1950, ch. 7, §§ 1 to 3) was repealed by Acts 1996, ch. 264, § 2, effective July 15, 1996.

246.245. Agriculture promotion fund.

  1. There is hereby established in the State Treasury a separate trust and agency account to be known as the “Agriculture Promotion Fund” to be administered by the Department of Agriculture for the purposes provided in this section. Any moneys accruing to this fund in any fiscal year shall not lapse but shall be carried forward to the next fiscal year.
    1. Any moneys deposited in the fund shall be used to purchase materials to promote agriculture in the Commonwealth; (2) (a) Any moneys deposited in the fund shall be used to purchase materials to promote agriculture in the Commonwealth;
    2. Any moneys received from the sale of promotional materials shall be deposited in the fund; and
    3. The fund may receive state appropriations, gifts, grants, and federal funds.

History. Enact. Acts 2001, ch. 20, § 1, effective June 21, 2001.

246.247. Agricultural program trust fund.

  1. The agricultural program trust fund is hereby created as a separate revolving fund to be administered by the Department of Agriculture.
  2. The fund shall consist of moneys deposited in the fund pursuant to KRS 186.050 and any other proceeds from grants, contributors, appropriations, or other moneys available for purposes of the trust fund.
  3. Moneys in the fund shall be used for agricultural programs administered by the department.
  4. Notwithstanding KRS 45.229 , any balance remaining in the fund at the end of a fiscal year shall not lapse. Any balance remaining at the end of a fiscal year shall be carried forward to the next fiscal year. Any interest earnings of the fund shall become part of the revolving fund and shall not lapse.

History. Enact. Acts 2009, ch. 3, § 1, effective March 6, 2009.

246.250. State aid for promotion of purebred cattle industry — Administrative regulations.

  1. As used in this section, unless the context otherwise requires:
    1. “Department” means the Department of Agriculture;
    2. “Commissioner” means the Commissioner of Agriculture;
    3. “Registered cattle” means cattle with approved registration papers from an appropriate association, organization, or authority;
    4. “Pen sale cattle” means uniform groups of commercial or registered beef cattle;
    5. “Market animals” means beef prospect steers and market heifers; and
    6. “AOB” means all other breeds. AOB is any combination of two (2) or more registered breeds. Both beef and dairy cattle may have an AOB category.
  2. The department shall support the development and the improvement of the cattle industry in Kentucky by promoting annual shows and sales of cattle with the purpose of establishing Kentucky as one of the greatest centers in the United States for the breeding, producing, raising, exhibiting, showing, and selling of cattle. The General Assembly shall make appropriations from the general expenditure fund for each fiscal year to effectuate that purpose.
  3. Except as provided in subsection (4) of this section, from the appropriations made in accordance with subsection (2) of this section, at least six thousand dollars ($6,000) shall be appropriated in each fiscal year for premiums and advertising expenditures for each of the following registered cattle breeds and other categories:
    1. Angus;
    2. Beefalo;
    3. Charolais;
    4. Chi;
    5. Hereford;
    6. Limousin;
    7. Market animals;
    8. Maine;
    9. Pen sale cattle;
    10. Red Angus;
    11. Red Poll;
    12. Salers;
    13. Santa Gertrudis;
    14. Shorthorn;
    15. Simmental;
    16. Ayrshire;
    17. Brown Swiss;
    18. Guernsey;
    19. Holstein;
    20. Milking Shorthorn; and
    21. Jersey.
  4. If a registered breed from subsection (3) of this section does not have enough entries to meet the minimum number required for a show, then it may combine with one (1) or more other registered breeds to form an AOB category. The AOB shall be funded in an amount equal to six thousand dollars ($6,000) from the allocations provided to the registered breeds that created the AOB. The funding shall be proportionately based on the number of entries per breed.
  5. The remainder of the appropriations made in accordance with subsection (2) of this section for each fiscal year shall be used and applied by the department as follows: At least five thousand dollars ($5,000) shall be divided between the Kentucky National Dairy Shows and Sales Board and the Kentucky Beef Expo Board to help cover facility and event costs; and the remaining balance shall be used and applied by the department in advertising and in promoting the cattle industry in Kentucky as the Commissioner may determine.
    1. Only exhibitors participating in the Kentucky National Dairy Shows and Sales or the Kentucky Beef Expo are eligible for the funds appropriated in subsection (3) or (4) of this section; (6) (a) Only exhibitors participating in the Kentucky National Dairy Shows and Sales or the Kentucky Beef Expo are eligible for the funds appropriated in subsection (3) or (4) of this section;
    2. Only eligible cattle from the United States and Canada may participate in the Kentucky National Dairy Shows and Sales or the Kentucky Beef Expo;
    3. When animals of equal quality are consigned, first consideration shall be given to Kentucky-owned or Kentucky-bred cattle; and
    4. In order to receive funding under subsection (3) or (4) of this section, each breed or category shall be required to match its appropriation on a dollar-for-dollar basis.
  6. The department shall promulgate administrative regulations in accordance with KRS Chapter 13A to carry out the provisions of this section.

History. Enact. Acts 1950, ch. 109, § 1 to 5; 1956, ch. 82; 1962, ch. 242; 1968, ch. 91, § 1; 1974, ch. 216, § 1; 1978, ch. 42, § 1, effective June 17, 1978; 1978, ch. 247, § 1, effective June 17, 1978; 1980, ch. 185, § 1, effective July 15, 1980; 1988, ch. 378, § 1, effective July 15, 1988; 1990, ch. 387, § 1, effective July 13, 1990; 2008, ch. 90, § 1, effective July 15, 2008.

246.260. State aid for promotion of sheep industry.

  1. As used in this section, unless the context otherwise requires:
    1. “Department” means the department of agriculture;
    2. “Commissioner” means the commissioner of agriculture;
    3. “Show, exhibition and sale” shall not include those held as a part of or in connection with any county or other local fair.
  2. It shall be the duty of the department to aid, encourage, foster and promote the development and improvement of the sheep industry in Kentucky. To that end, it shall be the duty of the department to promote, and assist in the promotion of shows and sales of sheep in Kentucky with the object and purpose of maintaining Kentucky’s national recognition as a sheep state for breeding, producing, raising, exhibition, showing and sale of sheep and for said purposes there hereby is appropriated out of the general fund to the department the sum of three thousand dollars ($3,000) for each of the fiscal years 1951-1952 and 1952-1953.
  3. From the appropriation made in subsection (2) of this section, one thousand dollars ($1,000) shall be used and applied in each of said fiscal years for the payment of premiums for district shows and sales which may be held in Kentucky in each of the fiscal years, 1951-1952 and 1952-1953 which is open on equal terms and conditions to all Kentucky 4-H club members with a sheep project. One thousand dollars ($1,000) shall be used and applied in each fiscal year for the payment of premiums for district shows and sales which may be held in Kentucky in each of the fiscal years, 1951-1952 and 1952-1953 which is open on equal terms and conditions to all Kentucky future farmer members with a sheep project. One thousand dollars ($1,000) shall be used and applied in each of the fiscal years for the payment of premiums for district shows and sales which may be held in Kentucky in each of the fiscal years, 1951-1952 and 1952-1953 which is open on equal terms and conditions to all Kentucky adult sheep raisers in Kentucky. No Kentucky adult sheep raiser may show, exhibit or sell in more than one district show.
  4. Any show, exhibition and sale of sheep to be eligible to receive the aforesaid appropriations must provide that the entries in all classes must be open upon equal terms to all breeders of such sheep in Kentucky. The commissioner shall determine with respect to the aforesaid sheep which shows, exhibitions and sales in each year shall receive assistance and, in making such determination, he may consider such shows, exhibitions and sales as may have been held in Kentucky in any previous year and in any previous two (2) year period.

History. Enact. Acts 1952, ch. 166, §§ 1 to 4.

246.270. Commissioner authorized to receive trust assets of Kentucky Rural Rehabilitation Corporation.

The Commissioner of Agriculture is hereby designated as the state official of the Commonwealth of Kentucky to make application to and receive from the Secretary of Agriculture of the United States, or any other proper federal official, pursuant and subject to the provisions of Public Law 499, 81st Congress, approved May 3, 1950, the trust assets, either funds or property, held by the United States as trustee in behalf of the Kentucky Rural Rehabilitation Corporation.

History. Enact. Acts 1952, ch. 168, § 1.

Compiler’s Notes.

Public Law 499 referred to in this section was compiled as 40 USCS §§ 440-444 and 7 USCS 1001n. 40 USCS §§ 440-444 have been omitted as executed and 7 USCS § 1001 has been repealed.

246.275. Agreements with Secretary of Agriculture of United States for purposes of Bankhead-Jones Farm Tenant Act.

The Commissioner of Agriculture, with the advice of the state Board of Agriculture, is authorized to enter into agreements with the Secretary of Agriculture of the United States pursuant to Section 2(f) of the aforesaid act of the Congress of the United States, upon such terms and conditions and for such periods of time as may be mutually agreeable, authorizing the Secretary of Agriculture of the United States to accept, administer, expend and use in the Commonwealth of Kentucky all or any part of such trust assets, or any other funds of the Commonwealth of Kentucky which may be appropriated for such uses, for carrying out the purposes of Titles I and II of the Bankhead-Jones Farm Tenant Act, in accordance with the applicable provisions of Title IV thereof, as now or hereafter amended, and to do any and all things necessary to effectuate and carry out the purposes of said agreements.

History. Enact. Acts 1952, ch. 168, § 2.

Compiler’s Notes.

“Section 2(f) of the aforesaid act” referred to in this section probably refers to Public Law 499, 81st Congress, referred to in KRS 246.270 , which has been omitted as executed.

The Bankhead-Jones Farm Tenant act referred to in this section was compiled as 7 USCS § 1001-1006, 1006c-1006e, 1007, 1008-1010, 1011, 1012, 1013, 1013a and 1014-1029. Sections 1001-1006, 1006c-1006e, 1007, 1008, 1009, 1013 and 1014-1029 have been repealed.

246.280. Deposit and use of funds and proceeds of Kentucky Rural Rehabilitation Corporation assets.

Funds and the proceeds of the trust assets returned to the Commissioner of Agriculture pursuant to KRS 246.270 which are not retransferred to the Secretary of Agriculture of the United States pursuant to KRS 246.275 , shall be paid into the State Treasury and carried in a separate account for use for such of the rural rehabilitation purposes permissible under the charter of the now dissolved Kentucky Rural Rehabilitation Corporation as may from time to time be agreed upon by the Commissioner and the Secretary of Agriculture of the United States, subject to the applicable provisions of said Public Law 499, or for the purposes of KRS 246.275 .

History. Enact. Acts 1952, ch. 168, § 3.

Compiler’s Notes.

Public Law 499 referred to in this section was compiled as 40 USCS §§ 440-444 and 7 USCS § 1001n. 40 USCS §§ 440-444 have been omitted as executed and 7 USCS § 1001 has been repealed.

246.285. Powers of Commissioner concerning assets of Kentucky Rural Rehabilitation Corporation.

  1. The Commissioner of Agriculture of the State of Kentucky is authorized and empowered to:
    1. Collect, compromise, adjust or cancel claims and obligations arising out of or administered under KRS 246.270 to 246.290 or under any mortgage, lease, contract or agreement entered into or administered pursuant to KRS 246.270 to 246.290 and, if in his judgment, necessary and advisable, pursue the same to final collection in any court having jurisdiction;
    2. Bid for and purchase at any execution, foreclosure or other sale, or otherwise to acquire property upon which the Secretary has a lien by reason of a judgment or execution, or which is pledged, mortgaged, conveyed or which otherwise secures any loan or other indebtedness owing to or acquired by the Secretary under KRS 246.270 to 246.290; and
    3. Accept title to any property so purchased or acquired; to operate or lease such property for such period as may be deemed necessary to protect the investment therein; and to sell or otherwise dispose of such property in a manner consistent with the provisions of KRS 246.270 to 246.290.
  2. The authority herein contained may be delegated to the Secretary of Agriculture of the United States with respect to funds and assets transferred to him pursuant to KRS 246.275 .

History. Enact. Acts 1952, ch. 168, § 4.

246.290. Nonliability of United States and Secretary of Agriculture.

The United States and the Secretary of Agriculture thereof, shall be held free from liability by virtue of the transfer of the assets to the Commissioner of Agriculture of the State of Kentucky pursuant to KRS 246.270 to 246.290 .

History. Enact. Acts 1952, ch. 168, § 5.

246.295. Administrative regulations relating to cervids — Costs resulting from importation of diseased animal.

  1. The Department of Agriculture, in cooperation with the Department of Fish and Wildlife Resources, shall promulgate administrative regulations pertaining to health requirements, eradication of diseases, importation, and unique individual identification, including visual identification tags, of privately owned and farm raised cervids maintained for the production of meat and other products. Nothing in this section shall limit the authority of the Department of Fish and Wildlife Resources to regulate the unique individual identification, including visual identification, of captive cervids that are not privately owned and farm-raised cervids maintained for the production of meat and other products. The Department of Fish and Wildlife Resources in cooperation with the Department of Agriculture, shall promulgate administrative regulations pertaining to the holding of cervids.
  2. If any person imports a diseased animal into the Commonwealth in violation of the statutes and administrative regulations, then that person shall be responsible to the Department of Agriculture and the Department of Fish and Wildlife for all costs incurred in the investigation, response, and eradication of that disease.

History. Enact. Acts 2002, ch. 88, § 2, effective March 28, 2002; 2009, ch. 62, § 6, effective June 25, 2009.

246.300. Transfer of functions relating to egg marketing from department of health to department of agriculture, labor and statistics. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1964, ch. 65, § 1) was repealed by Acts 1966, ch. 255, § 283.

246.310. Kentucky farm development authority — Members — Chairman — Quorum — Meetings — Salary — Regulations — Terms. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 1) was repealed by Acts 1976, ch. 317, § 3.

246.320. Authority may guarantee loans for purchase of farm lands or buildings — “Farm land” defined — Regulations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 2; 1972, ch. 221, § 1; 1974, ch. 58, § 1) was repealed by Acts 1976, ch. 317, § 3.

246.330. Applications for guarantees — Contents. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 3; 1974, ch. 58, § 2) was repealed by Acts 1976, ch. 317, § 3.

246.340. Copy of mortgage and security agreement to be filed with application. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 3; 1974, ch. 58, § 3) was repealed by Acts 1976, ch. 317, § 3.

246.350. Applicant to agree to use land for farming purposes only — Authority may release agreement. [Repealed].

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 5) was repealed by Acts 1976, ch. 317, § 3.

246.360. Authority may employ personnel. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 6) was repealed by Acts 1976, ch. 317, § 3.

246.370. Letter of guarantee — Funding fee. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 7; 1972, ch. 221, § 2; 1974, ch. 58, § 4; 1974, ch. 74, Art. II, § 9(2)) was repealed by Acts 1976, ch. 317, § 3.

246.380. Default on guaranteed loan — Procedure. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 8; 1974, ch. 58, § 5) was repealed by Acts 1976, ch. 317, § 3.

246.390. Release of guaranteed loan paid in full. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 9; 1974, ch. 58, § 6) was repealed by Acts 1976, ch. 317, § 3.

246.400. No applicant to hold more than one guarantee. [Repealed]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 10) was repealed by Acts 1976, ch. 317, § 3.

246.410. Farm development loan guarantee fund — Credits — Expenditures. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 273, § 11) was repealed by Acts 1976, ch. 317, § 3.

246.420. Tampering with or sabotaging livestock prohibited — Definitions for section — Applicability of KRS Chapter 512.

  1. No person shall tamper with any livestock.
  2. No person shall sabotage any livestock exhibited at an exhibition.
  3. This section shall not apply to:
    1. Any action taken or activity performed or administered by a licensed veterinarian or in accordance with instructions of a licensed veterinarian if the action or activity was undertaken for accepted medical purposes during the course of a valid veterinarian-client-patient relationship; or
    2. Generally accepted grooming, commercial, or medical practices that are not prohibited by any provision of the Kentucky Revised Statutes or any administrative regulation promulgated thereunder.
  4. As used in this section:
    1. “Tamper” means any of the following:
      1. Treatment of livestock in such a manner that food derived from the livestock would be considered adulterated as defined in KRS 217.025 ;
      2. The injection, use, or administration of any drug that is prohibited under any federal law or law of this state, or any drug that is used in any manner that is not authorized under any federal law or law of this state. Whenever the commissioner of the United States Food and Drug Administration or the secretary of the United States Department of Agriculture, pursuant to the federal Food, Drug, and Cosmetic Act, as amended, or federal Virus-Serum-Toxin Act, as amended, approves, disapproves, or modifies the conditions of the approved use of a drug, the approval, disapproval, or modification shall automatically be effective for the purposes of this section unless the Kentucky Department of Agriculture adopts an administrative regulation to alter, for the purposes of the section, the action taken by the commissioner or secretary. The Kentucky Department of Agriculture may adopt an administrative regulation if the department considers it to be necessary or appropriate for the protection of food safety or the health, safety, or welfare of livestock or to prevent the use of a drug for the purpose of concealing, enhancing, transforming, or changing the true conformation, configuration, or condition of livestock. No administrative regulation shall authorize the use of any drug the use of which is prohibited by, or authorize the use of any drug in a manner not authorized by, the commissioner or secretary under either of those acts;
      3. The injection or other internal or external administration of any product or material, whether gas, solid, or liquid, to livestock for the purpose of concealing, enhancing, transforming, or changing the true conformation, configuration, condition, or age of the livestock or making the livestock appear more sound than it actually is;
      4. The use or administration, for cosmetic purposes, of steroids, growth stimulants, or internal artificial filling, including paraffin, silicone injection, or any other substance;
      5. The use or administration of any drug or feed additive affecting the central nervous system of the livestock;
      6. The use or administration of diuretics for cosmetic purposes; and
      7. The surgical manipulation or removal or tissue so as to change, transform, or enhance the true conformation or configuration of, or to conceal the age of, the livestock.
    2. “Sabotage” means intentionally tampering with any livestock belonging to or owned by another person that has been registered, entered into, or exhibited in any exhibition, or raised with the apparent intent of being entered into an exhibition.
  5. Where a person violates both the provisions of this section and a section of KRS Chapter 512, the person may be prosecuted under the provisions of KRS Chapter 512.

History. Enact. Acts 2004, ch. 141, § 1, effective July 13, 2004.

Compiler’s Notes.

The Food, Drug, and Cosmetic Act and the Virus-Serum-Toxin Act referred to in this section are compiled as 21 USCS § 301 et seq. and 21 USCS § 151 et seq., respectively.

Licensing of Spray Painters

246.510. License required. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 96, § 2) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.520. Rules and regulations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 96, § 3) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.530. Power of departmental agents. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 96, § 4) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.540. Grounds for suspension or revocation of licenses. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 96, § 5) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.550. Hearing. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 96, § 6) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.560. Notice of revocation, suspension, or refusal to issue license — Appeal — Bond. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 96, § 7) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.570. Change in ownership — Duty of new owner. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 96, § 8) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.580. Exceptions to license requirement. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 96, § 9) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

246.590. Disposition of fees. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 96, § 10) was repealed by Acts 2002, ch. 88, § 13, effective March 28, 2002.

Wild Ginseng Regulation

246.650. Definitions for KRS 246.660

As used in KRS 246.660 , unless the context clearly requires otherwise:

  1. “Harvest” means to take any part of the ginseng plant while the plant is living; and
  2. “Ginseng” means any part of the American ginseng plant known as Panax quinquefolius.

History. Enact. Acts 1982, ch. 415, § 1, effective July 15, 1982; 2011, ch. 15, § 1, effective June 8, 2011.

246.655. Kentucky ginseng fund.

  1. There is hereby established in the State Treasury a separate trust and agency account to be known as the Kentucky ginseng fund to be administered by the Department of Agriculture.
  2. Moneys in this fund shall be used to help administer the ginseng program as provided by KRS 246.660 .
  3. Notwithstanding KRS 45.229 , any moneys remaining in the fund at the close of the fiscal year, including interest, shall not lapse but shall be carried forward into the succeeding fiscal year to be used for the purposes set forth in this section.
  4. The fund may receive gifts, grants, federal funds, and any other funds both public and private.

History. Enact. Acts 2011, ch. 15, § 3, effective June 8, 2011.

246.660. Department to administer program for ginseng — Regulations.

    1. The department shall administer a program for ginseng in Kentucky which provides a framework, including a limited harvesting season, in which ginseng shall be eligible for exportation in compliance with federal requirements. (1) (a) The department shall administer a program for ginseng in Kentucky which provides a framework, including a limited harvesting season, in which ginseng shall be eligible for exportation in compliance with federal requirements.
    2. Information relating to the purchase or sale of ginseng that is furnished to or acquired by the department shall constitute proprietary information and not be subject to public disclosure, except to the extent the department deems necessary in any administrative or judicial proceeding involving the administration or enforcement of its administrative regulations.
    1. The department shall promulgate administrative regulations to carry out this program and may enter into agreements with any other agency of this state, any other state, or the federal government to carry out this program. (2) (a) The department shall promulgate administrative regulations to carry out this program and may enter into agreements with any other agency of this state, any other state, or the federal government to carry out this program.
    2. The department shall establish licensing requirements for dealers of ginseng.
    3. The department shall promulgate administrative regulations relating to the ginseng program that establish:
      1. A comprehensive set of administrative violations and civil penalties, each not to exceed one thousand dollars ($1,000); and
      2. The procedure for the suspension or revocation of any license or certificate issued by the department.

History. Enact. Acts 1982, ch. 415, § 2, effective July 15, 1982; 2011, ch. 15, § 2, effective June 8, 2011.

246.700. Renewable Chemical Production Program.

    1. The department shall create and administer the Renewable Chemical Production Program by promulgating administrative regulations under KRS Chapter 13A and authorizing tax credits for that production. (1) (a) The department shall create and administer the Renewable Chemical Production Program by promulgating administrative regulations under KRS Chapter 13A and authorizing tax credits for that production.
    2. The department may consult with the chemical engineering departments of any university to create and administer the Renewable Chemical Production Program that may best serve this Commonwealth.
    3. The department shall coordinate with the Department of Revenue related to awarding tax credits while remaining within the annual biodiesel, renewable diesel, and renewable chemical production tax credit cap provided in KRS 141.422 .
  1. To be eligible for receiving the renewable chemical production tax credit under KRS 141.4231 , a business shall:
    1. Be physically located in this state;
    2. Operate for profit;
    3. Organize, expand, or locate in this state on or after July 1, 2020;
      1. Create new jobs and retain those jobs for at least four (4) years; or (d) 1. Create new jobs and retain those jobs for at least four (4) years; or
      2. Invest a substantial amount of new capital in the Commonwealth and maintain that capital for at least four (4) years;
    4. Certify to the department:
      1. That the business:
        1. Has not applied for and will not receive economic development incentives under KRS Chapter 154 for the jobs created or capital investment made under the Renewable Chemical Production Program; and
        2. Is in compliance with all agreements entered into under the Renewable Chemical Production Program or other programs administered by the department; and
      2. The date that the business first qualified as an eligible business;
    5. Not provide professional services, health care services, or medical treatments, or engage in retail operations; and
    6. Not relocate operations from another area of the state or reduce operations in another area of the state while seeking this incentive. To determine whether a project meets the requirement under this paragraph, the department shall:
      1. Consider a project that does not create new jobs or invest a substantial amount of new capital a relocation or reduction in operations; and
      2. Require sufficient data from the business related to jobs created and the amount of substantial capital investment before the business applies for this incentive and for four (4) years following the approval of this incentive to ensure that new jobs or substantial capital investment have occurred and remain productive in this state;
    1. Before being approved for the tax credit permitted by KRS 141.4231 , an eligible business shall enter into an agreement with the department for the successful completion of all requirements of the program. (3) (a) Before being approved for the tax credit permitted by KRS 141.4231 , an eligible business shall enter into an agreement with the department for the successful completion of all requirements of the program.
    2. As part of the agreement, the eligible business shall agree to:
      1. Collect and provide all information required by the department, allowing the department and the Department of Revenue to maintain the annual tax credit cap and to fulfill each of the reporting and compliance obligations under this section and KRS 141.4231; and
      2. Agree to allow information about the production of renewable chemicals and the related tax credit to be shared with the Interim Joint Committee on Appropriations and Revenue.
    3. The business shall not receive a tax credit for renewable chemicals produced before the date the business first qualified as an eligible business.
    1. The department may impose a nonrefundable compliance cost fee of five hundred dollars ($500), collected by the department at the time a business applies for participation in the program. (4) (a) The department may impose a nonrefundable compliance cost fee of five hundred dollars ($500), collected by the department at the time a business applies for participation in the program.
    2. An eligible business shall fulfill all the requirements of the program and the agreement before receiving a tax credit or entering into a subsequent agreement under this section.
    3. The department may decline to enter into a subsequent agreement under this section or award a tax credit if an agreement is not successfully fulfilled.
    1. After the production of renewable chemicals by an eligible business, the business shall apply, in the manner prescribed by the department, for the renewable chemicals production tax credit. The application shall include the following information: (5) (a) After the production of renewable chemicals by an eligible business, the business shall apply, in the manner prescribed by the department, for the renewable chemicals production tax credit. The application shall include the following information:
      1. A description of the renewable chemicals produced in this state;
      2. The amount or volume of renewable chemicals produced;
      3. The costs associated with the production of the renewable chemicals;
      4. The amount of gross receipts generated by the sale of the renewable chemicals; and
      5. Any other information required by the department in order to establish and verify eligibility under the program.
    2. The department may accept applications on a continuous basis or may establish, by administrative regulation, an annual application deadline.
  2. Upon establishing that all requirements of the program and the agreement have been fulfilled, the department shall certify the amount of preliminary tax credit for the applicant to the Department of Revenue.
    1. The department shall work with the Department of Revenue to provide all information necessary to ensure compliance with KRS Chapter 141 by the successful tax credit applicant. (7) (a) The department shall work with the Department of Revenue to provide all information necessary to ensure compliance with KRS Chapter 141 by the successful tax credit applicant.
    2. On or before December 31, 2020, and on or before each December 31 thereafter, the department shall submit to the Department of Revenue all information received from each eligible business related to the renewable chemical tax credit.
    3. When the Department of Revenue receives the information provided under paragraph (b) of this subsection, the Department of Revenue shall consider the renewable chemical production tax credit applications together with the total amount of approved credit for all biodiesel producers, biodiesel blenders, and renewable diesel producers required in KRS 141.423 .
  3. The Renewable Chemical Production Program shall sunset on December 31, 2024.
    1. Failure to fulfill any requirement of the program or any of the terms and obligations of an agreement entered into under this section by an eligible business shall: (9) (a) Failure to fulfill any requirement of the program or any of the terms and obligations of an agreement entered into under this section by an eligible business shall:
      1. Result in the rescission of the tax credit permitted by KRS 141.4231 by the department; and
      2. Subject the eligible business to the repayment of all tax credits claimed.
    2. Upon the rescission of any tax credit, the department shall report to the Department of Revenue, within thirty (30) days, all information necessary by the Department of Revenue to ensure compliance with KRS Chapter 141.

HISTORY: 2020 ch. 91, § 24, effective April 15, 2020.

Penalties

246.990. Penalties.

  1. Any person who violates subsection (2) of KRS 246.210 , subsection (2) of KRS 246.220 , or subsection (1) of KRS 246.420 shall be fined not less than fifty dollars ($50) nor more than two hundred dollars ($200) for the first offense; he shall be fined not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000) and be confined in the county jail for not less than sixty (60) days nor more than one hundred and twenty (120) days, for each subsequent offense.
  2. Any person who violates subsection (3) of KRS 246.220 shall be fined not less than five dollars ($5) nor more than one hundred dollars ($100) or be imprisoned for not more than ten (10) days, or both. Each day’s hindering or refusal of access shall constitute a separate offense.
  3. Any person who violates subsection (4) of KRS 246.220 shall be fined not less than two dollars ($2) nor more than fifty dollars ($50).
  4. Any person who violates subsection (5) of KRS 246.220 shall be fined not less than twenty-five dollars ($25) nor more than one hundred dollars ($100).
  5. Any person who violates subsection (6) of KRS 246.220 shall be fined not less than ten dollars ($10) nor more than fifty dollars ($50).
  6. Any person who violates subsection (7) of KRS 246.220 shall be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500), or imprisoned for not more than three (3) months, or both.
  7. Any owner or operator of a dairy plant who shall fail to comply with the provisions of KRS 246.240 or any part thereof shall be guilty of a misdemeanor and upon conviction thereof shall be fined not more than one hundred dollars ($100).
    1. Any person who purchases ginseng knowing that the ginseng was taken, acquired, possessed, sold, transported, or purchased in violation of administrative regulations authorized under KRS 246.660 shall be guilty of a Class A misdemeanor. (8) (a) Any person who purchases ginseng knowing that the ginseng was taken, acquired, possessed, sold, transported, or purchased in violation of administrative regulations authorized under KRS 246.660 shall be guilty of a Class A misdemeanor.
    2. The Commissioner or any peace officer may seize and take possession of any ginseng taken, acquired, possessed, sold, transported, or purchased by a person committing a violation of administrative regulations authorized under KRS 246.660. Any ginseng seized in accordance with this paragraph shall be impounded by the arresting officer and shall be taken before the court trying the person arrested.
    3. Upon conviction, the court trying the case shall have the discretion of determining whether any of the ginseng seized under paragraph (b) of this subsection shall be declared contraband. Any ginseng seized under paragraph (b) of this subsection is subject to being declared contraband. If any ginseng is declared contraband, the court shall enter an order accordingly. A copy of the order shall be forwarded to the Commissioner, and the ginseng shall be placed in the custody of the arresting officer, to be delivered to the Commissioner.
    4. The Commissioner may sell, at the highest market price obtainable, with the approval of the Governor and Finance and Administration Cabinet, all contraband ginseng which comes into his or her possession under the order of any court. All proceeds arising from the sale of contraband ginseng shall be paid into the Kentucky ginseng fund established in KRS 246.655 . A record of the sale, including the name of the purchaser and the price paid, shall be kept by the Commissioner.
  8. Any person who violates subsection (2) of KRS 246.420 shall be disqualified from exhibiting at an exhibition for a first offense, and shall be disqualified for up to five (5) years for a second or subsequent offense.

History. 42c-7, 42g-3, 63c-5, 63d-11, 68n-11, 1376b-24, 1719a-11, 4814c-18: amend. Acts 1950, ch. 7, § 4; 1970, ch. 96, § 11; 1982, ch. 310, § 4, effective July 15, 1982; 1994, ch. 261, § 1, effective July 15, 1994; 2002, ch. 88, § 11, effective March 28, 2002; 2004, ch. 141, § 2, effective July 13, 2004; 2011, ch. 15, § 4, effective June 8, 2011.

Opinions of Attorney General.

The state veterinarian and his representatives have the authority and power to proceed to inspect and test cattle, wherever found, for contagious or communicable disease and any person who refuses to permit such inspection or testing will be subject to prosecution under KRS 246.990(2), 257.990(1) or 257.990(10). OAG 60-973 .

Research References and Practice Aids

Cross-References.

Designation of offenses; penalties, see KRS 532.020 .

CHAPTER 247 Promotion of Agriculture and Horticulture

247.010. Definitions for chapter.

As used in this chapter, unless the context requires otherwise:

  1. “Board” means the State Board of Agriculture;
  2. “Commissioner” means Commissioner of Agriculture;
  3. “Department” means the Department of Agriculture; and
  4. “Livestock” means cattle, sheep, swine, goats, horses, alpacas, llamas, buffaloes, or any other animals of the bovine, ovine, porcine, caprine, equine, or camelid species.

HISTORY: 2017 ch. 129, § 16, effective June 29, 2017.

Compiler’s Notes.

This section was originally created by the Legislative Research Commission in order to clarify the chapter.

Research References and Practice Aids

Cross-References.

Acquisition and development of public projects by governmental units and agencies, through revenue bonds, KRS ch. 58.

Agriculture department, KRS ch. 246.

Apiaries, KRS ch. 252.

Appointment to boards and commissions, KRS 12.070 .

District cooperative extension service, KRS 164.605 to 164.675 .

Economic development, KRS ch. 154.

Livestock and poultry disease control, KRS ch. 257.

Marketing of agricultural products, KRS ch. 260.

No property exempt from taxation except as provided in Constitution, Const., § 3.

Powers of state property and buildings commission as to acquisition, improvement, use and disposition of real estate, KRS 56.460 .

Premiums, commissioner may expend for, in order to encourage agriculture, KRS 246.070 .

Property exempt from taxation, Const., §§ 170, 171.

Rural land utilization, governor’s cabinet to conduct surveys to determine, KRS 147.070 .

Soil and water conservation, KRS ch. 262.

Stockyards, KRS ch. 261.

Tobacco, KRS ch. 248.

Trees, plants, weeds and pests, KRS ch. 249.

Weights and measures, KRS ch. 363.

247.015. Department authorized to provide space on state property for sale of Kentucky agricultural commodities — Administrative regulations — Applicability.

  1. It is hereby declared to be in the public interest and for the public health and welfare that the State Department of Agriculture shall have the authority to provide space on all state property, in cooperation with the appropriate state agency under whose jurisdiction the said real property falls, for those nonprofit agricultural commodity organizations designated in section 501(c)(5) of the Federal Internal Revenue Code to sell, give away, advertise, or promote Kentucky agricultural commodities.
  2. The department shall, in cooperation with other state agencies, develop administrative regulations to carry out the provisions of subsection (1) of this section, which may include a reasonable fee to be paid by the agricultural organization.
  3. This section shall not apply to existing contracts prior to July 15, 1986, but shall apply to contract renewals and to new contracts after July 15, 1986.

History. Enact. Acts 1986, ch. 460, § 1, effective July 15, 1986.

Compiler’s Notes.

Section 501(c)(5) of the Internal Revenue Code, referred to in this section, is codified as 26 USCS § 501(c)(5).

Experiment Station and Extension Work

247.020. Experiment stations — Substations — Experimental farms.

  1. The College of Agriculture of the University of Kentucky shall constitute the Agricultural Experiment Station.
  2. The experiment station shall operate and direct the substations at Quicksand and Princeton which shall be divisions of the experiment station.
  3. The experiment station may purchase, lease or accept gift of farms for use in its experimentation program.

History. 1822-1, 4636f-3, 4636f-6: amend. Acts 1954, ch. 107, § 1.

Research References and Practice Aids

Cross-References.

Agricultural experiment stations, federal laws, 7 USCS §§ 361a-390d.

Board of agriculture, director of experiment station is member of, KRS 246.120 .

Entomologist to prescribe rules with consent of director of experiment station, KRS 249.030 .

Fertilizers, duty of experiment station in respect to, KRS 250.361 to 250.451 .

University of Kentucky, appointment of officers and employees, KRS 164.220 .

247.025. Purposes of experimental farms.

On experimental farms acquired under the provisions of subsection (3) of KRS 247.020 the agricultural experiment station shall conduct experimentation and demonstrations in the interest of agriculture, horticulture and forestry and the development thereof in the Commonwealth. In addition to the purposes set out in KRS 247.030 experimental farms shall be used to determine the phases of horticulture, forestry and agriculture, including grasslands, hay crops and rotation thereof, and animal husbandry best suited to particular soil belts and areas of the state.

History. Enact. Acts 1954, ch. 107, § 2.

247.030. Functions of experiment station.

  1. The experiment station shall make field experiments in order to ascertain by chemical and physical examination of soils and by direct experiments in laboratory and fields what crops and treatment are best suited to each type of soil, whether the present methods are tending to best results and to the preservation or reduction of fertility, what rotation and treatment will be most effective in retaining productive capacities of the soils of the various sections of the state and discover and demonstrate the best methods of marketing of fruits and vegetables.
  2. It shall conduct investigations calculated to develop the beef, pork and mutton producing interests of the state, and especially feeding experiments intended to demonstrate the most successful combination of stock foods, discovering, if possible, the most economical and successful methods of maintaining animals and fitting them for the market. It shall also conduct pathological investigations and investigate livestock conditions both at home and abroad, in so far as they affect market values.
  3. It shall conduct investigations for the purpose of developing the dairy interests of the state and undertake feeding experiments for production of milk and butter and the rearing of calves. It shall also study contagious diseases for the purpose of finding remedies for those diseases.
  4. It shall conduct investigations for the purpose of developing the horse interests of the state, and study the best methods of feeding and breeding, and diseases.
  5. It shall conduct experiments for the advancement of the poultry interests of the state and the economical production of poultry and eggs, including experiments in breeding for egg production and methods best adapted for hatching and raising of chicks.
  6. It shall bring the scientific knowledge which it obtains concerning agriculture and home economics, to the farm and home by means of personal visitation, correspondence, cooperative demonstrations and experiments and the solution of local problems by station experts visiting the locality and studying the problems of the farm and home.
  7. It shall conduct research and investigations for the purpose of advancing the development of a market for the commercial production of earthworms, including their potential for use in the areas of waste disposal and land reclamation.

History. 4636f-1: amend. Acts 1966, ch. 177; 1980, ch. 362, § 2, effective July 15, 1980.

247.040. Quicksand substation — Functions.

The Quicksand substation shall conduct experimental work and carry on investigations in timber production, forest growth, forest renewal and the utilization of forest products, the practicability of reforestation and the development of a permanent forest industry. It shall also conduct experimental work, investigations and demonstrations in the various phases of horticulture, animal husbandry and agriculture and such other investigations and demonstrations as bear directly upon the development of agriculture in eastern Kentucky.

History. 4636f-4.

247.045. Duties of experiment station concerning control of black shank and other tobacco plant diseases.

The Kentucky Agricultural Experiment Station shall carry on and extend the present program in the field of tobacco breeding, research and education for the control of black shank and other diseases in tobacco. For this purpose there shall be available to the Kentucky agricultural experiment station, such sums as may, from time to time, be appropriated by the General Assembly for the purpose.

History. Enact. Acts 1952, ch. 27, § 1, effective June 19, 1952.

247.050. Princeton substation — Functions.

The Princeton substation shall foster and promote agricultural interests and conduct experimental work, investigations and demonstrations in the various phases of agriculture, horticulture, animal husbandry and such other investigations and demonstrations as bear directly upon the development of the agricultural interests of Kentucky.

History. 4636f-6.

247.060. Horticultural research.

The experiment station through the Princeton and Quicksand substations shall:

  1. Discover and demonstrate the best known methods for the culture, packing and marketing of fruits;
  2. Discover and demonstrate the most effective methods for the prevention and control of diseases and insects affecting fruit crops;
  3. Make or cause to be made studies of the various types of pruning and cultural practices, and a thorough testing of the most promising new and approved varieties of fruits and plants;
  4. Obtain and disseminate scientific and practical findings relating to the subjects mentioned in subsections (1), (2) and (3);
  5. Arrange and promote meetings by which growers of fruits may exchange ideas and receive information relating to improved methods of growing, packing and marketing of fruits, and obtain and provide for outstanding specialists to attend and address such meetings;
  6. Provide for the publication and distribution of bulletins giving the results of scientific and practical studies, of market information, and of such other facts and experiences as may be helpful to producers;
  7. Provide for displaying fruit exhibits for the purpose of advertising the fruit production of the state, when such displays will promote the best interests of development of fruit production in the state; and
  8. Carry on such other investigations and studies as will assist the horticultural interests of the state.

History. 4636m-2.

247.070. University to establish cooperative marketing bureau.

The University of Kentucky shall establish in connection with its agricultural extension work a bureau for fostering cooperative marketing.

History. 4636g-1.

Research References and Practice Aids

Cross-References.

Cooperative marketing associations, KRS 272.101 to 272.345 .

247.080. Boards of education may aid extension work.

County boards of education may appropriate such sums of money out of their annual funds as in their wisdom are necessary to aid in carrying on extension work in agriculture and home economics in their respective counties, in connection with the University of Kentucky.

History. 4636g-2; repealed and reenact., Acts 1990, ch. 476, Pt. V, § 610, effective July 13, 1990.

NOTES TO DECISIONS

1. County Agent.

County agent, for whom salary is appropriated under this section, is not a necessary county officer, and county may not become indebted in making such appropriation in violation of Ky. Const., § 157. Carman v. Hickman County, 185 Ky. 630 , 215 S.W. 408, 1919 Ky. LEXIS 351 ( Ky. 1919 ); Knott County v. Michael, 264 Ky. 36 , 94 S.W.2d 44, 1936 Ky. LEXIS 271 ( Ky. 1936 ).

County farm agent is not such a necessary county officer as to authorize his employment where to do so would carry county indebtedness beyond limit fixed by Ky. Const., § 157. Adair County Farm Bureau v. Fiscal Court of Adair County, 263 Ky. 23 , 91 S.W.2d 537, 1936 Ky. LEXIS 122 ( Ky. 1936 ).

County agent, for whom a salary is appropriated under this section, is agent of university but not agent of county and appropriations for such purpose must be made from “annual” funds of county. Knott County v. Michael, 264 Ky. 36 , 94 S.W.2d 44, 1936 Ky. LEXIS 271 ( Ky. 1936 ).

2. Extension Work.

Appropriations for extension work in agriculture and home economics are not authorized under this section unless the work is done jointly or in connection with University of Kentucky. Jefferson County ex rel. Grauman v. Jefferson County Fiscal Court, 269 Ky. 444 , 107 S.W.2d 320, 1937 Ky. LEXIS 625 ( Ky. 1937 ).

Opinions of Attorney General.

Appropriations for extension work under KRS 247.300 and this section shall not exceed the current revenues as provided in Ky. Const., §§ 157 and 158. OAG 63-494 .

If adequate funds were available, there would be no liability on the part of the members of the fiscal court for appropriating funds for extension work under this section in excess of the maximum specified in KRS 247.300 (2). OAG 63-494 .

The appropriation for extension work under KRS 247.300 is mandatory; any appropriation under this section is permissive. OAG 63-494 .

The limit of the appropriation by the fiscal court of a county under KRS 247.300 (1) and (2) is $5,000 per year, but under this section, the court may appropriate additional funds of the county out of their annual funds as may be necessary for extension work in agriculture and home economics. OAG 63-494 .

A fiscal court has no statutory authority to appropriate money out of its annual funds toward the purchase of land to be used as a county fairground. OAG 63-643 .

The county agent is not an employee or official of the county. OAG 70-110 .

The purchase of land by a county through its fiscal court for the purpose of leasing the same to the 4-H Association of the county who in turn would sublet the property to the United States department of agriculture would not be within the powers of the fiscal court under KRS 67.080(2), nor under this section which provides that the court may aid extension work in agriculture in connection with the University of Kentucky, nor under KRS 247.300 authorizing the fiscal court to appropriate money for the farm bureau but not for the purchase and lease of property under the subject arrangement and the subject purposes. OAG 72-53 .

Where a fiscal court considered a motion to employ a full time 4-H agent and such motion was defeated, the fiscal court, in dealing with this legislative function of appropriation, could reconsider at another meeting the matter of making an appropriation for the 4-H agent employment. OAG 77-515 .

247.085. Research and extension program for improvement of dairy cattle through artificial insemination.

In addition to the other experiments carried on by the University of Kentucky at Lexington, Kentucky, the College of Agriculture of the University of Kentucky shall do research and supervise the extension program for the improvement of dairy cattle of the State of Kentucky, through the wide distribution of superior germ plasma of carefully chosen dairy cattle bulls in cooperation with the artificial breeding associations located in the State of Kentucky and to provide for developing improved methods of carrying on the work of artificial breeding and to train master technicians.

History. Enact. Acts 1946, ch. 6, § 1.

247.086. Seed stocks or foundation seeds — Program for development of.

The Kentucky agricultural experiment station shall carry on and extend the present program for development of improved crop varieties, acting through and in cooperation with Kentucky Seed Stocks, Inc., in the production, supplying, furnishing and distribution of seed stocks or foundation seeds. For this purpose there shall be available to the Kentucky agricultural experiment station such sums as may, from time to time, be appropriated by the general assembly for the purpose.

History. Enact. Acts 1950, ch. 36, § 1.

Research References and Practice Aids

Cross-References.

Agricultural seeds, KRS 250.010 , 250.021 to 250.111 .

247.087. Research and development program concerning forage-crop breeding and grassland farming.

The program of the Kentucky Agricultural Experiment Station in the field of forage-crop breeding and research in the development of grassland farming is recognized and established. Such program shall be continued and extended, especially in the establishment and maintenance of good pastures. For this purpose there shall be available to the Kentucky Agricultural Experiment Station such sums as may, from time to time, be appropriated for the purpose by the General Assembly.

History. Enact. Acts 1954, ch. 118, § 1, effective June 17, 1954.

247.088. Assessment of effect of agricultural practices upon groundwater resources.

The College of Agriculture of the University of Kentucky, through the agricultural experiment station and the cooperative extension service shall assess the effect of agricultural practices upon groundwater resources, establish basic and applied research programs to determine agricultural management practices which may be necessary to protect groundwater resources, and establish and implement an educational program to encourage the use of agricultural practices which conserve, maintain, and improve soil productivity and to assure protection of groundwater. The college shall seek the cooperation of the Division of Conservation within the Energy and Environment Cabinet, the Kentucky Farm Bureau, and other organizations in implementing the educational program.

History. Enact. Acts 1990, ch. 307, § 2, effective July 13, 1990; 2010, ch. 24, § 600, effective July 15, 2010.

Fairs

247.090. State fair board — Membership — Vacancies.

  1. The State Fair Board shall be composed of eighteen (18) members, as follows:
    1. The Governor or his or her designee;
    2. The Commissioner of Agriculture or his or her designee;
    3. The secretary of the Finance and Administration Cabinet or his or her designee, who shall serve as an ex officio, nonvoting member for the duration of his or her service as secretary of the cabinet. The secretary shall provide additional financial expertise to the Kentucky State Fair Board, with no resulting personnel impact, fiscal impact, nor expense to Kentucky state government;
    4. The dean of the University of Kentucky College of Agriculture, Food and Environment or his or her designee;
    5. Five (5) members appointed by the Governor from the state at large with due consideration to geographical distribution throughout the state;
    6. One (1) member appointed by the Governor from the state at large who is involved with, or experienced in, agribusiness;
    7. One (1) member appointed by the Governor from a list of six (6) nominees that are representative of all segments of animal agriculture provided by trade organizations and commodity groups that may include but not be limited to the Kentucky Cattlemen’s Association, Kentucky Dairy Development Council, Kentucky Livestock Improvement Association, Kentucky Pork Producers Association, Kentucky Poultry Federation, and Kentucky Sheep and Goat Development Office;
    8. One (1) member appointed by the Governor from a list of six (6) nominees that are representative of all segments of crop or plant production provided by trade organizations or commodity groups that may include but not be limited to Kentucky Corn Growers Association, Kentucky Grape and Wine Council, Kentucky Horticulture Council, Kentucky Small Grain Growers Association, and Kentucky Soybean Association;
    9. One (1) member appointed by the Governor from a list of six (6) nominees submitted by the governing body of the American Saddlebred Horse Association;
    10. One (1) member appointed by the Governor from a list of six (6) nominees provided by the Kentucky Farm Bureau Federation;
    11. One (1) member appointed by the Governor from a list of six (6) nominees provided by the Kentucky Association of Fairs and Horse Shows;
    12. One (1) member appointed by the Governor from a list of six (6) nominees provided by the Louisville Convention and Visitors Bureau representing the hospitality and tourism industry;
    13. The state president of the Kentucky FFA Association, who shall serve as an ex officio, nonvoting member for the duration of his or her term as student leader of the association; and
    14. The state president of the Kentucky 4-H Organization, who shall serve as an ex officio, nonvoting member for the duration of his or her term as student leader of the organization.
  2. The terms of the members of the board appointed by the Governor shall be staggered terms. Members of the board shall be appointed to a term of four (4) years and shall serve until their successors are duly appointed and qualified. Members of the board shall be appointed to no more than three (3) terms that began on or after April 27, 2016. Terms that began prior to April 27, 2016, shall not count toward the term limits established by this subsection. As the terms of each group of members expire, the Governor shall appoint successors for terms of four (4) years and until their successors are appointed and qualify. The initial appointments shall be for staggered terms, as follows:
    1. Three (3) members shall be appointed for one (1) year;
    2. Three (3) members shall be appointed for two (2) years;
    3. Three (3) members shall be appointed for three (3) years; and
    4. Three (3) members shall be appointed for four (4) years. Initial members shall be appointed by the Governor within thirty (30) days of April 27, 2016. It is the intention of the General Assembly that the political affiliation of the appointed members shall be as evenly divided as possible between the two (2) political parties polling the largest number of votes in the state at general elections.
  3. In case of a vacancy among the appointed members of the board, the unexpired term shall be filled pursuant to the requirements and procedures for original appointments.

History. 4618i-2: amend. Acts 1946, ch. 80, § 1; 1948, ch. 22, § 4; 1948, ch. 62; 1958, ch. 141; 1972, ch. 321, § 1; 1976, ch. 192, § 1; 1982, ch. 454, § 1, effective July 15, 1982; 1994, ch. 486, § 33, effective July 15, 1994; 2016 ch. 142, § 1, effective April 27, 2016; 2017 ch. 9, § 1, effective June 29, 2017.

Compiler’s Notes.

The provisions of subsection (1) of this section which authorize the Speaker of the House of Representatives and the President Pro Tempore of the Senate to appoint members to the State Fair Board were declared invalid in Legislative Research Comm’n ex rel. Prather v. Brown, 664 S.W.2d 907 ( Ky. 1984 ).

The 1994 amendment to this section deleted “Pro Tempore” following “by the President”.

NOTES TO DECISIONS

1. Constitutionality.

The power to appoint members of boards and agencies within the executive department of government is an essentially executive power which cannot be exercised by any member of the legislative department; accordingly, the provisions in this section by which the Speaker of the House of Representatives and the President Pro Tem of the Senate are authorized to make appointments to the State Fair Board are an invalid unconstitutional incursion by the General Assembly, or in this case, its designees, into the separation of powers doctrine. Legislative Research Com. by Prather v. Brown, 664 S.W.2d 907, 1984 Ky. LEXIS 300 ( Ky. 1984 ).

2. Effective Date.

The 1946 act amending the statutes relating to the state fair became effective as an act at the time prescribed by Ky. Const., § 55, regardless of fact that new state fair board provided for by act would not be completely organized until three and one-half years later; therefore, the provision of the 1946 act creating the position of manager of the state fair became effective when the act took effect, and was not postponed until time of organization of new board. Taylor v. Commonwealth, 305 Ky. 75 , 202 S.W.2d 992, 1947 Ky. LEXIS 758 ( Ky. 1947 ).

Research References and Practice Aids

Cross-References.

Bond of members of fair board, amount and conditions, KRS 62.160 , 62.180 .

Kentucky Law Journal.

Harris, The Governmental Corporation in Kentucky, II. 29 Ky. L.J. 286 (1941).

Snyder and Irland, The Separation of Governmental Powers Under the Constitution of Kentucky: A Legal and Historical Analysis of L.R.C. v. Brown, 73 Ky. L.J. 165 (1984-85).

247.100. Corporate powers of fair board — Minutes and records of meetings.

The State Fair Board shall be a body corporate with the usual corporate powers. Full minutes and records shall be kept of all meetings of the board and all official actions of the board shall be recorded therein, and such minutes and records shall constitute public records and be available at all reasonable times for public inspection.

History. 4618i-2, 4618i-6: amend. Acts 1946, ch. 80, § 2; 1950, ch. 217, § 1; 2016 ch. 142, § 2, effective April 27, 2016.

Research References and Practice Aids

ALR

Validity and construction of contract exempting agricultural fair or similar bailee from liability for articles delivered for exhibition. 69 A.L.R.3d 1025.

247.110. Officers of fair board — Meetings — Bylaws.

  1. The Governor shall appoint one (1) member of the board to serve as its chair. The Governor shall further designate a second member to serve as vice chair with authority to act in the absence of the chair. The chair and vice chair shall each serve for a period of one (1) year and may be reappointed by the Governor for subsequent years to those positions.
  2. The board shall meet monthly, a minimum of ten (10) months per year. A majority of the voting members of the board shall constitute a quorum for the transaction of business.
  3. The board shall adopt bylaws for the regulation of its affairs and the conduct of its business and to prescribe rules, regulations, and policies in connection with the performance of its function and duties.
  4. The board shall elect and employ a secretary who shall be responsible directly to the board as the keeper of all records pertaining to the operation of the fair or the business of the board. The president and chief executive officer provided for in KRS 247.130 shall be ex officio treasurer to the board.

History. 4618i-4: amend. Acts 1946, ch. 80, § 3; 1950, ch. 12; 1990, ch. 485, § 1, effective July 13, 1990; 2016 ch. 142, § 3, effective April 27, 2016.

Research References and Practice Aids

Cross-References.

Appointment to boards and commissions, KRS 12.070 .

Bonds of state officers, KRS 62.160 to 62.190 .

247.120. Compensation of members.

Members of the board, including the state president of the Kentucky FFA Association and the state president of the Kentucky 4-H Organization, shall receive one hundred dollars ($100) per day for each meeting attended, and shall be reimbursed for all reasonable and necessary expenses paid or incurred in the discharge of official business.

History. 4618i-3: amend. Acts 1956, ch. 86; 1978, ch. 154, § 28, effective June 17, 1978; 1990, ch. 130, § 1, effective July 13, 1990; 2016 ch. 142, § 4, effective April 27, 2016.

247.130. President — Administrative divisions — Employees and agents — Contracts with management corporation.

  1. The State Fair Board may employ or contract with a president who shall not be one of their number. The president shall be the chief executive officer for the board. The employment or contract of a president shall be on the basis of training, ability, and experience. A president shall hold his position during the pleasure of the board, but may be removed only by an affirmative vote of a majority of the members of the board and upon thirty (30) days written notice. A president shall be responsible for the administration of the policies set by the board and shall devote his entire time and attention to the performance of such duties and work as may be required of him by law or be assigned to him by the board. The board shall determine the term, conditions, and compensation of its president, provided such term does not exceed four (4) years.
  2. The president may organize such administrative divisions as may be necessary and may designate chiefs of such divisions who, under his control and supervision, shall have the duties of direction of such divisions. The president shall organize a Division for Personnel Management and Staff Development which shall manage all personnel matters, including staff development and training and programs for affirmative action. The director of this division shall be appointed, with the prior written approval of the Governor, by the president. The president may employ such other employees and agents as he deems necessary for the carrying out of the policies of the board and to conduct the affairs of the State Fair, and may fix the duties and compensation of any employees or agents with the approval of the board.
  3. The board may employ or contract with such other persons, firms, or corporations as the board may deem necessary or desirable to accomplish its duties and functions; may fix the compensation and the terms of employment or contract of those employed or contracted with; and may assign to them such duties and responsibilities as the board may determine, including the responsibility of actual operation of any or all of the facilities under the control of the board.
  4. The president and any persons employed under this section shall not be subject to the provisions of KRS Chapter 18A.

History. 4618i-4: amend. Acts 1946, ch. 27, § 48; 1946, ch. 80, § 4; 1950, ch. 17, § 2; 1952, ch. 156, § 1; 1958, ch. 126, § 32; 1984, ch. 271, § 1, effective July 13, 1984; 1990, ch. 485, § 2, effective July 13, 1990; 1990, ch. 509, § 1, effective July 13, 1990.

Legislative Research Commission Note.

(7/13/90) This section was amended by two 1990 Acts which conflict and cannot be compiled together. Pursuant to KRS 446.250 , the later enactment prevails.

Opinions of Attorney General.

Members of the International Society for Krishna Consciousness would have the right to attend the state fair and to engage in conversation with consenting patrons and to solicit contributions, but the fair board has the power to restrict the activities to a time, place and manner consistent with the use of the property for a fair. OAG 77-476 .

Research References and Practice Aids

Cross-References.

Appointment to boards and commissions, KRS 12.070 .

Bonds of state officers, KRS 62.160 to 62.190 .

1. Effective Date.

The 1946 act amending the statutes relating to the state fair became effective as an act at the time prescribed by Ky. Const., § 55, regardless of fact that new state fair board provided for by act would not be completely organized until three and one-half years later; therefore, the provision of the 1946 act creating the position of manager of the state fair became effective when the act took effect, and was not postponed until time of organization of new board. Taylor v. Commonwealth, 305 Ky. 75 , 202 S.W.2d 992, 1947 Ky. LEXIS 758 ( Ky. 1947 ).

247.140. Functions of fair board.

  1. The State Fair Board:
    1. Shall have the custody and control of such property as now is under its custody and control, and of such property as may hereafter be placed under its control or transferred to it by the State Property and Buildings Commission, for any purposes mentioned in this section and the physical properties so under its custody and control or transferred to it are hereinafter referred to in this section, and in KRS 247.150 and 247.160 , as the “state fairgrounds and an area in a city of the first class to be used as an exhibition center”;
    2. May erect and repair buildings on the state fairgrounds and exhibition center, make any and all necessary or proper improvements, and generally carry on a program of development and extension of facilities designed to accomplish the objectives defined in this section;
    3. Shall promote the progress of the state and stimulate public interest in the advantages and development of the state by providing the facilities of the state fairgrounds for agricultural and industrial exhibitions, public gatherings, cultural activities, and other functions calculated to advance the educational, physical, and cultural interests of the public and by providing the facilities of the exhibition center for conventions, trade shows, public gatherings, and other functions calculated to advance and enhance the visitor industry, economy, entertainment, cultural and educational interests of the public;
    4. Shall hold an annual fair on the state fairgrounds, for the exhibition of agricultural, mechanical, horticultural, dairy, forestry, poultry, livestock, mineral, and all other industrial interests of the state, and prepare premium lists and establish rules of exhibition for the fair;
    5. May purchase liability insurance for the members and executive officers exempted from the classified service of the state by KRS 18A.115 ; and
    6. Shall operate shows and expositions that include but are not limited to the North American International Livestock Exposition, Kentucky State Fair and World’s Championship Horse Show, and National Farm Machinery Show.
  2. The State Fair Board may take, acquire and hold property, and all interest therein, by deed, gift, devise, bequest, lease, or eminent domain, or by transfer from the State Property and Buildings Commission, and may dispose of any property so acquired in the manner provided by law. In the exercise of its power of eminent domain it shall proceed in the manner provided in the Eminent Domain Act of Kentucky.

History. 4618i-5: amend. Acts 1944, ch. 65; 1946, ch. 80, § 5; 1950, ch. 217, § 3; 1974, ch. 154, § 1; 1976, ch. 140, § 96; 1980, ch. 133, § 1, effective July 15, 1980; 1982, ch. 448, § 70, effective July 15, 1982; 1984, ch. 404, § 35, effective July 13, 1984; 2016 ch. 142, § 5, effective April 27, 2016.

Compiler’s Notes.

The Eminent Domain Act of Kentucky, referred to in subdivision (2), is compiled as KRS 416.540 to 416.680 .

NOTES TO DECISIONS

Cited:

Hargett v. Kentucky State Fair Bd., 309 Ky. 132 , 216 S.W.2d 912, 1949 Ky. LEXIS 647 ( Ky. 1949 ); Kentucky State Fair Board v. Fowler, 310 Ky. 607 , 221 S.W.2d 435, 1949 Ky. LEXIS 973 ( Ky. 1949 ); Lehman v. Matthews, 343 S.W.2d 133, 1961 Ky. LEXIS 406 ( Ky. 1961 ).

Opinions of Attorney General.

Members of the Kentucky state fair board and/or staff can be held personally liable under a negligence theory of law for accidents that occur at a facility under the state fair board’s control; moreover, without an enabling statute, no public funds can be expended to purchase liability insurance to cover the board members and staff. OAG 80-107 (decision prior to the 1980 amendment which added subdivision (1)(e) to this section.)

Research References and Practice Aids

Cross-References.

Powers of state property and buildings commission as to acquisition, improvement, use and disposition of real estate, KRS 56.460 .

247.145. Regulations for operation, maintenance, or use of state fair property — Posting — Penalty for violation.

  1. The state fair board in governing the operation, maintenance or use of property under its custody and control is authorized to establish such reasonable and lawful regulations as are necessary:
    1. To maintain decency and good order, or
    2. To protect the peace or safety of the general public, or
    3. To protect the public interest, convenience, or necessity.
  2. All regulations established by the state fair board shall be printed and posted at not less than three (3) public places on the property under its custody and control.
  3. All persons using, occupying or going upon any property under the custody and control of the state fair board shall comply with all regulations made by it.

History. Enact. Acts 1968, ch. 124, § 1(1) to (3); 1970, ch. 254, § 1.

Research References and Practice Aids

ALR

Liability of owner or operator for injury to patron of fair, carnival, or the like, from operation of sideshows, games, or similar concessions. 24 A.L.R.3d 945.

247.150. Policing of fairgrounds and exhibition center.

The State Fair Board may arrange with the county judge/executive or the officer that has charge of the police force of any county or city in which the state fair is held, for the proper policing of the state fairgrounds, and may arrange with the state for the policing of the state fairgrounds by the Department of Kentucky State Police. The State Fair Board may arrange with the mayor or the officer that has charge of the police force of any county or city in which the exhibition center is located for the proper policing of the exhibition center, and may arrange with the state for the policing of the exhibition center by the Department of Kentucky State Police. If the State Fair Board is unable to arrange with a city, county, or state authority for police protection, it may appoint, or may delegate to any agent or employee the power to appoint, subject to the approval of the State Fair Board, necessary special police to properly police the state fairgrounds and exhibition center. Such police officers are vested with the powers and charged with the duties of peace officers.

History. 4618i-6: amend. Acts 1974, ch. 154, § 2; 1976 (Ex. Sess.), ch. 20, § 6, effective January 2, 1978; 2007, ch. 85, § 275, effective June 26, 2007.

247.153. Motor vehicle speed limits on fairgrounds property.

  1. The State Fair Board is authorized to establish by resolution speed limits governing the operation of motor vehicles on state fairgrounds property.
  2. Notice to the public of any speed limits thus established shall be given by signs or markings.

History. Enact. Acts 1966, ch. 163, § 1 (1) and (2).

247.154. Traffic control regulations on state fairgrounds.

  1. The State Fair Board is authorized to establish speed limits and other traffic control regulations governing the operation and parking of vehicles on state fairgrounds property, including, without limitation, regulations with respect to the removal, impounding, and release of vehicles parked or standing in violation of any regulation established pursuant to this subsection (1).
  2. Notice to the public of any speed limits or other traffic control regulations thus established shall be given by signs or markings.

History. Enact. Acts 1968, ch. 123, § 1(1), (2).

247.155. Gambling devices or games of chance not to be operated — Exception.

It shall be unlawful for any person to open, cause to be opened, carry on, conduct or operate as owner, proprietor or employee any gambling device or game of chance within the confines of the grounds of the Kentucky State Fair. Any person who violates any provision of this section shall be fined not less than fifty dollars ($50) nor more than five hundred dollars ($500) for each offense. Each day in which a gambling device or game of chance is so operated shall be considered a separate offense. This section shall not apply to the sale of lottery tickets sold under the provisions of KRS Chapter 154A.

History. Enact. Acts 1944, ch. 118, § 1; 1988 (Ex. Sess.), ch. 1, § 27, effective December 15, 1988.

Legislative Research Commission Note.

Although references to the sale of “shares” were deleted in the Senate committee substitute, due to a clerical error, such reference was not deleted in the 1988 (Ex. Sess.) amendment of this section. The Reviser of Statutes, pursuant to KRS 7.136 , has removed the words “or shares” to conform.

NOTES TO DECISIONS

1. Time Prohibited.

Statute entitled “An act relating to operation of games of chance and gambling devices at the state fair,” was construed to prohibit gambling on the state fair grounds only at such times as the state fair was in progress, as against the contention that the prohibition applied to the state fair grounds at all times; the latter construction would violate Ky. Const., § 51. Kentucky State Fair Board v. Fowler, 310 Ky. 607 , 221 S.W.2d 435, 1949 Ky. LEXIS 973 ( Ky. 1949 ).

Research References and Practice Aids

Cross-References.

General prohibition against operation of gambling devices, KRS 528.010 to 528.100 .

Treatises

Caldwell’s Kentucky Form Book, 5th Ed., Practice Context for Gaming Law, § 351.00.

247.160. Control of concessions and exhibits — Exception — Lien on property — Sale to satisfy lien.

  1. The State Fair Board shall have exclusive control of concessions, exhibitions, shows, entertainments and attractions at any place on the state fairgrounds and exhibition center and may, in the discretion of the board, operate any or all of such concessions, exhibitions, shows, entertainments and attractions, but the board shall not allow the operation of any gambling device or game of chance therein. It may delegate such control or operation to any of its employees or agents, or to an executive committee. This section shall not apply to the sale of lottery tickets sold under the provisions of KRS Chapter 154A.
  2. The State Fair Board shall have a prior lien upon the property of any concessionaire, exhibitor or person, immediately upon its coming or being brought on the grounds, or the center, to secure existing or future indebtedness.
  3. Any designated employee or agent of the State Fair Board may sell the property to satisfy the indebtedness after giving ten (10) days’ notice to the owner or agent of the owner or, if notice cannot be given to the owner, after a notice is posted for ten (10) days in the office of the State Fair Board on the grounds, announcing that the property is to be sold. The State Fair Board, through its designated agent, may bid and buy in the property offered for sale for the use and benefit of the State Fair.

History. 4618i-9: amend. Acts 1944, ch. 118, § 2; 1952, ch. 156, § 4; 1974, ch. 154, § 3; 1988 (Ex. Sess.), ch. 1, § 28, effective December 15, 1988.

Legislative Research Commission Note.

Although references to the sale of “shares” were deleted in the Senate committee substitute, due to a clerical error, such reference was not deleted in subsection (1) of this section. The Reviser of Statutes, pursuant to KRS 7.136 , has removed the words “or shares” to conform.

NOTES TO DECISIONS

1. Application.

This section and KRS 247.155 apply only when the state fair is in progress. Kentucky State Fair Board v. Fowler, 310 Ky. 607 , 221 S.W.2d 435, 1949 Ky. LEXIS 973 ( Ky. 1949 ).

2. Leasing of Concessions.

Subsection (2) of this section clearly shows that the exclusive control referred to in subsection (1) of this section is not such as would be interfered with by the mere leasing of concessions. Kentucky State Fair Board v. Fowler, 310 Ky. 607 , 221 S.W.2d 435, 1949 Ky. LEXIS 973 ( Ky. 1949 ).

Cited:

Hargett v. Kentucky State Fair Bd., 309 Ky. 132 , 216 S.W.2d 912, 1949 Ky. LEXIS 647 ( Ky. 1949 ).

247.165. Exemption of state fairgrounds and exhibition center operations from license taxes.

None of the provisions of KRS Chapter 137 and none of the provisions of KRS 91.200 shall apply to any operations on state fairgrounds or the exhibition center wherein the State Fair Board shares in the receipts and proceeds of such operations.

History. Enact. Acts 1952, ch. 156, § 3; 1974, ch. 154, § 4.

Research References and Practice Aids

ALR

Exemption from taxation of property of agricultural fair society or association. 89 A.L.R.2d 1104.

247.170. Appropriations for premiums.

The sum appropriated by the General Assembly for premiums alone shall be paid to the State Fair Board and be disbursed by its agent as a petty cash fund in accordance with the provisions of KRS 45A.650 .

History. 4618i-11: amend. Acts 1952, ch. 179; 1954, ch. 30; 1966, ch. 255, § 219; 1990, ch. 496, § 58, effective July 13, 1990.

Compiler’s Notes.

Former subsection (2) of this section was repealed by Acts 1952, ch. 179.

247.180. Revenue bonds.

  1. The State Fair Board is authorized and empowered to issue and sell negotiable revenue bonds in denominations and in an amount or amounts as may be deemed by the board to be for the best interest of the Commonwealth, for any of the following purposes:
    1. To acquire real estate to be devoted to a revenue-producing use.
    2. To pay all or any part of the expense or cost of or incidental to a building project.
    3. To defray the cost of plans, specifications, blue prints, architectural fees and other expenses authorized to be incurred under the terms of KRS 247.130 and 247.140 .
  2. Any revenue bonds so issued shall bear interest at a rate or rates or method of determining rates, payable at least, as the State Fair Board determines and shall become due and payable not more than forty (40) years from the date of issuance. The payment of the bonds, together with the interest thereon, may be secured by a pledge and a first lien on all the receipts and revenue derived or to be derived, from any physical property under the control of the board. Neither the payment of any bond, nor the interest on the bond, issued under the authority of this section, shall constitute an indebtedness of the Commonwealth of Kentucky or of the State Fair Board, nor shall any bond or interest on the bond be payable out of any fund except any funds as may be derived from rentals or other revenues derived from the operation of the properties or from revenues as may have been, or may be, available for a purpose or purposes, by law.
  3. All bonds which may be issued by the board under the provisions of this section shall be sold to the highest bidder after having been advertised by publication pursuant to KRS Chapter 424, and by other advertising as the board may prescribe if it finds additional advertising is necessary.
  4. All competitive bids for the sale of the revenue bonds shall be opened and read publicly by the board or its representative at a designated place, day, and hour, all of which shall be announced in the advertising.
  5. Except as otherwise specifically provided in this section, the board is vested with all of the rights, powers, and duties set forth and enumerated under KRS Chapter 58.
  6. In the event the board issues and sells revenue bonds for a building project as authorized in KRS 247.140 and this section, it may carry insurance, including fire and windstorm, casualty, catastrophe, use and occupancy, and other insurance as the board may deem advisable in connection with the building project, and may obligate and bind itself in a trust indenture securing the payment of bonds. Any insurance shall be paid for out of the funds available for the project.
  7. All money from the sale of revenue bonds shall be paid to the State Treasurer and shall be held by him as a special trust fund to be designated as directed by the board, and no part shall be withdrawn from the State Treasury except for the purposes authorized by this section, together with the cost incidental to the issuing and selling of the bonds and other directly related expenses. The board may likewise provide in any trust indenture securing revenue bonds for additional terms and conditions, or for other restrictions not in conflict with this section.

History. 4618j-1, 4618j-3: amend. Acts 1950, ch. 217, § 4; 1966, ch. 239, § 176; 1996, ch. 274, § 57, effective July 15, 1996.

Research References and Practice Aids

Cross-References.

Acquisition and development of public projects by governmental units and agencies, through revenue bonds, KRS ch. 58.

No property exempt from taxation except as provided in Constitution, Ky. Const., § 3.

Property exempt from taxation, Ky. Const., §§ 170, 171.

Kentucky Law Journal.

The Government Corporation in Kentucky, II. 20 Ky. L.J. 286 (1941).

247.190. Revenues of fair board, use and disposition of — Deposit of funds — Accounting and report.

  1. All revenues derived by the State Fair Board from the use of properties and facilities under its custody and control shall be used exclusively for the purpose of defraying the expenses of the board, the cost of the management and operation of such properties and facilities, the payment of interest and principal upon any indebtedness incurred by the board for such properties and facilities, the creation of adequate reserves for the repair and replacement thereof, and for the financing of further extensions, improvements, and additions thereto. Included in the cost of operation may be such promotional activities as the State Fair Board may determine upon as calculated to stimulate and increase the use and the revenues of such facilities, and to increase and stimulate the interest and usefulness of the State Fair. Any surplus revenues remaining after full provision for the above purposes shall be used to reduce the admission fees and charges to the public for attendance upon the State Fair and for public use by the citizens of the Commonwealth of the facilities of the State Fair Board, and shall on no account be appropriated to any other agency or function.
  2. The state fair board shall generally cause its funds to be deposited in the State Treasurer’s office, to be withdrawn on appropriate vouchers approved by the board, but may create special accounts in other depositories for the purpose of securing the prompt payment of interest and principal on any of its bonded indebtedness if in the judgment of the board, or, if as determined by competitive bids, the creation of such special accounts and depositories is advantageous and economical to the board.
  3. An annual accounting of the funds of the state fair board shall be made by the Auditor of Public Accounts and reported to the Governor for the benefit of Governor and the General Assembly.

History. 4618j-4: amend. Acts 1950, ch. 217, § 5.

Research References and Practice Aids

Cross-References.

Auditor of public accounts, KRS ch. 43.

247.200. Free passes prohibited. [Repealed]

History. 4618i-7; repealed by 2016 ch. 142, § 9, effective April 27, 2016.

Compiler's Notes.

This section (Enact. 4618i-7, effective October 1, 1942) was repealed by Acts 2016, ch. 142, § 9, effective April 27, 2016.

247.210. Fair board member or department official not to be exhibitor.

No member of the State Fair Board or any official of any department shall be an exhibitor in competition for premium or prize money at any State Fair held while he is a member of the State Fair Board or an official of any department.

History. 4618i-8.

247.220. Grant of funds to local fairs for premiums and facilities — Fair Council — Meetings — Members.

  1. The Commissioner of Agriculture shall make grants of state funds to qualified local agricultural fairs on a matching basis, to be used by them to pay premium awards for exhibits and displays of domestic livestock, poultry, harness horse racing, other horse events, and agricultural products. The premiums actually awarded shall conform to those appearing on the premium list issued by the fair.
  2. The state may provide funds for use in the establishment of new facilities and improvement of existing facilities for use in conducting events at local agricultural fairs as provided by this section. No grant for buildings shall be made until the local fair board has complied with the local fair program and qualified for the state grant as provided in subsection (5) of this section. Grants for facilities shall be made under regulations promulgated by the Fair Council and the Commissioner of Agriculture. In no event shall the allocation for facilities result in a decrease in the number of approved agricultural classes or premiums.
  3. There shall be a Fair Council in the Department of Agriculture. The council shall act in an advisory capacity to the Commissioner in all matters pertaining to the administration of the department’s fair program. It shall be called into session when there are matters for its consideration. It shall meet at least twice each calendar year at Frankfort or at any other place that may be determined.
    1. The council shall be composed of the: (4) (a) The council shall be composed of the:
      1. Commissioner as chairman ex officio;
      2. Presidents or their designated representatives of the following state groups:
        1. Kentucky Farm Bureau Federation;
        2. Kentucky Association of Fairs and Horse Shows, Inc.;
        3. Kentucky Colt Racing Association;
        4. American Saddlebred Horse Association; and
        5. Kentucky Walking Horse Association;
      3. Agricultural Education Consultant of the Kentucky Department of Education;
      4. Dean of the University of Kentucky College of Agriculture, Food and Environment;
      5. Co-chairs of the Interim Joint Committee on Agriculture; and
      6. A representative appointed by the Commissioner who is involved with, or experienced in, animal agriculture.
    2. The Commissioner may, with the concurrence of a majority of the members of the council, appoint additional members to the council.
  4. To qualify for a grant of state funds, a fair shall meet standards set by the Commissioner and his advisory council whose approval may be given only if the fair:
    1. Provides in its bylaws for holding an annual fair running for at least three (3) days;
    2. Presents, through the medium of youth organizations such as 4-H clubs, Future Farmers of America, and other similar organizations, an educational program concerning the production and marketing of the livestock, poultry, and horse industries;
    3. Complies with all administrative regulations which the Department of Agriculture is hereby authorized to promulgate; and
    4. Appoints one (1) or more members to its fair board from local livestock associations, horsemen’s associations, and county farm bureaus, and selects one (1) or more county extension agents and vocational agriculture teachers for counties served by the fair as members of the board. Wherever local livestock associations, horsemen’s associations, and farm bureaus are in existence, appointees are to be nominated to the fair board by these organizations. Where fairs serve an area, appointments may be made from all counties within the particular area. It shall be the responsibility of the appointees to aid in establishing premium lists and planning agricultural exhibits.
  5. Any fair receiving a grant of state funds shall file with the director of the Shows and Fairs Division in the Department of Agriculture, by December 1 of the year in which the grant is received, satisfactory proof that all state premium awards have been paid and a certified notarized financial report submitted by the treasurer of the local fair association.

HISTORY: 39-1, 39-2: amend. Acts 1962, ch. 241; 1968, ch. 93, § 1; 1970, ch. 315, § 1; 1976, ch. 317, § 1; 2002, ch. 49, § 2, effective July 15, 2002; 2010, ch. 135, § 5, effective July 15, 2010; 2016 ch. 142, § 6, effective April 27, 2016; 2018 ch. 3, § 3, effective July 14, 2018.

247.226. North American International Livestock Exposition Executive Committee.

There is created the North American International Livestock Exposition Executive Committee which shall be attached for administrative purposes to the North American International Livestock Exposition Branch within the Division of Expositions within the State Fair Board. The committee members shall receive no salary but shall be reimbursed for their expenses incurred in the performance of their duties in accordance with state regulations and such expenses shall be paid from agency receipts.

History. Enact. Acts 1986, ch. 61, § 1, effective July 15, 1986; 1990, ch. 485, § 3, effective July 13, 1990; 2009, ch. 14, § 2, effective June 25, 2009; 2016 ch. 142, § 7, effective April 27, 2016.

247.228. Advisory subcommittees — Membership.

The North American International Livestock Exposition Executive Committee shall have advisory subcommittees which shall provide advice and recommendations to the committee regarding exposition matters. These subcommittees shall be inclusive of all livestock approved to participate at the North American International Livestock Exposition. Members shall be experienced or knowledgeable in skills which would assist in the management of the Exposition.

History. Enact. Acts 1986, ch. 61, § 2, effective July 15, 1986; 2016 ch. 142, § 8, effective April 27, 2016.

247.230. Regulations as to premiums; payment. [Repealed.]

Compiler’s Notes.

This section (39-3) was repealed by Acts 1962, ch. 241, § 3.

Amusement Rides and Attractions

247.232. Definitions for KRS 247.232 to 247.236.

As used in KRS 247.232 to 247.236 :

    1. “Amusement ride or attraction” means: (1) (a) “Amusement ride or attraction” means:
      1. Any mechanized device or combination of devices which carry passengers along, around, or over a fixed or restricted course for the purpose of giving its passengers amusement, pleasure, thrills, or excitement; or
      2. Any building or structure around, over, or through which people may walk, climb, slide, jump, or move that provides amusement, pleasure, thrills, or excitement.
    2. Unless designated by administrative regulation promulgated by the Commissioner, “amusement ride or attraction” does not include:
      1. Coin-operated amusement devices;
      2. Devices regulated by the Federal Aviation Administration, the Kentucky Transportation Cabinet, or the federal railroad commission;
      3. Vessels under the jurisdiction of the United States Coast Guard or the Kentucky Department of Fish and Wildlife Resources;
      4. Tractor pulls;
      5. Auto or motorcycle events;
      6. Horse shows, rodeos, and other animal shows;
      7. Games and concessions; or
      8. Nonmechanical playground equipment, such as swings, seesaws, slides less than fifteen (15) feet in height at their highest point, rider-propelled merry-go-rounds, stationary spring-mounted animal devices, and physical fitness equipment.

        The Commissioner may, by administrative regulation, designate other rides and attractions that are not included in the definition of “amusement ride or attraction”;

  1. “ASTM Standard” means the latest standards and specifications as set forth by the American Society for Testing and Materials;
  2. “Commissioner” means the Commissioner of the Kentucky Department of Agriculture or the Commissioner’s authorized representative;
  3. “Operator” means a person sixteen (16) years of age or older who has been properly trained to operate amusement rides and attractions, has knowledge of the manufacturer’s recommendations for the operation of the rides and attractions, and knows the safety-based limitations of the rides and attractions; and
  4. “Owner” means any person or authorized agent of the person who owns an amusement ride or attraction or, in the event the ride or attraction is leased, the lessee.

History. Enact. Acts 1984, ch. 386, § 1, effective July 13, 1984; 1986, ch. 356, § 1, effective April 9, 1986; 1998, ch. 23, § 15, effective July 15, 1998; 2000, ch. 417, § 10, effective December 1, 2000; 2002, ch. 268, § 1, effective July 15, 2002; 2003, ch. 28, § 1, effective March 10, 2003; 2006, ch. 252, Pt. XXVI, § 1, effective January 1, 2007; 2008, ch. 116, § 1, effective July 15, 2008; 2019 ch. 94, § 1, effective June 27, 2019.

Legislative Research Commission Note.

(6/27/2019). Under the authority of KRS 7.136(1), the Reviser of Statutes has changed the internal numbering of this statute to place definitions in alphabetical order. No words were changed in this process.

247.233. Occurrence involving amusement ride or attraction resulting in death, certain injuries, or damage affecting future safe operation — Investigation — Administrative violations and civil penalties.

  1. The owner of any amusement ride or attraction shall, within twelve (12) hours, notify the Commissioner of any occurrence involving an amusement ride or attraction if the occurrence results in:
    1. Death;
    2. Injury to a person, where:
      1. The owner knows or reasonably should know that the injury was caused by the amusement ride or attraction; and
      2. The owner knows or reasonably should know that the injury required medical treatment other than first aid; or
    3. Damage to an amusement ride or attraction that affects the future safe operation of the ride or attraction. Reporting is not required in the case of normal wear and tear.
  2. The Commissioner shall, after notification of an occurrence described in subsection (1) of this section, make a complete and thorough investigation of the occurrence. The report of the investigation shall be placed on file in the department and shall give in detail all facts and information available. The owner may submit results of investigations independent of the department’s investigation for inclusion in the file.
  3. No person, following an occurrence described in subsection (1) of this section, shall:
    1. Operate or move the amusement ride or attraction without the approval of the Commissioner, unless necessary to prevent injury to a person; or
    2. Remove from the premises any damaged or undamaged part of the amusement ride or attraction or attempt to repair any damaged part before the department has completed its investigation. The department shall initiate its investigation within twelve (12) hours of being notified.
  4. The department may:
    1. Conduct hearings;
    2. Administratively subpoena and examine under oath persons whose activities are subject to KRS 247.232 to 247.236 ;
    3. Issue administrative subpoenas and examine the business records, books, and accounts of persons whose activities are subject to KRS 247.232 to 247.236 ; and
    4. Request any other information necessary to assist the department in properly performing the department’s duties.
  5. The department shall have control of any incident scene involving an amusement ride or attraction if there has been an occurrence described in subsection (1) of this section. The department shall remain in control of the scene until the department completes its investigation and releases the scene. The department shall have access within twelve (12) hours to all documents or records pertaining to the amusement ride or attraction.
    1. The department shall promulgate administrative regulations relating to amusement rides and attractions that establish: (6) (a) The department shall promulgate administrative regulations relating to amusement rides and attractions that establish:
      1. A comprehensive set of administrative violations and civil penalties not to exceed ten thousand dollars ($10,000); and
      2. The procedure for the suspension or revocation of any business identification number, license, or other certificate issued by the department.
    2. No owner of an amusement ride or attraction shall remove the amusement ride or attraction from the state before paying all civil penalties imposed under this subsection.

History. Enact. Acts 2008, ch. 116, § 4, effective July 15, 2008; 2015 ch. 106, § 1, effective June 24, 2015; 2019 ch. 94, § 2, effective June 27, 2019.

247.234. Business identification number required — Fee — Liability insurance — Inspections — Injunction — Pre-opening inspections — Unpaid civil penalties to remain in effect and on record.

  1. Every owner of an amusement ride or attraction shall be required to complete an application for a business identification number on a form provided by the department.
  2. No amusement ride or attraction shall be operated in this state without a business identification number issued by the Commissioner to the owner of the equipment. The business identification number shall be kept on site and viewable upon request.
    1. The business identification number required by this section shall be valid for a period of one (1) year and shall be issued in accordance with administrative regulations promulgated by the Commissioner. (3) (a) The business identification number required by this section shall be valid for a period of one (1) year and shall be issued in accordance with administrative regulations promulgated by the Commissioner.
    2. A business identification number shall be issued to each owner to operate any amusement ride or attraction in this state. An inspection fee, which shall be determined by administrative regulations promulgated by the Commissioner, shall be levied for each amusement ride or attraction. The fee shall be based on the complexity of the ride or attraction and shall not be less than ten dollars ($10) nor more than five hundred dollars ($500). The cost of all inspections shall be paid by the owner of the amusement ride or attraction and may be prepaid, but shall be paid no later than the day of the inspection.
    3. The applicant shall furnish proof of liability insurance in effect on the operation of each amusement ride or attraction providing coverage, with an insurer authorized to issue a policy in this state, in the amount of not less than five hundred thousand dollars ($500,000) due to all bodily injuries or deaths per occurrence, or in lieu thereof, if the applicant’s amusement ride or amusement attraction is one that is permanently located or erected on a site in this state, the applicant shall be required only to provide proof of financial responsibility in the sum of five hundred thousand dollars ($500,000). Every insurance carrier of these policies shall notify the Commissioner at least thirty (30) days prior to cancellation of a policy for mobile amusement rides or attractions and at least ten (10) days prior to cancellation of a policy for permanent amusement rides or attractions.
    4. In addition to proof of adequate insurance coverage, the applicant shall furnish any other information the Commissioner may require, including but not limited to:
      1. Written notice of each intended operating site to be received by the Commissioner at least fourteen (14) days prior to operation at that site. In cases of emergency, notice of a change in future plans may be given to the Commissioner by telephone. Insurance requirements for amusement rides and attractions operated at the Kentucky State Fair may be adjusted by the Commissioner to any amount reasonably necessary to ensure adequate coverage; and
      2. A written list of prior violations of KRS 247.232 to 247.236 that resulted in civil penalties assessed against the applicant, any employee of the applicant, or any officer or manager if the applicant is a partnership or corporation.
    5. The Commissioner shall provide for an inspection of each amusement ride or attraction before it may be operated in this state. The Commissioner shall designate persons qualified by education or experience, who are capable of determining amusement safety in accordance with administrative regulations promulgated in accordance with KRS 247.232 to 247.236 , as amusement safety inspectors.
    6. A Kentucky inspection seal shall be affixed to every individual amusement ride or attraction, or other location as determined by the Commissioner, before it may be operated in this state.
    1. In addition to a mandatory initial inspection, required in subsection (3)(d) of this section, the Commissioner may inspect amusement rides and attractions without notice at any time while operating in this state. There will be no charge for additional inspections in which safety violations are not found. In regard to situations in which safety violations are found, the Commissioner may charge an inspection fee not to exceed five hundred dollars ($500) for any future inspection necessary. The corrections of these safety violations shall comply with accepted standards of safety, and shall be accomplished prior to operating the equipment in this state. (4) (a) In addition to a mandatory initial inspection, required in subsection (3)(d) of this section, the Commissioner may inspect amusement rides and attractions without notice at any time while operating in this state. There will be no charge for additional inspections in which safety violations are not found. In regard to situations in which safety violations are found, the Commissioner may charge an inspection fee not to exceed five hundred dollars ($500) for any future inspection necessary. The corrections of these safety violations shall comply with accepted standards of safety, and shall be accomplished prior to operating the equipment in this state.
    2. In regard to situations in which safety violations are found that cannot be corrected immediately, the amusement ride or attraction shall cease to operate in this state by order of the amusement safety inspector. In addition, the amusement safety inspector shall conspicuously post a public notice on or near the amusement ride or attraction. The notice shall adequately inform the public of the safety violation present. Only an amusement safety inspector employed by the department may remove the public notice.
    3. Any owner who continues to operate an amusement ride or attraction after an order to cease operation has been issued shall have his business identification number revoked and may be subject to further penalties provided in KRS 247.233 . In addition, the county attorney of each county and the Commissioner of Agriculture or the Commissioner’s agents are hereby authorized to seek an injunction against the owner or operator of any amusement ride or attraction being operated in violation of KRS 247.232 to 247.236 .
    4. Revenue generated by this section and KRS 247.233 shall be used for the implementation and administration of KRS 247.232 to 247.236 ; the balance, if any, shall not lapse but shall be carried forward to the next fiscal year.
    1. An owner of an amusement ride or attraction shall: (5) (a) An owner of an amusement ride or attraction shall:
      1. Conduct a pre-opening inspection and test of the ride or attraction prior to admitting the public each day the ride or attraction is intended to be used; and
      2. Maintain for at least the previous twelve (12) months a signed record of the required pre-opening inspections and tests and any other pertinent information as required by the Commissioner.
    2. The Commissioner may revoke the business identification number of any owner who fails to conduct the required pre-opening inspections and tests or to maintain the required reports.
  3. All unpaid civil penalties assessed upon a person for violations of KRS 247.232 to 247.236 shall remain in effect and shall permanently remain on record with the department regardless of whether the person:
    1. Operates amusement rides or attractions under his or her name, another name, an assumed name, or as a sole proprietorship;
    2. Is employed by another person operating amusement rides individually, as a sole proprietorship, or as part of a partnership or corporation; or
    3. Operates amusement rides or attractions as a member of a partnership or corporation.

History. Enact. Acts 1984, ch. 386, § 2, effective July 13, 1984; 1986, ch. 356, § 2, effective April 9, 1986; 1988, ch. 151, § 1, effective July 15, 1988; 2002, ch. 268, § 2, effective July 15, 2002; 2006, ch. 252, Pt. XXVI, § 2, effective January 1, 2007; 2008, ch. 116, § 2, effective July 15, 2008; 2013, ch. 5, § 1, effective June 25, 2013.

247.235. Temporary amusement rides and attractions — License required — Sanctions.

    1. Every person that operates a for-profit business that provides temporary amusement rides or amusement attractions that are within the same county as, or are within a five (5) mile radius of, a public fair or exposition that is sanctioned by the Department of Agriculture and is operated by a public fair association shall, before beginning operation, pay a license fee of two thousand dollars ($2,000) per day of operation to the fiscal court of the county in which the temporary amusement rides or amusement attractions are located. (1) (a) Every person that operates a for-profit business that provides temporary amusement rides or amusement attractions that are within the same county as, or are within a five (5) mile radius of, a public fair or exposition that is sanctioned by the Department of Agriculture and is operated by a public fair association shall, before beginning operation, pay a license fee of two thousand dollars ($2,000) per day of operation to the fiscal court of the county in which the temporary amusement rides or amusement attractions are located.
    2. The provisions of paragraph (a) of this subsection shall not apply to temporary amusement rides or amusement attractions that:
      1. Operate in connection with the sanctioned public fair or exposition;
      2. Operate at a public fair or exposition that is in a contiguous county, is sanctioned by the Department of Agriculture, and is under the authority of a public fair association;
      3. Operate under the authority of a religious or educational organization;
      4. Operate more than thirty (30) days before or seven (7) days after the sanctioned public fair or exposition;
      5. Are clown acts, local festivals, or amusement or entertainment shows with six (6) or fewer kiddie rides; or
      6. Operated as a nonprofit or charitable organization in this state before March 10, 2003.
  1. Collection and enforcement for payment of the license fee shall be the sole responsibility of the law enforcement entity acting on behalf of and at the direction of the fiscal court in which the temporary amusement rides or amusement attractions are located.
  2. Failure to pay the license fee upon request of the law enforcement entity shall result in the cessation of operation of the amusement rides or amusement attractions by the operator.

History. Enact. Acts 2003, ch. 28, § 2, effective March 10, 2003.

247.2351. Operation and maintenance of amusement rides and attractions — Required submission of service manuals and records — Administrative regulations.

  1. All amusement rides and attractions shall be operated and maintained according to the most stringent specifications and recommendations of:
    1. The manufacturer’s specifications and recommendations;
    2. The most recent National Electrical Code and National Fire Protection Association codes and standards; or
    3. Any other applicable state or federal laws.
  2. The department shall promulgate administrative regulations relating to the use of replacement parts for amusement rides and attractions.
  3. Amusement ride and attraction owners shall provide the department with the most recent manuals, service bulletins, or service and inspection records upon request by a department inspector. If any of these items are not immediately available to an inspector, the inspector may issue a stop operation order or postpone the application process until the materials are made available. Any department inspector may issue a stop operation order if the inspector finds that the provisions of the manuals or service bulletins are not being followed.
  4. The department may promulgate administrative regulations relating to amusement rides and attractions in accordance with the latest ASTM standards.

History. Enact. Acts 2008, ch. 116, § 5, effective July 15, 2008.

247.2353. Requirements for patrons of amusement rides and attractions — Penalties — Exceptions — Display of penalties.

  1. All patrons of amusement rides or attractions shall:
    1. Obey all signage posted in conspicuous locations, including but not limited to warning signs, instruction signs, and directional signs pertaining to the amusement rides or attractions;
    2. Obey all verbal instructions from amusement ride or attraction operators; and
    3. Maintain all safety devices, including but not limited to seat belts, restraint bars, and harnesses in accordance with all instructions from operators and posted signage.
  2. All patrons of amusement rides or attractions shall refrain from:
    1. Engaging in any activity that may cause bodily harm or death;
    2. Interfering in any manner with the normal operation of the amusement ride or attraction;
    3. Disconnecting or disabling any safety device at any time unless at the express instruction of the operator;
    4. Extending arms or legs beyond the seating area unless at the express instruction of the operator;
    5. Throwing, dropping, or otherwise expelling any object from any amusement ride or attraction;
    6. Embarking on or disembarking from any amusement ride or attraction except at the designated time and area or at the direction of the operator;
    7. Unreasonably controlling the speed or direction of any amusement ride or attraction that requires a passenger to control or direct any part of the amusement ride or attraction; or
    8. Boarding or attempting to board any amusement ride or attraction if he or she is under the influence of alcohol or any controlled substance as defined in KRS 218A.010 .
  3. Any person who violates the provisions of this section shall, upon request of the owner of the amusement ride or attraction, leave the premises on which the amusement ride or attraction is located without a refund of any admission charges or entrance fees.
  4. Any person who violates subsection (1) or (2) of this section and does not comply with a request to leave under subsection (3) of this section shall be guilty of criminal trespass in the second degree.
  5. Subsections (1) to (4) of this section shall not apply to any individual who, due to the following conditions, is not capable of understanding the posted rules or oral instructions:
    1. Blind or visually impaired as defined in KRS 61.980 ;
    2. Deaf or hard of hearing as defined in KRS 61.980 ; or
    3. Developmental disability as defined in KRS 387.510 .
  6. Any owner of an amusement ride or attraction shall conspicuously display the penalties for violations of this section near each amusement ride or attraction.

HISTORY: 2019 ch. 41, § 1, effective June 27, 2019.

247.236. Operation and construction of amusement rides and attractions — Prohibitions on operation — Entrance to amusement ride or attraction may be denied.

  1. Amusement rides and attractions shall not be operated at unsafe speeds or loaded beyond a safe capacity in accordance with the factory specifications or, in the absence of factory specifications, in accordance with administrative regulations promulgated by the Commissioner.
  2. Amusement rides and attractions shall not be operated during periods of high wind, lightning, or heavy rain.
  3. Perimeter safety barriers such as a fence or other suitable structure shall be constructed around any amusement ride or attraction that is potentially hazardous to bystanders, in accordance with administrative regulations promulgated by the Commissioner.
  4. Amusement rides and attractions shall not be operated if the owner or operator knows or should know that the operation will expose the public to an unsafe condition which is likely to result in personal injury or property damage.
    1. No person under the age of sixteen (16) shall operate an amusement ride or attraction or operate more than one (1) ride or attraction at a time. Except as provided by paragraph (c) of this subsection, an operator shall be in attendance at all times while a ride or attraction is in operation. (5) (a) No person under the age of sixteen (16) shall operate an amusement ride or attraction or operate more than one (1) ride or attraction at a time. Except as provided by paragraph (c) of this subsection, an operator shall be in attendance at all times while a ride or attraction is in operation.
    2. No person shall operate an amusement ride or attraction or knowingly permit an operator to operate an amusement ride or attraction while under the influence of alcohol or any other impairing substance.
    3. The Commissioner may, by administrative regulation, designate certain amusement rides or attractions where the presence of an operator is not required.
  5. The owner or operator may deny any person entrance to an amusement ride or attraction if the owner or operator has reason to believe the entry may jeopardize the safety of the person desiring entry, other riders, or any other person.

History. Enact. Acts 1984, ch. 386, § 3, effective July 13, 1984; 2008, ch. 116, § 3, effective July 15, 2008; 2019 ch. 94, § 3, effective June 27, 2019.

Aerial Recreational Facilities

247.238. Aerial recreational facilities — Administrative regulations — Administration fund.

  1. As used in this section:
    1. “ACCT standard” means the latest standards and specifications as set forth by the Association for Challenge Course Technology;
      1. “Aerial recreational device” means a device that provides for a unit of human activity, including but not limited to devices to simulate rock climbing, beams, bridges, cable traverses, climbing walls, nets, platforms, ropes, swings, towers, zip lines, or jump systems that are installed on or in trees, poles, portable structures, buildings, or that are part of a self-supporting structure. (b) 1. “Aerial recreational device” means a device that provides for a unit of human activity, including but not limited to devices to simulate rock climbing, beams, bridges, cable traverses, climbing walls, nets, platforms, ropes, swings, towers, zip lines, or jump systems that are installed on or in trees, poles, portable structures, buildings, or that are part of a self-supporting structure.
      2. Unless designated by administrative regulation promulgated by the Commissioner, “aerial recreational device” does not include nonmechanical playground equipment, such as swings, seesaws, slides less than fifteen (15) feet in height at their highest point, rider-propelled merry-go-rounds, stationary spring-mounted animal devices, and physical fitness equipment.
      3. The Commissioner may, by administrative regulation, designate other devices that are not included in the definition of “aerial recreational device”;
    2. “Aerial recreational facility” means a commercial or educational facility, including those offering canopy tours or zip line tours, consisting of one (1) or more aerial recreational devices;
    3. “ASTM standard” shall have the same meaning as in KRS 247.232 ;
    4. “Canopy tour” means a guided aerial exploration or transit of the forest canopy, most commonly by means of a series of one (1) or more aerial recreational devices; and
    5. “Zip line tour” means a guided aerial exploration or transit of a landscape by means of a series of zip lines and platforms.
  2. The department shall promulgate administrative regulations, pursuant to KRS Chapter 13A, necessary to establish requirements and standards recognized by the department for the operation and regulation of aerial recreational devices, aerial recreational facilities, canopy tours, and zip line tours in the state.
  3. In establishing the requirements and standards for the operation and regulation of aerial recreational facilities in the state, the department may:
    1. Rely on applicable ACCT or ASTM standards or other accepted industry standards; and
    2. Provide for acceptance of third-party inspections and investigations of aerial recreational facilities.
  4. The department may assess reasonable fees for the administration of any aerial recreational facility regulatory requirements.
  5. The department shall promulgate administrative regulations relating to aerial recreational devices, aerial recreational facilities, canopy tours, and zip line tours that establish a comprehensive set of administrative violations, administrative sanctions, and civil penalties not to exceed ten thousand dollars ($10,000).
    1. All administrative fees and proceeds from civil penalties collected by the department under this section shall be deposited in the fund established in paragraph (b) of this subsection for the use of the department in enforcing the provisions of this section. (6) (a) All administrative fees and proceeds from civil penalties collected by the department under this section shall be deposited in the fund established in paragraph (b) of this subsection for the use of the department in enforcing the provisions of this section.
    2. The aerial recreational facilities administration fund is hereby created as a separate trust fund in the State Treasury. The aerial recreational facilities administration fund shall consist of amounts deposited in the fund under paragraph (a) of this subsection, as well as amounts received from appropriations and any other proceeds from gifts, grants, federal funds, or any other funds, both public and private, made available for the purposes of this section.
    3. Notwithstanding KRS 45.229 , aerial recreational facilities administration fund amounts not expended at the close of a fiscal year shall not lapse but shall be carried forward into the next fiscal year.
    4. Any interest earnings of the aerial recreational facilities administration fund shall become a part of the aerial recreational facilities administration fund and shall not lapse.
    5. Moneys deposited in the fund are hereby appropriated for the purposes set forth in this section and shall not be appropriated or transferred by the General Assembly for any other purposes.

HISTORY: 2016 ch. 37, § 1, effective July 15, 2016.

Farm Bureaus

247.240. County farm bureaus authorized.

  1. A farm bureau may be incorporated in each county.
  2. Farm bureaus may acquire, by gift or purchase, real and personal property and may exercise all powers necessary or convenient to successfully carry out the objects of farm bureaus.
  3. Farm bureau corporations shall not declare dividends.

History. 42d-1, 42d-5, 42d-8.

NOTES TO DECISIONS

Cited:

Allen County Fiscal Court v. Allen County Farm Bureau, 298 Ky. 220 , 182 S.W.2d 660, 1944 Ky. LEXIS 877 ( Ky. 1944 ).

Opinions of Attorney General.

The limit of the appropriation by the fiscal court of a county under KRS 247.300(1) and (2) is $5,000 per year, but under KRS 247.080 , the court may appropriate additional funds of the county out of their annual funds as may be necessary for extension work in agriculture and home economics. OAG 63-494 .

247.250. Articles of incorporation.

The articles of incorporation of a farm bureau shall be as follows:

“We, the undersigned farmers or landowners, residents of County, Kentucky, hereby adopt the following articles of incorporation: “Article 1. The objects of this incorporation shall be to advance and improve in County, Kentucky, the science and art of agriculture, home economics, horticulture and animal industry, cooperating with the State Department of Agriculture, the College of Agriculture of the University of Kentucky and the United States Department of Agriculture. “Article 2. The name of this corporation shall be the County Farm Bureau of County, Kentucky. “Article 3. The affairs of this corporation shall be conducted by a president, a vice president, a secretary and a treasurer, who shall perform the duties usually pertaining to such positions, and by a board of directors of not less than seven members. All officers and directors shall be elected as provided for in the bylaws at an annual meeting and they shall hold office for one year and until their successors are elected, but, so that the terms of all directors shall not expire at the same time, the members, by bylaw or resolution, may provide that at one annual election that the term of half the number of directors, or if there be an uneven number, that the term of one less than the majority or the term of a majority of one, elected at said election, shall be for one year, and the term of the remaining directors elected at said election shall be for two years, and that all elections for directors, after the expiration of the aforesaid specific terms, shall be for two years. We, the said incorporators, have elected the following provisional officers to hold their respective positions until their successors are elected at the annual meeting in the year 19 President Vice President Secretary Secretary Board of Directors: 1. 2. 3. 4. 5. 6. 7. “Article 4. The date of the annual meeting shall be stated in the bylaws. The bylaws shall be adopted by the members of the corporation and may be amended at any annual meeting of the members. “Article 5. The yearly dues of the members of this corporation shall be not less than five dollars, payable at the time that application for membership is made and by or on the same date annually thereafter. No member who has once paid dues shall forfeit membership until subsequent dues are sixty days in arrears, but so long as any dues owing are unpaid, such member shall have no right to vote in any election or on any matter. “Article 6. Any citizen of the county owning or operating a farm, or evidencing a primary interest in farming by reason of his position or occupation may become a member of the corporation by paying one year’s dues and complying with the articles of incorporation and bylaws. “Article 7. This corporation shall endure until terminated by operation of law.”

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History. 42d-2: amend. Acts 1952, ch. 157, § 1.

Legislative Research Commission Note.

(12/28/99). The signature lines in Article 3 of this statute have been altered under KRS 7.136 to restore the original format of the 1942 version of the statute. The 1952 amendment mistakenly omitted to include the phrase “Board of Directors,” and this omission, given the text of the statute was a manifest clerical or typographical error.

Research References and Practice Aids

Cross-References.

Kentucky Business Corporation Act, KRS ch. 271B.

247.251. Existing bureaus not required to reincorporate.

Any county farm bureau heretofore incorporated, pursuant to KRS 247.250 , prior to June 19, 1952, shall not be required to reincorporate, but its articles of incorporation shall be construed as having been amended to incorporate therein the amendment to KRS 247.250 .

History. Enact. Acts 1952, ch. 157, § 2, effective June 19, 1952.

247.260. No recording fee — No salary for officers.

  1. The articles of incorporation of a farm bureau shall be recorded by the county clerk without a fee of any kind.
  2. No salary shall be paid to the president, vice president or any director.

History. 42d-6, 42d-7.

247.270. Treasurer.

  1. The treasurer of the farm bureau shall give bond, with security, the amount of which shall be fixed by the board of directors at double the amount of money likely to come into his hands. The bond shall be filed with the county clerk and be recorded without fee. In no case shall the bond of the treasurer be less than one thousand dollars ($1,000).
  2. The treasurer shall receive all funds belonging to the farm bureau and all appropriations made by the fiscal court. He shall pay out the funds of the farm bureau only on bills allowed by the board of directors or by the executive committee of the board of directors. The allowance shall be certified to by the president or secretary.
  3. No treasurer shall in any manner convert the funds or property of a farm bureau to his own use or pay out or dispose of the same in any manner different than as directed by KRS 247.240 to 247.320 .

History. 42d-9, 42d-13, 42d-15.

NOTES TO DECISIONS

1. Judgment Debt.

This section does not bar the payment of a debt that was ordered to be paid by the judgment of a court that had jurisdiction. Tarrants v. Henderson County Farm Bureau, 380 S.W.2d 274, 1964 Ky. LEXIS 312 ( Ky. 1964 ).

247.280. President and treasurer to file report.

The outgoing president and treasurer of a farm bureau shall by the date of the annual meeting file with the county clerk full and detailed sworn reports of all receipts and expenditures of the corporation, showing from whom the sums were received and to whom they were paid, and for what purposes they were received or paid. A duplicate of the reports shall be laid before the members at the annual meeting.

History. 42d-10: amend. Acts 1952, ch. 157, § 3; 1956, ch. 51, § 1.

247.290. Bureaus that may receive county aid. [Repealed.]

Compiler’s Notes.

This section (42d-12) was repealed by Acts 1956, ch. 51, § 2.

247.300. Fiscal court to appropriate money for bureau, when — Limit on amount — Additional appropriation for agricultural extension work.

  1. Whenever the secretary and the treasurer of a county farm bureau organized under KRS 247.240 to 247.370 have certified to the fiscal court of the county that the bureau has not less than one hundred (100) members who own or operate farms in the county and has a fund of not less than five hundred dollars ($500) in the possession of its treasurer, which fund was obtained from among its members by membership dues or otherwise, the fiscal court shall, subject to subsection (2), appropriate for county cooperative extension work out of the general fund of the county to aid in carrying on extension work in that county in agriculture and home economics and in connection with the University of Kentucky, a sum equal to twice the amount of the said fund in the hands of the bureau.
  2. The total sum appropriated under this section by the fiscal court shall not, in any year, exceed:
    1. Five thousand dollars ($5,000) in any county having an assessed property valuation of twenty million dollars ($20,000,000) or more;
    2. Four thousand dollars ($4,000) in any county having an assessed property valuation of more than fifteen million dollars ($15,000,000) but less than twenty million dollars ($20,000,000);
    3. Three thousand dollars ($3,000) in any county having an assessed property valuation of between ten ($10,000,000) and fifteen million dollars ($15,000,000);
    4. Two thousand dollars ($2,000) in any county having an assessed property valuation of between five ($5,000,000) and ten million dollars ($10,000,000) or
    5. One thousand five hundred dollars ($1,500) in any county having an assessed property valuation of not more than five million dollars ($5,000,000).
  3. Nothing in this section shall prevent or prohibit a fiscal court from appropriating additional funds in support of agricultural extension work under provisions of KRS 247.080 and appropriations made under either section shall be expended as provided for in KRS 247.310 .

History. 42d-11: amend. Acts 1956, ch. 51, § 3.

NOTES TO DECISIONS

1. Constitutionality.

This section does not violate Ky. Const., § 3, § 171 or § 181. Hendrickson v. Taylor County Farm Bureau, 196 Ky. 75 , 244 S.W. 82, 1922 Ky. LEXIS 456 ( Ky. 1922 ).

2. Appropriations.

The money raised by the farm bureau must have been obtained from its members in order for it to be entitled to appropriations under this section, and farm bureau is not entitled to appropriation until it has certified to the fiscal court that it has at least $500 obtained from its members. Fiscal Court of Boyle County v. Boyle County Farm Bureau, 244 Ky. 626 , 51 S.W.2d 934, 1932 Ky. LEXIS 488 ( Ky. 1932 ).

Fiscal court may not deduct from appropriations to farm bureau under this section amount paid county agent whose employment was not requested by bureau. Fiscal Court of Boyle County v. Boyle County Farm Bureau, 248 Ky. 617 , 59 S.W.2d 568, 1933 Ky. LEXIS 292 ( Ky. 1933 ).

It is the duty of the fiscal court to make the appropriation when the farm bureau brings itself within the conditions. Allen County Fiscal Court v. Allen County Farm Bureau, 298 Ky. 220 , 182 S.W.2d 660, 1944 Ky. LEXIS 877 ( Ky. 1944 ).

The word “shall” as used in subsection (1) of this section indicates absolute necessity of making appropriation provided for therein and the official act of making such appropriation is ministerial in its import and the fiscal court was required to curtail or discontinue activities of useful but permissive nature in order to make required appropriation. Clinton County Farm Bureau v. Clinton County Fiscal Court, 339 S.W.2d 930, 1960 Ky. LEXIS 491 ( Ky. 1960 ).

3. — Debt Limitations.

Fiscal court cannot be compelled to make appropriation under this section for purpose of employing county agent, where to do so would carry county indebtedness beyond limit fixed by Ky. Const., § 157. Adair County Farm Bureau v. Fiscal Court of Adair County, 263 Ky. 23 , 91 S.W.2d 537, 1936 Ky. LEXIS 122 ( Ky. 1936 ).

The duty of the fiscal court to make appropriations for the farm bureau is subject to constitutional restrictions upon the creation of county debts and obligations for the legislature cannot impose upon the county a duty that in itself or under specific conditions would contravene the provisions of the Constitution. Allen County Fiscal Court v. Allen County Farm Bureau, 298 Ky. 220 , 182 S.W.2d 660, 1944 Ky. LEXIS 877 ( Ky. 1944 ).

4. — Past Obligations.

Where farm bureau has raised required amount under this section, the fiscal court must appropriate to the bureau double the amount raised, and may not deduct amount proportionate to time expired from beginning of bureau’s fiscal year to application for appropriation, since appropriation may be expended for past obligations incurred during current fiscal year. Fiscal Court of Boyle County v. Boyle County Farm Bureau, 248 Ky. 617 , 59 S.W.2d 568, 1933 Ky. LEXIS 292 ( Ky. 1933 ).

Opinions of Attorney General.

Appropriations for extension work under KRS 247.300 and KRS 247.080 shall not exceed the current revenues as provided in Kentucky Constitution §§ 157 and 158. OAG 63-494 .

If adequate funds were available, there would be no liability on the part of the members of the fiscal court for appropriating funds for extension work under KRS 247.080 in excess of the maximum specified in KRS 247.300(2). OAG 63-494 .

The appropriation for extension work under KRS 247.300 is mandatory; any appropriation under KRS 247.080 is permissive. OAG 63-494 .

The limit of the appropriation by the fiscal court of a county under KRS 247.300(1) and (2) is $5,000 per year, but under KRS 247.080 , the court may appropriate additional funds of the county out of their annual funds as may be necessary for extension work in agriculture and home economics. OAG 63-494 .

A fiscal court has no statutory authority to appropriate money out of its annual funds toward the purchase of land to be used as a county fairground. OAG 63-643 .

The county agent is not an employee or official of the county. OAG 70-110 .

The purchase of land by a county through its fiscal court for the purpose of leasing the same to the 4-H Association of the county who in turn would sublet the property to the United States department of agriculture would not be within the powers of the fiscal court under this section authorizing the fiscal court to appropriate money for the farm bureau but not for the purchase and lease of property under the subject arrangement and the subject purposes. OAG 72-53 .

247.310. Expenditure of county appropriations.

All appropriations from fiscal courts shall be used in the payment of salaries and expenses of duly appointed extension service employees of the College of Agriculture and Home Economics of the University of Kentucky, serving in the county making the appropriation, or to pay for supplies or equipment for these employees.

History. 42d-11: amend. Acts 1956, ch. 51, § 4.

Opinions of Attorney General.

A fiscal court has no statutory authority to appropriate money out of its annual funds toward the purchase of land to be used as a county fairground. OAG 63-643 .

247.320. Expenditure of dues.

The farm bureau may use part or all of the sums annually received as dues from its members in payment of dues or assessments levied or assessed against it by the State Federation of Farm Bureaus or the American Farm Bureau Federation or in any manner designed to promote the best interests of its members.

History. 42d-5: amend. Acts 1956, ch. 51, § 5.

247.330. State federation of farm bureaus.

  1. A state federation of county farm bureaus may be formed by a majority of the county farm bureaus in existence at the time of the formation of said federation, which have been organized pursuant to KRS 247.240 and 247.250 , but said majority shall consist of no less than ten (10) such county farm bureaus.
  2. The state federation of farm bureaus shall have for its purpose the advancement and improvement of agricultural and allied interests of the farms of this state and may cooperate with the department, the College of Agriculture of the University of Kentucky, and the United States Department of Agriculture.
  3. The provisions of subsection (1) of this section shall not affect any existing state federation formed pursuant to the provisions of Chapter 76 of the Acts of 1920 of the General Assembly of the Commonwealth of Kentucky.

History. 42d-16: amend. Acts 1952, ch. 157, § 4.

Compiler’s Notes.

Chapter 76 of the Acts of 1920 of the General Assembly of the Commonwealth of Kentucky referred to in subsection (3) is compiled as KRS 247.240 to 247.280 , 247.300 .

247.340. Incorporation, powers, directors of federation — Existing federation.

  1. The said federation of farm bureaus organized pursuant to KRS 247.330 shall be a body corporate upon the filing with the county clerk of the county in which the principal office of said federation is located, articles of incorporation signed by the requisite number of authorized representatives of said county farm bureaus, and upon the filing of a copy of said articles of incorporation certified to by said county clerk, in the office of the Secretary of State of the Commonwealth of Kentucky.
  2. Said articles of incorporation shall state:
    1. The names of the county farm bureaus organizing said state federation;
    2. The corporate name of said state federation;
    3. The location of the principal office;
    4. The nature of its business and its general powers, and may set out any other provision, which the incorporators may deem desirable and which are not in conflict with the law.
  3. The incorporators signing the articles of incorporation shall constitute the first board of directors until the first annual election date to be fixed by the bylaws of the corporation.
  4. Any state federation of county farm bureaus heretofore organized pursuant to the provisions of KRS 247.330 , or, Chapter 76 of the Acts of 1920 of the General Assembly of the Commonwealth of Kentucky, and having heretofore filed its articles of incorporation as provided in this section, shall not be required to reincorporate, but may continue its corporate existence as if done pursuant hereto, and said corporation or any corporation organized pursuant to this section and KRS 247.330 , may amend its articles of incorporation by a majority vote of its voting delegates assembled in annual state convention.

History. 42d-17: amend. Acts 1952, ch. 157, § 5; 1978, ch. 384, § 382, effective June 17, 1978.

Compiler’s Notes.

Chapter 76 of the Acts of 1920 of the General Assembly of the Commonwealth of Kentucky referred to in subsection (3) is compiled as KRS 247.240 to 247.280 , 247.300 .

247.350. Organization and function of state federation.

Any state federation organized pursuant to KRS 247.330 and 247.340 shall have the following organization and function in the following manner:

  1. The said federation shall hold an annual meeting at a date to be fixed by its bylaws, which annual meeting may be referred to as the “annual convention” of said federation;
  2. Each county farm bureau shall be entitled to no less than two (2) voting delegates at the annual convention of the Kentucky Farm Bureau Federation. When a county farm bureau has received, during the fiscal year ending prior to said state convention, one hundred fifty (150) paid-in regular memberships, as defined in the bylaws of the federation, each additional one hundred (100) paid-in regular memberships or major portion thereof shall entitle the county farm bureau to an additional voting delegate. No voting delegate shall vote by proxy, unless the proxy is in writing in a form approved by the board of directors of the state federation;
  3. The governing body of said state federation shall consist of a board of directors of not less than seven (7) members. The distribution of said directors shall be by state federation districts, and set forth in the bylaws of the corporation. Each director shall be elected for a term of two (2) years, shall be a resident of the district from which he is elected, must be actively engaged in farming, or evidencing a primary interest therein by reason of his position or occupation, and shall be nominated by the voting delegates of said district and elected by a majority vote of the voting delegates voting either in person or by proxy at said election;
  4. Said state federation, by bylaws, shall have authority to provide for additional directors representing cooperating agricultural agencies;
  5. The officers of said federation shall consist of a president, a first vice president, and a second vice president, who shall be elected by majority vote cast by the voting delegates at the annual convention, and there shall be an executive officer of the corporation, who shall be elected by the board of directors, and who shall be an ex officio member of the board, without power to vote; and
  6. The board of directors shall select from its membership an executive committee composed of three (3) persons, and said committee shall have general charge of the management of the business of the federation in the interim between meetings of the board of directors and shall possess such powers, duties and responsibilities as may be provided in the bylaws of the federation or by resolution of the board of directors.

History. 42d-18: amend. Acts 1952, ch. 157, § 6; 1978, ch. 146, § 1, effective June 17, 1978; 1986, ch. 165, § 1, effective July 15, 1986.

247.360. Directors may provide for officers’ bonds and reports.

The board of directors, or the executive committee, if the board of directors is not in session, shall provide for the bonding of such officers and the making of such reports by officers as it deems necessary.

History. 42d-20.

247.370. Eligibility for membership in federation — Powers of federation.

  1. Every county farm bureau organized pursuant to KRS 247.250 shall be eligible to membership in any said state federation, but after its admission to membership, said federation shall have power to suspend its membership or expel it for failure to comply with any bylaws or reasonable rule or regulation of the federation.
  2. Any said state federation shall have authority to:
    1. Adopt, amend and repeal bylaws and amendments thereto by two-thirds (2/3) vote of the voting delegates voting at an annual convention;
    2. Assess annual membership dues against each county farm bureau, and base the amount thereof on the number of paid-in memberships in each county farm bureau;
    3. Acquire, own and hold property, pursuant to action of its board of directors, or by its executive committee upon authorization or approval of its board of directors;
    4. Borrow money and mortgage or pledge its property or assets by action of its board of directors, or, by its executive committee, upon authorization or approval of its board of directors;
    5. Accept gifts, devises and bequests, appropriate and expend its funds, pursuant to action of its board of directors, or its executive committee, upon authorization or approval by its board of directors, for the advancement of agriculture and allied interests and for any purposes deemed advisable to carry on its activities; and
    6. Do anything necessary to carry out the purpose for which it is organized.

History. 42d-19: amend. Acts 1952, ch. 157, § 7; 1978, ch. 146, § 2, effective June 17, 1978.

Opinions of Attorney General.

This section would prevail over a conflicting bylaw of the Kentucky Farm Bureau Federation as to the procedure to be followed in amending the bylaws of the Kentucky Farm Bureau Federation. OAG 76-713 .

Registration of Farm Names

247.380. Owner of farm may register name of his farm.

Any farm owner may, upon the payment of one dollar ($1) to the Commissioner, have the name of his farm recorded in a register which the Commissioner shall keep for that purpose. The Commissioner shall furnish the owner a certificate, issued under seal, setting forth the name and location of the farm and the name of the owner. When any name has been recorded as the name of any farm in this state, that name shall not be recorded as the name of any other farm.

History. 42b-1.

247.390. Farm Tenancy Commission. [Repealed.]

Compiler’s Notes.

This section (42c-30) was repealed by Acts 1986, ch. 331, § 63, effective July 15, 1986.

247.400. Compensation of members. [Repealed.]

Compiler’s Notes.

This section (42c-30) was repealed by Acts 1986, ch. 331, § 63, effective July 15, 1986.

Farm Animal Activities

247.401. Legislative findings for KRS 247.401 to 247.4029.

The General Assembly finds that activities involving the use and exhibition of farm animals are engaged in by a large number of citizens of Kentucky and that these activities also attract to Kentucky a large number of nonresidents, significantly contributing to the economy of Kentucky. Since it is recognized that there are inherent risks in working with, exhibiting, and using farm animals which should be understood by participants in farm animal activities and which are essentially impossible for owners of farm animals or sponsors of farm animal activities to eliminate, it is the purpose of KRS 247.401 to 247.4029 to define the areas of responsibility and affirmative acts for which activity sponsors, professionals, and participants shall be responsible, to specify risks of injury for which activity sponsors, professionals, and participants shall not be responsible, and to specify areas of responsibilities of farm animal participants. Therefore, the General Assembly determines that to preserve and promote the long Kentucky tradition of activities involving farm animals and the health and safety of the citizens of Kentucky and visitors to the Commonwealth of Kentucky, KRS 247.401 to 247.4029 are necessary to instruct persons voluntarily engaging in farm animal activities of the potential risks inherent in the activities.

History. Enact. Acts 1996, ch. 78, § 1, effective July 15, 1996.

247.4013. Scope and policies of KRS 247.401 to 247.4029.

KRS 247.401 to 247.4029 are intended to aid courts and juries in defining the duties of persons responsible for farm animals to others who have chosen to participate in farm animal activities. KRS 247.401 to 247.4029 also establish the policy of the Commonwealth of Kentucky that persons do not have a duty to eliminate risks inherent in farm animal activities which are beyond their immediate control if those risks are or should be reasonably obvious, expected, or necessary to participants engaged in farm animal activities. Furthermore, KRS 247.401 to 247.4029 establish the policy that the sponsor, instructor, or other professional engaged in farm animal activities who breaches a duty to a farm animal activity participant and causes foreseeable injury to the participant shall be responsible for the injury in accordance with other applicable law.

History. Enact. Acts 1996, ch. 78, § 2, effective July 15, 1996.

247.4015. Definitions for KRS 247.401 to 247.4029.

As used in KRS 247.401 to 247.4029 , unless the context requires otherwise:

  1. “Engages in a farm animal activity” means leading, showing, exhibiting, riding, training, providing, or assisting in providing medical treatment of, grooming, driving, or being a passenger upon a farm animal, whether mounted or unmounted; visiting, touring, or utilizing a farm animal facility as part of an organized event or activity; or assisting a participant or show management in farm animal activities. The term does not include being a spectator at a farm animal activity, except in cases where the spectator voluntarily places himself or herself in immediate proximity to the activity;
  2. “Farm animal” means one (1) or more of the following domesticated animals: cattle, oxen, sheep, swine, goats, horses, ponies, mules, donkeys, hinnies, ratites (ostrich, rhea, emu), camelids (alpaca, camel, llama), and poultry;
  3. “Farm animal activity” means:
    1. Shows, fairs, exhibits, competitions, performances, or parades that involve farm animals;
    2. Training or teaching activities, or both, involving farm animals;
    3. Boarding farm animals, including normal daily care;
    4. Rides, trips, shows, clinics, demonstrations, sales, hunts, parades, games, exhibitions, or other activities of any type, however informal or impromptu, that are sponsored by a farm animal activity sponsor or other person;
    5. Testing, riding, inspecting, or evaluating a farm animal belonging to another, whether or not the owner has received some monetary consideration or other thing of value for the use of the farm animal or is permitting a prospective purchaser of the farm animal to ride, inspect, or evaluate the farm animal;
    6. Placing or repairing horseshoes, trimming the hooves on a farm animal, or otherwise providing farrier services; or
    7. Examining or administering medical treatment to a farm animal by a veterinarian;
  4. “Farm animal activity sponsor” means an individual, group, club, partnership, corporation, or other legally constituted entity, whether the sponsor is operating for profit or nonprofit, which sponsors, organizes, allows, or provides the facilities for a farm animal activity, including, but not limited to: pony clubs, 4-H clubs, hunt clubs, riding clubs, polo clubs, school and college sponsored classes, programs, activities, and therapeutic riding programs, and operators, instructors, and promoters of farm animal facilities, including, but not limited to, stables, clubhouses, ponyride strings, fairs, exhibitions, farmstays, and arenas at which the activity is held;
  5. “Farm animal facility” means any areas used for any farm animal activity, including, but not limited to, farms, ranches, riding arenas, training stables or barns, pastures, riding trails, show rings, polo fields, tents and other semipermanent structures, and other areas or facilities used or provided by farm animal activity sponsors or where participants engage in farm animal activities;
  6. “Farm animal professional” means a person engaged for compensation in any of the following:
    1. Instructing a participant or renting to a participant a farm animal for the purpose of riding, driving, or being a passenger upon the farm animal;
    2. Providing daily care of farm animals boarded at a farm animal facility;
    3. Renting equipment or tack to a participant in a farm animal activity;
    4. Training a farm animal;
    5. Examining or administering medical treatment to a farm animal as a veterinarian;
    6. Providing farrier services to a farm animal; or
    7. Providing shearing services to a farm animal;
  7. “Farmstay” has the same meaning as in KRS 219.011 ;
  8. “Horse racing activities” means the conduct of horse racing activities within the confines of any horse racing facility licensed and regulated by KRS 230.070 to 230.990 , but shall not include harness racing at county fairs;
  9. “Inherent risks of farm animal activities” means dangers or conditions which are an integral part of farm animal activities, including, but not limited to;
    1. The propensity of a farm animal to behave in ways that may result in injury, harm, or death to persons around them;
    2. The unpredictability of the reaction of a farm animal to sounds, sudden movement, and unfamiliar objects, persons, or other animals;
    3. Certain hazards such as surface and subsurface conditions;
    4. Collisions with other farm animals or objects; and
    5. The potential of a participant to act in a negligent manner that may contribute to injury to the participant or others, such as failing to maintain control over a farm animal or not acting within his or her ability;
  10. “Participant” means any individual, whether amateur or professional, who engages in a farm animal activity, whether or not a fee is paid to participate in the farm animal activity; and
  11. “Person” means any individual, corporation, association, or other legally constituted entity that owns or controls one or more farm animals.

HISTORY: Enact. Acts 1996, ch. 78, § 3, effective July 15, 1996; 2012, ch. 57, § 2, effective July 12, 2012; 2015 ch. 78, § 1, effective June 24, 2015.

NOTES TO DECISIONS

1. Construction.

It was inappropriate for the appellate court to contradict Ky. Rev. Stat. Ann. § 247.4015 and suggest liability for allegedly raising or waving one’s arms, as the statute includes “sudden movements” within the definition of “inherent risks of farm animal activities” assumed by farm animal activity participants like plaintiff. Consequently, no genuine issue of material fact existed as to defendants’ liability under the statute. Daugherty v. Tabor, 554 S.W.3d 319, 2018 Ky. LEXIS 277 ( Ky. 2018 ).

247.4019. Responsibility of participants.

A farm animal activity participant shall act in a safe and responsible manner at all times to avoid injury to the participant and others and to be aware of risks inherent in farm animal activities to the best of the participant’s ability.

History. Enact. Acts 1996, ch. 78, § 4, effective July 15, 1996.

247.402. Warning of inherent risks — Limitation of claims by participants — Exceptions.

  1. The inherent risks of farm animal activities are deemed to be beyond the reasonable control of farm animal activity sponsors, farm animal professionals, or other persons. Therefore, farm animal activity sponsors, farm animal professionals, or other persons are deemed to have the duty to reasonably warn participants in farm animal activities of the inherent risks of the farm animal activities but not the duty to reduce or eliminate the inherent risks of farm animal activities. Except as provided in subsections (2) and (3) of this section, no participant or representative of a participant who has been reasonably warned of the inherent risks of farm animal activities shall make any claim against, maintain an action against, or recover from a farm animal activity sponsor, a farm animal professional, or any other person for injury, loss, damage, or death of the participant resulting from any of the inherent risks of farm animal activities.
  2. Nothing in subsection (1) of this section shall prevent or limit the liability of a farm animal activity sponsor, a farm animal professional, or any other person if the farm animal activity sponsor, farm animal professional, or person:
    1. Provided the equipment or tack, and knew or should have known that the equipment or tack was faulty, and the equipment or tack was faulty to the extent that it contributed to the injury;
    2. Provided the farm animal and failed to make reasonable and prudent efforts to determine the ability of the participant to engage safely in the farm animal activity and to safely manage the particular farm animal based on the participant’s representations of the participant’s ability;
    3. Owns, leases, has authorized use of, rents, or otherwise is in lawful possession and control of the land or facilities upon which the participant sustained injuries because of a dangerous latent condition which was known or should have been known to the farm animal activity sponsor, farm animal professional, or person and for which warning signs have not been conspicuously posted;
    4. Commits an act or omission that constitutes willful or wanton disregard for the safety of the participant, and that act or omission caused the injury; or
    5. Negligently or wrongfully injures the participant.
  3. Nothing in subsection (1) of this section shall prevent or limit the liability of a farm animal activity sponsor or a farm animal professional under liability provisions as set forth in the Product Liability Act of Kentucky found at KRS 411.300 to 411.340 .
  4. Nothing in subsection (1) of this section shall, in the event of a breach of duty by a farm animal activity sponsor, farm animal professional, or other person;
    1. Limit the amount to be recovered for injuries resulting in death, or for injuries to person or property; or
    2. Deny or delay a person’s remedies in open court for injury done him in his lands, goods, person, or reputation.
  5. Adherence by a farm animal activity sponsor or farm animal professional to the standards of care within the profession creates a rebuttable presumption that the conduct of the farm animal activity sponsor or farm animal professional was not negligent.
  6. Compliance by a farm animal activity sponsor, farm animal professional, or other person with the provisions of KRS 247.4027 creates the presumption that the farm animal activity sponsor, farm animal professional, or other person has given the participant reasonable notice of the inherent risks of farm animal activities.

History. Enact. Acts 1996, ch. 78, § 5, effective July 15, 1996.

NOTES TO DECISIONS

1. Intentional Mistreatment.

Although KRS 247.402 required farm animal activity sponsors to warn of the inherent risks, there was no duty to reduce or eliminate the inherent risks; however, to intentionally mistreat or aggravate a farm animal would be the antithesis of that duty. Davis v. 3 Bar F Rodeo, 2007 Ky. App. LEXIS 423 (Ky. Ct. App.), sub. op., 2007 Ky. App. Unpub. LEXIS 301 (Ky. Ct. App. Nov. 2, 2007).

2. Representations of ability.

Although plaintiff, who was injured when she was thrown from a gaited horse, stated in deposition testimony that she had exaggerated her riding abilities, defendants reasonably determined that the horse was suitable for plaintiff to ride based upon her multiple representations. Daugherty v. Tabor, 554 S.W.3d 319, 2018 Ky. LEXIS 277 ( Ky. 2018 ).

247.4025. Activities exempt from KRS 247.401 to 247.4029.

  1. KRS 247.401 to 247.4029 shall not apply to farm animal activity sponsors, farm animal activity professionals, persons, or participants when engaged in horse racing activities.
  2. KRS 247.401 to 247.4029 shall not apply to questions of liability arising from fencing and enclosure as regulated by KRS 256.010 to 256.990 .
  3. KRS 247.401 to 247.4029 shall not affect the liability of landowners to trespassers as regulated by KRS 381.231 and 381.232 except to codify Kentucky common law that horses in pastures are not attractive nuisances.

History. Enact. Acts 1996, ch. 78, § 6, effective July 15, 1996.

247.4027. Warning signs and notices — Waiver — Effect of noncompliance — Exclusions.

  1. Every farm animal activity sponsor and every farm animal professional shall post and maintain signs which contain the warning notice specified in subsection (3) of this section. Signs shall be placed in a clearly visible location on or near stables, corrals, or areas where the farm animal professional or the farm animal activity sponsor conducts farm animal activities. The warning notice specified in subsection (3) of this section shall appear on the sign in black letters, with each letter to be a minimum of one (1) inch in height.
  2. Every written contract entered into by a farm animal professional or by a farm animal activity sponsor for the providing of professional services, instruction, or the rental of equipment or tack or a farm animal to a participant, whether the contract involves farm animal activities on or off the location or site of the farm animal professional’s or the farm animal activity sponsor’s business, shall contain in clearly readable print the warning notice specified in subsection (3) of this section.
    1. If a participant or parent or guardian of a minor prior to participation in a farm animal activity knowingly signs a contract containing the warning set forth in subsection (3) of this section, the contract shall be deemed a waiver of the right to bring an action against the farm animal professional or farm animal activity sponsor for any injury, damage, loss, or death arising out of any farm animal activity. The waiver shall be binding upon the participant, except as regards acts of negligence by a farm animal professional, a farm animal activity sponsor, or any other person covered in KRS 247.402(2).
    2. The waiver shall remain valid unless expressly revoked in writing by the participant or parent or guardian of a minor. In the case of school and college sponsored classes and programs, waivers executed by a participant or parent or guardian of a participant shall apply to all farm animal activities in which the participant is involved in the next succeeding twelve (12) month period unless earlier expressly revoked in writing.
  3. The signs and contracts described in subsections (1) and (2) of this section shall contain the following warning notice:

    “WARNING

    Under Kentucky law, a farm animal activity sponsor, farm animal professional, or other person does not have the duty to eliminate all risks of injury of participation in farm animal activities. There are inherent risks of injury that you voluntarily accept if you participate in farm animal activities.”

  4. Failure to comply with the requirements concerning warning signs and notices provided in this section shall prevent a farm animal activity sponsor or farm animal professional from invoking the provisions of KRS 247.401 to 247.4029 .
  5. Nothing in KRS 247.401 to 247.4029 shall create a duty for a farm animal activity sponsor, farm animal professional, or other person to give a warning to a participant engaged in a farm animal activity with his own farm animal, or to a participant whom the farm animal activity sponsor, farm animal professional, or other person knows to possess reasonable knowledge of or experience with the inherent risk of farm animal activities, or who has represented to the farm animal activity sponsor, farm animal professional, or other person that he possesses reasonable knowledge or experience with the inherent risks of farm animal activities.

History. Enact. Acts 1996, ch. 78, § 7, effective July 15, 1996.

NOTES TO DECISIONS

1. In General.

While the deceased signed a release before entering a bull ring, since there was no language that released the county fair from conduct that would constitute gross negligence, which was what was alleged by the administratrix, and the intentional provocation of the bull was clearly not contemplated by the release, summary judgment was improper. Davis v. 3 Bar F Rodeo, 2007 Ky. App. LEXIS 423 (Ky. Ct. App.), sub. op., 2007 Ky. App. Unpub. LEXIS 301 (Ky. Ct. App. Nov. 2, 2007).

2. Applicability.

Lessors of land were not statutorily liable for injuries sustained by a lessee of the land from a horse on the leased property because Ky. Rev. Stat. Ann. §§ 247.4027 - 247.4029 , regulating certain activities related to farm animals, did not apply. Groves v. Woods, 2018 Ky. App. LEXIS 59 (Ky. Ct. App.), sub. op., 2018 Ky. App. Unpub. LEXIS 687 (Ky. Ct. App. Jan. 26, 2018).

Cited in

Daugherty v. Tabor, 554 S.W.3d 319, 2018 Ky. LEXIS 277 ( Ky. 2018 ).

247.4029. Severability — Applicability.

  1. The provisions of KRS 247.401 to 247.4027 are severable. If any part of KRS 247.401 to 247.4027 is declared invalid or unconstitutional, that declaration shall not affect the part which remains.
  2. KRS 247.401 to 247.4027 shall apply only to causes of action which arise on or after July 15, 1996.

History. Enact. Acts 1996, ch. 78, § 8, effective July 15, 1996.

County Farm Safety Programs

247.405. Implementation of county farm safety programs.

In order to educate the citizens of the Commonwealth on the significance and importance of farm safety, the department shall assist counties in implementing farm safety programs by making grants when funds are available to eligible county organizations to assist the organizations in promoting their farm safety programs.

History. Enact. Acts 1998, ch. 369, § 1, effective July 15, 1998.

247.406. Grants to county organization for farm safety program — Annual report.

  1. For a county organization to be eligible for funding, the following requirements shall be met:
    1. The organization shall be incorporated as nonprofit under KRS Chapter 273; and
    2. The organization shall submit a business plan to the department detailing how the corporation will operate and how it intends to incorporate a farm safety plan in its overall farm safety program.
  2. If the county organization’s business plan is approved by the department, and if funding is available, the department shall distribute a grant of two thousand dollars ($2,000) to the organization.
  3. The county organization shall make an annual written report to the department regarding the activities of the organization’s farm safety program and the disposition of the grant money.

History. Enact. Acts 1998, ch. 369, § 2, effective July 15, 1998; 2000, ch. 117, § 1, effective July 14, 2000.

247.407. Authority for administrative regulations.

The commissioner may promulgate administrative regulations to carry out the provisions of KRS 247.405 to 247.407 .

History. Enact. Acts 1998, ch. 369, § 3, effective July 15, 1998.

Governor’s Council on Agriculture

247.410. Definitions.

As used in KRS 247.413 to 247.430 :

  1. “Council” means the Kentucky Council on Agriculture.
  2. “Executive director” means the chief administrative officer of the council.

History. Enact. Acts 1966, ch. 87, § 4(1); 1972, ch. 53, § 1; 1978, ch. 155, § 128, effective June 17, 1978; 1982, ch. 447, § 16, effective April 12, 1982.

Compiler’s Notes.

Original KRS 247.410 to 247.460 (42c-31 — 42c-32) regarding the farm tenancy commission were considered obsolete and were omitted. These sections from Acts 1966, ch. 87, § 4 (1)-(9) and 1968, ch. 171, §§ 1-4 were given the same section numbers.

247.413. Creation of council — Purposes.

There is hereby established the Kentucky Council on Agriculture which shall be located within the Department of Agriculture. The object of the council shall be the development and promotion of a broadly conceived statewide agricultural and agri-business program, including the distribution and promotion of agricultural products, which will stimulate the acceleration of the state’s agricultural economy by endeavoring to improve all phases thereof.

History. Enact. Acts 1966, ch. 87, § 4(2); 1972, ch. 53, § 2; 1976, ch. 299, § 51; 1982, ch. 447, § 17, effective April 12, 1982; 1984, ch. 404, § 34, effective July 13, 1984.

247.417. Members of council — Officers — Compensation — Meetings — Quorum.

  1. The membership of the council shall consist of the Lieutenant Governor, the Commissioner of Agriculture, the secretary of the Cabinet for Economic Development, and eighteen (18) citizen members, a majority of whom shall be full-time farmers, appointed by the Commissioner of Agriculture. Two (2) members shall be appointed from each Supreme Court district and four (4) from the state at large. All members shall serve at the Commissioner’s will during his incumbency, and until each member’s successor is appointed.
  2. The Commissioner of Agriculture shall serve as chairman of the council. The council may elect by majority vote a vice chairman and such officers of the council as may be deemed necessary.
  3. Citizen members of the council shall receive a compensation of fifty dollars ($50) per day for each day of attendance at meetings of the council, and shall be reimbursed by the Commissioner’s Office for necessary and actual expenses in accordance with the provisions of KRS Chapters 44 and 45.
  4. The council shall meet at the call of the chairman, but not less often than four (4) times during each calendar year. A majority of the members appointed to the council shall constitute a quorum.

History. Enact. Acts 1966, ch. 87, § 4(3); 1972, ch. 53, § 3; 1976, ch. 299, § 52; 1978, ch. 154, § 29, effective June 17, 1978; 1982, ch. 396, § 52, effective July 15, 1982; 1982, ch. 447, § 18, effective April 12, 1982; 1984, ch. 404, § 36, effective July 13, 1984; 1992, ch. 235, § 7, effective July 14, 1992.

Compiler’s Notes.

Section 9 of Acts 1992, ch. 235, provides:

“The terms of current members on the boards, commissions, and councils treated by statutes amended by this Act shall continue in force. When a vacancy occurs for a member appointed to be the representatives of one of the former seven congressional districts, whether by resignation, death, expiration of term, or otherwise, the vacancy shall be filled as follows:

“(1) A vacancy from the former First Congressional District shall be filled by an appointee from the current First Supreme Court District.

“(2) A vacancy from the former Second Congressional District shall be filled by an appointee from the current Second Supreme Court District.

“(3) A vacancy from the former Third Congressional District shall be filled by an appointee from the current Fourth Supreme Court District.

“(4) A vacancy from the former Fourth Congressional District shall be filled by an appointee from the current Sixth Supreme Court District.

“(5) A vacancy from the former Fifth Congressional District shall be filled by an appointee from the current Third Supreme Court District.

“(6) A vacancy from the former Sixth Congressional District shall be filled by an appointee from the current Fifth Supreme Court district.

“(7) A vacancy from the former Seventh Congressional District shall be filled by an appointee from the current Seventh Supreme Court District.”

247.420. Duties and powers of council.

The duties and functions of the council shall be to:

  1. Counsel with the Commissioner of Agriculture on matters pertaining to agricultural and agri-business development and the marketing and distribution of agricultural products.
  2. Promote, to the fullest extent, coordination and cooperation among public and private agencies and organizations so that each may make the maximum contribution toward the attainment of a greater and improved agricultural economy.
  3. Make investigations, undertake such studies, and prepare such reports and recommendations regarding the elimination or alleviation of specific problems affecting farm gross and net income, the improvement of all phases of agriculture, and any other matters necessary and incidental to the stimulation of the development of a statewide agricultural program for acceleration of farm income.
  4. Promote the production and marketing of Kentucky farm products and services, on local, state, national and international levels, through research, education, and other promotional activities.
  5. Contract from time to time as appropriate with experts and consultants who may be utilized as deemed necessary and make other necessary purchases.
  6. Hold public and private hearings for the purpose of furthering the objectives of the council’s programs.

History. Enact. Acts 1966, ch. 87, § 4(6); 1972, ch. 53, § 4; 1982, ch. 447, § 19, effective April 12, 1982; 1984, ch. 404, § 37, effective July 13, 1984.

247.421. Agricultural Export Authority.

The Kentucky Council on Agriculture shall include an Agricultural Export Authority with the powers and duties specified in KRS 247.420(4).

History. Enact. Acts 1982, ch. 447, § 12, effective April 12, 1982.

247.423. Steering committee.

From the council membership, the chairman shall name three (3) members, at least two (2) of whom shall be full-time farmers, who, along with the chairman, and the executive director, shall serve as the steering committee. The steering committee shall be responsible for the execution of duties and functions assigned to the council.

History. Enact. Acts 1966, ch. 87, § 4(4); 1972, ch. 53, § 5; 1982, ch. 447, § 20, effective April 12, 1982.

247.425. Division of developmental services — Kentucky farmers advocate’s office. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1978, ch. 155, § 130, effective June 17, 1978) was repealed by Acts 1980, ch. 295, § 95, effective July 15, 1980.

247.427. Kentucky farmers advocate’s office — Staff — Compensation — Duties — Records. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1966, § 4(5); 1972, ch. 53, § 6; 1976, ch. 299, § 53; 1978, ch. 155, § 129, effective June 17, 1978) was repealed by Acts 1980, ch. 295, § 95, effective July 15, 1980.

247.430. Funds — Construction.

  1. The receipt, control, and expenditure of all funds shall be subject to the general provisions of the Kentucky Revised Statutes governing financial administration of other state agencies.
  2. No provision of KRS 247.410 to 247.430 shall be construed as a repeal of any other laws relating to agriculture, but shall be held and construed as supplemental thereto.

History. Enact. Acts 1966, ch. 87, § 4(7) to (9); 1972, ch. 53, § 7; 1982, ch. 447, § 21, effective April 12, 1982.

Opinions of Attorney General.

The governor’s council on agriculture is a state agency and all funds received by it from whatever source must be handled and accounted for as state funds and may not be deposited in a local bank account. OAG 75-62 .

247.440. Commission may select agents; other assistants. [Omitted.]

Compiler’s Notes.

This section (42c-32) was considered obsolete and was omitted.

Assessment for Promotion of Milk Production

247.4451. Promotion of milk production in public interest.

It is declared to be in the interest of the public welfare that Kentucky farmers who are producers of milk shall be permitted and encouraged to act jointly in promoting and stimulating, by educational and applied research programs, the increased production of this agricultural commodity.

History. Enact. Acts 1990, ch. 167, § 1, effective July 13, 1990.

247.4453. Definitions.

As used in KRS 247.4451 to 247.4483 , unless the context otherwise requires:

  1. “Commissioner” means the Commissioner of Agriculture;
  2. “Board” means the State Board of Agriculture;
  3. “Producer” means every person who produces milk and causes the same to be marketed as milk;
  4. “New producer” means a producer who was not engaged in the business of producing milk at the time a referendum was conducted in accordance with the provisions of KRS 247.4451 to 247.4483 ;
  5. “Person” means any individual, corporation, partnership, association, cooperative, or other business entity;
  6. “Milk” means milk from cows and all of its natural components; and
  7. “Purchaser” means any person, including any distributor, processor, or bulk milk handler, who purchases or receives on consignment milk within the state for sale, shipment, storage, processing, or manufacture.

History. Enact. Acts 1990, ch. 167, § 2, effective July 13, 1990.

247.4455. Association activity not considered restraint of trade.

No association meeting or activity undertaken in pursuance of the provisions of KRS 247.4451 to 247.4483 and intended to benefit all of the producers of this agricultural commodity shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 1990, ch. 167, § 3, effective July 13, 1990.

247.4457. Assessment in public interest.

It is hereby further declared to be in the public interest and highly advantageous to the agricultural economy of the state that producers of milk on a commercial basis shall be permitted by referendum to be held among this group and subject to the provisions of KRS 247.4451 to 247.4483 , to levy upon themselves an assessment on this commodity and provide for the collection of the assessment, for the purpose of financing or contributing toward the financing of educational and applied research programs to improve and enhance the production of milk.

History. Enact. Acts 1990, ch. 167, § 4, effective July 13, 1990.

247.4459. Application to conduct referendum.

  1. Any existing commission, council, board, association, or other agency, such as the Kentucky Milk Producers Association, fairly representative of the producers of the agricultural commodity referred to, may at any time after July 13, 1990, make application to the State Board of Agriculture on forms prescribed by the board for certification and approval for the purpose of conducting a referendum among the producers of the agricultural commodity, for commercial purposes, upon the question of levying an assessment under the provisions of KRS 247.4451 to 247.4483 , collecting and utilizing the assessment for the purpose stated in the referendum. The application forms shall include, but not be limited to, the following:
    1. Applicant’s name;
    2. Applicant’s address;
    3. Date;
    4. Program to be undertaken for producers;
    5. Brief statement of how program is to be implemented;
    6. Referendum to be conducted on a statewide basis;
    7. Proposed effective date of program; and
    8. Signature of applicant.
  2. Upon receipt of the application, the Commissioner shall publish the application through the medium of the public press in the state within ten (10) days of receipt.

History. Enact. Acts 1990, ch. 167, § 5, effective July 13, 1990.

247.4461. Certification by Commissioner of Agriculture of agency to conduct referendum.

Upon the filing with the State Board of Agriculture of the application on the part of any commission, council, board, association, or other agency of producers, the Commissioner shall within thirty (30) days thereafter convene the State Board of Agriculture to consider the application; and if upon the consideration the Board of Agriculture shall find that the commission, council, board, or other agency making the application is fairly representative of and has been duly chosen and delegated as representative of the producers producing the commodity, and shall otherwise find and determine that the application is in conformity with the provisions of KRS 247.4451 to 247.4483 and the purposes stated, then it shall be the duty of the Commissioner of Agriculture to certify the commission, council, board, association, or other agency as the duly delegated and authorized group or agency representative of the producers of the agricultural commodity, and shall likewise certify that the agency is duly authorized to conduct among the producers of the commodity a referendum for the purpose stated.

History. Enact. Acts 1990, ch. 167, § 6, effective July 13, 1990.

247.4463. Certification constitutes full authority to conduct referendum.

Upon being certified by the Commissioner of Agriculture in the manner set forth, the commission, council, board, or other agency shall be fully authorized and empowered to hold and conduct on the part of the producers of the agricultural commodity a referendum on the question of whether or not the producers shall levy upon themselves an assessment under and subject to and for the purpose stated in KRS 247.4451 to 247.4483 . The referendum shall be conducted on a statewide basis.

History. Enact. Acts 1990, ch. 167, § 7, effective July 13, 1990.

247.4465. Referendum to be statewide.

Any referendum conducted under the provisions of KRS 247.4451 to 247.4483 shall be held on a statewide basis. The referendum may be participated in by all producers engaged in the production of the agricultural commodity on a commercial basis, including owners of farms on which the commodity is produced, tenants and sharecroppers sharing in the proceeds of the commodity. In the referendum, the individuals so eligible for participation shall vote upon the question of whether or not there shall be levied an annual assessment in the amount set forth in the call for the referendum.

History. Enact. Acts 1990, ch. 167, § 8, effective July 13, 1990.

247.4467. Referendum to be supervised by Commissioner.

The manner, conduct, and management of any referendum held under the provisions of KRS 247.4451 to 247.4483 shall be under the supervision and direction of the Commissioner of Agriculture, and any and all expenses in connection therewith shall be borne by the commission, council, board, or other agency certified in accordance with the provisions of KRS 247.4451 to 247.4483 .

History. Enact. Acts 1990, ch. 167, § 9, effective July 13, 1990.

Legislative Research Commission Note.

(9/24/96). References in this statute to the range created by 1990 Ky. Acts ch. 167 were incorrectly codified as “KRS 247.4451 to 247.4453 .” Under KRS 7.136(1)(f), these references have been changed to read “KRS 247.4451 to 247.4483 .”

247.4469. Provisions of referendum to be fixed by Commissioner.

With respect to any referendum conducted under the provisions of KRS 247.4451 to 247.4483 , the Commissioner of Agriculture shall, before calling and announcing the referendum, fix, determine, and publicly announce at least thirty (30) days before the date determined for the referendum, the date, hours, and polling places for voting in the referendum, the effective date of the assessment, if adopted, the amount and basis of the assessment proposed to be collected, the means by which the assessment shall be collected if authorized by the producers, and the general purposes to which the amount collected shall be applied. No annual assessment levied under the provisions of KRS 247.4451 to 247.4483 shall exceed fifteen hundredths of one percent (0.15%) of the value of the year’s production of the agricultural commodity produced by any producer included in the group to which the referendum is submitted.

History. Enact. Acts 1990, ch. 167, § 10, effective July 13, 1990.

247.4471. Voting areas and other voting details set by Commissioner.

The hours, voting places, rules and regulations, and the area within which the referendum authorized with respect to the agricultural commodity referred to shall be established and determined by the Commissioner of Agriculture. The referendum date, area, hours, voting places, and rules and regulations with respect to the holding of the referendum shall be published by the Commissioner through the medium of the public press in the Commonwealth of Kentucky at least thirty (30) days before the holding of the referendum, and direct written notice shall likewise be given to each county or area agent in any county in which the agricultural product is produced. The notice shall contain a statement of the amount of the assessment proposed to be levied, which assessment in any event shall not exceed fifteen hundredths of one percent (0.15%) of the value of the year’s production of the agricultural commodity grown by the producer included in the group to which the referendum is submitted, and shall likewise state the method by which the assessment shall be collected and how the proceeds thereof shall be administered and the purposes to which the proceeds shall be applied, which purposes shall be in keeping with the provisions of KRS 247.4451 to 247.4483 .

History. Enact. Acts 1990, ch. 167, § 11, effective July 13, 1990.

247.4473. Commissioner to publish the question on, and the result of, the referendum.

The Commissioner of Agriculture shall likewise prepare and distribute in advance of the referendum the question to be presented to the voters, and shall arrange for the necessary poll holders for conducting the referendum; and following the referendum and within ten (10) days thereafter the Commissioner shall canvass and publicly declare the result of the referendum.

History. Enact. Acts 1990, ch. 167, § 12, effective July 13, 1990.

247.4475. Assessment to be levied and collected by agency conducting referendum.

  1. If, in the referendum called under the provisions of KRS 247.4451 to 247.4483 , a majority of the producers eligible to participate and voting therein, shall vote in the affirmative and in favor of the levying and collection of the assessment proposed in the referendum on the agricultural commodity, then the assessment shall be collected in the manner determined and announced by the agency conducting the referendum.
  2. Any agricultural cooperative association organized under KRS Chapter 272 or 272A, any foreign agricultural cooperative association, or any foreign limited cooperative association that has received a certificate of authority to conduct business in the Commonwealth in the same manner as a domestic agricultural cooperative association, on application to an approval by the Commissioner, may by an alternate procedure, not in conflict with the purposes of KRS 247.4451 to 247.4483 , handle the collection and disbursement of the assessments of its members. The purchaser of the agricultural commodity of the members of the association shall be relieved of the collecting and reporting requirements of KRS 247.4477 with respect to the members.

History. Enact. Acts 1990, ch. 167, § 13, effective July 13, 1990; 2012, ch. 160, § 136, effective July 12, 2012.

247.4477. Assessment to be deducted from the purchase price of the commodity — Use of funds.

In the event a majority of the producers eligible for participation in the referendum and voting therein shall vote in favor of the assessment, then, upon the written request of the duly certified commission, council, board, association, or other agency of producers of the agricultural commodity, the Commissioner shall notify forthwith, by certified mail, all persons engaged in the business of purchasing the agricultural commodities in this state, that on and after the date specified in the letter, the specified assessment shall be deducted from the producer’s payment by the purchaser, or his agent or representative, from the purchase price of the agricultural commodity. The assessment so deducted shall be remitted by the purchaser to the duly certified commission, council, board, association, or other agency of the producers entitled to it on or before the final day of the month following the end of the month in which the commodity is sold to the purchaser. The funds, including donations from individuals, concerns, corporations, and grants from the state or governmental agencies, shall be used for the purpose of promoting and stimulating, through educational and applied research programs, the increased production of the agricultural commodity. The books and records of all the purchasers of the agricultural commodity shall at all times during regular business hours be open for inspection by the Commissioner of Agriculture or his duly authorized agents.

History. Enact. Acts 1990, ch. 167, § 14, effective July 13, 1990.

247.4479. Refund of assessment.

In the event the referendum is carried in the affirmative and the assessment is levied and collected as provided, any producer upon and against whom the assessment shall have been levied and collected under the provisions of KRS 247.4451 to 247.4483 , if dissatisfied with the assessment and the result thereof, shall have the right to demand of and receive from the treasurer of the certified commission, council, board, association, or other agency of producers a refund of the assessment collected from the producer, if the demand for refund is made in writing within thirty (30) days from the date on which the assessment is collected from the producer.

History. Enact. Acts. 1990, ch. 167, § 15, effective July 13, 1990.

247.4481. Annual review of assessment program — Termination by referendum — Termination by request of certified operating agency.

  1. The board shall review the assessment program annually. If, at the end of each year after the first year of the assessment program, the board determines that twenty-five percent (25%) of the producers are not participating in the program, the Commissioner shall then conduct a referendum among the producers. If, upon the referendum, a majority of the producers eligible to participate and voting therein reject the program, it shall be terminated as at the end of the month in which the referendum was conducted and held; otherwise the assessment program shall continue in force and effect.
  2. If the certified commission, council, board, association, or other agency of producers expresses in writing its desire to the Commissioner to discontinue the assessment program and terminate the assessment, the Commissioner shall within fifteen (15) days following receipt of the request convene the board to review and act on the request. The board, after reviewing the request and conducting whatever proceedings are deemed appropriate and necessary in connection with the request, may terminate the program effective at the end of the month in which the board action is taken; and in this event the Commissioner shall notify, by certified mail, the purchasers of the agricultural commodity of the termination of the program.

History. Enact. Acts 1990, ch. 167, § 16, effective July 13, 1990.

247.4483. Injunction proceedings to halt practices in violation of KRS 247.4451 to 247.4483.

Whenever in the judgment of the board or the certified commission, council, board, association, or other agency of producers, a purchaser has engaged in or is about to engage in any acts or practices that constitute a violation of any of the sections of KRS 247.4451 to 247.4483 , the board or the certified commission, council, board, association, or other agency of producers may make application to the Franklin Circuit Court for an order enjoining the act or acts or practices and obtain a restraining order and preliminary injunction against the purchaser.

History. Enact. Acts 1990, ch. 167, § 17, effective July 13, 1990.

Assessments for Promotion of Dairy Industry

247.450. Promotion of milk production and use in public interest.

It is declared to be in the interest of the public welfare that Kentucky farmers who are producers of milk and milk products, shall be permitted and encouraged to act jointly and in cooperation with all producers, handlers, dealers and processors of such products in promoting and stimulating, by advertising, research and other methods, the increased production, use and sale, domestic and foreign, of any and all of such agricultural commodities.

History. Enact. Acts 1968, ch. 171, § 1.

Compiler’s Notes.

Original KRS 247.410 to 247.460 (42c-31 — 42c-32) regarding the farm tenancy commission were considered obsolete and were omitted. These sections from Acts 1966, ch. 87, § 4 (1)-(9) and 1968, ch. 171, §§ 1-4 were given the same section numbers.

247.453. Definitions for KRS 247.450 to 247.505.

As used in KRS 247.450 to 247.505 , unless the context otherwise requires:

  1. “Commissioner” means the commissioner of agriculture;
  2. “Board” means the state board of agriculture;
  3. “Producer” means every person who produces milk or cream from cows and thereafter causes the same to be marketed as milk, cream or other dairy products;
  4. “New producer” means a producer who was not engaged in the business of producing milk at the time a referendum was conducted in accordance with the provisions of KRS 247.450 to 247.505 ;
  5. “Person” means any individual, corporation, partnership, association, cooperative or other business entity;
  6. “Milk” means milk from cows and all of its natural components, sweet cream, sour cream, skim milk, flavored milk, buttermilk, condensed or concentrated whole or skim milk for use in milk products of every kind and description;
  7. “Handler” or “dealer” means any person, including any distributor, processor, bulk milk handler, or operator of a store, who purchases or receives on consignment or otherwise, milk and milk products of every kind and description, within the state, for sale, shipment, storage, processing, or manufacture;
  8. “Processor” means any person engaged in the business of processing milk and other material into milk products of every kind and description.

History. Enact. Acts 1968, ch. 171, § 2.

Legislative Research Commission Note.

(1988). A technical correction has been made in this section by the Reviser of Statutes pursuant to KRS 7.136 .

247.457. Association of producers not illegal.

No association meeting or activity undertaken in pursuance of the provisions of KRS 247.450 to 247.505 and intended to benefit all of the producers, handlers and processors of such agricultural commodity shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 1968, ch. 171, § 3.

247.460. Producers may by referendum impose assessment on product.

It is hereby further declared to be in the public interest and highly advantageous to the agricultural economy of the state that producers of milk and milk products on a commercial basis shall be permitted by referendum to be held among such respective groups and subject to the provisions of KRS 247.450 to 247.505 , to levy upon themselves an assessment on such commodity and provide for the collection of the same, for the purpose of financing or contributing towards the financing of a program of promoting, advertising, researching and other methods designed to increase the consumption, use and sale of, and the domestic as well as foreign markets for, such agricultural commodity.

History. Enact. Acts 1968, ch. 171, § 4.

247.463. Application by association for assessment — Form.

  1. Any existing commission, council, board, association or other agency such as the American Dairy Association of Kentucky, fairly representative of the producers of such agricultural commodity herein referred to may at any time after the enactment of KRS 247.450 to 247.505 make application to the State Board of Agriculture on forms prescribed by such board for certification and approval for the purpose of conducting a referendum among the producers of such agricultural commodity, for commercial purposes, upon the question of levying an assessment under the provisions of KRS 247.450 to 247.505 , collecting and utilizing the same for the purpose stated in such referendum. Such application forms shall include, but not be limited to, the following:
    1. Applicant’s name;
    2. Applicant’s address;
    3. Date;
    4. Program to be undertaken for producers;
    5. Brief statement of how program is to be implemented;
    6. Referendum to be conducted on a statewide or area basis;
    7. Proposed effective date of program;
    8. Geographic area (by counties) of producers to be affected by program;
    9. Signature of applicant.
  2. Upon receipt of such application, the commissioner shall publish such application through the medium of the public press in the state within ten (10) days of receipt thereof.

History. Enact. Acts 1968, ch. 171, § 5.

247.467. State Board of Agriculture on approval of application to certify association to hold referendum.

Upon the filing with the State Board of Agriculture of such application on the part of any commission, council, board, association, or other agency of producers, the Commissioner shall within thirty (30) days thereafter convene the State Board of Agriculture to consider such application; and if upon such consideration the said board of agriculture shall find that the commission, council, board or other agency making such application is fairly representative of and has been duly chosen and delegated as representative of the producers producing such commodity, and shall otherwise find and determine that such application is in conformity with the provisions of KRS 247.450 to 247.505 and the purposes therein stated, then and in such an event it shall be the duty of the Commissioner of Agriculture to certify such commission, council, board, association or other agency as the duly delegated and authorized group or agency representative of the producers of such agricultural commodity, and shall likewise certify that such agency is duly authorized to conduct among the producers of such commodity a referendum for the purpose herein stated.

History. Enact. Acts 1968, ch. 171, § 6.

247.470. Certified association may hold referendum — Scope.

Upon being so certified by the said Commissioner of Agriculture in the manner hereinbefore set forth, such commission, council, board or other agency shall thereupon be fully authorized and empowered to hold and conduct on the part of the producers of such agricultural commodity a referendum on the question of whether or not such producers shall levy upon themselves an assessment under and subject to and for the purpose stated in KRS 247.450 to 247.505 . Such referendum may be conducted either on a statewide or area basis.

History. Enact. Acts 1968, ch. 171, § 7.

247.473. Referendum on area or statewide basis — Who may participate.

Any referendum conducted under the provisions of KRS 247.450 to 247.505 may be held either on an area or statewide basis, as may be determined by the certified agency before such referendum is called; and such referendum, on an area or statewide basis may be participated in by all producers engaged in the production of such agricultural commodity on a commercial basis, including owners of farms on which such commodity is produced, tenants and sharecroppers sharing in the proceeds of such commodity. In such referendum, such individuals so eligible for participation shall vote upon the question of whether or not there shall be levied an annual assessment in the amount set forth in the call for such referendum.

History. Enact. Acts 1968, ch. 171, § 10.

247.477. Commissioner to supervise referendum — Expenses.

The manner, conduct, and management of any referendum held under the provisions of KRS 247.450 to 247.505 shall be under the supervision and direction of the Commissioner of Agriculture, and any and all expenses in connection therewith shall be borne by commission, council, board or other agency certified in accordance with the provisions of KRS 247.450 to 247.505 .

History. Enact. Acts 1968, ch. 171, § 9.

247.480. Commissioner of Agriculture to determine polling places, details of assessment, limits.

With respect to any referendum conducted under the provisions of KRS 247.450 to 247.505 , the Commissioner of Agriculture shall, before calling and announcing such referendum, fix, determine and publicly announce at least thirty (30) days before the date determined upon for such referendum, the date, hours and polling places for voting in such referendum, the effective date of the assessment, if adopted, the amount and basis of the assessment proposed to be collected, the means by which such assessment shall be collected if authorized by the producers, and the general purposes to which said amount so collected shall be applied; no annual assessment levied under the provisions of KRS 247.450 to 247.505 shall exceed one and one-half percent (1.5%) of the value of the year’s production of such agricultural commodity produced by any producer included in the group to which such referendum is submitted.

History. Enact. Acts 1968, ch. 171, § 8.

247.483. Rules governing holding of referendum prescribed by Commissioner — Notice — Limit on assessment.

The hours, voting places, rules and regulations and the area within which such referendum herein authorized with respect to such agricultural commodity herein referred to shall be established and determined by the Commissioner of Agriculture; the said referendum date, area, hours, voting places, rules and regulations with respect to the holding of such referendum shall be published by the Commissioner conducting the same through the medium of the public press in the Commonwealth of Kentucky at least thirty (30) days before the holding of such referendum, and direct written notice thereof shall likewise be given to each county or area agent, in any county in which such agricultural product is produced. Such notice shall likewise contain a statement of the amount of the assessment proposed to be levied, which assessment in any event shall not exceed one and one-half percent (1.5%) of the value of the year’s production of such agricultural commodity grown by the producer included in the group to which such referendum is submitted, and shall likewise state the method by which such assessment shall be collected and how the proceeds thereof shall be administered and the purposes to which the same shall be applied, which purposes shall be in keeping with the provisions of KRS 247.450 to 247.505 .

History. Enact. Acts 1968, ch. 171, § 12.

247.487. Commissioner to prepare question — Canvass of vote.

The Commissioner of Agriculture shall likewise prepare and distribute in advance of such referendum the question to be presented to the voters, and shall arrange for the necessary poll holders for conducting the said referendum; and following such referendum and within ten (10) days thereafter the said Commissioner shall canvass and publicly declare the result of such referendum.

History. Enact. Acts 1968, ch. 171, § 13; 1982, ch. 360, § 70, effective July 15, 1982.

247.490. Affirmative vote, effect — Domestic and foreign associations.

  1. If, in such referendum called under the provisions of KRS 247.450 to 247.505 , a majority of the producers in the area in which such referendum is conducted, eligible to participate and voting therein, shall vote in the affirmative and in favor of the levying and collection of such assessment proposed in such referendum on such agricultural commodity, then such assessment shall be collected in the manner determined and announced by the agency conducting such referendum.
  2. Any agricultural cooperative association organized under KRS Chapter 272 or 272A, any foreign agricultural cooperative association, or any foreign limited cooperative association that has received a certificate of authority to conduct business in the Commonwealth in the same manner as a domestic agricultural cooperative association, on application to and approval by the Commissioner, may by an alternate procedure, not in conflict with the purposes of KRS 247.450 to 247.505 , handle the collection and disbursement of the assessments of its members. The purchaser of the agricultural commodity of the members of such association shall be relieved of the collecting and reporting requirements of KRS 247.493 with respect to such members.

History. Enact. Acts 1968, ch. 171, § 11; 1974, ch. 401, § 1; 2012, ch. 160, § 137, effective July 12, 2012.

Opinions of Attorney General.

The method for collecting and handling the assessment fund of Dairymen Incorporated is not in violation of this section since the 1974 amendment to this section permitting the qualifying association to collect and disburse the assessments of its members by alternate procedure would take precedence over the collecting method in KRS 247.493 . OAG 74-908 .

The books and records of collections and disbursements of the qualifying association would be open to inspection by the department of agriculture under this section to the same extent as those of purchasers under KRS 247.493 . OAG 74-908 .

247.493. On approval, notice to be given milk purchasers as to deduction required — Disposition of collections.

In the event a majority of the producers eligible for participation in such referendum and voting therein shall vote in favor of such assessment, then, upon the written request of the duly certified commission, council, board, association or other agency of producers of such agricultural commodity, the Commissioner shall notify forthwith, by certified mail, all persons engaged in the business of purchasing such agricultural commodities in this state, that on and after the date specified in such letter, the specified assessment shall be deducted from the producer’s payment by the purchaser, or his agent or representative, from the purchase price of such agricultural commodity. The assessment so deducted shall, on or before the fifteenth day of the month following the end of the month in which such commodity is sold to the purchaser, be remitted by such purchaser to the duly certified commission, council, board, association or other agency of the producers entitled thereto. Such funds, including donations from individuals, concerns, corporations and grants from the state or governmental agencies, shall be used for the purpose of promoting and stimulating, by advertising, research and other methods, the increased use and sale, domestic and foreign, of such agricultural commodity. The books and records of all such purchasers of such agricultural commodity shall at all times during regular business hours be open for inspection by the Commissioner of Agriculture or his duly authorized agents.

History. Enact. Acts 1968, ch. 171, § 14; 1980, ch. 114, § 45, effective July 15, 1980.

Opinions of Attorney General.

The American Dairy Association of Kentucky is required to physically receive the funds representing the assessment that is required to be remitted to it by the purchaser of dairy products. OAG 71-489 .

The method of collecting and handling the assessment fund of Dairymen Incorporated is not in violation of KRS 247.490 since the 1974 amendment to that section permitting the qualifying association to collect and disburse the assessments of its members by alternate procedure would take precedence over the collecting method in this section. OAG 74-908 .

The books and records of collections and disbursements of the qualifying association would be open to inspection by the department of agriculture under KRS 247.490 to the same extent as those of purchasers under this section. OAG 74-908 .

247.497. Producer may obtain refund of amount collected from him.

In the event such referendum is carried in the affirmative and the assessment is levied and collected as provided herein, any producer upon and against whom such assessment shall have been levied and collected under the provisions of KRS 247.450 to 247.505 , if dissatisfied with said assessment and the result thereof, shall have the right to demand of and receive from the treasurer of said certified commission, council, board, association or other agency of producers a refund of such assessment so collected from such producer, provided such demand for refund is made in writing within thirty (30) days from the date on which said assessment is collected from producer.

History. Enact. Acts 1968, ch. 171, § 15.

Opinions of Attorney General.

The Capper-Volstead Act, 7 USCS §§ 291, 292, contains no provision that in any way affects or inhibits the provisions of the dairy promotion law, particularly the refund provisions of this section. OAG 72-150 .

247.500. Annual review of program — Referendum requirement — Termination.

  1. The board shall review the assessment program annually. If, at the end of each year after the first year of the assessment program, the board determines that the producers in the referendum area representing fifty percent (50%) of the production of milk are not participating in the program, the commissioner shall then conduct a referendum among the producers in such area. If, upon such referendum, a majority of the producers in such area reject such program, it shall be terminated as at the end of the month in which such referendum for such area was conducted and held; otherwise such assessment program shall continue in force and effect.
  2. If the certified commission, council, board, association, or other agency of producers expresses in writing its desire to the commissioner to discontinue the assessment program and terminate the same, the commissioner shall within fifteen (15) days following receipt of such request convene the board to review and act on such request. The board, after reviewing such request and conducting whatever proceedings are deemed appropriate and necessary in connection with such request, may terminate such program effective at the end of the month in which such board action is taken; and in this event the commissioner shall notify, by certified mail, the purchasers of such agricultural commodity of the termination of such program.

History. Enact. Acts 1968, ch. 171, § 16; 1970, ch. 92, § 77; 1980, ch. 114, § 46, effective July 15, 1980.

247.505. Injunction against violations — Penalties.

Whenever in the judgment of the board or the certified commission, council, board, association or other agency of producers, a purchaser has engaged in or is about to engage in any acts or practices that constitute a violation of any of the sections of KRS 247.450 to 247.505 , the board or the certified commission, council, board, association or other agency of producers may make application to the Franklin Circuit Court for an order enjoining such act or acts or practices and obtain a restraining order and preliminary injunction against such purchaser.

History. Enact. Acts 1968, ch. 171, § 17 (1).

Assessment for Promotion of Small Grain Industry

247.5061. Promotion for small grain production.

It is declared to be in the interest of the public welfare that Kentucky farmers who are producers of small grains shall be permitted and encouraged to act jointly and in cooperation with all producers, handlers, dealers, and processors of small grains in promoting and stimulating, by utilization research, market maintenance and expansion, and education, the increased use and sale, domestic and foreign, of small grains and small grains products; and for the prevention, modification, or elimination of trade barriers which obstruct the free flow of small grains and small grains products to market.

History. Enact. Acts 1990, ch. 397, § 1, effective July 13, 1990.

247.5063. Definitions.

As used in KRS 247.5061 to 247.5095 , unless the context otherwise requires:

  1. “Commissioner” means the Commissioner of Agriculture;
  2. “Board” means the State Board of Agriculture;
  3. “Small grains” means all kinds and varieties of cereal grains.
  4. “Bushel” means the weight for each type of cereal grain defined by the United States Department of Agriculture (USDA);
  5. “Producer” means every person who produces and markets small grains;
  6. “New producer” means a producer who was not engaged in the business of producing small grains at the time a referendum was conducted in accordance with the provisions of KRS 247.5061 to 247.5095 ;
  7. “Person” means any individual, corporation, partnership, association, cooperative, or other business entity;
  8. “Marketing year” means from June 1 to May 31 of the following year;
  9. “Purchaser” means any person, public or private corporation, federal Commodity Credit Corporation, association, or partnership buying, accepting for shipment, or otherwise acquiring the property in or to small grains from a producer, and shall include a mortgagee, pledgee, lienor, or other person, public or private, having a claim against the producer, when the actual or constructive possession of the small grains is taken as part payment or in satisfaction of a mortgage, pledge, lien, or claim; and
  10. “Marketed” means any quantities that are sold, bartered, or for which other items of value are exchanged.

History. Enact. Acts 1990, ch. 397, § 2, effective July 13, 1990.

247.5065. Association of producers not illegal or in restraint of trade.

No association meeting or activity undertaken in pursuance of the provisions of KRS 247.5061 to 247.5095 and intended to benefit all of the producers, handlers, dealers, and processors of small grains shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 1990, ch. 397, § 3, effective July 13, 1990.

247.5067. Referendum levying assessment.

It is declared to be in the public interest and highly advantageous to the agricultural economy of the state that producers of small grains shall be permitted by referendum to be held among the respective groups and subject to the provisions of KRS 247.5061 to 247.5095 to levy upon themselves an assessment on small grains and provide for the collection of the assessment for the purpose of financing or contributing toward the financing of a program of research, market development, and education to increase the domestic and foreign consumption, use, sale, and markets for small grains and small grains products; and for the prevention, modification, or elimination of trade barriers which obstruct the free flow of small grains and small grains products to market.

History. Enact. Acts 1990, ch. 397, § 4, effective July 13, 1990.

247.5069. Application for assessment referendum — Contents of form — Publication.

  1. Any existing association which is fairly representative of the small grains producers of Kentucky, such as the Kentucky Small Grain Growers Association, may at any time after July 13, 1990, make application to the State Board of Agriculture on forms prescribed by the board for certification and approval for the purpose of conducting a referendum among the producers of small grains upon the question of levying an assessment under the provisions of KRS 247.5061 to 247.5095 and collecting and utilizing the assessment for the purpose stated in the referendum. The application forms shall include, but not be limited to, the following:
    1. Applicant’s name;
    2. Applicant’s address;
    3. Date;
    4. Program to be undertaken for producers;
    5. Brief statement of how the program is to be implemented;
    6. Referendum to be conducted on a statewide basis;
    7. Proposed effective date of the program; and
    8. Signature of the applicant.
  2. Upon receipt of the application, the Commissioner shall publish the application through the medium of the public press in the state within ten (10) days of receipt.

History. Enact. Acts 1990, ch. 397, § 5, effective July 13, 1990.

247.5071. Certified association authorized to hold referendum.

Upon being certified by the Commissioner of Agriculture, the association shall be fully authorized and empowered to hold and conduct on the part of the producers of small grains a referendum on the question of whether the producers shall levy upon themselves an assessment under, and subject to, and for the purpose stated in KRS 247.5061 to 247.5095 . The referendum shall be conducted on a statewide basis.

History. Enact. Acts 1990, ch. 397, § 6, effective July 13, 1990.

247.5073. Referendum on statewide basis.

Any referendum conducted under the provisions of KRS 247.5061 to 247.5095 shall be held on a statewide basis. The referendum may be participated in by all small grains producers, including owners of farms on which small grains are produced, and tenants and sharecroppers sharing in the proceeds of small grains. In the referendum, individuals eligible for participation shall vote upon the question of whether there shall be levied an annual assessment in the amount set forth in the call for the referendum.

History. Enact. Acts 1990, ch. 397, § 7, effective July 13, 1990.

247.5075. Supervision of referendum by Commissioner — Expenses.

The manner, conduct, and management of any referendum held under the provisions of KRS 247.5061 to 247.5095 shall be under the supervision and direction of the Commissioner of Agriculture, and any and all expenses in connection therewith shall be borne by the association conducting the referendum.

History. Enact. Acts 1990, ch. 397, § 8, effective July 13, 1990.

247.5077. Commissioner to determine date and other details of referendum.

With respect to any referendum conducted under the provisions of KRS 247.5061 to 247.5095 , the Commissioner of Agriculture shall, before calling and announcing the referendum, fix, determine, and publicly announce at least thirty (30) days before the date determined for the referendum, the date, hours, and polling places for voting in the referendum, the effective date of the assessment, if adopted, the amount and basis of the assessment proposed to be collected, the means by which the assessment shall be collected if authorized by the producers, and the general purposes to which the amount collected shall be applied. No assessment levied under the provisions of any referendum shall exceed one fourth of one percent (0.25%) of the net marketed price per bushel on the small grains marketed in the state during a marketing year by any producer included in the group to which the referendum was submitted or by any person subsequently becoming a new producer.

History. Enact. Acts 1990, ch. 397, § 9, effective July 13, 1990; 1994, ch. 47, § 1, effective July 15, 1994.

247.5079. Commissioner to prescribe rules of holding referendum — Notice — Limit of assessment.

The hours, voting places, rules, and regulations for the referendum shall be established and determined by the Commissioner of Agriculture and shall be published by the Commissioner through the medium of the public press in the Commonwealth of Kentucky at least thirty (30) days before the holding of the referendum, and direct written notice thereof shall likewise be given to each county or area agent in any county covered by the referendum. The notice shall likewise contain a statement of the amount of the assessment proposed to be levied, which assessment in any event shall not exceed one fourth of one percent (0.25%) of the net marketed price per bushel, and shall likewise state the method by which the assessment shall be collected and how the proceeds shall be administered and the purposes to which the proceeds shall be applied, which purposes shall be in keeping with the provisions of KRS 247.5061 to 247.5095 .

History. Enact. Acts 1990, ch. 397, § 10, effective July 13, 1990; 1994, ch. 47, § 2, effective July 15, 1994.

247.5081. Ballots — Canvass and declaration of result.

The Commissioner of Agriculture shall prepare and distribute in advance of the referendum all necessary ballots and shall arrange for the necessary poll holders for conducting the referendum. Following the referendum and within ten (10) days thereafter, the Commissioner shall canvass and publicly declare the result of the referendum.

History. Enact. Acts 1990, ch. 397, § 11, effective July 13, 1990.

247.5083. Effect of affirmative vote.

If, in the referendum called under the provisions of KRS 247.5061 to 247.5095 , a majority of the eligible producers, who vote therein, shall vote in the affirmative and in favor of the levying and collection of the assessment proposed in the referendum, the assessment shall be collected in the manner determined and announced by the association conducting the referendum.

History. Enact. Acts 1990, ch. 397, § 12, effective July 13, 1990.

247.5085. Notice of deduction required — Disposition of collections — Records.

If a majority of the eligible producers in the referendum who vote therein shall vote in favor of the assessment, the Commissioner shall notify, by certified mail, all persons engaged in the business of purchasing small grains in this state, that on and after the date specified in the letter, the specified assessment shall be deducted from the producer’s payment by the purchaser, or his agent or representative, from the net marketed price of the small grains. The assessment so deducted shall, on or before the fifteenth day of the month following the end of the month in which the small grains are sold to the purchaser, be remitted by the purchaser to the duly certified association which conducted the referendum. The books and records of all the purchasers of small grains shall at all times be open for inspection by the Commissioner of Agriculture or his duly authorized agents during regular business hours.

History. Enact. Acts 1990, ch. 397, § 13, effective July 13, 1990; 1994, ch. 47, § 3, effective July 15, 1994.

247.5087. Kentucky Small Grain Promotion Council.

There is hereby established a Kentucky Small Grain Promotion Council composed of four (4) members appointed by the certified organization; two (2) members appointed by the association representing the largest number of small grains farmers in the state; and one (1) member appointed by the Commissioner. These appointments shall be for terms of two (2) calendar years and each appointing body shall promptly file with the Commissioner the names of its respective appointees.

History. Enact. Acts 1990, ch. 397, § 14, effective July 13, 1990; 1994, ch. 47, § 4, effective July 15, 1994.

247.5089. Use of assessment funds.

The funds, including donations from individuals, concerns, corporations, and grants from the state or governmental agencies, shall be used for the purpose of promoting and stimulating, by research, market development and education, the increased use and sale, domestic and foreign, of small grains and small grains products; and for the prevention, modification, or elimination of trade barriers which obstruct the free flow of small grains and small grains products to market. None of these funds shall be used to lobby as defined in KRS 6.611 . The duly certified association receiving the assessment funds shall, upon the advice and consent of the Kentucky Small Grain Promotion Council, use and disburse the same as follows:

  1. The association may first refund to itself therefrom the costs and expenses incurred in the conduct of the referendum;
  2. The association may spend or disburse the necessary funds therefrom for administrative costs and expenses, but no more than fifteen percent (15%) of the funds collected in any marketing year shall be so utilized; and
  3. The balance remaining shall be used for the purposes provided in this section, as determined by the Kentucky Small Grain Promotion Council.

History. Enact. Acts 1990, ch. 397, § 15, effective July 13, 1990; 1993 (1st Ex. Sess.), ch. 4, § 66, effective September 16, 1993; 1994, ch. 47, § 5, effective July 15, 1994.

247.5091. Refund of assessment collected from producer.

If the referendum is carried in the affirmative and the assessment is levied and collected as provided, any producer upon and against whom the assessment shall have been levied and collected under the provisions of KRS 247.5061 to 247.5095 , if dissatisfied with the assessment and the result thereof, may demand of and receive from the treasurer of the certified association a refund of the assessment collected from the producer; if the demand for refund is made in writing within thirty (30) days after the date on which the assessment is collected from the producer.

History. Enact. Acts 1990, ch. 397, § 16, effective July 13, 1990; 1994, ch. 47, § 6, effective July 15, 1994.

247.5093. Procedures to terminate assessment.

  1. The question of the levy of the assessment on small grains may be referred to a vote of the small grains producers of the state by filing petitions with the certified association containing signatures of Kentucky small grains producers equal in number to ten percent (10%) of all small grains producers in the state as recorded in the latest United States Census of Agriculture. If after the petitions are filed and at the referendum election a majority of Kentucky small grains producers voting on the question vote against the levy on small grains, the assessment shall be terminated at the end of the marketing year in which the referendum was conducted; otherwise, the assessment program shall continue.
  2. If the duly certified association of small grains producers expresses in writing its desire to the Commissioner to discontinue the assessment program and terminate the program, the Commissioner shall within fifteen (15) days following receipt of the request convene the board to review and act on the request. The board, after reviewing the request and conducting whatever proceedings are deemed appropriate and necessary in connection with the request, may terminate the program effective at the end of the marketing year in which the board action is taken; and, in this event, the Commissioner shall notify, by certified mail, the purchasers of small grains affected thereby of the termination of the program.

History. Enact. Acts 1990, ch. 397, § 17, effective July 13, 1990; 1994, ch. 47, § 7, effective July 15, 1994.

247.5095. Injunction against violations.

When in the judgment of the board or the duly certified association, a purchaser has engaged in any acts or practices that constitute a violation of any of the provisions of KRS 247.5061 to 247.5095 , the board or the duly certified association may make application to the Circuit Court of the county wherein the said acts or practices are alleged to have occurred for an order enjoining the act or acts or practices, and obtain a restraining order and preliminary injunction against the purchaser.

History. Enact. Acts 1990, ch. 397, § 18, effective July 13, 1990.

Assessment for Promotion of Soybean Industry

247.510. Promotion of soybean production and use in public interest.

It is declared to be in the interest of the public welfare that Kentucky farmers who are producers of soybeans shall be permitted and encouraged to act jointly and in cooperation with all producers, handlers, dealers and processors of soybeans in promoting and stimulating, by research, market development and education, the increased production, use and sale, domestic and foreign, of soybeans and soybean products.

History. Enact. Acts 1974, ch. 83, § 1.

247.515. Definitions.

As used in KRS 247.510 to 247.595 unless the context otherwise requires:

  1. “Commissioner” means the Commissioner of Agriculture;
  2. “Board” means the State Board of Agriculture;
  3. “Producer” means every person who produces soybeans and thereafter causes the same to be marketed;
  4. “New producer” means a producer who was not engaged in the business of producing soybeans at the time a referendum was conducted in accordance with the provisions of KRS 247.510 to 247.595 ;
  5. “Person” means any individual, corporation, partnership, association, cooperative, or other business entity;
  6. “Marketing year” means from July 1 to June 30 of the following year;
  7. “Purchaser” means any person, public or private corporation, federal commodity credit corporation, association, or partnership buying, accepting for shipment, or otherwise acquiring the property in or to soybeans from a producer, and shall include a mortgagee, pledgee, lienor, or other person, public or private, having a claim against the producer, when the actual or constructive possession of such soybeans is taken as part payment or in satisfaction of such mortgage, pledge, lien, or claim;
  8. “Net market price” means the sales price or other value received by a producer for soybeans after adjustments have been made for any premium or discount based on grading or quality factors; and
  9. “Promotion board” means the Kentucky Soybean Promotion Board.

History. Enact. Acts 1974, ch. 83, § 2; 1986, ch. 180, § 1, effective July 15, 1986; 1992, ch. 45, § 1, effective July 14, 1992.

247.520. Association of dealers not illegal.

No association meeting or activity undertaken in pursuance of the provisions of KRS 247.510 to 247.595 and intended to benefit all of the producers, handlers, and processors of soybeans shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 1974, ch. 83, § 3; 1986, ch. 180, § 2, effective July 15, 1986.

247.525. Producers’ referendum levying assessment. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 83, § 4) was repealed by Acts 1986, ch. 180, § 12, effective July 15, 1986.

247.530. Application by association for certification and approval for assessment referendum — Publication.

  1. Any existing association which is fairly representative of the soybean producers of Kentucky may, at any time after July 12, 2006, make application to the State Board of Agriculture on forms prescribed by the board for certification and approval for the purpose of conducting a referendum among the producers of soybeans upon the question of levying an assessment under the provisions of KRS 247.510 to 247.595 , and for collecting and utilizing the assessment for the purpose stated in the referendum.
  2. The Commissioner shall publish the application through the medium of the public press in the state within ten (10) days of receipt of the application.

History. Enact. Acts 1974, ch. 83, § 5; 1986, ch. 180, § 3, effective July 15, 1986; 2006, ch. 88, § 2, effective July 12, 2006.

247.535. Certified association authorized to hold referendum — Referendum on area or statewide basis. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 83, § 6) was repealed by Acts 1986, ch. 180, § 12, effective July 15, 1986.

247.540. Referendum on area or statewide basis — Persons eligible to participate. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 83, § 7) was repealed by Acts 1986, ch. 180, § 12, effective July 15, 1986.

247.545. Supervision of referendum by Commissioner — Expenses.

The manner, conduct and management of any referendum held under the provisions of KRS 247.510 to 247.595 , shall be under the supervision and direction of the Commissioner of Agriculture, and any and all expenses in connection therewith shall be borne by the association conducting the referendum.

History. Enact. Acts 1974, ch. 83, § 8; 1986, ch. 180, § 4, effective July 15, 1986.

247.550. Commissioner to determine date, hours, polling places, and details of assessment — Limits. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 83, § 9) was repealed by Acts 1986, ch. 180, § 12, effective July 15, 1986.

247.552. Limitation on assessment levied on soybeans marketed in Kentucky.

No assessment levied by any referendum conducted under the provisions of KRS 247.510 to 247.595 shall exceed the rate of one-fourth of one percent (0.25%) of the net market price per bushel on all soybeans marketed within the Commonwealth. The assessment shall be deducted from the amount paid the producer at the first point of sale.

History. Enact. Acts 1986, ch. 180, § 5, effective July 15, 1986; 1992, ch. 45, § 2, effective July 14, 1992; 2006, ch. 88, § 3, effective July 12, 2006.

247.553. Assessment on soybeans for seed stock.

A first purchaser who purchases soybeans in accordance with a contract or otherwise with the intent of utilizing the soybeans for seed stock shall be responsible for remitting the assessment due on the soybeans as required by KRS 247.570 . The assessment shall be collected from the producer at the time of final settlement for the soybeans. The assessment on soybeans marketed for use as seed stock shall be based upon the percentage specified in KRS 247.552 , multiplied by the posted county price for soybeans on the day of settlement as posted at the local Farm Service Agency office for the county in which the first purchaser is located. No assessment shall be collected unless the assessment in KRS 247.552 is in force.

History. Enact. Acts 1992, ch. 45, § 3, effective July 14, 1992; 2006, ch. 88, § 4, effective July 12, 2006.

247.555. Rules governing holding of referendum prescribed by Commissioner — Notice.

The hours, voting places, rules and regulations for the referendum shall be established and determined by the Commissioner of Agriculture; the said referendum date, hours, voting places, rules and regulations with respect to the holding of the referendum shall be published by the Commissioner through the medium of the public press in the Commonwealth at least thirty (30) days before the holding of such referendum, and direct written notice thereof shall likewise be given to each county or area agent in any county covered by such referendum.

History. Enact. Acts 1974, ch. 83, § 10; 1986, ch. 180, § 6, effective July 15, 1986.

247.560. Preparation of question — Poll holders — Canvass and declaration of results.

The Commissioner of Agriculture shall likewise prepare and distribute in advance of such referendum the question to be presented to the voters and shall arrange for the necessary poll holders for conducting the referendum. Following such referendum and within ten (10) days thereafter the Commissioner shall canvass and publicly declare the result of such referendum.

History. Enact. Acts 1974, ch. 83, § 11; 1982, ch. 360, § 71, effective July 15, 1982.

247.565. Effect of affirmative vote. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 83, § 12) was repealed by Acts 1986, ch. 180, § 12, effective July 15, 1986.

247.570. Assessment remitted to promotion board — Records.

The assessment so deducted shall, on or before the fifteenth day of the month following the end of the month in which such soybeans are sold to the purchaser, be remitted by the purchaser to the promotion board. The books and records of all the purchasers of soybeans shall at all times be open for inspection by the promotion board’s collection and compliance officer or the Commissioner of Agriculture or his duly authorized agents during regular business hours.

History. Enact. Acts 1974, ch. 83, § 13; 1980, ch. 114, § 47, effective July 15, 1980; 1986, ch. 180, § 7, effective July 15, 1986; 1992, ch. 45, § 4, effective July 14, 1992.

247.573. Kentucky Soybean Promotion Board.

There is hereby established a Kentucky Soybean Promotion Board. The promotion board shall consist of four (4) members appointed by the Kentucky Soybean Association; two (2) members appointed by the Kentucky Farm Bureau Federation; one (1) member appointed by the Commissioner of Agriculture; the Kentucky director or directors who serve on the United Soybean Board; and the Kentucky director or directors who serve on the American Soybean Association. The appointments shall be for terms of two (2) fiscal years, a fiscal year running from July 1 to the following June 30, and each appointing body shall promptly file with the promotion board the names of its respective appointees.

History. Enact. Acts 1992, ch. 45, § 5, effective July 14, 1992; 2006, ch. 88, § 5, effective July 12, 2006.

247.575. Fund utilization committee — Membership terms. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 83, § 14) was repealed by Acts 1992, ch. 45, § 9, effective July 14, 1992.

247.576. Power of promotion board to enter into agreement with Federal Commodity Credit Corporation.

The promotion board may enter into an agreement with the Federal Commodity Credit Corporation to collect the specified assessment on all soybeans pledged as collateral for a Commodity Credit Corporation price support loan or purchase by the Commodity Credit Corporation under its loan or purchase programs.

History. Enact. Acts 1986, ch. 180, § 8, effective July 15, 1986; 1992, ch. 45, § 6, effective July 14, 1992.

247.580. Use and disbursement of funds.

The funds, including donations from individuals, concerns, corporations, and grants from the state or governmental agencies, shall be used by the promotion board for the purpose of promoting and stimulating, by research, market development, and education, the increased use and sale, domestic and foreign, of soybeans and soybean products. These funds shall not be used to lobby as defined in KRS 6.611 . The promotion board may spend or disburse the necessary funds therefrom for administrative costs and expenses, but no more than fifteen percent (15%) of the funds collected in any marketing year shall be so utilized.

History. Enact. Acts 1974, ch. 83, § 15; 1992, ch. 45, § 7, effective July 14, 1992; 1993 (1st Ex. Sess.), ch. 4, § 67, effective September 16, 1993.

Opinions of Attorney General.

Since Chapter 4 of Acts 1993 (1st Ex. Sess.) contained an emergency clause [§ 92] it became effective as a whole when the Governor tendered the bill, which he had signed, to the Secretary of State on February 18, 1993. However, section 87 (13) of Ch. 4 of Acts 1993 (1st Ex. Sess.), provided that, except as provided in §§ 88, 89, and 90, §§ 1-84 of the Act should become effective two hundred ten (210) days after the effective date of the Act, September 16, 1993; other subsections within § 87 establish a transition schedule with other specific dates calculated from the effective date of the Act. Such schedule is actually a listing of deadlines within which certain actions called for in § 87 of the Act are to be completed. Such schedule is as follows: “within 45 days of the effective date of the act” = on or before April 5, 1993; “within 60 days of the effective date of the act” = on or before April 19, 1993; “within 75 days of the effective date of the act” = on or before May 4, 1993; “within 90 days of the effective date of the act” = on or before May 19, 1993; “within 150 days of the effective date of the act” = on or before July 19, 1993; “within 180 days of the effective date of the act” = on or before August 17, 1993; “two hundred ten (210) days after the effective date of the act” = September 16, 1993. OAG 93-25 .

247.585. Refund of assessment collected from producer.

Any producer upon and against whom the assessment shall have been levied and collected under the provisions of KRS 247.510 to 247.595 , if dissatisfied with the assessment and the result thereof, shall have the right to demand of and receive from the treasurer of the promotion board a refund of the assessment so collected from the producer; provided, the demand for refund is made in writing within ninety (90) days from the date on which the assessment is collected from the producer.

History. Enact. Acts 1974, ch. 83, § 16; 1986, ch. 180, § 9, effective July 15, 1986; 1992, ch. 45, § 8, effective July 14, 1992.

247.590. Annual review of program — Referendum required when — Termination. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1974, ch. 83, § 17; 1980, ch. 114, § 48, effective July 15, 1980) was repealed by Acts 1986, ch. 180, § 12, effective July 15, 1986.

247.592. Effect of federal Soybean Act on assessments levied under KRS 247.510 to 247.595.

  1. Notwithstanding KRS 247.510 to 247.595 , no assessment levied under KRS 247.510 to 247.595 shall be effective as long as the federal Soybean Promotion, Research, and Consumer Information Act, 7 U.S.C. secs. 6301 to 6311, is in effect.
  2. If the federal act is terminated or suspended, any assessment levied under KRS 247.510 to 247.595 shall become effective and shall be collected and utilized according to the provisions of KRS 247.510 to 247.595 .

History. Enact. Acts 2006, ch. 88, § 1, effective July 12, 2006.

247.595. Injunction against violations.

Whenever in the judgment of the board or the duly certified association, a purchaser has engaged in or is about to engage in any acts or practices that constitute a violation of any of the provisions of KRS 247.510 to 247.585 , the board or the duly certified association may make application to the Franklin Circuit Court for an order enjoining such act or acts or practices, and obtain a restraining order and preliminary injunction against such purchaser.

History. Enact. Acts 1974, ch. 83, § 18; 1986, ch. 180, § 10, effective July 15, 1986.

Assessment for Promotion of Corn Industry

247.6001. Purpose.

It is declared to be in the interest of the public welfare that Kentucky farmers who are producers of corn shall be permitted and encouraged to act jointly and in cooperation with all producers, handlers, dealers, and processors of corn in promoting and stimulating, by utilization research, market maintenance and expansion, and education, the increased use and sale, domestic and foreign, of corn and corn products; and for the prevention, modification, or elimination of trade barriers which obstruct the free flow of corn and corn products to market.

History. Enact. Acts 1990, ch. 223, § 1, effective July 13, 1990.

247.6003. Definitions for KRS 247.6005 to 247.6035.

As used in KRS 247.6005 to 247.6035 , unless the context otherwise requires:

  1. “Commissioner” means the Commissioner of Agriculture;
  2. “Board” means the State Board of Agriculture;
  3. “Corn” means all kinds and varieties of corn, including popcorn, except sweet corn and ornamental corns;
  4. “Bushel” means fifty-six (56) pounds of corn by weight or as otherwise defined by the United States Department of Agriculture (USDA);
  5. “Producer” means every person who produces and markets corn;
  6. “New producer” means a producer who was not engaged in the business of producing corn at the time a referendum was conducted in accordance with the provisions of KRS 247.6001 to 247.6035 ;
  7. “Person” means any individual, corporation, partnership, association, cooperative, or other business entity;
  8. “Marketing year” means from September 1 to August 31 of the following year;
  9. “Purchaser” means any person, public or private corporation, Federal Commodity Credit Corporation, association or partnership buying, accepting for shipment, or otherwise acquiring the property in or to corn from a producer, and shall include a mortgagee, pledgee, lienor, or other person, public or private, having a claim against the producer, when the actual or constructive possession of the corn is taken as part payment or in satisfaction of a mortgage, pledge, lien, or claim; and
  10. “Marketed” means any quantities that are sold, bartered, or for which other items of value are exchanged.

History. Enact. Acts 1990, ch. 223, § 2, effective July 13, 1990; 1994, ch. 46, § 1, effective July 15, 1994.

247.6005. Activities not deemed in restraint of trade.

No association meeting or activity undertaken in pursuance of the provisions of KRS 247.6001 to 247.6035 and intended to benefit all of the producers, handlers, dealers, and processors of corn shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 1990, ch. 223, § 3, effective July 13, 1990.

247.6007. Referendum on corn assessment declared to be in public interest.

It is declared to be in the public interest and highly advantageous to the agricultural economy of the state that producers of corn shall be permitted by referendum to be held among the respective groups and subject to the provisions of KRS 247.6001 to 247.6035 to levy upon themselves an assessment on corn and provide for the collection of the assessment for the purpose of financing or contributing toward the financing of a program of research, market development, and education to increase the domestic and foreign consumption, use, sale, and markets for corn and corn products; and for the prevention, modification, or elimination of trade barriers which obstruct the free flow of corn and corn products to market.

History. Enact. Acts 1990, ch. 223, § 4, effective July 13, 1990.

247.6009. Application to conduct corn referendum.

  1. Any existing association which is fairly representative of the corn producers of Kentucky, such as the Kentucky Corn Growers Association, may at any time after July 13, 1990, make application to the State Board of Agriculture on forms prescribed by the board for certification and approval for the purpose of conducting a referendum among the producers of corn upon the question of levying an assessment under the provisions of KRS 247.6001 to 247.6035 and collecting and utilizing the assessment for the purpose stated in the referendum. The application forms shall include, but not be limited to, the following:
    1. Applicant’s name;
    2. Applicant’s address;
    3. Date;
    4. Program to be undertaken for producers;
    5. Brief statement of how the program is to be implemented;
    6. Referendum to be conducted on a statewide basis;
    7. Proposed effective date of the program; and
    8. Signature of the applicant.
  2. Upon receipt of the application, the Commissioner shall publish the application through the medium of the public press in the state within ten (10) days of receipt.

History. Enact. Acts 1990, ch. 223, § 5, effective July 13, 1990.

247.6011. Certification of authority.

Upon being certified by the Commissioner of Agriculture, the association shall be fully authorized and empowered to hold and conduct on the part of the producers of corn a referendum on the question of whether the producers shall levy upon themselves an assessment under, and subject to, and for the purpose stated in KRS 247.6001 to 247.6035 . The referendum shall be conducted on a statewide basis.

History. Enact. Acts 1990, ch. 223, § 6, effective July 13, 1990.

247.6013. Referendum to be statewide.

Any referendum conducted under the provisions of KRS 247.6001 to 247.6035 shall be held on a statewide basis. The referendum may be participated in by all corn producers, including owners of farms on which corn is produced, and tenants and sharecroppers sharing in the proceeds of corn. In the referendum, individuals eligible for participation shall vote upon the question of whether there shall be levied an annual assessment in the amount set forth in the call for the referendum.

History. Enact. Acts 1990, ch. 223, § 7, effective July 13, 1990.

247.6015. Conduct of referendum.

The manner, conduct, and management of any referendum held under the provisions of KRS 247.6001 to 247.6035 shall be under the supervision and direction of the Commissioner of Agriculture, and any and all expenses in connection therewith shall be borne by the association conducting the referendum.

History. Enact. Acts 1990, ch. 223, § 8, effective July 13, 1990.

247.6017. Matters to be determined by the Commissioner before referendum.

With respect to any referendum conducted under the provisions of KRS 247.6001 to 247.6035 , the Commissioner of Agriculture shall, before calling and announcing the referendum, fix, determine, and publicly announce at least thirty (30) days before the date determined for the referendum, the date, hours, and polling places for voting in the referendum, the effective date of the assessment, if adopted, the amount and basis of the assessment proposed to be collected, the means by which the assessment shall be collected if authorized by the producers, and the general purposes to which the amount collected shall be applied. No annual assessment levied under the provisions of any referendum shall exceed one fourth of one percent (0.25%) of the net marketed price per bushel on the corn marketed in the state during a marketing year by any producer included in the group to which the referendum was submitted or by any person subsequently becoming a new producer.

History. Enact. Acts 1990, ch. 223, § 9, effective July 13, 1990; 1994, ch. 46, § 2, effective July 15, 1994.

247.6019. Notice published by Commissioner.

The hours, voting places, rules, and regulations for the referendum shall be established and determined by the Commissioner of Agriculture and shall be published by the Commissioner through the medium of the public press in the Commonwealth of Kentucky at least thirty (30) days before the holding of the referendum, and direct written notice thereof shall likewise be given to each county or area agent in any county covered by the referendum. The notice shall likewise contain a statement of the amount of the assessment proposed to be levied, which assessment in any event shall not exceed one fourth of one percent (0.25%) of the net marketed price per bushel, and shall likewise state the method by which the assessment shall be collected and how the proceeds shall be administered and the purposes to which the proceeds shall be applied, which purposes shall be in keeping with the provisions of KRS 247.6001 to 247.6035 .

History. Enact. Acts 1990, ch. 223, § 10, effective July 13, 1990; 1994, ch. 46, § 3, effective July 15, 1994.

247.6021. Distribution of ballots, canvass, and declaration of result.

The Commissioner of Agriculture shall prepare and distribute in advance of the referendum all necessary ballots and shall arrange for the necessary poll holders for conducting the referendum. Following the referendum and within ten (10) days thereafter, the Commissioner shall canvass and publicly declare the result of the referendum.

History. Enact. Acts 1990, ch. 223, § 11, effective July 13, 1990.

247.6023. Method of collection of assessment.

If, in the referendum called under the provisions of KRS 247.6001 to 247.6035 , a majority of the eligible producers, who vote therein, shall vote in the affirmative and in favor of the levying and collection of the assessment proposed in the referendum, the assessment shall be collected in the manner determined and announced by the association conducting the referendum.

History. Enact. Acts 1990, ch. 223, § 12, effective July 13, 1990.

247.6025. Deduction of assessment from producer’s payment.

If a majority of the eligible producers in the referendum who vote therein shall vote in favor of the assessment, the Commissioner shall notify, by certified mail, all persons engaged in the business of purchasing corn in this state, that on and after the date specified in the letter, the specified assessment shall be deducted from the producer’s payment by the purchaser, or his agent or representative, from the net marketed price of the corn. The assessment so deducted shall, on or before the fifteenth day of the month following the end of the month in which the corn is sold to the purchaser, be remitted by the purchaser to the duly certified association which conducted the referendum. The books and records of all the purchasers of corn shall at all times be open for inspection by the Commissioner of Agriculture or his duly authorized agents during regular business hours.

History. Enact. Acts 1990, ch. 223, § 13, effective July 13, 1990; 1994, ch. 46, § 4, effective July 15, 1994.

247.6027. Kentucky Corn Promotion Council.

There is hereby established a Kentucky Corn Promotion Council composed of four (4) members appointed by the certified organization; two (2) members appointed by the association representing the largest number of corn farmers in the state; and one (1) member appointed by the Commissioner. These appointments shall be for terms of two (2) calendar years and each appointing body shall promptly file with the Commissioner the names of its respective appointees.

History. Enact. Acts 1990, ch. 223, § 14, effective July 13, 1990; 1994, ch. 46, § 5, effective July 15, 1994.

247.6029. Use of funds.

The funds, including donations from individuals, concerns, corporations, and grants from the state or governmental agencies, shall be used for the purpose of promoting and stimulating, by research, market development and education, the increased use and sale, domestic and foreign, of corn and corn products; and for the prevention, modification, or elimination of trade barriers which obstruct the free flow of corn and corn products to market. None of these funds shall be used to lobby as defined in KRS 6.611 . The duly certified association receiving the assessment funds shall, upon the advice and consent of the Kentucky Corn Promotion Council, use and disburse the same as follows:

  1. The association may first refund to itself therefrom the costs and expenses incurred in the conduct of the referendum;
  2. The association may spend or disburse the necessary funds therefrom for administrative costs and expenses, but no more than fifteen percent (15%) of the funds collected in any marketing year shall be so utilized; and
  3. The balance remaining shall be used for the purposes provided in this section, as determined by the Kentucky Corn Promotion Council.

History. Enact. Acts 1990, ch. 223, § 15, effective July 13, 1990; 1993 (1st Ex. Sess.), ch. 4, § 68, effective September 16, 1993; 1994, ch. 46, § 6, effective July 15, 1994.

247.6031. Refund to dissatisfied producer.

If the referendum is carried in the affirmative and the assessment is levied and collected as provided, any producer upon and against whom the assessment shall have been levied and collected under the provisions of KRS 247.6001 to 247.6035 , if dissatisfied with the assessment and the result thereof, may demand of and receive from the treasurer of the certified association a refund of the assessment collected from the producer; if the demand for refund is made in writing within thirty (30) days after the date on which the assessment is collected from the producer.

History. Enact. Acts 1990, ch. 223, § 16, effective July 13, 1990; 1994, ch. 46, § 7, effective July 15, 1994.

247.6033. Procedures to terminate assessment.

  1. The question of the levy of the assessment on corn may be referred to a vote of the corn producers of the state by filing petitions with the certified association containing signatures of Kentucky corn producers equal in number to ten percent (10%) of all corn producers in the state as recorded in the latest United States Census of Agriculture. If after the petitions are filed and at the referendum election a majority of Kentucky corn producers voting on the question vote against the levy on corn, the assessment shall be terminated at the end of the marketing year in which the referendum was conducted; otherwise, the assessment program shall continue.
  2. If the duly certified association of corn producers expresses in writing its desire to the Commissioner to discontinue the assessment program and terminate the program, the Commissioner shall within fifteen (15) days following receipt of the request convene the board to review and act on the request. The board, after reviewing the request and conducting whatever proceedings are deemed appropriate and necessary in connection with the request, may terminate the program effective at the end of the marketing year in which the board action is taken; and, in this event, the Commissioner shall notify, by certified mail, the purchasers of corn affected thereby of the termination of the program.

History. Enact. Acts 1990, ch. 223, § 17, effective July 13, 1990; 1994, ch. 46, § 8, effective July 15, 1994.

247.6035. Court order prohibiting unlawful practices.

When in the judgment of the board or the duly certified association, a purchaser has engaged in or is about to engage in any acts or practices that constitute a violation of any of the provisions of KRS 247.6001 to 247.6035 , the board or the duly certified association may make application to the Franklin Circuit Court for an order enjoining the act or acts or practices, and obtain a restraining order and preliminary injunction against the purchaser.

History. Enact. Acts 1990, ch. 223, § 18, effective July 13, 1990.

Boll Weevil Eradication Programs and Assessment for Promotion of Cotton Industry

247.6040. Definitions for KRS 247.6040 to 247.6070.

As used in KRS 247.6040 to 247.6070 , unless the context requires otherwise:

  1. “Association” means any commission, council, board, or other body;
  2. “Boll weevil” means Anthonomus grandis Boheman in any stage of development;
  3. “Commissioner” means the Commissioner of Agriculture or the Commissioner’s designee;
  4. “Cotton” means any cotton plant or cotton plant product upon which the boll weevil is dependent for completion of any portion of its life cycle;
  5. “Cotton grower” means any person who is engaged in and has an economic risk in the business of producing, or causing to be produced, cotton for market;
  6. “Host” means any plant or plant product upon which the boll weevil is dependent for completion of any portion of its life cycle;
  7. “Infested” means actually infested with a boll weevil, or so exposed to infestation that it would be reasonable to believe that an infestation exists; and
  8. “Regulated article” means any article of any character carrying or capable of carrying the boll weevil, including but not limited to cotton plants, seed cotton, other hosts, gin trash, and mechanical cotton pickers.

History. Enact. Acts 2007, ch. 79, § 1, effective June 26, 2007.

247.6042. Commissioner to carry out boll weevil eradication programs — Agreements for cost sharing and division of duties.

  1. The Commissioner shall carry out programs to destroy and eliminate boll weevils in this state.
  2. The Commissioner may cooperate with any agency of the federal government, any state, any other agency in this state, or any person or group of persons engaged in growing, processing, marketing, or handling cotton in order to carry out the purposes of KRS 247.6040 to 247.6070 , and may enter into written agreements to carry out those purposes. The agreements may provide for cost sharing and for division of duties and responsibilities under KRS 247.6040 to 247.6070 , and may include other provisions generally to carry out the purposes of KRS 247.6040 to 247.6070.

History. Enact. Acts 2007, ch. 79, § 2, effective June 26, 2007.

247.6044. Powers of Commissioner to carry out KRS 247.6040 to 247.6070.

  1. The Commissioner may enter cotton fields and other premises in order to carry out certain activities, including but not limited to treatment with pesticides and monitoring, as may be necessary to carry out KRS 247.6040 to 247.6070 .
  2. The Commissioner may inspect any fields or premises in this state and any property located on the premises for the purpose of determining whether the property is infested. The inspection and other activities may be conducted at any reasonable hours between sunrise and sunset.

History. Enact. Acts 2007, ch. 79, § 3, effective June 26, 2007.

247.6046. Information on cotton fields and patches to be furnished to Commissioner.

Every person growing cotton in this state shall furnish to the Commissioner, on forms supplied by the Commissioner, information that the Commissioner requires regarding the size and location of all commercial cotton fields and of noncommercial patches of cotton grown as ornamentals or for other purposes.

History. Enact. Acts 2007, ch. 79, § 4, effective June 26, 2007.

247.6048. Administrative regulations — Establishment of penalties.

The Commissioner shall promulgate administrative regulations to carry out KRS 247.6040 to 247.6070 and may establish monetary penalties for violating KRS 247.6040 to 247.6070 or for violating administrative regulations promulgated under KRS 247.6040 to 247.6070.

History. Enact. Acts 2007, ch. 79, § 5, effective June 26, 2007.

247.6050. Designation of elimination zones — Notice.

  1. The Commissioner may:
    1. Designate one (1) or more areas of this state as elimination zones where boll weevil eradication programs will be undertaken;
    2. Designate areas within the elimination zone where commercial and noncommercial cotton is prohibited from being planted;
    3. Require all commercial cotton growers within an elimination zone to participate in a boll weevil eradication program; or
    4. Destroy cotton being grown in prohibited areas of an elimination zone, and assess the grower for the costs incurred for the destruction.
  2. Notice of the designation of an elimination zone shall be given by publication for one (1) day each week for three (3) successive weeks in a newspaper having general circulation in the affected area.

History. Enact. Acts 2007, ch. 79, § 6, effective June 26, 2007.

247.6052. Treatment or destruction of cotton in elimination zones — No payment for losses — Exception — Commissioner may restrict entry in zones.

  1. The Commissioner may treat with pesticides or destroy volunteer or other noncommercial cotton, and may establish procedures for the purchase and destruction of commercial cotton in elimination zones as designated under KRS 247.6050 .
  2. Except as provided in subsection (3) of this section, no payment shall be made to the owner or lessee for the destruction or injury of any cotton which was planted in an elimination zone if the cotton was planted in violation of any provision of KRS 247.6040 to 247.6070 or any administrative regulations promulgated under KRS 247.6040 to 247.6070 .
  3. If cotton that was planted in an elimination zone prior to the notification requirement in KRS 247.6050 is destroyed or injured, the Commissioner shall pay for losses incurred.
  4. The Commissioner may restrict entry by persons, and may restrict the location of honeybee colonies, in any areas of an elimination zone which has been or is to be treated with pesticides.

History. Enact. Acts 2007, ch. 79, § 7, effective June 26, 2007.

247.6054. Moving infested regulated article into state — Penalty.

Any person who, except in compliance with administrative regulations promulgated by the Commissioner, moves any regulated article into this state from any other state which the Commissioner has determined to be infested, shall be guilty of a Class A misdemeanor.

History. Enact. Acts 2007, ch. 79, § 8, effective June 26, 2007.

247.6056. Activities not deemed in restraint of trade.

No association meeting or activity undertaken to carry out KRS 247.6040 to 247.6070 and intended to benefit all cotton growers, handlers, or processors shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 2007, ch. 79, § 9, effective June 26, 2007.

247.6058. Application for assessment referendum — Contents of form — Publication.

  1. Any existing association which is fairly representative of the cotton growers of Kentucky may at any time after June 26, 2007, make application to the State Board of Agriculture on forms provided by the board for certification and approval for the purpose of conducting a referendum among cotton growers upon the question of levying an assessment upon the cotton growers to offset, in whole or in part, the cost of boll weevil or other cotton pest suppression or eradication programs. The application forms shall include but not be limited to the following:
    1. Applicant’s name and address;
    2. Date;
    3. Program to be undertaken for growers;
    4. Brief statement of how the program is to be implemented;
    5. Referendum to be conducted on a statewide or areawide basis;
    6. Proposed effective date of the program;
    7. Geographic area, by counties, of growers to be affected by the program; and
    8. Signature of the applicant.
  2. The Commissioner shall publish the application through the medium of the public press in the state within ten (10) days of receipt of the application.

History. Enact. Acts 2007, ch. 79, § 10, effective June 26, 2007.

247.6060. Certified association authorized to hold referendum — Assessment to be based on cotton acreage.

  1. Upon being certified by the Commissioner, the association shall be fully authorized and empowered to hold and conduct on the part of the cotton growers a referendum on the question of whether or not an assessment shall be levied upon the growers to offset, in whole or in part, the cost of boll weevil or other cotton pest suppression or eradication programs.
  2. Any assessment levied upon cotton growers shall be based upon the number of acres of cotton planted, and shall not exceed twenty dollars ($20) per acre.

History. Enact. Acts 2007, ch. 79, § 11, effective June 26, 2007.

247.6062. Referendum on area or statewide basis — Participation eligibility — Two-thirds majority required for passage — Amount and period of assessment.

  1. Any referendum conducted under KRS 247.6040 to 247.6070 may be held either on an areawide or statewide basis, as determined by the duly certified association before the referendum is called. The referendum may be participated in by all cotton growers. The Commissioner shall determine any questions of eligibility to vote. In the referendum, individuals eligible for participation shall vote upon the question of whether or not there shall be levied an assessment to offset, in whole or in part, the cost of boll weevil or other cotton pest suppression or eradication programs.
  2. Passage of the referendum shall require a two-thirds (2/3) majority of those eligible cotton growers voting.
  3. Upon passage of the referendum, the Commissioner shall determine the amount of the assessment, not to exceed twenty dollars ($20) per acre, and the period of time for which it is levied.

History. Enact. Acts 2007, ch. 79, § 12, effective June 26, 2007.

247.6064. Supervision of referendum by Commissioner — Expenses.

The manner, conduct, and management of any referendum held under KRS 247.6040 to 247.6070 shall be under the supervision and direction of the Commissioner, and all expenses in connection with the referendum shall be borne by the association conducting the referendum.

History. Enact. Acts 2007, ch. 79, § 13, effective June 26, 2007.

247.6066. Commissioner to publicly announce rules, polling places, and details of assessment before referendum — Notice to agricultural extension agents.

  1. With respect to any referendum conducted under KRS 247.6040 to 247.6070 , the Commissioner shall publicly announce through the medium of the public press at least thirty (30) days before the date determined for the referendum, the following information:
    1. The rules and regulations with respect to the holding of the referendum;
    2. The area within which the referendum will be conducted;
    3. The date, hours, and polling places for voting in the referendum;
    4. The effective date of the assessment, if adopted;
    5. The basis of the assessment proposed to be collected;
    6. The means by which the assessment shall be collected if authorized by the growers;
    7. The general purposes to which any amount shall be applied; and
    8. How the proceeds from the assessment shall be administered.
  2. Direct written notice shall also be given to each county or area agricultural extension agent in any county covered by the referendum.

History. Enact. Acts 2007, ch. 79, § 14, effective June 26, 2007.

247.6068. Preparation of question — Poll holders — Canvass and declaration of results.

The Commissioner shall prepare and distribute in advance of the referendum the question to be presented to the voters and shall arrange for the necessary poll holders for conducting the referendum. Within ten (10) days following the referendum, the Commissioner shall canvass and publicly declare the result of the referendum.

History. Enact. Acts 2007, ch. 79, § 15, effective June 26, 2007.

247.6070. Affirmative vote — Failure of referendum — Subsequent referendums on continuation of assessments.

  1. If two-thirds (2/3) of the eligible growers who vote in the referendum vote in favor of levying and collecting the assessment proposed in the referendum, then the assessment shall be collected in the manner determined and announced by the Commissioner.
  2. If the referendum fails to receive the required number of affirmative votes, the association may, with the consent of the Commissioner, call other referendums.
  3. After the passage of any referendum, upon the petition of the majority of eligible voters, eligible voters may, by subsequent referendums, vote on whether to continue their assessments. All of the requirements for an initial referendum shall be met in subsequent referendums.

History. Enact. Acts 2007, ch. 79, § 16, effective June 26, 2007.

Assessment for Promotion of Beef Cattle Industry

247.610. Promotion of beef cattle industry.

It is declared to be in the interest of the public welfare that Kentucky farmers who are producers of bovine animals shall be permitted and encouraged to act jointly and in cooperation with all producers, handlers, dealers, and processors of bovine animals in promoting and stimulating, by research, market development, and education, the use and sale, domestic and foreign, of bovine animal products.

History. Enact. Acts 1976, ch. 9, § 1; 2004, ch. 32, § 3, effective July 13, 2004.

247.615. Definitions for KRS 247.620 to 247.685.

As used in KRS 247.620 to 247.685 , unless the context otherwise requires:

  1. “Association” means any commission, council, board, or other body;
  2. “Commissioner” means the Commissioner of Agriculture;
  3. “Board” means the State Board of Agriculture;
  4. “Producer” means every person who produces bovine animals and thereafter causes the same to be marketed;
  5. “New producer” means a producer who was not engaged in the business of producing bovine animals at the time a referendum was conducted in accordance with the provisions of KRS 247.620 to 247.685 ;
  6. “Person” means any individual, corporation, partnership, association, cooperative, or other business entity; and
  7. “Order buyer” means any person who purchases bovine animals in Kentucky and is registered under the United States Department of Agriculture, Packers and Stockyards Act of 1921, as amended, and the regulations thereunder. This does not include producers who do not engage in the business of buying and selling bovine animals.

History. Enact. Acts 1976, ch. 9, § 2; 1980, ch. 213, § 1, effective July 15, 1980.

Compiler’s Notes.

The Packers and Stockyards Act of 1921, referred to in subdivision (7) of this section, can be found in 7 USCS §§ 181, et seq.

247.620. Association of producers not illegal or in restraint of trade.

No association meeting or activity undertaken in pursuance of the provisions of KRS 247.610 to 247.685 and intended to benefit all of the producers, handlers, and processors of bovine animals shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 1976, ch. 9, § 3.

247.625. Referendum levying assessment.

It is hereby further declared to be in the public interest and highly advantageous to the agricultural economy of the state that producers of bovine animals shall be permitted by referendum to be held among the respective groups and subject to the provisions of KRS 247.610 to 247.685 to levy upon themselves an assessment on bovine animals and provide for the collection of the assessment for the purpose of financing or contributing towards the financing of a program of research, market development, and education to increase the domestic and foreign consumption, use, sale, and markets for bovine animal products.

History. Enact. Acts 1976, ch. 9, § 4; 2004, ch. 32, § 4, effective July 13, 2004.

247.630. Application for assessment referendum — Contents of form — Publication.

  1. Any existing association which is fairly representative of the bovine animal producers of Kentucky, such as the Kentucky Beef Cattle Association, may at any time after the enactment of KRS 247.610 to 247.685 make application to the State Board of Agriculture on forms prescribed by such board for certification and approval for the purpose of conducting a referendum among the producers of bovine animals upon the question of levying an assessment under the provisions of KRS 247.610 to 247.685 , collecting and utilizing the same for the purpose stated in such referendum. Such application forms shall include, but not be limited to, the following:
    1. Applicant’s name;
    2. Applicant’s address;
    3. Date;
    4. Program to be undertaken for producers;
    5. Brief statement of how the program is to be implemented;
    6. Referendum to be conducted on a statewide or area basis;
    7. Proposed effective date of the program;
    8. Geographic area, by counties, of producers to be affected by the program; and
    9. Signature of the applicant.
  2. Upon receipt of such application, the Commissioner shall publish such application through the medium of the public press in the state within ten (10) days of receipt thereof.

History. Enact. Acts 1976, ch. 9, § 5.

247.635. Certified association authorized to hold referendum.

Upon being so certified by the Commissioner of Agriculture, such association shall thereupon be fully authorized and empowered to hold and conduct on the part of the producers of bovine animals a referendum on the question of whether or not such producers shall levy upon themselves an assessment under, and subject to, and for the purposes stated in KRS 247.610 to 247.685 . Such referendum may be conducted either on a statewide or area basis.

History. Enact. Acts 1976, ch. 9, § 6.

247.640. Referendum on area or statewide basis — Participation eligibility.

Any referendum conducted under the provisions of KRS 247.610 to 247.685 may be held either on an area or statewide basis, as may be determined by such duly certified association before such referendum is called; and such referendum, on an area or statewide basis, may be participated in by all bovine cattle producers, including owners of farms on which such bovine cattle are produced and tenants sharing in the proceeds of bovine cattle. In the referendum, individuals so eligible for participation shall vote upon the question of whether or not there shall be levied an assessment in the amount set forth in the call for the referendum.

History. Enact. Acts 1976, ch. 9, § 7.

247.645. Supervision of referendum by Commissioner — Expenses.

The manner, conduct, and management of any referendum held under the provisions of KRS 247.610 to 247.685 shall be under the supervision and direction of the Commissioner of Agriculture, and any and all expenses in connection therewith shall be borne by the association conducting the referendum.

History. Enact. Acts 1976, ch. 9, § 8.

247.650. Commissioner to determine date, hours, polling places for voting and details of assessment — Limits — Exceptions.

  1. With respect to any referendum conducted under the provisions of KRS 247.610 to 247.685 , the Commissioner of Agriculture shall, before calling and announcing the referendum, fix, determine, and publicly announce at least thirty (30) days before the date determined for the referendum, the date, hours, and polling places for voting in the referendum, the effective date of the assessment, if adopted, the amount and basis of the assessment proposed to be collected, the means by which the assessment shall be collected if authorized by the producers, and the general purposes to which the amount collected shall be applied. No assessment levied under the provisions of any single referendum shall exceed one dollar ($1) on each bovine animal marketed in the state by any producer included in the group to which the referendum was submitted or by any person subsequently becoming a new producer in the area in which the referendum was held.
  2. No assessment shall be made on any bovine animal marketed in the state which sells for ten dollars ($10) or less.
  3. Any assessment levied after June 25, 2013, shall be in addition to the federal assessment referenced in KRS 247.652 .

History. Enact. Acts 1976, ch. 9, § 9; 2004, ch. 32, § 1, effective July 13, 2004; 2013, ch. 129, § 1, effective June 25, 2013.

247.652. Credit of up to fifty cents to producer on each bovine animal on which one dollar assessment was made — Assessment to be collected if federal assessment is terminated.

  1. Notwithstanding the provisions of KRS 247.610 to 247.685 , in accordance with the Federal Beef Promotion and Research Act of 1985, each Kentucky producer of a bovine animal shall receive a credit of up to fifty cents ($0.50) on each bovine animal on which a one dollar ($1) assessment was made under the terms of the federal act. Each fifty cent ($0.50) credit received by the producer shall be retained by the association certified under KRS 247.610 to 247.685 and shall be used by the association for the purposes provided in KRS 247.610 to 247.685.
  2. In the event the one dollar ($1) assessment provided by the federal act is terminated or suspended, that assessment on each Kentucky producer of a bovine animal shall continue to be collected, shall be retained by the association certified under KRS 247.610 to 247.685 , and shall be used for the purposes provided in KRS 247.610 to 247.685 .

History. Enact. Acts 1986, ch. 388, § 1, effective July 15, 1986; 2004, ch. 32, § 2, effective July 13, 2004; 2013, ch. 129, § 2, effective June 25, 2013.

247.655. Rules governing holding of referendum prescribed by Commissioner — Notice.

The hours, voting places, rules and regulations, and the area within which the referendum will be conducted shall be established and determined by the Commissioner of Agriculture; the said referendum date, area, hours, voting places, rules and regulations with respect to the holding of the referendum shall be published by the Commissioner through the medium of the public press in the Commonwealth of Kentucky at least thirty (30) days before the holding of such referendum, and direct written notice thereof shall likewise be given to each county or area agricultural extension agent in any county covered by such referendum. Such notice shall likewise contain a statement of the amount of the assessment proposed to be levied, and shall likewise state the method by which such assessment shall be collected and how the proceeds thereof shall be administered and the purposes to which the same shall be applied, which purposes shall be in keeping with the provisions of KRS 247.610 to 247.685 .

History. Enact. Acts 1976, ch. 9, § 10.

247.660. Preparation of question — Poll holders — Canvass and declaration of results.

The Commissioner of Agriculture shall likewise prepare and distribute in advance of such referendum the question to be presented to the voters and shall arrange for the necessary poll holders for conducting the referendum. Following such referendum and within ten (10) days thereafter the Commissioner shall canvass and publicly declare the result of such referendum.

History. Enact. Acts 1976, ch. 9, § 11; 1982, ch. 360, § 72, effective July 15, 1982.

247.665. Effect of affirmative vote.

If, in such referendum called under the provisions of KRS 247.610 to 247.685 , a majority of the eligible producers in the area in which such referendum is conducted, who vote therein, shall vote in the affirmative and in favor of levying and collecting such assessment proposed in such referendum, then such assessment shall be collected in the manner determined and announced by the association conducting such referendum.

History. Enact. Acts 1976, ch. 9, § 12.

247.670. Notice as to deduction required — Disposition of collections — Records.

  1. In the event a majority of the eligible producers in such referendum who vote therein shall vote in favor of the assessment, then the Commissioner shall notify forthwith, by certified mail, every person licensed to operate a livestock market in the state, as well as every person who operates a meat packing or slaughter establishment which buys bovine animals directly from the producer and every order buyer, that on and after the date designated in the notice, which shall be not less than thirty (30) days nor more than sixty (60) days after the mailing of the notice by the Commissioner, the amount of the assessment shall be deducted by all such sales markets or purchasers of bovine animals, or by their agents or representatives, from the purchase price paid the seller of bovine animals.
  2. On or before the fifteenth day of each month all assessments deducted shall be remitted to the association certified by the assessment referendum, less three percent (3%) which may be retained to compensate the stockyard operator, meat packer, order buyer, or slaughter establishment operator for the expense of collecting and remitting the assessment.
  3. The books and records of all stockyard operators, meat packers, order buyers, and slaughter establishment operators shall at all times during regular business hours be open for inspection by the Commissioner or his duly authorized agents for the purpose of ascertaining the accuracy of the amounts remitted.

History. Enact. Acts 1976, ch. 9, § 13; 1980, ch. 114, § 49, effective July 15, 1980; 1980, ch. 213, § 2, effective July 15, 1980.

Legislative Research Commission Note.

This section was amended by two 1980 acts which do not appear to be in conflict and have been compiled together.

247.675. Refund of assessment collected from producer.

In the event the referendum is carried in the affirmative and the assessment is levied and collected as provided, any producer upon and against whom such assessment shall have been levied and collected under the provisions of KRS 247.610 to 247.685 , if dissatisfied with said assessment and the result thereof, shall have the right to demand of and receive from the treasurer of said certified association a refund of such assessment so collected from such producer; provided, such demand for refund is made in writing within thirty (30) days from the date on which said assessment is collected from such producer.

History. Enact. Acts 1976, ch. 9, § 14.

247.680. Annual review of assessment program — Referendum required, when — Termination of program.

  1. The board shall review the assessment program annually. If, at the end of each year after the first year of the assessment program, the board determines that fifty percent (50%) of the producers in the referendum area are not participating in the program, the Commissioner shall then conduct a referendum among the producers in such area. If, upon such referendum, a majority of the producers in the area reject the program, it shall be terminated as of the end of the month in which the referendum for the area was conducted and held; otherwise, such assessment program shall continue in force and effect.
  2. If the certified association of producers expresses in writing its desire to the Commissioner to discontinue the assessment program and terminate the same, the Commissioner shall within fifteen (15) days following receipt of the request convene the board to review and act on the request. The board, after reviewing such request and conducting whatever proceedings are deemed appropriate and necessary in connection with the request, may terminate the program effective at the end of the month in which the board action is taken; and in this event the Commissioner shall notify, by certified mail, all operators of a livestock market, meat packing establishment or slaughter establishment of the termination of the program.
  3. If the certified association requests in writing to the Commissioner to hold a referendum on the question of increasing the assessment within the limits of KRS 247.610 to 247.685 , the Commissioner shall within fifteen (15) days of the receipt of the request convene the board to review and act on the request. The board, after reviewing the request and conducting whatever proceedings are deemed appropriate and necessary with the request, shall, if the request is approved, conduct a referendum in accordance with the provisions of KRS 247.610 to 247.685 .

History. Enact. Acts 1976, ch. 9, § 15; 1980, ch. 114, § 50, effective July 15, 1980.

247.685. Injunction against violations.

Whenever in the judgment of the board or the duly certified association, an operator of a livestock market, meat packing establishment, or slaughter establishment, or an order buyer has engaged in or is about to engage in any acts or practices that constitute a violation of any of the provisions of KRS 247.610 to 247.685 , the board or the duly certified association may make application to the Franklin Circuit Court for an order enjoining such act, or acts, or practices and obtain a restraining order and preliminary injunction against such operator or order buyer.

History. Enact. Acts 1976, ch. 9, § 16; 1980, ch. 213, § 3, effective July 15, 1980.

Assessment for Promotion of Sheep and Lamb Production Industry

247.6901. Purpose.

It is declared to be in the interest of the public welfare that Kentucky farmers who are producers of ovine or caprine animals shall be permitted and encouraged to act jointly and in cooperation with all producers, handlers, dealers, and processors of ovine or caprine animals in promoting and stimulating, by utilization research, market maintenance and expansion, and education, the increased use and sale, domestic and foreign, of ovine and caprine animals; and for the prevention, modification, or elimination of trade barriers which obstruct the free flow of ovine or caprine animals to market.

History. Enact. Acts 1992, ch. 347, § 1, effective July 14, 1992; 2008, ch. 8, § 1, effective July 15, 2008.

247.6904. Definitions for KRS 247.6901 to 247.6957.

As used in KRS 247.6901 to 247.6957 , unless the context otherwise requires:

  1. “Commissioner” means the Commissioner of Agriculture;
  2. “Board” means the State Board of Agriculture;
  3. “Producer” means every person who produces and markets ovine or caprine animals;
  4. “New producer” means a producer who was not engaged in the business of producing ovine or caprine animals at the time a referendum was conducted in accordance with the provisions of KRS 247.6901 to 247.6957 ;
  5. “Marketing year” means from July 1 to June 30;
  6. “Purchaser” means any person buying, accepting for shipment, or otherwise acquiring the property in or to ovine or caprine animals from a producer, and shall include a mortgagee, pledgee, lienor, or other person, public or private, having a claim against the producer, when the actual or constructive possession of the ovine or caprine animals is taken as part payment or in satisfaction of a mortgage, pledge, lien, or claim;
  7. “Marketed” means any quantities that are sold, bartered, or for which other items of value are exchanged;
  8. “Net market price” means the sales price or other value received by a producer for ovine or caprine animals after adjustments have been made for any premium or discount based on grading or quality factors;
  9. “Association” means any commission, council, board, or other body;
  10. “Caprine” means of, or pertaining to, goats; and
  11. “Ovine” means of, or pertaining to, sheep.

History. Enact. Acts 1992, ch. 347, § 2, effective July 14, 1992; 2008, ch. 8, § 2, effective July 15, 2008.

247.6907. Activity not deemed restraint of trade.

No association meeting or activity undertaken to carry out the provisions of KRS 247.6901 to 247.6957 and intended to benefit all of the producers, handlers, dealers, and processors of ovine or caprine animals shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 1992, ch. 347, § 3, effective July 14, 1992; 2008, ch. 8, § 3, effective July 15, 2008.

247.6911. Referendum among producers of ovine or caprine animals on levying assessment in public interest.

It is declared to be in the public interest and highly advantageous to the agricultural economy of the state that producers of ovine or caprine animals shall be permitted by referendum to be held among the respective groups and subject to the provisions of KRS 247.6901 to 247.6957 to levy upon themselves an assessment on ovine or caprine animals and provide for the collection of the assessment for the purpose of financing or contributing toward the financing of a program of research, market development, and education to increase the domestic and foreign consumption, use, sale, and markets for ovine or caprine animals; and for the prevention, modification, or elimination of trade barriers which obstruct the free flow of ovine or caprine animals to market.

History. Enact. Acts 1992, ch. 347, § 4, effective July 14, 1992; 2008, ch. 8, § 4, effective July 15, 2008.

247.6914. Application for assessment referendum.

  1. Any existing association which is fairly representative of the ovine and caprine animal producers of Kentucky may at any time after July 15, 2008, make application to the State Board of Agriculture on forms prescribed by the board for certification and approval for the purpose of conducting a referendum among the producers of ovine or caprine animals upon the question of levying an assessment under the provisions of KRS 247.6901 to 247.6957 and collecting and utilizing the assessment for the purpose stated in the referendum. The application forms shall include, but not be limited to, the following:
    1. Applicant’s name;
    2. Applicant’s address;
    3. Date;
    4. Program to be undertaken for producers;
    5. Brief statement of how the program is to be implemented;
    6. Referendum to be conducted on a statewide basis;
    7. Proposed effective date of the program; and
    8. Signature of the applicant.
  2. The Commissioner shall publish the application through the medium of the public press in the state within ten (10) days of receipt of this application.

History. Enact. Acts 1992, ch. 347, § 5, effective July 14, 1992; 2008, ch. 8, § 5, effective July 15, 2008.

247.6917. Certified association authorized to hold referendum.

Upon being certified by the Commissioner, the association shall be fully authorized to hold and conduct on the part of the producers of ovine or caprine animals a referendum on the question of whether or not the producers shall levy upon themselves an assessment under, and subject to, and for the purpose stated in KRS 247.6901 to 247.6957 . The referendum shall be conducted on a statewide basis.

History. Enact. Acts 1992, ch. 347, § 6, effective July 14, 1992; 2008, ch. 8, § 6, effective July 15, 2008.

247.6921. Referendum on statewide basis.

Any referendum conducted under the provisions of KRS 247.6901 to 247.6957 shall be held on a statewide basis. The referendum may be participated in by all ovine or caprine animal producers, including owners of farms on which ovine or caprine animals are produced, and tenants and sharecroppers sharing in the proceeds of ovine or caprine animals. In the referendum, individuals eligible for participation shall vote upon the question of whether or not there shall be levied an annual assessment in the amount set forth in the call for the referendum.

History. Enact. Acts 1992, ch. 347, § 7, effective July 14, 1992; 2008, ch. 8, § 7, effective July 15, 2008.

247.6924. Supervision of referendum by Commissioner — Expenses.

The manner, conduct, and management of any referendum held under the provisions of KRS 247.6901 to 247.6957 shall be under the supervision and direction of the Commissioner, and all expenses in connection with the referendum shall be borne by the association conducting the referendum.

History. Enact. Acts 1992, ch. 347, § 8, effective July 14, 1992; 2008, ch. 8, § 8, effective July 15, 2008.

247.6927. Commissioner to determine date and other details of referendum.

  1. With respect to any referendum conducted under the provisions of KRS 247.6901 to 247.6957 , the Commissioner shall, before calling and announcing the referendum, fix, determine, and publicly announce at least thirty (30) days before the date determined for the referendum, the date, hours, and polling places for voting in the referendum, the effective date of the assessment, if adopted, the amount and basis of the assessment proposed to be collected, the means by which the assessment shall be collected if authorized by the producers, and the general purposes to which the amount collected shall be applied.
  2. No annual assessment levied under the provisions of any referendum shall exceed one percent (1%) of the net marketed price per ovine or caprine animal marketed in the state during a marketing year by any producer included in the group to which the referendum was submitted or by any person subsequently becoming a new producer.

History. Enact. Acts 1992, ch. 347, § 9, effective July 14, 1992; 2008, ch. 8, § 9, effective July 15, 2008.

247.6931. Rules of referendum prescribed by Commissioner — Notice — Limit of assessment.

The date, hours, voting places, rules, and administrative regulations for the referendum shall be established and determined by the Commissioner and shall be published by the Commissioner through the medium of the public press in the Commonwealth of Kentucky at least thirty (30) days before the holding of the referendum, and direct written notice of the referendum shall also be given to each county or area agent in any county covered by the referendum. The notice shall also contain a statement of the amount of the assessment proposed to be levied, which assessment in any event shall not exceed one percent (1%) of the net marketed price per ovine or caprine animal, and shall also state the method by which the assessment shall be collected and how the proceeds shall be administered and the purposes to which the proceeds shall be applied, which purposes shall be in keeping with the provisions of KRS 247.6901 to 247.6957 .

History. Enact. Acts 1992, ch. 347, § 10, effective July 14, 1992; 2008, ch. 8, § 10, effective July 15, 2008.

247.6934. Ballots — Canvass and declaration of result.

The Commissioner shall prepare and distribute in advance of the referendum all necessary ballots and shall arrange for the necessary poll holders for conducting the referendum. Within ten (10) days following the referendum, the Commissioner shall canvass and publicly declare the result of the referendum.

History. Enact. Acts 1992, ch. 347, § 11, effective July 14, 1992; 2008, ch. 8, § 11, effective July 15, 2008.

247.6937. Effect of affirmative vote.

If, in the referendum called under the provisions of KRS 247.6901 to 247.6957 , a majority of the eligible producers who vote in the referendum vote in the affirmative and in favor of levying and collecting the assessment proposed in the referendum, the assessment shall be collected in the manner determined and announced by the association conducting the referendum.

History. Enact. Acts 1992, ch. 347, § 12, effective July 14, 1992; 2008, ch. 8, § 12, effective July 15, 2008.

247.6941. Notice of deduction required — Disposition of collections — Records.

  1. If a majority of the eligible producers in the referendum who vote in the referendum vote in favor of the assessment, the Commissioner shall notify, by certified mail, all persons engaged in the business of purchasing ovine or caprine animals in this state, that on and after the date specified in the letter, the specified assessment shall be deducted from the producer’s payment by the purchaser, or his agent or representative, from the net marketed price of the ovine or caprine animals.
  2. The assessment shall, on or before the fifteenth day of the month following the end of the month in which the ovine or caprine animals are sold to the purchaser, be remitted by the purchaser to the duly certified association which conducted the referendum.
  3. The books and records of all the purchasers of ovine or caprine animals shall at all times during regular business hours be open for inspection by the collection and compliance officer of the association which conducted the referendum, or the Commissioner or his duly authorized agents.

History. Enact. Acts 1992, ch. 347, § 13, effective July 14, 1992; 2008, ch. 8, § 13, effective July 15, 2008.

247.6944. Kentucky Sheep and Goat Council.

There is hereby established the Kentucky Sheep and Goat Council composed of four (4) members appointed by the certified association, two (2) members appointed by the Kentucky Farm Bureau Federation, Inc., and one (1) member appointed by the Commissioner. These appointments shall be for terms of two (2) calendar years and each appointing body shall promptly file with the Commissioner the names of its respective appointees.

History. Enact. Acts 1992, ch. 347, § 14, effective July 14, 1992; 2008, ch. 8, § 14, effective July 15, 2008.

247.6947. Use of assessment funds.

The funds, including donations from individuals, concerns, corporations, and grants from the state or governmental agencies, shall be used for the purpose of promoting and stimulating, by research, market development, and education, the increased use and sale, domestic and foreign, of ovine or caprine animals; and for the prevention, modification, or elimination of trade barriers which obstruct the free flow of ovine or caprine animals to market. None of these funds shall be used to lobby as defined in KRS 6.611 . The duly certified association receiving the assessment funds shall, upon the advice and consent of the Kentucky Sheep and Goat Council, use and disburse the funds as follows:

  1. The association may first refund to itself the costs and expenses incurred in the conduct of the referendum; and
  2. The association may spend or disburse the necessary funds for administrative costs and expenses as determined by the Kentucky Sheep and Goat Council, with the balance remaining to be used for the purposes provided in this section.

History. Enact. Acts 1992, ch. 347, § 15, effective July 14, 1992; 1993 (1st Ex. Sess.), ch. 4, § 69, effective September 16, 1993; 2008, ch. 8, § 15, effective July 15, 2008.

247.6951. Refunds.

If the referendum is carried in the affirmative and the assessment is levied and collected as provided, any producer upon and against whom the assessment has been levied and collected under the provisions of KRS 247.6901 to 247.6957 , if dissatisfied with the assessment and the result of the assessment, may demand of and receive from the treasurer of the certified association a refund of the assessment collected from the producer if the demand for refund is made in writing within thirty (30) days from the date on which the assessment is collected from the producer.

History. Enact. Acts 1992, ch. 347, § 16, effective July 14, 1992; 2008, ch. 8, § 16, effective July 15, 2008.

247.6954. Annual review of program — Termination.

  1. The board shall review the assessment program annually. If, at the end of each marketing year after the first marketing year of the assessment program, the board determines that twenty percent (20%) of the producers assessed have indicated their dissatisfaction with the program by demanding a refund of the assessment collected from them, the Commissioner shall conduct a referendum among the producers. If, upon the referendum, a majority of the eligible producers who vote in the referendum reject the program, it shall be terminated at the end of the marketing year in which the referendum was conducted; otherwise, the assessment program shall continue.
  2. If the duly certified association of ovine and caprine animal producers expresses in writing its desire to the Commissioner to discontinue the assessment program and terminate the program, the Commissioner shall within fifteen (15) days following receipt of the request convene the board to review and act on the request. The board, after reviewing the request and conducting whatever proceedings are deemed appropriate and necessary in connection with the request, may terminate the program effective at the end of the marketing year in which the board action is taken; and, in this event, the Commissioner shall notify, by certified mail, the purchasers of ovine and caprine animals affected by the termination of the program.

History. Enact. Acts 1992, ch. 347, § 17, effective July 14, 1992; 2008, ch. 8, § 17, effective July 15, 2008.

247.6957. Injunction against violations.

If, in the judgment of the board or the duly certified association, a purchaser has engaged in or is about to engage in any acts or practices that constitute a violation of any of the provisions of KRS 247.6901 to 247.6957 , the board or the duly certified association may make application to the Franklin Circuit Court for an order enjoining the act or acts or practices, and obtain a restraining order and preliminary injunction against the purchaser.

History. Enact. Acts 1992, ch. 347, § 18, effective July 14, 1992; 2008, ch. 8, § 18, effective July 15, 2008.

Burley Tobacco

247.710. Promotion of burley tobacco and burley tobacco products.

It is declared to be in the interest of the public welfare that Kentucky farmers who are producers of burley tobacco shall be permitted and encouraged to act jointly and in cooperation with all producers, handlers, dealers, and processors of burley tobacco in promoting and stimulating, by research, market development, and education, the increased production, use and sale, domestic and foreign, of burley tobacco and burley tobacco products.

History. Enact. Acts 1976, ch. 265, § 1.

Opinions of Attorney General.

KRS 247.710 to 247.785 is limited in scope to burley tobacco produced and sold in Kentucky by Kentucky farmers and thus is purely intrastate in scope and, therefore, tobacco produced in Kentucky but marketed out of the State and tobacco produced out of the State and marketed in Kentucky cannot be included in determining market quotas (checkoff) for assessment purposes under KRS 247.750 . OAG 76-452 .

247.715. Definitions for KRS 247.710 to 247.785.

As used in KRS 247.710 to 247.785 unless the context otherwise requires:

  1. “Association” means any commission, council, board, or other body;
  2. “Commissioner” means the Commissioner of Agriculture;
  3. “Board” means the State Board of Agriculture;
  4. “Producer” means every person who produces burley tobacco and thereafter causes the same to be marketed;
  5. “New producer” means a producer who was not engaged in the business of producing burley tobacco at the time a referendum was conducted in accordance with the provisions of KRS 247.710 to 247.785 ;
  6. “Person” means any individual, corporation, partnership, association, cooperative, or other business entity; and
  7. “Marketing quota” means each burley tobacco quota for which a marketing card is issued by the county agricultural stabilization conservation service office.

History. Enact. Acts 1976, ch. 265, § 2.

247.720. Association of producers not illegal.

No association meeting or activity undertaken in pursuance of the provisions of KRS 247.710 to 247.785 and intended to benefit all of the producers, handlers, and processors of burley tobacco shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 1976, ch. 265, § 3.

247.725. Producers may by referendum impose assessment on products.

It is hereby further declared to be in the public interest and highly advantageous to the agricultural economy of the state that producers of burley tobacco shall be permitted by referendum, to be held among such respective groups, and subject to the provisions of KRS 247.710 to 247.785 , to levy upon themselves an assessment on burley tobacco and provide for the collection of the same for the purpose of financing or contributing towards the financing of a program of research, market development and education to increase the domestic and foreign consumption, use, sale, and markets for burley tobacco and burley tobacco products.

History. Enact. Acts 1976, ch. 265, § 4.

247.730. Application by association for assessment — Forms.

  1. Any existing association which is fairly representative of burley tobacco in Kentucky, such as the Council for Burley Tobacco, may at any time after the enactment of KRS 247.710 to 247.785 make application to the State Board of Agriculture on forms prescribed by such board for certification and approval for the purpose of conducting a referendum among the producers of burley tobacco upon the question of levying an assessment under the provisions of KRS 247.710 to 247.785 , and collecting and utilizing the same for the purpose stated in such referendum. Such application forms shall include, but not be limited to, the following:
    1. Applicant’s name;
    2. Applicant’s address;
    3. Date;
    4. Program to be undertaken for producers;
    5. Brief statement of how the program is to be implemented;
    6. Referendum to be conducted on a statewide or area basis;
    7. Proposed effective date of the program;
    8. Geographic area, by counties, of producers to be affected by the program; and
    9. Signature of the applicant.
  2. Upon receipt of the application, the Commissioner shall publish the application through the medium of the public press in the state within ten (10) days of receipt thereof.

History. Enact. Acts 1976, ch. 265, § 5.

247.735. Certified association may hold referendum — Scope.

Upon being certified by the Commissioner of Agriculture, the association shall thereupon be fully authorized and empowered to hold and conduct on the part of the producers of burley tobacco a referendum on the question of whether or not such producers shall levy upon themselves an assessment under, and subject to, and for the purposes stated in KRS 247.710 to 247.785 . Such referendum may be conducted either on a statewide or area basis.

History. Enact. Acts 1976, ch. 265, § 6.

247.740. Referendum on area or statewide basis — Who may participate.

Any referendum conducted under the provisions of KRS 247.710 to 247.785 may be held either on an area or statewide basis, as may be determined by the duly certified association before the referendum is called; and such referendum, on an area or statewide basis, may be participated in by all burley tobacco producers, including owners of farms on which the burley tobacco is produced and tenants sharing in the proceeds of burley tobacco. In the referendum, individuals so eligible for participation shall vote upon the question of whether or not there shall be levied an assessment in the amount set forth in the call for the referendum.

History. Enact. Acts 1976, ch. 265, § 7.

247.745. Commissioner to supervise referendum — Expenses.

The manner, conduct, and management of any referendum held under the provisions of KRS 247.710 to 247.785 shall be under the supervision and direction of the Commissioner of Agriculture, and any and all expenses in connection therewith shall be borne by the association conducting the referendum.

History. Enact. Acts 1976, ch. 265, § 8.

247.750. Commissioner of Agriculture to determine polling places, details of assessment limits.

With respect to any referendum conducted under the provisions of KRS 247.710 to 247.785 , the Commissioner of Agriculture shall, before calling and announcing the referendum, fix, determine, and publicly announce at least thirty (30) days before the date determined for the referendum, the date, hours, and polling places for voting in the referendum, the effective date of the assessment, if adopted, the amount and basis of the assessment proposed to be collected, the means by which the assessment shall be collected if authorized by the producers, and the general purposes to which the amount so collected shall be applied. No assessment levied in any marketing year shall be less than fifty cents ($0.50) per marketing quota.

History. Enact. Acts 1976, ch. 265, § 9; 1990, ch. 257, § 1, effective July 13, 1990.

NOTES TO DECISIONS

1. Constitutionality of Referendum.

As a consequence of the disparity between the numbers of eligible producers voting in successive referenda required to adopt and to terminate or discontinue the assessment program, the votes of those producers who favor the assessment program is accorded substantially greater weight than votes of those persons in the same class of producers who are opposed to the program; thus the terms and conditions of KRS 247.780(1) effectively operate to deny the producers of burley tobacco who are opposed to an assessment program the equal protection of the law required by the Fourteenth Amendment to the Constitution of the United States, and the same contravenes Ky. Const., §§ 3 and 59; said subsection of the act is, therefore, discriminatory and void. Tabor v. Council for Burley Tobacco, Inc., 599 S.W.2d 466, 1980 Ky. App. LEXIS 319 (Ky. Ct. App. 1980).

Opinions of Attorney General.

KRS 247.710 to 247.785 is limited in scope to burley tobacco produced and sold in Kentucky by Kentucky farmers and thus is purely intrastate in scope and, therefore, tobacco produced in Kentucky but marketed out of the State and tobacco produced out of the State and marketed in Kentucky cannot be included in determining market quotas (checkoff) for assessment purposes under this section. OAG 76-452 .

247.755. Rules governing holding of referendum prescribed by Commissioner — Notice — Limit on assessment.

The hours, voting places, rules and regulations, and the area within which the referendum will be conducted shall be established and determined by the Commissioner of Agriculture; and referendum date, area, hours, voting places, rules and regulations with respect to the holding of the referendum shall be published by the Commissioner in accordance with the provisions of KRS Chapter 424. Direct written notice thereof shall likewise be given to each county or area agricultural extension agent in any county covered by the referendum. The notice shall contain a statement of the amount of the assessment proposed to be levied, and state the method by which the assessment shall be collected and how the proceeds thereof shall be administered and the purposes to which they shall be applied, which purposes shall be in keeping with the provisions of KRS 247.710 to 247.785 .

History. Enact. Acts 1976, ch. 265, § 10.

247.760. Preparation of question — Poll holders — Canvass and declaration of results.

The Commissioner of Agriculture shall prepare and distribute in advance of the referendum the question to be presented to the voters and shall arrange for the necessary poll holders for conducting the referendum. Following the referendum and within ten (10) days thereafter, the Commissioner shall canvass and publicly declare the result of the referendum.

History. Enact. Acts 1976, ch. 265, § 11; 1982, ch. 360, § 73, effective July 15, 1982.

247.765. Affirmative vote — Effect.

If, in such referendum called under the provisions of KRS 247.710 to 247.785 , a majority of the eligible producers in the area in which the referendum is conducted, who vote therein, shall vote in the affirmative and in favor of levying and collecting the assessment proposed in the referendum, then the assessment shall be collected in the manner determined and announced by the association conducting the referendum.

History. Enact. Acts 1976, ch. 265, § 12.

247.770. Notification to warehousemen, manufacturers and dealers of assessment — Remittance of assessment.

  1. In the event a majority of the eligible producers in the referendum who vote therein shall vote in favor of the assessment, then the Commissioner shall notify forthwith, by certified mail, every person licensed to operate a tobacco warehouse in the state, as well as every person who operates a tobacco manufacturing establishment and every tobacco dealer who buys burley tobacco directly from the producer, that on and after the date designated in the notice, which shall be not less than thirty (30) days nor more than sixty (60) days after the mailing of the notice by the Commissioner, the amount of the assessment shall be deducted by all sales markets or purchasers of burley tobacco or by their agents or representatives, from the purchase price paid the seller of burley tobacco.
  2. On or before the fifteenth day of each month all assessments deducted shall be remitted to the association certified by the assessment referendum.
  3. The books and records of all tobacco warehouses, tobacco manufacturers and tobacco dealer operators shall at reasonable times be open for inspection by the Commissioner or his duly authorized agents for the purpose of ascertaining the accuracy of the amounts remitted.

History. Enact. Acts 1976, ch. 265, § 13; 1980, ch. 114, § 51, effective July 15, 1980.

247.775. Refunds.

In the event the referendum is carried in the affirmative and the assessment is levied and collected as provided, any producer upon and against whom the assessment shall have been levied and collected under the provisions of KRS 247.710 to 247.785 , if dissatisfied with the assessment and the result thereof, shall have the right to demand of and receive from the treasurer of the certified association a refund of the assessment so collected from the producer; provided, the demand for refund is made in writing within thirty (30) days from the date on which the assessment is collected from the producer.

History. Enact. Acts 1976, ch. 265, § 14.

247.780. Annual review of program — Referendum required, when — Termination.

  1. The board shall review the assessment program annually. If, at the end of any year after the first year of the assessment program, the board has reason to believe that a majority of producers are not in favor of the program, the Commissioner may conduct a referendum among the producers in the area or if the board determines that fifty percent (50%) of the producers in the referendum area are not participating in the program, the Commissioner shall then conduct a referendum among the producers in the area. If, upon the referendum, a majority of the producers in the area reject the program, it shall be terminated as of the end of the month in which the referendum for the area was conducted and held; otherwise, such assessment program shall continue in force and effect.
  2. If the certified association of producers expresses in writing its desire to the Commissioner to discontinue the assessment program and terminate it, the Commissioner shall within fifteen (15) days following receipt of the request convene the board to review and act on the request. The board, after reviewing the request and conducting whatever proceedings are deemed appropriate and necessary in connection with the request, may terminate the program effective at the end of the month in which the board action is taken; and in this event the Commissioner shall notify by certified mail all operators of tobacco warehouses, tobacco manufacturers, or tobacco dealers of the termination of the program.
  3. If the certified association requests in writing to the Commissioner to hold a referendum on the question of increasing the assessment within the limits of KRS 247.710 to 247.785 , the Commissioner shall within fifteen (15) days of the receipt of the request convene the board to review and act on the request. The board, after reviewing the request and conducting whatever proceedings are deemed appropriate and necessary with the request, shall, if the request is approved, conduct a referendum in accordance with the provisions of KRS 247.710 to 247.785 .

History. Enact. Acts 1976, ch. 265, § 15; 1980, ch. 114, § 52, effective July 15, 1980.

NOTES TO DECISIONS

1. Constitutionality of Referendum.

As a consequence of the disparity between the numbers of eligible producers voting in successive referenda required to adopt and to terminate or discontinue the assessment program, the votes of those producers who favor the assessment program is accorded substantially greater weight than votes of those persons in the same class of producers who are opposed to the program; thus the terms and conditions of subsection (1) of this section effectively operate to deny the producers of burley tobacco who are opposed to an assessment program the equal protection of the law required by the Fourteenth Amendment to the Constitution of the United States, and the same contravenes Ky. Const., §§ 3 and 59; said subsection of the act is, therefore, discriminatory and void. Tabor v. Council for Burley Tobacco, Inc., 599 S.W.2d 466, 1980 Ky. App. LEXIS 319 (Ky. Ct. App. 1980).

247.785. Injunction against violations.

Whenever in the judgment of the board or the duly certified association, an operator of a tobacco warehouse, tobacco manufacturing establishment, or tobacco dealer has engaged in or is about to engage in any acts or practices that constitute a violation of any of the provisions of KRS 247.710 to 247.785 , the board or the duly certified association may make application to the Franklin Circuit Court for an order enjoining such act or practices and obtain a restraining order and preliminary injunction against the operator.

History. Enact. Acts 1976, ch. 265, § 16.

Assessment for Promotion of Pork Industry

247.7900. Definitions for KRS 247.7900 to 247.7928.

As used in KRS 247.7900 to 247.7928 , unless the context otherwise requires:

  1. “Association” means any commission, council, board, or other body;
  2. “Producer” means every person who produces and markets porcine animals; and
  3. “New producer” means a producer who was not engaged in the business of producing porcine animals at the time a referendum was conducted in accordance with the provisions of KRS 247.7900 to 247.7928 .

History. Enact. Acts 2004, ch. 2, § 1, effective July 13, 2004.

247.7902. Association of producers not illegal or in restraint of trade.

No association meeting or activity undertaken to carry out the provisions of KRS 247.7900 to 247.7928 and intended to benefit all of the producers, handlers, and processors of porcine animals shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 2004, ch. 2, § 2, effective July 13, 2004.

247.7904. Application for assessment referendum — Contents of form — Publication.

  1. Any existing association which is fairly representative of the porcine animal producers of Kentucky may at any time after the enactment of KRS 247.7900 to 247.7928 make application to the State Board of Agriculture on forms prescribed by the board for certification and approval for the purpose of conducting a referendum among the producers of porcine animals upon the question of levying an assessment under the provisions of KRS 247.7900 to 247.7928 , and for collecting and utilizing the assessment for the purpose stated in the referendum. The application forms shall include, but not be limited to, the following:
    1. Applicant’s name;
    2. Applicant’s address;
    3. Date;
    4. Program to be undertaken for producers;
    5. Brief statement of how the program is to be implemented;
    6. Referendum to be conducted on a statewide or areawide basis;
    7. Proposed effective date of the program;
    8. Geographic area, by counties, of producers to be affected by the program; and
    9. Signature of the applicant.
  2. The Commissioner shall publish the application through the medium of the public press in the state within ten (10) days of receipt of the application.

History. Enact. Acts 2004, ch. 2, § 3, effective July 13, 2004.

247.7906. Certified association authorized to hold referendum.

Upon being certified by the Commissioner, the association shall be fully authorized and empowered to hold and conduct on the part of the producers of porcine animals a referendum on the question of whether or not the producers shall levy upon themselves an assessment under, and subject to, and for the purposes stated in KRS 247.7900 to 247.7928 . The referendum may be conducted either on a statewide or areawide basis.

History. Enact. Acts 2004, ch. 2, § 4, effective July 13, 2004.

247.7908. Referendum on area or statewide basis — Participation eligibility.

Any referendum conducted under the provisions of KRS 247.7900 to 247.7928 may be held either on an areawide or statewide basis, as determined by the duly certified association before the referendum is called. The referendum may be participated in by all porcine animal producers, including owners of farms on which porcine animals are produced and tenants sharing in the proceeds of porcine animals. In the referendum, individuals eligible for participation shall vote upon the question of whether or not there shall be levied an assessment in the amount set forth in the call for the referendum.

History. Enact. Acts 2004, ch. 2, § 5, effective July 13, 2004.

247.7910. Supervision of referendum by Commissioner — Expenses.

The manner, conduct, and management of any referendum held under the provisions of KRS 247.7900 to 247.7928 shall be under the supervision and direction of the Commissioner, and all expenses in connection with the referendum shall be borne by the association conducting the referendum.

History. Enact. Acts 2004, ch. 2, § 6, effective July 13, 2004.

247.7912. Commissioner to determine date, hours, polling places for voting, and details of assessment — Uses and limitations of assessment.

  1. With respect to any referendum conducted under the provisions of KRS 247.7900 to 247.7928 , the Commissioner shall, before calling and announcing the referendum, fix, determine, and publicly announce at least thirty (30) days before the date determined for the referendum, the date, hours, and polling places for voting in the referendum, the effective date of the assessment, if adopted, the amount and basis of the assessment proposed to be collected, the means by which the assessment shall be collected if authorized by the producers, and the general purposes to which any amount collected shall be applied.
  2. Any assessment levied by any referendum conducted under the provisions of KRS 247.7900 to 247.7928 shall be used for the purpose of financing or contributing towards the financing of a program of research, market development, and education to increase the domestic and foreign consumption, use, sale, and markets for porcine animals and porcine animal products.
  3. No assessment levied by any referendum conducted under the provisions of KRS 247.7900 to 247.7928 shall exceed fifty cents ($0.50) per hundred dollars ($100) worth of sales on porcine animals marketed in the state by any producer included in the group to which the referendum was submitted or by any person subsequently becoming a new producer in the area in which the referendum was held.

History. Enact. Acts 2004, ch. 2, § 7, effective July 13, 2004.

247.7914. Effect of federal law on KRS 247.7900 to 247.7928.

  1. No assessment levied under KRS 247.7912 shall be effective as long as the Federal Pork Promotion, Research, and Consumer Information Act of 1985 is in effect.
  2. If the federal act is terminated or suspended, any assessment levied under KRS 247.7912 shall become effective and shall be collected and utilized according to the provisions of KRS 247.7900 to 247.7928 .

History. Enact. Acts 2004, ch. 2, § 8, effective July 13, 2004.

Research References and Practice Aids

Cross-References.

The Federal Pork Promotion, Research, and Consumer Information Act of 1985, referred to in this section, is compiled at 7 USCS §§ 4801, et seq.

247.7916. Rules governing holding of referendum prescribed by Commissioner — Notice.

The hours, voting places, rules and regulations, and the area within which the referendum will be conducted shall be established and determined by the Commissioner. The referendum date, area, hours, voting places, and rules and regulations with respect to the holding of the referendum shall be published by the Commissioner through the medium of the public press in the Commonwealth of Kentucky at least thirty (30) days before the holding of the referendum, and direct written notice shall also be given to each county or area agricultural extension agent in any county covered by the referendum. The notice shall also contain a statement of the amount of the assessment proposed to be levied, and shall state the method by which the assessment shall be collected and how the proceeds from the assessment shall be administered and the purposes to which the proceeds shall be applied, which purposes shall be in keeping with the provisions of KRS 247.7900 to 247.7928 .

History. Enact. Acts 2004, ch. 2, § 9, effective July 13, 2004.

247.7918. Preparation of question — Poll holders — Canvass and declaration of results.

The Commissioner shall prepare and distribute in advance of the referendum the question to be presented to the voters and shall arrange for the necessary poll holders for conducting the referendum. Within ten (10) days following the referendum, the Commissioner shall canvass and publicly declare the result of the referendum.

History. Enact. Acts 2004, ch. 2, § 10, effective July 13, 2004.

247.7920. Effect of affirmative vote.

If, in the referendum called under the provisions of KRS 247.7900 to 247.7928 , a majority of the eligible producers in the area in which the referendum is conducted, who vote in the referendum, vote in the affirmative and in favor of levying and collecting the assessment proposed in the referendum, then the assessment shall be collected in the manner determined and announced by the association conducting the referendum.

History. Enact. Acts 2004, ch. 2, § 11, effective July 13, 2004.

247.7922. Notice of deduction required — Disposition of collections — Records.

  1. If a majority of the eligible producers who vote in the referendum vote in favor of the assessment, then the Commissioner shall notify by certified mail every person licensed to operate a livestock market in the state, and every person who operates a meat packing or slaughter establishment which buys porcine animals directly from the producer, that on and after the date designated in the notice, which shall be not less than thirty (30) days nor more than sixty (60) days after the mailing of the notice by the Commissioner, the amount of the assessment shall be deducted by all sales markets or purchasers of porcine animals, or by their agents or representatives, from the purchase price paid the seller of porcine animals.
  2. On or before the fifteenth day of each month, all assessments deducted shall be remitted to the association certified by the assessment referendum, less three percent (3%) which may be retained to compensate the livestock market operator, meat packer, or slaughter establishment operator for the expense of collecting and remitting the assessment.
  3. The books and records of all livestock market operators, meat packers, and slaughter establishment operators shall at all times during regular business hours be open for inspection by the Commissioner or his duly authorized agents for the purpose of ascertaining the accuracy of the amounts remitted.

History. Enact. Acts 2004, ch. 2, § 12, effective July 13, 2004.

247.7924. Refund of assessment collected from producer.

If the referendum is carried in the affirmative and the assessment is levied and collected as provided, any producer upon and against whom the assessment has been levied and collected under the provisions of KRS 247.7900 to 247.7928 , if dissatisfied with the assessment and the result of the assessment, shall have the right to demand of and receive from the treasurer of the certified association a refund of the assessment collected from the producer if the demand for refund is made in writing within thirty (30) days from the date on which the assessment is collected from the producer.

History. Enact. Acts 2004, ch. 2, § 13, effective July 13, 2004.

247.7926. Annual review of assessment program — Referendum required, when — Termination of program.

  1. The board shall review the assessment program annually. If, at the end of each year after the first year of the assessment program, the board determines that fifty percent (50%) of the producers in the referendum area are not participating in the program, the Commissioner shall then conduct a referendum among the producers in the area. If, after holding the referendum, a majority of the producers in the area reject the program, it shall be terminated as of the end of the month in which the referendum for the area was conducted and held; otherwise, the assessment program shall continue in effect.
  2. If the certified association of producers expresses in writing its desire to the Commissioner to discontinue the assessment program and terminate the program, the Commissioner shall, within fifteen (15) days following receipt of the request, convene the board to review and act on the request. The board, after reviewing the request and conducting whatever proceedings are deemed appropriate and necessary in connection with the request, may terminate the program effective at the end of the month in which the board action is taken. If the program is terminated, the Commissioner shall notify, by certified mail, all operators of a livestock market, meat packing establishment, or slaughter establishment of the termination of the program.
  3. If the certified association requests the Commissioner, in writing, to hold a referendum on the question of increasing the assessment within the limits of KRS 247.7900 to 247.7928 , the Commissioner shall, within fifteen (15) days of the receipt of the request, convene the board to review and act on the request. The board, after reviewing the request and conducting whatever proceedings are deemed appropriate and necessary with the request, shall, if the request is approved, conduct a referendum in accordance with the provisions of KRS 247.7900 to 247.7928 .

History. Enact. Acts 2004, ch. 2, § 14, effective July 13, 2004.

247.7928. Injunction against violations.

If, in the judgment of the board or the duly certified association, an operator of a livestock market, meat packing establishment, or slaughter establishment has engaged in or is about to engage in any acts or practices that constitute a violation of any of the provisions of KRS 247.7900 to 247.7928 , the board or the duly certified association may make application to the Franklin Circuit Court for an order enjoining the act, or acts, or practices and obtain a restraining order and preliminary injunction against the operator.

History. Enact. Acts 2004, ch. 2, § 15, effective July 13, 2004.

Agritourism

247.800. Agritourism Program — Purposes.

The Department of Agriculture, in conjunction with the Tourism, Arts and Heritage Cabinet, shall create an interagency agritourism program to be housed in the Office of Agricultural Marketing in the Department of Agriculture. It shall be the purpose of the agritourism program to:

  1. Promote agritourism in Kentucky to potential visitors, both national and international; and
  2. Assist in sustaining the viability and growth of the agritourism industry in Kentucky.

HISTORY: Enact. Acts 2002, ch. 250, § 1, effective July 15, 2002; 2004, ch. 88, § 3, effective July 13, 2004; 2005, ch. 26, § 2, effective June 20, 2005; 2005, ch. 95, § 48, effective June 20, 2005; 2009, ch. 16, § 63, effective June 25, 2009; 2012, ch. 100, § 4, effective July 12, 2012; 2018 ch. 3, § 4, effective July 14, 2018.

247.801. Definitions for KRS 247.800 to 247.810.

As used in KRS 247.800 to 247.810 :

  1. “Agritourism” means the act of visiting:
    1. A farm or ranch; or
    2. Any agricultural, horticultural, or agribusiness operation;

      for the purpose of enjoyment, education, or active involvement in the activities of the farm, ranch, or operation;

  2. “Agritourism activity” means any activity that:
    1. Is carried out on a farm, ranch, agricultural operation, horticultural operation, or agribusiness operation; and
    2. Allows or invites participants to view or participate in activities for recreational, entertainment, or educational purposes. Qualifying activities may include farming, ranching, historic, cultural, civic, or ceremonial activities, including but not limited to weddings and ancillary events; harvest-your-own operations; farmers” markets; or natural resource-based activities. The activities may qualify as agritourism activities whether or not a participant pays to view or to participate in the activity;
  3. “Agritourism building” means any building or structure or any portion thereof that is used for one (1) or more agritourism activities;
  4. “Agritourism professional” means any person, including employees or authorized agents acting on behalf of the agritourism professional, who is engaged in the business of providing one (1) or more agritourism activities;
  5. “Inherent risks of agritourism activity” means those dangers or conditions that are an integral part of an agritourism activity, including certain hazards, such as surface or subsurface conditions; natural conditions of land, vegetation, or water; the behavior of wild or domestic animals; and the ordinary dangers of structures or equipment used in farming and ranching operations; and
  6. “Participant” means any person, other than the agritourism professional, who engages in an agritourism activity.

HISTORY: Enact. Acts 2012, ch. 100, § 1, effective July 12, 2012; 2017 ch. 185, § 2, effective June 29, 2017.

247.802. Duties of Office of Agritourism.

The Office of Agritourism shall perform all duties necessary to carry out the purposes of KRS 247.800 to 247.810 , including but not limited to:

  1. Within the first year of its creation, developing a statewide master plan for implementation of KRS 247.800 and this section. The Office of Agritourism shall report on the plan to the Agritourism Advisory Council at the request of the council;
  2. Developing a unified Kentucky agritourism marketing strategy between the Department of Agriculture and the Tourism, Arts and Heritage Cabinet to promote Kentucky agritourism. The strategy shall include but not be limited to promotion of Kentucky agritourism through the creation of an agritourism Web site and advertisement through various media outlets;
  3. Coordinating efforts to educate the general public about the importance of Kentucky’s agricultural heritage and industry;
  4. Developing regional agritourism development plans for each of the nine (9) tourism regions as follows:
    1. Bluegrass;
    2. Cave;
    3. Green River;
    4. Eastern Highlands-North;
    5. Eastern Highlands-South;
    6. Louisville-Lincoln;
    7. Northern Kentucky;
    8. Southern Lakes and Rivers; and
    9. Western Lakes and Rivers;
  5. Providing support, education, and resource materials for all interested persons, to include but not be limited to existing Kentucky agritourism businesses, displaced tobacco farmers and others engaged in agribusiness within the state, and other Kentuckians with the intent of developing an agritourism business. The agritourism office shall provide this assistance in the following areas, to include but not be limited to:
    1. Agritourism opportunities, networks, product development, and entrepreneurship;
    2. Agritourism funding opportunities, including but not limited to grants, loans, and partnerships; and
    3. Insurance and infrastructure concerns of the agritourism industry;
  6. Working and partnering with federal, state, and local organizations to carry out the purposes of KRS 247.800 to 247.810 ;
  7. Reporting to the Agritourism Advisory Council, as created in KRS 247.804 , annually or at the request of the chair, and in accordance with subsection (1) of this section; and
  8. Considering the recommendations of the Agritourism Advisory Council, in accordance with KRS 247.806(2).

History. Enact. Acts 2002, ch. 250, § 2, effective July 15, 2002; 2005, ch. 95, § 49, effective June 20, 2005; 2009, ch. 16, § 64, effective June 25, 2009.

247.804. Agritourism Advisory Council — Membership.

An Agritourism Advisory Council shall be established within the Department of Agriculture to advise and assist the Office of Agritourism. The Agritourism Advisory Council shall be composed of:

  1. One (1) representative from each of the following entities:
    1. Department of Agriculture, appointed by the Commissioner of Agriculture;
    2. Tourism, Arts and Heritage Cabinet, appointed by the secretary of the cabinet;
    3. Education and Workforce Development Cabinet, appointed by the secretary of the cabinet;
    4. Department of Fish and Wildlife Resources Commission, appointed by the commissioner of the department;
    5. University of Kentucky Cooperative Extension Service;
    6. Kentucky Tourism Council;
    7. Kentucky Farm Bureau;
    8. Kentucky Association of Fairs and Horse Shows;
    9. Southern and Eastern Kentucky Tourism Development Association;
    10. Licking River Valley Resource Conservation and Development Council;
    11. Buffalo Trace Covered Bridge Authority;
    12. Kentucky Chamber of Commerce;
    13. Kentucky Council of Area Development Districts; and
    14. Jackson Purchase Resource Conservation and Development Foundation, Inc.;
  2. The Governor, or a designee;
  3. Two (2) members of the General Assembly who hold an interest in agriculture, one (1) appointed by the President of the Senate and one (1) appointed by the Speaker of the House of Representatives; and
  4. Nine (9) representatives of agriculture or the agritourism industry, appointed by the Commissioner of Agriculture from a list of candidates compiled by the tourism regions as set forth in KRS 247.802(4). Each tourism region shall submit three (3) candidates with a business interest in agritourism who reside within that region, and the Commissioner shall appoint one (1) candidate from each region from those names submitted.

History. Enact. Acts 2002, ch. 250, § 3, effective July 15, 2002; 2005, ch. 95, § 50, effective June 20, 2005; 2006, ch. 66, § 1, effective July 12, 2006; 2006, ch. 211, § 126, effective July 12, 2006; 2009, ch. 11, § 64, effective June 25, 2009; 2009, ch. 16, § 65, effective June 25, 2009.

Legislative Research Commission Note.

(6/25/2009). This section was amended by 2009 Ky. Acts chs. 11 and 16, which do not appear to be in conflict and have been codified together.

247.806. Duties of Agritourism Advisory Council.

The duties of the Agritourism Advisory Council shall include but not be limited to the following:

  1. Review and make recommendations on the development of the statewide master plan, based upon the report from the Office of Agritourism in accordance with KRS 247.802(1); and
  2. Make recommendations to redirect the duties of the Office of Agritourism as necessary, in keeping with the office’s purposes stated in KRS 247.800 .

History. Enact. Acts 2002, ch. 250, § 4, effective July 15, 2002.

247.808. Appointment of members of Agritourism Advisory Council — Chair — Meetings — Vacancies — Compensation.

  1. Members of the Agritourism Advisory Council shall be appointed for four (4) year terms. Sitting members shall be eligible for reappointment.
  2. The Agritourism Advisory Council shall elect a chair and vice chair from its membership.
  3. The Agritourism Advisory Council shall meet annually or at the request of the chair. A quorum of the council shall consist of fourteen (14) members, and a majority of members present at any duly called meeting may act upon any matter before it for consideration.
  4. In the event of a vacancy, the appropriate appointing entity may appoint a replacement member who shall hold office during the remainder of the term so vacated.
  5. Members of the Agritourism Advisory Council shall serve without compensation.

History. Enact. Acts 2002, ch. 250, § 5, effective July 15, 2002; 2012, ch. 100, § 5, effective July 12, 2012.

247.809. Liability of agritourism professionals — Protection — Defenses — Damages.

  1. Except as provided in subsection (2) of this section:
    1. An agritourism professional is not liable for injury to or death of a participant resulting exclusively from the inherent risks of agritourism activities, so long as:
      1. The warning contained in KRS 247.8091 is posted as required; or
      2. The agritourism professional has a signed release from the participant indicating that the participant has received written notice of the warning contained in KRS 247.8091 ; and
    2. No participant or participant’s representative can maintain an action against or recover from an agritourism professional for injury, loss, damage, or death of the participant resulting exclusively from any of the inherent risks of agritourism activities. In any action for damages against an agritourism professional for agritourism activities, the agritourism professional shall plead the affirmative defense of assumption of the risk of agritourism activities by the participant.
  2. Nothing in subsection (1) of this section prevents or limits the liability of an agritourism professional if the agritourism professional:
    1. Commits an act or omission that constitutes negligence or willful or wanton disregard for the safety of the participant, and that act or omission proximately causes injury, loss, damage, or death to the participant; or
    2. Has actual knowledge or reasonably should have known of:
      1. A dangerous condition on the land, facilities, or equipment used in the activity; or
      2. The dangerous propensity of a particular animal used in the activity;

        and does not make the danger known to the participant, and the danger proximately causes injury, loss, damage, or death to the participant.

  3. Any limitation on legal liability afforded by this section to an agritourism professional is in addition to any other limitations of legal liability otherwise provided by law.

History. Enact. Acts 2012, ch. 100, § 2, effective July 12, 2012.

247.8091. Warning notices to be posted where agritourism activities are conducted.

  1. Every agritourism professional shall post and maintain signs that contain the warning notice specified in subsection (2) of this section. The signs shall be placed in a clearly visible location at the entrance to the agritourism location and at the site of the agritourism activity. The warning notice shall consist of a sign in black letters, with each letter to be a minimum of one (1) inch in height. Every written contract entered into by an agritourism professional for the provision of professional services, instruction, or the rental of equipment to a participant, whether or not the contract involves agritourism activities on or off the location or at the site of the agritourism activity, shall contain in clearly readable print the warning notice specified in subsection (2) of this section.
  2. The signs and contracts described in subsection (1) of this section shall contain the following notice of warning:

    “WARNING

    Under Kentucky law, there is no liability for an injury to or death of a participant in an agritourism activity conducted at this agritourism location if the injury or death results exclusively from the inherent risks of the agritourism activity and in the absence of negligence. You are assuming the risk of participating in this agritourism activity.”

  3. Failure to comply with the requirements concerning warning signs and notices provided in this section shall prevent an agritourism professional from invoking the privileges of immunity provided by KRS 247.809 .

History. Enact. Acts 2012, ch. 100, § 3, effective July 12, 2012.

247.810. Administrative regulations relating to KRS 247.800 to 247.810.

The Commissioner of Agriculture and the secretary of the Tourism, Arts and Heritage Cabinet shall promulgate administrative regulations in accordance with KRS Chapter 13A, as necessary to implement the provisions of KRS 247.800 to 247.810 .

History. Enact. Acts 2002, ch. 250, § 6, effective July 15, 2002; 2005, ch. 95, § 51, effective June 20, 2005; 2009, ch. 16, § 66, effective June 25, 2009.

Assessment for Promotion of Egg Industry

247.850. Purpose.

It is declared to be in the interest of the public welfare that all handlers, dealers, processors, wholesalers, and retailers of eggs shall be permitted and encouraged to act jointly in promoting and stimulating the increased production, use and sale, domestic and foreign, of eggs through research, market development, and education.

History. Enact. Acts 1980, ch. 120, § 1, effective July 15, 1980.

247.851. Definitions for KRS 247.852 to 247.865.

As used in KRS 247.852 to 247.865 unless the context otherwise requires:

  1. “Board” means the State Board of Agriculture;
  2. “Commissioner” means the Commissioner of Agriculture;
  3. “Dealer” means a person, organization, or cooperative engaged in the business of buying eggs from producers, either on his own account or as an agent, and selling or transferring eggs by the case to a wholesaler, processor, retailer, or other person;
  4. “Handler” means a dealer, processor, or wholesaler;
  5. “Person” means any individual, firm, partnership, corporation, company, or association, and shall include any trustee, receiver or similar representative;
  6. “Processor” means a person who operates a plant for the purpose of breaking eggs for freezing or drying;
  7. “Retailer” means any person selling or offering for sale eggs to consumers in this state; and
  8. “Wholesaler” means a person who assembles eggs in case lots and disposes of them in quantities to retailers, or through other distribution channels.

History. Enact. Acts 1980, ch. 120, § 2, effective July 15, 1980.

247.852. Activity not deemed restraint of trade.

No association meeting or activity undertaken in pursuance of the provisions of KRS 247.850 to 247.865 and intended to benefit all of the producers, retailers, and handlers of eggs shall be deemed or considered illegal or in restraint of trade.

History. Enact. Acts 1980, ch. 120, § 3, effective July 15. 1980.

247.853. Referendum levying assessment.

It is hereby further declared to be in the public interest and highly advantageous to the agricultural economy of the state that handlers of eggs shall be permitted by referendum to be held subject to the provisions of KRS 247.850 to 247.865 to levy upon themselves an assessment on eggs and provide for the collection of the same for the purpose of financing or contributing towards the financing of a program of research, market development, and education to increase the domestic and foreign consumption, use, sale and markets for eggs.

History. Enact. Acts 1980, ch. 120, § 4, effective July 15, 1980.

247.854. Application for assessment referendum — Contents of form — Publication.

  1. Any existing association which is fairly representative of the handlers of eggs in the state, such as the Kentucky Poultry Federation, Inc., may at any time after the enactment of KRS 247.850 to 247.865 make application to the State Board of Agriculture on forms prescribed by the board for certification and approval for the purpose of conducting a referendum among the handlers of eggs upon the question of levying an assessment under the provisions of KRS 247.850 to 247.865 and collecting and utilizing the same for the purpose stated in the referendum. Such application forms shall include, but not be limited to, the following:
    1. Applicant’s name;
    2. Applicant’s address;
    3. Date;
    4. Program to be undertaken for producers, retailers, and handlers;
    5. Brief statement of how the program is to be implemented;
    6. Referendum to be conducted on a statewide or an area basis;
    7. Proposed effective date of the program;
    8. Geographic area, by counties, of handlers to be affected by the program; and
    9. Signature of the applicant.
  2. Upon receipt of the application, the commissioner shall publish the application through the medium of the public press in the state within ten (10) days of receipt thereof.

History. Enact. Acts 1980, ch. 120, § 5, effective July 15, 1980.

247.855. Certified association authorized to hold referendum.

Upon being so certified by the Commissioner of Agriculture, the association shall thereupon be fully authorized and empowered to hold and conduct on the part of the handlers of eggs a referendum on the question of whether or not such handlers shall levy upon themselves an assessment under, and subject to, and for the purpose stated in KRS 247.850 to 247.865 . Such referendum may be conducted either on a statewide or an area basis.

History. Enact. Acts 1980, ch. 120, § 6, effective July 15, 1980.

247.856. Referendum on area or statewide basis — Participation eligibility.

Any referendum conducted under the provisions of KRS 247.850 to 247.865 may be held either on an area or a statewide basis, as may be determined by such duly certified association before the referendum is called; and the referendum on an area or a statewide basis, may be participated in by all handlers of eggs. In the referendum, individuals so eligible for participation shall vote upon the question of whether or not there shall be levied an annual assessment in the amount set forth in the call for the referendum.

History. Enact. Acts 1980, ch. 120, § 7, effective July 15, 1980.

247.857. Supervision of referendum by Commissioner — Expenses.

The manner, conduct and management of any referendum held under the provisions of KRS 247.850 to 247.865 shall be under the supervision and direction of the Commissioner of Agriculture, and any and all expenses in connection therewith shall be borne by the association conducting the referendum.

History. Enact. Acts 1980, ch. 120, § 8, effective July 15, 1980.

247.858. Commissioner to determine date, hours, polling places for voting and details of assessment — Limits.

With respect to any referendum conducted under the provisions of KRS 247.850 to 247.865 , the Commissioner of Agriculture shall, before calling and announcing the referendum, fix, determine and publicly announce at least thirty (30) days before the date determined for the referendum, the date, hours and polling places for voting in the referendum, the effective date of the assessment, if adopted, the amount and basis of the assessment proposed to be collected, the means by which such assessment shall be collected if authorized by the handlers, and the general purposes to which the amount so collected shall be applied. No assessment levied under the provisions of any referendum shall exceed one cent ($0.01) for each fifteen (15) dozen lot of eggs or portion thereof bought or sold by a handler.

History. Enact. Acts 1980, ch. 120, § 9, effective July 15, 1980.

247.859. Details of and rules governing referendum prescribed by Commissioner — Notice.

The hours, voting places, rules and regulations, and the area within which the referendum will be conducted shall be established and determined by the Commissioner of Agriculture. The said referendum date, area, hours, voting places, and rules and regulations with respect to the holding of the referendum shall be published by the Commissioner through the medium of the public press in the state at least thirty (30) days before holding the referendum, and direct written notice thereof shall likewise be given to each county or area agent in any county covered by the referendum. Such notice shall likewise contain a statement of the amount of the assessment proposed to be levied, which assessment in any event shall not exceed one cent ($0.01) for each fifteen (15) dozen lot of eggs or portion thereof bought or sold by a handler, and shall likewise state the method by which such assessment shall be collected and how the proceeds thereof shall be administered and the purposes to which the same shall be applied, which purposes shall be in keeping with the provisions of KRS 247.850 to 247.865 .

History. Enact. Acts 1980, ch. 120, § 10, effective July 15, 1980.

247.860. Preparation of question — Poll holders — Canvass and declaration of results.

The Commissioner shall likewise prepare and distribute in advance of the referendum the question to be presented to the voters and shall arrange for the necessary poll holders for conducting the referendum. Following the referendum and within ten (10) days thereafter, the Commissioner shall canvass and publicly declare the result of the referendum.

History. Enact. Acts 1980, ch. 120, § 11, effective July 15, 1980; 1982, ch. 360, § 74, effective July 15, 1982.

247.861. Effect of affirmative vote.

If, in the referendum called under the provisions of KRS 247.850 to 247.865 , a majority of the eligible handlers in the area in which the referendum is conducted, who vote therein, shall vote in the affirmative and in favor of levying and collecting the assessment proposed in the referendum, then such assessment shall be collected in the manner determined and announced by the association conducting the referendum.

History. Enact. Acts 1980, ch. 120, § 12, effective July 15, 1980.

247.862. Notice as to deduction required — Use of funds collected — Records to be open for inspection.

In the event a majority of the eligible handlers in the referendum who vote therein shall vote in favor of the assessment, then the Commissioner shall notify forthwith, by registered or certified mail, all handlers of eggs engaged in the business of purchasing or selling eggs in this state, that on and after the date specified in such letter, the specified assessment shall be in effect. The assessment shall, on or before the fifteenth day of the month following the end of the month in which the handler purchased or sold eggs, be remitted to the duly certified association which conducted the referendum. Such funds, including donations from individuals, concerns, corporations and grants from state or governmental agencies, shall be used for the purpose of promoting and stimulating by advertising, research and other methods the increased production, use and sale, domestic and foreign, of eggs. The books and records of all handlers shall at all times be open for inspection by the Commissioner or his duly authorized agents during regular business hours.

History. Enact. Acts 1980, ch. 120, § 13, effective July 15, 1980.

247.863. Refund of assessment collected.

In the event the referendum is carried in the affirmative and the assessment is levied and collected as provided, any handler upon and against whom such assessment shall have been levied and collected under the provisions of KRS 247.850 to 247.865 , if dissatisfied with said assessment and the result thereof, shall have the right to demand of and receive from the treasurer of the certified association a refund of the assessment collected; provided, such demand for refund is made in writing within thirty (30) days from the date on which the assessment is collected from the handler.

History. Enact. Acts 1980, ch. 120, § 14, effective July 15, 1980.

247.864. Annual review of assessment program — Termination of program.

  1. The board shall review the assessment program annually. If, at the end of each year after the first year of the assessment program, the board determines that there is dissatisfaction with the program, the Commissioner shall then conduct a referendum among the handlers in the area. If upon the referendum, a majority of the handlers voting in the area reject the program, it shall be terminated at the end of the year in which the referendum for the area was conducted; otherwise, the assessment program shall continue in force and effect.
  2. If the duly certified association expresses in writing its desire to the Commissioner to discontinue the assessment program and terminate the program, the Commissioner shall within fifteen (15) days following receipt of the request convene the board to review and act on the request. The board, after reviewing the request and conducting whatever proceedings are deemed appropriate and necessary in connection with the request, may terminate the program effective at the end of the year in which the board action is taken; and, in this event, the Commissioner shall notify, by registered or certified mail, the handlers affected thereby of the termination of the program.

History. Enact. Acts 1980, ch. 120, § 15, effective July 15, 1980.

247.865. Injunction against violations.

Whenever in the judgment of the board or the duly certified association, a handler has engaged in or is about to engage in any acts or practices that constitute a violation of any of the provisions of KRS 247.850 to 247.864 , the board or the duly certified association may make application to the Franklin Circuit Court for an order enjoining such act, or acts or practices and obtain a restraining order and preliminary injunction against the handler.

History. Enact. Acts 1980, ch. 120, § 16, effective July 15, 1980.

Ratite Birds

247.870. Definition of “ratite” — Status of ratites as farm products and livestock.

  1. “Ratite” means members of a family of birds which have no keel and cannot fly. It includes ostriches, emus, rheas, kiwis, and cassowaries.
  2. Ratites are raised for the purpose of producing feathers, meat, hide, animal by-products, and breeding stock.
  3. Ratites and their products are farm products and livestock for purposes of financial transactions and collateral.
  4. Ratites are livestock and are not wild animals for purposes of hunting and wildlife laws.

History. Enact. Acts 1994, ch. 68, § 1, effective July 15, 1994.

Research References and Practice Aids

Cross-References.

Administrative regulations relating to health and disease control of ratites, KRS 257.315 .

Taxation of ratites for state purposes only, KRS 132.200 .

Sales and use taxes, exemption of ratites, KRS 139.480 .

Gasohol Production

247.900. Legislative purpose.

It is declared to be in the interest of the public welfare that Kentucky farmers who are producers of grain which may be fermented to produce ethanol to be mixed with gasoline to make the fuel known as gasohol shall be permitted and encouraged to act jointly and in cooperation with all producers, handlers, dealers, and processors of grain in promoting and stimulating, by research, market development, and education, the increased production, use and sale, domestic and foreign, of grain for the aforementioned purpose of gasohol production.

History. Enact. Acts 1980, ch. 210, § 1, effective July 15, 1980.

247.910. Definitions.

For purposes of KRS 247.900 to 247.920 :

  1. “Alcohol production facility” shall mean and include any property or any facility which is not fueled by petroleum but fueled by Kentucky coal, or in the process of converting to the use of coal with the completion date to be in two (2) years or less, and designed, installed, or constructed as a component part of any commercial or industrial premises for the primary purpose of producing ethanol derived from agricultural products or by-products for use as a motor fuel;
  2. “Gasohol” means a fuel containing a mixture of gasoline and at least ten percent (10%) ethanol which is at least one hundred ninety-eight (198) proof for use in motor vehicles;
  3. “Alcohol production tax exemption certificate” shall mean that certificate issued by the Department of Revenue pursuant to KRS 247.920 ; and
  4. “Ethanol” means ethyl alcohol produced from grain or other agricultural products or by-products for use as a motor fuel.

History. Enact. Acts 1980, ch. 210, § 2, effective July 15, 1980; 1986, ch. 331, § 40, effective July 15, 1986; 1990, ch. 325, § 33, effective July 13, 1990; 2005, ch. 85, § 662, effective June 20, 2005.

247.920. Alcohol production exemption certificate.

  1. Application for an alcohol production exemption certificate shall be filed with the Department of Revenue in such manner and in such form as may be prescribed by regulations issued by the Department of Revenue and shall contain plans and specifications of the structure or structures including all materials incorporated and to be incorporated therein and a descriptive list of all equipment acquired or to be acquired by the applicant for the purpose of producing ethanol for fuel use and any additional information deemed necessary by the Department of Revenue for the proper administration of KRS 247.910 and this section. The Office of Energy Policy shall provide technical assistance and factual information as requested in writing by the Department of Revenue. If the Department of Revenue finds that the facility qualifies as an alcohol production facility as defined by KRS 247.910 , it shall enter a finding and issue a certificate to that effect. The effective date of the certificate shall be the date of issuance of the certificate.
  2. Before issuing an alcohol production tax exemption certificate, the Department of Revenue shall give notice in writing by mail to the Office of Energy Policy, and shall afford to the applicant and to the Office of Energy Policy an opportunity for a hearing. On like notice and opportunity for a hearing, the Department of Revenue shall on its own initiative revoke the certificate when any of the following appears:
    1. The certificate was obtained by fraud or misrepresentation;
    2. The holder of the certificate has failed substantially to proceed with the construction, reconstruction, installation, or acquisition of the alcohol production facilities; or
    3. The structure or equipment or both to which the certificate relates has ceased to be used for the primary purpose of alcohol production for fuel use and is being used for a different purpose.
  3. If the circumstances so require, the Department of Revenue, in lieu of revoking the certificate, may modify it.
  4. On mailing of notice of the action of the Department of Revenue revoking or modifying a certificate as provided in subsection (5) of this section, the certificate shall cease to be in force or shall remain in force only as modified as the case may require.
  5. An alcohol production tax exemption certificate, when issued, shall be sent by certified mail to the applicant and the notice of issuance in the form of certified copies thereof shall be sent to the Office of Energy Policy. Notice of an order of the Department of Revenue denying, revoking, or modifying a certificate in the form of certified copies thereof shall be sent by certified mail to the applicant or the holder and shall be sent to the Office of Energy Policy. The applicant or holder and the Office of Energy Policy shall be deemed parties for the purpose of the review afforded by subsection (6) of this section.
  6. Any party aggrieved by the issuance, refusal to issue, revocation, or modification of an alcohol production tax exemption certificate may appeal from the final ruling of the Department of Revenue to the Kentucky Claims Commission pursuant to KRS 49.220 .
  7. In the event of the sale, lease, or other transfer of an alcohol production facility, not involving a different location or use, the holder of an alcohol production tax exemption certificate for the facility may transfer the certificate by written instrument to the person who, except for the transfer of the certificate, would be obligated to pay taxes on the facility. The transferee shall become the holder of the certificate and shall have all rights pertaining thereto, effective as of the date of transfer of the certificate. The transferee shall give written notice of the effective date of the transfer, together with a copy of the instrument of transfer to the Office of Energy Policy and the Department of Revenue.
  8. In the event an alcohol production facility for which an exemption certificate is held ceases to be used for the primary purpose of alcohol production for fuel use or is used for a different purpose other than that for which the exemption certificate was granted, the holder of the certificate shall give written notice by certified mail of the change to the Office of Energy Policy and to the Department of Revenue.
  9. The alcohol production facility exemption certificate, upon approval, shall exempt said facilities from taxes outlined in the provisions of KRS 247.910 and this section and included in KRS Chapters 132, 136, 138, and 139. Each exemption certificate shall remain in force for a period of eight (8) years from the date of issuance and at the end of said period shall lapse. Any alcohol production facility previously exempted under the terms of KRS 247.910 and this section shall not be eligible for recertification upon completion of the eight (8) year certificate period.

HISTORY: Enact. Acts 1980, ch. 210, § 3, effective July 15, 1980; 1986, ch. 331, § 41, effective July 15, 1986; 1990, ch. 325, § 34, effective July 13, 1990; 1994, ch. 277, § 9, effective July 15, 1994; 2000, ch. 2, § 9, effective July 14, 2000; 2005, ch. 85, § 663, effective June 20, 2005; 2006, ch. 152, § 10, effective July 12, 2006; 2010, ch. 24, § 601, effective July 15, 2010; 2017 ch. 74, § 97, effective June 29, 2017; 2018 ch. 29, § 63, effective July 14, 2018.

Kentucky Agricultural Finance Corporation

247.940. Legislative findings and purpose.

  1. The General Assembly hereby finds and declares that as a result of a variety of pressures, most notably the continual spiral of inflation and the increasingly serious effects of speculative land values, the opportunities in agriculture have been severely limited; that one of the major impediments to the purchase of agricultural land, machinery and equipment by farmers is their inability to secure adequate financing upon reasonable terms; and, that it is both necessary and desirable to institute policies and programs which will encourage agricultural pursuits from which the Commonwealth derives the numerous social, economic and environmental benefits which historically have proved beneficial to its citizens.
  2. The General Assembly hereby finds and declares further that private enterprise and investment have not been able to produce, without assistance, the capital necessary to permit the small, family farm operators to continue to compete successfully in agricultural enterprises or to permit enterprising individuals to become farmers.
  3. The General Assembly hereby finds and declares further that the purposes of KRS 247.940 to 247.978 are to provide a financing instrumentality more closely allied with the Department of Agriculture in order that the benefits intended hereunder may be more effectively administered to those engaged in agriculture and related enterprises.
  4. The General Assembly hereby finds and declares further that in order to accomplish the purposes herein set forth, the Kentucky Agricultural Finance Corporation shall be and constitute a de jure municipal corporation and political subdivision of the Commonwealth created for the purpose of performing essential public functions and serving the public purposes in improving and promoting the health, welfare and prosperity of the people of the Commonwealth through the stimulation of existing agricultural enterprises and the promotion of new agricultural ventures.

History. Enact. Acts 1984, ch. 374, § 1, effective April 11, 1984.

247.942. Definitions for KRS 247.940 to 247.978.

As used in KRS 247.940 to 247.978 , the following words and terms, unless the context clearly indicates a different meaning, shall have the following respective meanings:

  1. “Agricultural loan” means a loan made by a lending institution to any person for the purpose of financing agricultural diversification, woodland product production, and alternative crop production; land acquisition or improvement; soil conservation; irrigation; construction; renovation or expansion of buildings and facilities; purchase of farm fixtures, livestock, poultry, and fish of any kind; seeds; fertilizers; pesticides; feeds; machinery; equipment; containers or supplies or any other products employed in the production, cultivation, harvesting, storage, marketing, distribution, or export of agricultural products;
  2. “Applicant” means any person engaged in or proposing to be engaged in an agricultural endeavor or an agriculturally related business in Kentucky;
  3. “Board” means the board of directors of the corporation;
  4. “Bond resolution” or “resolution” means the formal document of the corporation authorizing its obligations;
  5. “Bonds” or “notes” means the bonds or bond anticipation notes authorized to be issued by the corporation under KRS 247.940 to 247.978 ;
  6. “Commissioner” means the Commissioner of Agriculture;
  7. “Commonwealth” means the Commonwealth of Kentucky;
  8. “Corporation” means the Kentucky Agricultural Finance Corporation created by KRS 247.944 ;
  9. “Governmental agency” means any city, county, or other political subdivision of the Commonwealth and any department, division, or public agency thereof, the federal government or any political subdivision of any other state and any nonprofit corporation or other entity legally empowered to act on behalf of any of the foregoing in the area of assistance to agriculture;
  10. “Issuing agency capacity” means the action of the corporation in authorizing revenue bonds for a qualified project in accordance with the provisions of KRS 103.210 to 103.285 in which the corporation’s liability is limited primarily to fiduciary duties;
  11. “Lending agency capacity” means the action of the corporation in participating directly or indirectly in the making of loans to or the purchasing of loans of qualified applicants;
  12. “Lending institution” means any bank, bank or trust company, or institutions of the farm credit system organized under the Farm Credit Act of 1971, 12 U.S.C. secs. 2001 et seq., as amended, building and loan association, homestead, insurance company, investment banker, mortgage banker or company, pension or retirement fund, savings bank or savings and loan association, small business investment company, credit union, the federal government, or any other financial institution authorized to do business in the Commonwealth of Kentucky or operating under the supervision of any federal agency or any corporation organized or operating pursuant to Section 25 of the Federal Reserve Act;
  13. “Obligations” means any bonds or notes authorized to be issued by the corporation under the provisions of KRS 247.940 to 247.978 ;
  14. “Project” means any undertaking to provide for the financing of the acquisition, construction, renovation, or improvement of land, buildings, machinery, equipment, and livestock in the area of agricultural enterprise; including but not limited to agricultural endeavors such as growing, storing, processing, warehousing, marketing, and distribution facilities in respect thereof or to provide for refinancing existing agricultural facilities;
  15. “Trust agreement” means an indenture by and between the corporation and the corporate trustee setting forth the rights and duties of each relating to the authorization, sale, issuance, delivery, and payment of the corporation’s obligations; and
  16. “Umbrella obligation” means bonds or notes issued by the corporation in its issuing agency capacity or its lending agency capacity under the provisions of KRS 247.940 to 247.978 , the proceeds of which may be used in the financing of multiple projects for two (2) or more applicants.

History. Enact. Acts 1984, ch. 374, § 2, effective April 11, 1984; 1986, ch. 331, § 42, effective July 15, 1986; 1986, ch. 452, § 2, effective July 15, 1986; 1990, ch. 440, § 1, effective July 13, 1990; 2004, ch. 41, § 4, effective July 13, 2004.

Compiler’s Notes.

The Federal Reserve Act, referred to in subsection (12) of this section, is compiled as 12 USCS § 221.

247.944. Kentucky Agricultural Finance Corporation — Board of directors — Executive director — Quorum — Expenses.

  1. There is hereby created and established the Kentucky Agricultural Finance Corporation which shall be attached to the Office of the Governor for administrative purposes only.
  2. The corporation is created and established as a de jure municipal corporation and political subdivision of the Commonwealth to perform essential governmental and public functions and purposes in improving and otherwise promoting the health and general welfare of the people through the promotion of agriculture through the Commonwealth.
  3. The corporation shall be governed by a board of directors consisting of twelve (12) members, ten (10) of whom shall be appointed by the Governor. The other two (2) members shall be the Commissioner of the Department of Agriculture, who shall serve as chairperson, and the secretary of the Finance and Administration Cabinet. The Commissioner may designate a representative to serve as chairperson in the Commissioner’s absence.
  4. The Governor shall appoint ten (10) private members of the board to take office and to exercise all powers of the board immediately. The ten (10) directors of the corporation shall be appointed using staggered terms. Of the ten (10) private members of the board appointed by the Governor, two (2) may be officers from a commercial lending institution, one (1) may be an officer from a farm credit association, one (1) may be an agricultural economist, one (1) shall be a tobacco farmer, one (1) shall be a cash grain farmer, one (1) shall be a livestock farmer, one (1) shall be a dairy farmer, one (1) shall be a horticultural farmer, and one (1) shall be from the equine industry. To promote efficient use of agricultural resources and coordination among agricultural leaders, the Governor shall appoint a member from the Agricultural Development Board, who meets the qualifications for one (1) of the positions set out in this subsection, to one (1) of the ten (10) board positions governing the Kentucky Agricultural Finance Corporation.
  5. Upon the expiration of the initial terms of the private members of the board, the Governor shall appoint successors representing the same constituencies as the members succeeded for a term of four (4) years in each case. In the case of a vacancy, the Governor may appoint a successor to hold office during the remainder of the term.
  6. Staff services for the board shall be provided by the Office of the Governor. The executive director of the Agricultural Development Board shall serve as executive director for the board.
  7. The executive director shall administer, manage, and direct the affairs and business of the corporation, subject to the policies, control, and direction of the board. The executive director shall keep a record of the proceedings of the corporation and shall be custodian of all books, documents, and papers filed with the corporation, the minute book or journal of the corporation, and its official seal. The executive director shall have authority to cause copies to be made of all minutes and other records and documents of the corporation and to give certificates under the official seal of the corporation to the effect that the copies are true copies, and all persons dealing with the corporation may rely on such certifications.
  8. A majority of the board shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, notwithstanding the existence of any vacancies; provided, however, that a majority of the board may elect from among its members an executive committee to act in its stead in the day to day conduct of the business of the corporation. Notwithstanding the foregoing, the full board shall hold at least one (1) meeting each calendar quarter in accordance with a schedule to be established by the board.
  9. Action may be taken by the corporation upon a vote of a majority of the directors present at a meeting at which a quorum exists called upon three (3) days written notice or upon the concurrence of at least seven (7) directors or by the board’s executive committee.
  10. All members of the board shall be entitled to their reasonable and necessary expenses actually incurred in discharging their duties.

History. Enact. Acts 1984, ch. 374, § 3, effective April 11, 1984; 1990, ch. 440, § 2, effective July 13, 1990; 1996, ch. 208, § 3, effective July 15, 1996; 2004, ch. 41, § 5, effective July 13, 2004.

247.946. Powers of corporation.

The corporation shall have all of the powers necessary or convenient to carry out and effectuate the purposes and provisions of KRS 247.940 to 247.978 including, but without limiting the generality of the foregoing, the power:

  1. To adopt bylaws for the regulation of its affairs and the conduct of its business and to prescribe rules, administrative regulations, and policies in connection with the performance of its functions and duties;
  2. To review the projects authorized to be financed by KRS 247.940 to 247.978 in order to determine the following:
    1. The qualifications of the applicant as a party entitled to financing assistance under the provisions of KRS 247.940 to 247.978 and the rules and administrative regulations of the corporation;
    2. The qualifications of the applicant in the areas of experience, training, and financial ability in relation to the project for which assistance is sought and any other areas as the corporation shall determine necessary and desirable in implementing the intent of KRS 247.940 to 247.978 in the promotion of agriculture throughout the Commonwealth. Analysis shall include a careful evaluation of character, experience, record, and prospects for sound financial management and sound operation of the project. Financial ability factors to be considered shall include the applicant’s total assets controlled, equity owned, contingent liabilities, history of earnings to date, and repayment capacity, as well as other factors set by the corporation. Consideration may be given to the special needs of beginning farmers;
    3. The economic need for the project in the area based upon general economic conditions and unemployment in the region;
    4. The economic soundness of the project based upon generally accepted cost-benefit methodology; and
    5. Consistency of the project with other policies of the Commonwealth designed to ensure a sustained land base for agriculture including preservation of prime farmland and promotion of soil conservation techniques for protection of farmland;
  3. To issue from time to time bonds, notes, bond anticipation notes, renewal notes, refunding bonds, interim certificates, certificates of indebtedness, debentures, warrants, commercial paper, or other obligations or evidence of indebtedness, hereinafter collectively referred to as “bonds” or “notes,” to provide funds for and to fulfill and achieve its authorized public functions or corporate purposes, as set forth in the provisions of KRS 247.940 to 247.978 ; and in addition to the powers conferred hereunder, to have all the authority delegated to cities and counties pursuant to the provisions of KRS 103.200 to 103.285 ; provided, however, that bonds or notes issued by the corporation shall not be subject to the jurisdiction or approval of the Industrial Revenue Bond Oversight Committee or the State Property and Buildings Commission but shall be subject to the review of the Office of Financial Management in the Office of the Controller within the Finance and Administration Cabinet;
  4. To make or participate in the making of insured mortgage loans to qualified applicants for the purpose of purchasing agricultural real estate and improvements;
  5. To purchase or participate in the purchase of mortgage loans made to qualified applicants for the purpose of purchasing agricultural real estate and improvements;
  6. To make or participate in the making of loans to qualified applicants for the purpose of purchasing machinery, equipment, and livestock;
  7. To purchase or participate in the purchase of loans to qualified applicants for the purpose of purchasing machinery, equipment, and livestock;
  8. To make or participate in the making or to purchase or participate in the purchase of loans to qualified applicants for the purpose of leasing equipment, introducing new agricultural commodities or enhancing agricultural markets;
  9. To collect and pay reasonable fees and charges in connection with making, purchasing, and servicing its loans, notes, bonds, commitments, and other evidences of indebtedness;
  10. To acquire real and personal property, or any interest therein, by purchase, foreclosure, lease, sublease, or otherwise; to own, manage, and operate real and personal property; to sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or encumber real and personal property where necessary or appropriate to the purposes of the corporation subject to the rights of holders of the bonds of the corporation, at public or private sale, with or without public bidding;
  11. To sell, at public or private sale, all or any part of any real estate mortgage or chattel mortgage or other instrument or document securing any loan permitted by KRS 247.940 to 247.978 ;
  12. To procure insurance against any loss in connection with its operations in the amounts and from any insurers, as it may deem necessary or desirable;
  13. To consent, whenever the corporation deems necessary or desirable in the fulfillment of its corporate purposes, to the modification of interest rates, time of payment of principal or interest, or any other terms of any loan, contract, or agreement of any kind to which the corporation is a party;
  14. To include in any borrowing those amounts deemed necessary by the corporation to pay financing charges, capitalized interest, consultant, advisory, and legal fees and any other expenses necessary or incident to any borrowing;
  15. To make and publish administrative regulations respecting its lending programs and any other rules and regulations as are necessary to effectuate its corporate purposes;
  16. To make, execute, and effectuate any and all agreements or other documents with any governmental agency or any person, corporation, association, partnership, or other organization or entity, necessary to accomplish the purposes of KRS 247.940 to 247.978 ;
  17. To accept gifts, devises, bequests, grants, loans, appropriations, and other assistance and any other aid from any source whatsoever and to agree to and to comply with conditions attached thereto;
  18. To sue and be sued in its own name and in the name of any subsidiary corporation or entity which may be created pursuant to subsection (28) of this section;
  19. To maintain an office in the city of Frankfort and at any other place or places as it may determine;
  20. To employ fiscal consultants, engineers, attorneys, appraisers, and such other agents and employees as may be required in the judgment of the corporation and to fix and pay their compensation from funds available to the corporation therefor;
  21. To invest any funds held in sinking funds, reserve funds, or trust fund accounts or any moneys not required for immediate disbursement by the corporation in:
    1. Obligations of or guaranteed by the Commonwealth, United States of America or their respective agencies and instrumentalities;
    2. Certificates of deposit and other evidences of deposit at state and federal chartered banks and savings and loan associations, fully collateralized as to any principal amount in excess of the amount insured by the United States government or any agency thereof;
    3. A guaranteed investment or similar contract, which provides for the investment of funds at a guaranteed rate of return, with an insurance company or depository financial institution with a claim paying rating of no less than either of the two (2) highest grades given by a nationally recognized rating agency; and
    4. Any other investment authorized by law for the investment of funds of the Commonwealth;
  22. Subject to the rights of holders of bonds of the corporation, to renegotiate, refinance, or foreclose on any mortgage, security interest, or lien; or commence any action to protect or enforce any right or benefit conferred upon the corporation by any law, mortgage, security interest, lien, contract, or other agreement; and bid for and purchase property at any foreclosure or at any other sale or otherwise acquire or take possession of any property; and in any such event, the corporation may complete, administer, pay the principal of and interest on any obligation incurred in connection with the property, dispose of and otherwise deal with the property in any manner as may be necessary or desirable to protect the interest of the corporation or of holders of its bonds therein;
  23. To insure, coinsure, reinsure, or cause to be insured, coinsured or reinsured, agricultural loans, mortgage loans, or mortgages, or any other type of loans, and pay or receive premiums on insurance, coinsurance, or reinsurance, and establish reserves for losses, and participate in the insurance, coinsurance, or reinsurance of agricultural loans, mortgage loans or mortgages, or any other type of loans with the federal or state government or any private insurance company;
  24. To undertake and carry out or authorize the completion of studies and analyses of agricultural conditions and needs within the Commonwealth and needs relating to the promotion of agricultural exports and ways of meeting the needs, and make the studies and analyses available to the public and to the agricultural industry, and to engage in research or disseminate information on agriculture and agricultural exports;
  25. To accept federal, state, or private financial or technical assistance and comply with any conditions for assistance, provided that those conditions are not in conflict with the intent of the provisions of KRS 247.940 to 247.978 ;
  26. To purchase, discount, sell, negotiate and guarantee, insure, co-insure and reinsure notes, drafts, checks, bills of exchange, acceptances, bankers’ acceptances, cable transfers, letters of credit, and other evidence of indebtedness;
  27. To serve as the beneficiary of any public trust; and
  28. To create such subsidiary corporations or entities as may be necessary to borrow money, insure or reinsure agricultural loans, or issue bonds.

History. Enact. Acts 1984, ch. 374, § 4, effective April 11, 1984; 1988, ch. 368, § 1, effective July 15, 1988; 1990, ch. 440, § 3, effective July 13, 1990; 2000, ch. 46, § 27, effective July 14, 2000; 2005, ch. 85, § 664, effective June 20, 2005.

Compiler’s Notes.

Acts 1990, ch. 440, § 13, provided:

“To carry out the purposes of this Act for qualified applicants as defined in subsection (2)(b) of Section 1 of this Act:

  1. The Kentucky Agricultural Finance Corporation is hereby authorized to either:
    1. Establish a revolving agricultural loan fund within the corporation by becoming an eligible lender, authorized to make Farmer’s Home Administration (FmHA) guaranteed farm loans; or
    2. Issue up to $10,000,000 in revenue bonds to be deposited in a fund which is hereby established for the purpose of making agricultural loans.
  2. There is hereby appropriated to the Kentucky Agricultural Finance Corporation out of the general fund the sum of $500,000 in fiscal year 1990-91 for costs associated with establishing and implementing either of the two loan programs authorized in subsection (1) of this section.”

247.9471. Purchase and sale of agricultural loans by corporation.

  1. The corporation may purchase or contract to purchase and sell or contract to sell agricultural loans made by lending institutions. All lending institutions are hereby authorized to purchase and sell agricultural loans to the corporation in accordance with the provisions of KRS 247.940 to 247.978 and the rules and administrative regulations of the corporation.
  2. The corporation may make, or contract to make, loans to and deposits with lending institutions. All lending institutions are hereby authorized to borrow funds and accept deposits from the corporation in accordance with the provisions of KRS 247.940 to 247.978 and the rules and administrative regulations of the corporation. The corporation shall require that all proceeds of its loans to or deposits with lending institutions, or an equivalent amount, shall be used by the lending institutions to make agricultural loans, subject to the terms and conditions as the corporation may prescribe.
  3. To the extent that any provisions of this section may be inconsistent with any provision of law governing lending institutions, the provisions of this section shall control.

History. Enact. Acts 1990, ch. 440, § 4, effective July 13, 1990.

247.9473. Corporation may insure and reinsure agricultural loans.

  1. The corporation is hereby authorized to insure and reinsure agricultural loans made by lending institutions, subject to the terms, conditions, limitations, collateral and security provisions, and reserve requirements as shall be determined by the corporation in accordance with the rules and administrative regulations adopted by the corporation.
  2. Unless otherwise determined by the corporation, insurance on agricultural loans shall be in the amount of one hundred percent (100%) of the unpaid principal and interest on each loan.
  3. An insured agricultural loan shall be in default when the holder of the loan makes application to the corporation for payment of insurance on the loan stating that the loan is in default in accordance with the terms of any agreement with respect to the insurance executed pursuant to this section.
  4. The corporation may enter into agreements with any person, lending institution, or holder of an insured agricultural loan upon the terms as may be agreed upon between the corporation and any person, lending institution, or holder, to provide for the administration, applications therefor, repayment thereof, and to establish the conditions for payment of insurance by the corporation, and the servicing, suit upon, or foreclosure of insured agricultural loans.

History. Enact. Acts 1990, ch. 440, § 5, effective July 13, 1990.

247.948. Obligations not debt of Commonwealth.

  1. Obligations issued under the provisions of KRS 247.940 to 247.978 shall not be deemed to constitute a debt, liability or obligation of the Commonwealth or any political subdivision thereof or a pledge of the faith and credit of the Commonwealth or any such political subdivision, but shall be payable solely from the revenues or assets of the corporation. Each obligation issued under the provisions of KRS 247.940 to 247.978 shall contain on the face thereof a statement to the effect that the corporation shall not be obligated to pay the same nor the interest thereon, except from the revenues or assets pledged therefor, and that neither the faith and credit nor the taxing power of the Commonwealth or any political subdivision thereof is pledged to the payment of the principal of or the interest on such obligations.
  2. Expenses incurred by the corporation in carrying out the provisions of KRS 247.940 to 247.978 may be payable from funds provided pursuant to KRS 247.940 to 247.978 and no liability shall be incurred by the corporation hereunder beyond the extent to which moneys shall have been so provided.

History. Enact. Acts 1984, ch. 374, § 5, effective April 11, 1984.

247.950. Issuance of bonds or notes by corporation.

  1. The corporation is hereby authorized to provide for the issuance in its lending agency capacity and in its issuing agency capacity, at one (1) time or from time to time, of bonds, notes, renewal notes, refunding bonds, interim certificates, certificate of indebtedness, debentures, warrants, commercial paper, or other obligations or evidences of indebtedness, hereinafter collectively referred to as “bonds or notes” of the corporation in an amount not to exceed five hundred million dollars ($500,000,000). The principal of and the interest on these bonds or notes shall be payable solely from the funds herein provided for the payment. Notes may be made payable from the proceeds of the bonds or renewal notes or, in the event bond or renewal note proceeds are not available, the notes may be paid from any available revenues or assets of the corporation.
  2. Bonds or notes of each issue shall be dated and may be redeemable prior to maturity at the option of the corporation under terms and conditions as may be determined by the corporation.
  3. Bonds or notes shall bear interest at such rate or rates as may be determined by the corporation at a publicly advertised competitive sale or, at the discretion of the corporation, upon a private, negotiated basis.
  4. Bonds or notes shall mature as to principal and shall be payable as to interest upon the terms as the corporation shall determine in light of the conditions of the municipal bond market at the time of their authorization; provided, however, that obligations issued to finance personal property shall not have a term in excess of the expected useful life of the property financed.
  5. The corporation shall determine the form and manner of the execution of the bonds or notes, denominations, medium, and places of payment. In the event any officer of the corporation whose signature or a facsimile of whose signature shall appear on any bonds or notes attached thereto shall cease to be an officer before the delivery thereof, the signature or facsimile shall nevertheless be valid and sufficient for all purposes as if said party had remained in office until delivery.
  6. The proceeds of any bonds or notes shall be used solely for the purposes for which issued and shall be disbursed in a manner and under restrictions as the corporation may determine in its bond resolution authorizing the issuance thereof or in the trust agreement.
  7. Bonds or notes of the corporation may be sold for a price in a manner and from time to time as may be determined by the corporation to be most beneficial, and the corporation may pay all expenses, premiums, fees, or commissions which it may deem necessary or advantageous in connection with the issuance and sale thereof, subject to the provisions of KRS 247.940 to 247.978 .
  8. The bonds or notes may be issued in coupon or in registered form, or both, and provision may be made for the registration of any coupon bonds or notes as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds or notes of any bonds or notes registered as to both principal and interest, and for the interchange of registered and coupon bonds or notes.
  9. Prior to the preparation of definitive bonds, the corporation may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds shall have been executed and are available for delivery. The corporation may also provide for the replacement of any bonds or notes which shall become mutilated or shall be destroyed or lost.

History. Enact. Acts 1984, ch. 374, § 6, effective April 11, 1984; 1990, ch. 440, § 6, effective July 13, 1990.

247.951. Issuance of refunding bonds.

Subject to the rights of the holders of the bonds of the corporation, the corporation is hereby authorized and empowered to issue from time to time its bonds for the purpose of refunding any bonds of the corporation then outstanding, together with the payment of any redemption premiums thereon and interest accrued or to accrue to the date of redemption of such outstanding bonds. All the refunding bonds of the corporation shall be issued, sold or exchanged, and delivered, shall be secured, and shall be subject to the provisions of KRS 247.940 to 247.978 in the same manner and to the same extent as any other bonds issued by the corporation pursuant to KRS 247.940 to 247.978 , unless otherwise determined by resolution of the corporation. Refunding bonds issued by the corporation as herein provided may be sold or exchanged for outstanding bonds of the corporation and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of the outstanding bonds.

History. Enact. Acts 1990, ch. 440, § 7, effective July 13, 1990.

247.952. Trust agreement to secure obligation.

In the discretion of the corporation, any obligations issued under the provisions of KRS 247.940 to 247.978 may be secured by a trust agreement by and between the corporation and a corporate trustee, which may be any trust company or bank having powers of a trust company within or without the Commonwealth. Such trust agreement or the resolution providing for the issuance of such obligations may pledge or assign all or any part of the revenues or assets of the corporation, including, without limitation, mortgage loans, mortgage loan commitments, contracts, agreements and other security or investment obligations, the fees or charges made or received by the corporation, the moneys received in payment of loans and interest thereon, and any other moneys received or to be received by the corporation. Such trust agreement or resolution may contain such provisions for protecting and enforcing the rights and remedies of the holders of any such obligations as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the corporation in relation to the purposes to which the obligation proceeds may be applied, the disposition of the pledging of the revenues or assets of the corporation, the terms and conditions for the issuance of additional obligations, and the custody, safeguarding and application of all moneys. It shall be lawful for any corporate trustee which may act as depository of the proceeds of obligations, revenues or other money hereunder to furnish such indemnifying bonds or to pledge such securities as may be required by the corporation. Any such trust agreement or resolution may set forth the rights and remedies of the holders of the obligations of the corporation and of the trustee, and may restrict the individual right of action by any such holders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the corporation may deem reasonable and proper for the security and source of payment of its obligations. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be paid from the revenues or assets pledged or assigned to the payment of the principal of and the interest on the obligations or from any other funds available to the corporation.

History. Enact. Acts 1984, ch. 374, § 7, effective April 11, 1984.

247.953. Commonwealth prohibited from altering the right of corporation to fulfill agreements with its bondholders.

In consideration of the acceptance of and payment for the bonds of the corporation by the holders thereof, the Commonwealth does hereby pledge to and agree with the holders of any bonds of the corporation issued pursuant to the provisions of KRS 247.940 to 247.978 , that the Commonwealth will not impair, limit, or alter the rights hereby vested in the corporation to fulfill the terms of any agreements made with the holders of the bonds of the corporation, or in any way impair the rights or remedies of the holders thereof, until the bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of the holders, are fully met and discharged. The corporation is authorized to include this pledge and agreement of the Commonwealth in any agreement with the holders of bonds of the corporation.

History. Enact. Acts 1990, ch. 440, § 8, effective July 13, 1990.

247.954. Pledge of assets or revenues of corporation binding.

The pledge of any assets or revenues of the corporation to the payment of the principal of or the interest on any obligations of the corporation issued in its lending agency capacity shall be valid and binding from the time such pledge is made, and any such assets or revenues shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise, against the corporation, regardless of whether such parties have notice thereof. Nothing herein contained shall be construed to prohibit the corporation from selling any assets subject to any such pledge except to the extent that any such sale may be restricted by the terms of the trust agreement or resolution authorizing the issuance of such obligations.

History. Enact. Acts 1984, ch. 374, § 8, effective April 11, 1984.

247.955. Moneys received under KRS 247.940 to 247.978 deemed to be trust funds.

Notwithstanding any other provisions of law to the contrary, all moneys received pursuant to the authority of the provisions of KRS 247.940 to 247.978 shall be deemed to be trust funds to be held and applied solely as provided in the provisions of KRS 247.940 to 247.978 . The resolution authorizing any obligations or the trust agreement securing the same may provide that any of the moneys may be temporarily invested pending the disbursement thereof and shall provide that any officer with whom, or any bank or trust company with which, the moneys shall be deposited shall act as trustee of these moneys and shall hold and apply the same for the purposes hereof, subject to administrative regulations promulgated pursuant to the provisions to KRS 247.940 to 247.978, and as any resolution or trust agreement may provide. Any moneys of the corporation may be invested as provided in KRS 247.946 .

History. Enact. Acts 1990, ch. 440, § 9, effective July 13, 1990.

247.956. Enforcement of rights under trust agreement.

The holder of obligations of the corporation issued in its lending agency capacity pursuant to the provisions of KRS 247.940 to 247.978 and the trustee under any trust agreement or resolution authorizing the issuance of such obligations, except the rights herein given may be restricted by such trust agreement or resolution, may, by suit, action, mandamus or other proceedings, protect and enforce any and all rights under the laws of the Commonwealth or granted hereunder or under such trust agreement or resolution, or under any other contract executed by the corporation pursuant to KRS 247.940 to 247.978 , and may enforce and compel the performance of all duties required by KRS 247.940 to 247.978 or by such trust agreement or resolution to be performed by the corporation or any officer thereof.

History. Enact. Acts 1984, ch. 374, § 9, effective April 11, 1984.

247.957. Corporate system of accounts — Audit.

  1. Subject to the provisions of any contract with the holders of its bonds, the corporation shall establish a system of accounts.
  2. The corporation may cause an independent audit of its books and accounts to be prepared annually and the cost thereof may be paid from any available moneys of the corporation.

History. Enact. Acts 1990, ch. 440, § 10, effective July 13, 1990.

247.958. Obligations are negotiable instruments.

Notwithstanding any of the foregoing provisions of KRS 247.940 to 247.978 or any recitals in any obligations issued pursuant to the authority granted hereunder, all such obligations shall be and are hereby made negotiable instruments under the laws of this state, subject only to any applicable provisions for registration as set forth in the trust agreement or resolution.

History. Enact. Acts 1984, ch. 374, § 10, effective April 11, 1984.

247.959. Corporation to receive requested services from Commonwealth officers and agencies — Liberal construction of statutes.

  1. All Commonwealth officers and agencies are authorized to render services to the corporation within their respective functions as may be requested by the corporation.
  2. Construction of KRS 247.940 to 247.978 , being necessary for the welfare of the Commonwealth and its residents, shall be liberally construed to effect the purposes thereof.

History. Enact. Acts 1990, ch. 440, § 11, effective July 13, 1990.

247.960. Obligations are legal investments for public entities and fiduciaries.

Obligations issued by the corporation in its lending agency capacity under the provisions of KRS 247.940 to 247.978 are hereby made securities in which all public officers and public bodies of the Commonwealth and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such obligations are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the Commonwealth for any purpose for which the deposit of bonds, notes or obligations of the Commonwealth is now or may hereafter be authorized by law.

History. Enact. Acts 1984, ch. 374, § 11, effective April 11, 1984.

247.962. Annual report.

The corporation shall, promptly following the close of each fiscal year, submit an annual report of its activities for the preceding year to the Governor and the General Assembly. Each such report shall set forth a complete operating financial statement relating to the corporation during the year. The persons performing such audits shall furnish copies of the audit to the secretary, Finance and Administration Cabinet, and the executive director of the Office of Financial Management, where they shall be placed on file and made available for inspection by the general public.

History. Enact. Acts 1984, ch. 374, § 12, effective April 11, 1984.

Legislative Research Commission Note.

(6/20/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section.

247.964. Personal liability of board or officers.

No member of the board of directors or other officer of the corporation shall be made subject to any personal liability or accountability by reason of their execution of any obligations of the corporation nor the issuance thereof.

History. Enact. Acts 1984, ch. 374, § 13, effective April 11, 1984.

247.966. Expenditure of funds.

The corporation is authorized to accept and expend such moneys as may be appropriated from time to time by the General Assembly or such moneys as may be received from any source, including income from the corporation’s operations, for effectuating its corporate purposes including, without limitation, the payment of the initial expenses of administration and operation.

History. Enact. Acts 1984, ch. 374, § 14, effective April 11, 1984.

247.968. Corporation exempt from taxation — Payment in lieu of taxes.

The corporation shall not be required to pay any taxes and assessments to the Commonwealth or any county, municipality or other governmental subdivision of the Commonwealth upon any of its property or upon its obligations or other evidences of indebtedness pursuant to the provisions of KRS 247.940 to 247.978 , or upon any moneys, funds, revenues or other income held or received by the corporation and the bonds or notes of the corporation and the income therefrom shall at all times be exempt from taxation, except for death and gift taxes and taxes of transfers; provided, however, that real or personal property owned by the corporation shall be exempt from all property taxation and special assessments of the Commonwealth or its political subdivisions, but the corporation shall pay, in lieu of such taxes, such amounts as would have been levied had not said real or personal property been owned by the corporation.

History. Enact. Acts 1984, ch. 374, § 15, effective April 11, 1984.

247.970. Powers supplemental to those held by other governmental agencies.

To the extent the provisions of KRS 247.940 to 247.978 delegate to the corporation powers concurrently now held by other governmental agencies, including, but not being limited to, the provisions of KRS 103.200 to 103.285 and KRS 154.20-035 to 154.20-140 , the provisions hereof shall be regarded as supplemental and not in derogation of any powers now existing.

History. Enact. Acts 1984, ch. 374, § 16, effective April 11, 1984.

247.972. Termination or dissolution of corporation.

Upon the termination or dissolution of the corporation, all rights and properties of the corporation shall pass to and be vested in the Commonwealth, subject to the rights of lienholders and other creditors.

History. Enact. Acts 1984, ch. 374, § 17, effective April 11, 1984.

247.974. Banks may apply for loans for qualified farmers.

All state and federally chartered banks may apply through the corporation for loans for qualified farmers and such banks shall receive a commission therefor as determined by the corporation.

History. Enact. Acts 1984, ch. 374, § 18, effective April 11, 1984.

247.976. Expenses.

All expenses incurred by the corporation in carrying out the provisions of KRS 247.940 to 247.978 shall be paid from revenue bonds or notes issued by the corporation.

History. Enact. Acts 1984, ch. 374, § 19, effective April 11, 1984.

247.978. Debt limitation for qualified applicant.

The total amount of principal which a qualified applicant may owe to the corporation at any one (1) time shall not exceed:

  1. Two-hundred fifty thousand dollars ($250,000) for first time farmers as defined by the United States Department of Agriculture, Farm Service Agency; or
  2. One million dollars ($1,000,000) for other applicants.

History. Enact. Acts 1984, ch. 374, § 20, effective April 11, 1984; 1990, ch. 440, § 12, effective July 13, 1990; 2004, ch. 41, § 6, effective July 13, 2004.

Surplus Agricultural Commodities for Food Banks

247.980. Definitions for KRS 247.980 to 247.986.

As used in KRS 247.980 to 247.986 :

  1. “Agricultural commodity” means any agricultural product, including but not limited to plant and animal products grown, raised, or produced within this state for use as food, feed, seed, or any aesthetic, industrial, or chemurgic purpose; and
  2. “Food bank” means a surplus food collection and distribution system operated and established to assist in bringing donated food to nonprofit charitable organizations and individuals for redistribution to reduce hunger and supply nutritional needs.

History. Enact. Acts 2009, ch. 24, § 1, effective June 25, 2009.

247.981. Grant program for supplying surplus agricultural commodities to food banks.

There is hereby established in the Department of Agriculture a program to award grants to nonprofit organizations for the purpose of collecting and distributing Kentucky grown and raised surplus agricultural commodities to food banks and other charitable organizations that serve needy or low-income individuals.

History. Enact. Acts 2009, ch. 24, § 2, effective June 25, 2009.

247.982. Grant program eligibility and compliance.

  1. Subject to available funds, a nonprofit organization is eligible to receive a grant under KRS 247.980 to 247.986 if the organization:
    1. Has at least five (5) years of experience coordinating a statewide network of food banks and charitable organizations that serve counties of this state;
    2. Operates a program that coordinates the collection and transportation of surplus agricultural commodities to a statewide network of food banks that provide food to needy or low-income individuals; and
    3. Submits to the department, in a manner and time prescribed by the department, a proposal for the collection and distribution of agricultural commodities to food banks and other charitable organizations for use in providing food for needy or low-income individuals, including:
      1. A description of the proposal;
      2. A schedule of projected costs for the proposal;
      3. Measurable goals for the proposal; and
      4. A plan for evaluating the success of the proposal.
  2. A nonprofit organization that receives a grant under KRS 247.980 to 247.986 shall comply with the following requirements:
    1. Purchases shall be made from Kentucky farmers, growers, and vendors;
    2. Agricultural commodities collected and distributed shall be culls or those designated as surplus or unmarketable, and not primary agricultural commodities. Surplus or unmarketable agricultural commodities or culls shall be purchased at production cost or below market price from produce auctions, farmers, growers, and vendors; and
    3. Donations of culls or surplus or unmarketable agricultural commodities from farmers’ markets, cooperatives, farmers, and growers shall be encouraged. Persons making the donations may be reimbursed for picking, packaging, processing, transportation, storage, distribution, or other costs.

History. Enact. Acts 2009, ch. 24, § 3, effective June 25, 2009.

247.983. Reporting of results.

A nonprofit organization that receives a grant under KRS 247.980 to 247.986 shall report the results of the project to the department in a manner prescribed by the department.

History. Enact. Acts 2009, ch. 24, § 4, effective June 25, 2009.

247.984. Farms to Food Banks Advisory Committee.

  1. The Farms to Food Banks Advisory Committee is hereby created for the purpose of advising the department concerning the implementation and administration of the program established under KRS 247.980 to 247.986 . The committee shall be composed of no fewer than ten (10) but no more than fifteen (15) members appointed by the Commissioner. Membership on the committee shall include:
    1. Food and nutrition advocates;
    2. Regional food bank representatives;
    3. Local government representatives;
    4. Representatives of the department and Governor’s Office;
    5. Agricultural commodity producers;
    6. Representatives of farm advocacy groups;
    7. Representatives of Kentucky public or private colleges and universities; and
    8. At-large members designated by the Commissioner.
  2. The advisory committee shall elect a chairperson during the first organizational meeting.
  3. The committee shall:
    1. Advise the department concerning the implementation and administration of KRS 247.980 to 247.986 ;
    2. Make recommendations to the department regarding the content of administrative regulations promulgated by the department in accordance with KRS 247.980 to 247.986 ;
    3. Advise the department on administration of the fund created pursuant to KRS 247.985 by developing a written plan for the expenditure of funds. The committee shall meet at least one (1) time a year to review the plan and prepare the annual report. The plan shall, at a minimum, include the following:
      1. A summary of existing food banks in Kentucky;
      2. An evaluation of the needs of the hungry in Kentucky, including the population of areas served by food banks, the percent of the population that is at or below the federal poverty level, an estimate of the number of school children who receive free or reduced-price meals, and other criteria that can measure need; and
      3. A proposal for distributing funds to areas of recognized need; and
    4. Provide to the Governor and the Legislative Research Commission an annual report by October 1 of each year. The initial report shall include the plan developed under paragraph (c) of this subsection for the expenditure of funds. The initial and future reports shall include details of the amounts and recipients of funds distributed.
  4. Appointed committee members may be reimbursed for reasonable and necessary expenses incurred while engaged in carrying out the official duties of the committee.
  5. The committee shall be attached to the Department of Agriculture for administrative purposes.

HISTORY: Enact. Acts 2009, ch. 24, § 5, effective June 25, 2009; 2012, ch. 159, § 3, effective July 12, 2012; 2018 ch. 6, § 1, effective July 14, 2018.

Legislative Research Commission Note.

(7/12/2012). In 2012 Ky. Acts ch. 159, sec. 3, subsection (3)(c)2., “free or reduced meals” has been changed to read, “free or reduced-price meals” in codification. The Reviser of Statutes has corrected this manifest clerical or typographical error under the authority of KRS 7.136(1)(h).

247.985. Farms to food banks trust fund.

  1. The farms to food banks trust fund is hereby created in the State Treasury as a restricted account to be administered by the department with advice from the Farms to Food Banks Advisory Committee established by KRS 247.984 , for the purposes provided in this section.
  2. The fund shall receive amounts collected from the income tax checkoff created in KRS 141.448 , and any other proceeds from grants, contributions, appropriations, or other moneys made available for the purposes of this fund.
  3. Notwithstanding KRS 45.229 , any moneys accruing to this fund in any fiscal year, including state appropriations, gifts, grants, federal funds, interest, and any other funds both public and private, shall not lapse but shall be carried forward to the next fiscal year.
  4. Moneys received in the fund shall only be used for awarding grants to eligible nonprofit organizations pursuant to KRS 247.980 to 247.986 .

HISTORY: Enact. Acts 2009, ch. 24, § 6, effective June 25, 2009; 2012, ch. 159, § 2, effective July 12, 2012; 2018 ch. 6, § 2, effective July 14, 2018.

247.986. Administrative Regulations.

The Commissioner shall promulgate the administrative regulations necessary to carry out the provisions of KRS 247.980 to 247.986 .

History. Enact. Acts 2009, ch. 24, § 7, effective June 25, 2009.

Penalties

247.990. Penalties.

  1. Any person who violates subsection (3) of KRS 247.270 or who diverts the funds or profits of a farm bureau to any purpose except the purposes of the farm bureau shall be guilty of theft and be punished as provided by law.
  2. Any officer who makes a certificate required by subsection (2) of KRS 247.270 or by KRS 247.300 , knowing it to be false or incorrect in any particular, shall be fined not more than one hundred dollars ($100).

History. 42d-8, 42d-14, 42d-15: amend. Acts 1974, ch. 406, § 311; 1984, ch. 386, § 4, effective July 13, 1984; 2002, ch. 268, § 3, effective July 15, 2002; 2008, ch. 116, § 6, effective July 15, 2008.

247.991. Penalties.

  1. Any person who violates any speed limit established by the State Fair Board shall be fined not less than ten ($10) nor more than one hundred dollars ($100).
  2. Any person who violates any other traffic control regulation established by the State Fair Board shall be fined not less than five ($5) nor more than twenty-five dollars ($25).

History. Enact. Acts 1968, ch. 123, § 1 (3).

247.992. Penalty.

Any person who violates subsection (3) of KRS 247.145 shall be fined not less than ten dollars ($10) nor more than one hundred dollars ($100), or imprisoned in jail for not less than one (1) day or more than ten (10) days or both.

History. Enact. Acts 1968, ch. 124, § 1 (4).

247.993. Penalty.

Any purchaser of the agricultural commodity covered in KRS 247.450 to 247.505 or KRS 247.4451 to 247.4483 who violates or fails or refuses to comply with any provision of KRS 247.450 to 247.505 or KRS 247.4451 to 247.4483 shall upon conviction be fined not less than twenty-five dollars ($25) nor more than fifty dollars ($50) for each offense; each day of violation, or failing or refusing to comply with the provisions of KRS 247.450 to 247.505 or KRS 247.4451 to 247.4483 shall constitute a separate offense.

History. Enact. Acts 1968, ch. 171, § 17 (2); 1990, ch. 167, § 18, effective July 13, 1990.

247.994. Penalties.

  1. Any purchaser of soybeans, or corn, or small grains who violates, or fails or refuses to comply with the provisions of KRS 247.510 to 247.595 or KRS 247.5061 to 247.5095 , or KRS 247.6001 to 247.6035 , shall upon conviction be fined not less than twenty-five dollars ($25) nor more than fifty dollars ($50) for each offense. Each day of the violation, or failing or refusing to comply with the provisions of KRS 247.510 to 247.595 or KRS 247.5061 to 247.5095 , or KRS 247.6001 to 247.6035 shall constitute a separate offense.
  2. Any operator of a livestock market, meat packing establishment, or slaughter establishment who violates or fails or refuses to comply with the provisions of KRS 247.610 to 247.685 shall upon conviction be fined not less than twenty-five dollars ($25) nor more than fifty dollars ($50) for each offense. Each day of the violation, or failing, or refusing to comply with the provisions of KRS 247.610 to 247.685 shall constitute a separate offense.
  3. Any operator of a tobacco warehouse, tobacco manufacturing establishment, or tobacco dealer who violates or fails or refuses to comply with the provisions of KRS 247.710 to 247.785 shall upon conviction be fined not less than twenty-five dollars ($25) nor more than fifty dollars ($50) for each offense. Each failure to withhold or refusal to comply with the provisions of KRS 247.710 to 247.785 shall constitute a separate offense.
  4. Any egg handler who violates, or fails, or refuses to comply with the provisions of KRS 247.850 to 247.865 shall, upon conviction, be fined not less than twenty-five dollars ($25) nor more than fifty dollars ($50) for each offense. Each day of violating, or failing, or refusing to comply with the provisions of KRS 247.850 to 247.865 shall constitute a separate offense.

History. Enact. Acts 1974, ch. 83, § 19; 1976, ch. 9, § 17; 1976, ch. 265, § 17; 1980, ch. 120, § 18, effective July 15, 1980; 1986, ch. 180, § 11, effective July 15, 1986; 1990, ch. 223, § 19, effective July 13, 1990; 1990, ch. 397, § 19, effective July 13, 1990.

Legislative Research Commission Note.

(7/13/90) This section was amended by two 1990 Acts which do not appear to be in conflict and have been compiled together.

CHAPTER 248 Tobacco

248.005. Legislative finding and declaration on United States Department of Agriculture’s Tobacco Price Support Program.

The General Assembly finds that the Tobacco Price Support Program administered by the United States Department of Agriculture under 7 U.S.C. sec. 1314 is the best and most efficient means of preserving the economic health of thousands of tobacco farms throughout the United States and throughout Kentucky. Based upon this finding, the General Assembly declares that the Tobacco Task Force shall study methods to support the Tobacco Price Support Program and its continuing role in the economic viability of Kentucky’s small tobacco farmer.

History. Enact. Acts 2000, ch. 533, § 2, effective July 14, 2000.

248.010. Definitions.

As used in this chapter, unless the context requires otherwise:

  1. “Commissioner” means the Commissioner of Agriculture;
  2. “Department” means the Department of Agriculture;
  3. “Grower” means a bona fide producer of tobacco, either by himself or by tenant, sharecropper or hired person;
  4. “Warehouse” means any tobacco warehouse operating as a place of sale for tobacco in this state; and
  5. “Warehouseman” means the owner, operator, manager, lessee or proprietor of a warehouse engaged in selling tobacco or his agents or employees.

History. 42c-4, 42c-10, 4814c-4: amend. Acts 1966, ch. 255, § 220.

NOTES TO DECISIONS

Cited:

Winn Ave. Warehouse, Inc. v. Winchester Tobacco Warehouse Co., 339 F.2d 277, 1964 U.S. App. LEXIS 3654 (6th Cir. 1964), rehearing denied, 341 F.2d 287, 1965 U.S. App. LEXIS 6520 (6th Cir. 1965); Bale v. Glasgow Tobacco Board of Trade, Inc., 339 F.2d 281, 1964 U.S. App. LEXIS 3655 (6th Cir. 1964); Bale v. Glasgow Tobacco Board of Trade, Inc., 223 F. Supp. 739, 1963 U.S. Dist. LEXIS 7974 (W.D. Ky. 1963 ).

Opinions of Attorney General.

Tobacco companies which deal directly with individual farmers by establishing prices at the farm and accepting delivery of tobacco at company facilities where the tobacco is weighed and paid for, are not subject to the Department of Agriculture’s jurisdiction as tobacco warehouses which must operate pursuant to the requirements of KRS Chapter 248, since the companies are not functioning as “warehousemen,” as defined in subsection (5) and their facilities are not “warehouses” as defined in subsection (4). OAG 82-50 .

248.015. Tobacco boards of trade — Powers.

A tobacco board of trade shall be organized on every market at which tobacco is offered for sale at auction and each board shall have the objects, purposes, and powers to: promote a more orderly market for the sale of tobacco at auction; prevent market gluts by arranging for a more orderly flow of tobacco through the warehouses; encourage ethical practices in the auction system; support the continuation of the production control program; adopt bylaws or regulations defining voting rights of the tobacco board of trade members; collect dues and initiation fees to cover the operating expenses of the tobacco board of trade; adopt regulations for the conduct of the tobacco market including the allocation of selling time and selling space.

History. Enact. Acts 1962, ch. 302, § 1.

NOTES TO DECISIONS

Cited:

Bale v. Glasgow Tobacco Board of Trade, Inc., 339 F.2d 281, 1964 U.S. App. LEXIS 3655 (6th Cir. 1964); Gaines v. Carrollton Tobacco Bd. of Trade, Inc., 386 F.2d 757, 1967 U.S. App. LEXIS 4190 (6th Cir. 1967); Gaines v. Carrollton Tobacco Bd. of Trade, Inc., 496 F.2d 284, 1974 U.S. App. LEXIS 8867 (6th Cir. 1974); Bale v. Glasgow Tobacco Board of Trade, Inc., 223 F. Supp. 739, 1963 U.S. Dist. LEXIS 7974 (W.D. Ky. 1963 ); Freeman v. Danville Tobacco Board of Trade, Inc., 380 S.W.2d 215, 1964 Ky. LEXIS 284 ( Ky. 1964 ).

248.020. Sections not to be enforced until compacts entered into. [Repealed.]

Compiler’s Notes.

This section (42c-13) was repealed by Acts 1966, ch. 255, § 283.

248.025. Membership of boards — Eligibility — Participation.

  1. The membership of each tobacco board of trade shall be divided into two (2) classes: active members and associate members. Any person, partnership, corporation or association operating a loose leaf auction warehouse or warehouses shall be eligible for active membership in the tobacco board of trade; provided, however, that each board of trade shall have the right to establish the basis of voting rights for its warehouse members according to floor space, ownership, number of separate warehouse buildings or otherwise. Any person, partnership, corporation or association not eligible for active membership but holding a tobacco dealer’s license and purchasing tobacco pursuant to said license upon the market governed by the tobacco board of trade shall be eligible for election as an associate member. Each associate member shall have the option of becoming, upon written notice to the tobacco board of trade, either a participating or a nonparticipating member. A nonparticipating member shall not have the right to vote upon any question coming before the tobacco board of trade.
  2. A participating associate member shall not participate in or have any voice or vote in the management, conduct, activities, allotments of sale time or hours, affixing of dates for the opening or closing of the tobacco markets serviced by the tobacco board of trade, or in any other manner or respect relating strictly to the functions normally performed by the warehouse members of the tobacco board of trade.

History. Enact. Acts 1968, ch. 152, § 129.

Compiler’s Notes.

Former KRS 248.025 (Acts 1962, ch. 302, § 2) was repealed by Acts 1966, ch. 255, § 283, and the present section was substituted therefor.

NOTES TO DECISIONS

1. Management Rights of Active Members.

It is made abundantly clear in this section that the active warehouse members are to play the principal roles in the management of a tobacco board of trade. Farmers No. 4, Inc. V. Lexington Tobacco Board of Trade, 461 S.W.2d 926, 1970 Ky. LEXIS 647 ( Ky. 1970 ).

2. Participation in Management by Associate Members.

Associate members of a tobacco board of trade organized as a corporation could not properly serve as directors of the corporation or serve on those committees which perform functions normally performed by warehouse members or vote for directors, since all of those activities would constitute participating in management. Farmers No. 4, Inc. V. Lexington Tobacco Board of Trade, 461 S.W.2d 926, 1970 Ky. LEXIS 647 ( Ky. 1970 ).

Even though associate members on the board abstained from voting on warehouse-member functions, their presence at board meetings when these matters were discussed would constitute forbidden participation in the management and activities of the board. Farmers No. 4, Inc. V. Lexington Tobacco Board of Trade, 461 S.W.2d 926, 1970 Ky. LEXIS 647 ( Ky. 1970 ).

248.030. Districts. [Repealed.]

Compiler’s Notes.

This section (42c-10) was repealed by Acts 1966, ch. 255, § 283.

248.035. Membership required to operate warehouse or purchase tobacco therein.

Every tobacco warehouse offering tobacco for sale at auction shall be a member of its local tobacco board of trade, and membership in good standing shall be deemed to be a reasonable requirement by such tobacco board of trade as a condition precedent to participating in the business of operating a tobacco warehouse or the purchase of tobacco at auction therein.

History. Enact. Acts 1968, ch. 152, § 130.

Compiler’s Notes.

Former KRS 248.035 (Acts 1962, ch. 302, § 3) was repealed by Acts 1966, ch. 255, § 283, and this section was substituted therefor.

248.040. Commission; selection of members. [Repealed.]

Compiler’s Notes.

This section (42c-11) was repealed by Acts 1966, ch. 255, § 283.

248.050. Filling of vacancies on commission. [Repealed.]

Compiler’s Notes.

This section (42c-11) was repealed by Acts 1966, ch. 255, § 283.

248.060. Compensation of commission. [Repealed.]

Compiler’s Notes.

This section (42c-11) was repealed by Acts 1966, ch. 255, § 283.

248.070. Functions of commission. [Repealed.]

Compiler’s Notes.

This section (42c-16, 42c-17) was repealed by Acts 1966, ch. 255, § 283.

248.080. County tobacco committee; selection of members. [Repealed.]

Compiler’s Notes.

This section (42c-12) was repealed by Acts 1966, ch. 255, § 283.

248.090. Compensation of county tobacco committee. [Repealed.]

Compiler’s Notes.

This section (42c-12) was repealed by Acts 1966, ch. 255, § 283.

248.100. Commission to assist county tobacco committee. [Repealed.]

Compiler’s Notes.

This section (42c-12) was repealed by Acts 1966, ch. 255, § 283.

248.110. Functions of county tobacco committee. [Repealed.]

Compiler’s Notes.

This section (42c-12) was repealed by Acts 1966, ch. 255, § 283.

248.120. Commission to issue marketing certificates and resale certificates. [Repealed.]

Compiler’s Notes.

This section (42c-16) was repealed by Acts 1966, ch. 255, § 283.

248.130. Unlawful sales and processing without certificates. [Repealed.]

Compiler’s Notes.

This section (42c-20, 42c-21) was repealed by Acts 1966, ch. 255, § 283.

248.140. Dealer not to resell or condition tobacco without resale certificates. [Repealed.]

Compiler’s Notes.

This section (42c-20) was repealed by Acts 1966, ch. 255, § 283.

248.150. State may enter into compacts with other states. [Repealed.]

Compiler’s Notes.

This section (42c-13) was repealed by Acts 1966, ch. 255, § 283.

248.160. Suspension of quota sections. [Repealed.]

Compiler’s Notes.

This section (42c-13) was repealed by Acts 1966, ch. 255, § 283.

248.170. Form of interstate compacts. [Repealed.]

Compiler’s Notes.

This section (42c-13) was repealed by Acts 1966, ch. 255, § 283.

248.180. Determinations of state quotas by state commissions. [Repealed.]

Compiler’s Notes.

This section (42c-14) was repealed by Acts 1966, ch. 255, § 283.

248.190. Cooperation with commissions of other states. [Repealed.]

Compiler’s Notes.

This section (42c-28) was repealed by Acts 1966, ch. 255, § 283.

248.200. Establishment of farm acreage and marketing quotas. [Repealed.]

Compiler’s Notes.

This section (42c-29) was repealed by Acts 1966, ch. 255, § 283.

248.210. Harvesting excess acreage prohibited. [Repealed.]

Compiler’s Notes.

This section (42c-22) was repealed by Acts 1966, ch. 255, § 283.

248.220. Commission funds; expenditure; purpose. [Repealed.]

Compiler’s Notes.

This section (42c-19) was repealed by Acts 1966, ch. 255, § 283.

248.230. Persons to furnish information to commission. [Repealed.]

Compiler’s Notes.

This section (42c-24) was repealed by Acts 1966, ch. 255, § 283.

248.240. Circuit courts may enjoin violations. [Repealed.]

Compiler’s Notes.

This section (42c-25) was repealed by Acts 1966, ch. 255, § 283.

248.250. Commissioner to grade, inspect and label. [Repealed.]

Compiler’s Notes.

This section (42c-5) was repealed by Acts 1966, ch. 255, § 283.

248.260. Purchaser to pay for grading. [Repealed.]

Compiler’s Notes.

This section (42c-5, 42c-8) was repealed by Acts 1966, ch. 255, § 283.

248.270. Seller to tell grade to buyer. [Repealed.]

Compiler’s Notes.

This section (42c-6) was repealed by Acts 1966, ch. 255, § 283.

248.280. Storage warehouseman to grade and weigh tobacco — Receipts.

  1. Any person engaged in the business of warehouseman for the purpose of receiving, grading, handling, prizing and storing tobacco, shall, upon the receipt of tobacco, have competent persons to grade it into distinct and proper grades and weigh it. He shall give a warehouse receipt for the tobacco to the owner or consignor, setting forth each grade and the number of pounds.
  2. After complying with subsection (1) the warehouseman may commingle all tobacco so received into like grades and types.

History. 4814a-1, 4814a-4.

NOTES TO DECISIONS

1. Negotiability.

Warehouse receipts for storage of tobacco may be negotiable. Kirkpatrick v. Lebus, 184 Ky. 139 , 211 S.W. 572, 1919 Ky. LEXIS 44 ( Ky. 1919 ).

Research References and Practice Aids

Cross-References.

Tobacco for sale not to be commingled on warehouse floor, KRS 248.400 .

Treatises

Caldwell’s Kentucky Form Book, 5th Ed., Bond of Warehouseman, Form 332.03.

248.290. Warehouse license — Fees.

  1. Each warehouse shall pay to the department an annual license fee of one hundred twenty-five dollars ($125). A license fee shall be paid on each warehouse building operated as a place of sale for tobacco, regardless of the number of such buildings owned by any individual, corporation, firm, or other type of management organization. It shall be paid on July 1 of each year.
  2. The one hundred twenty-five dollar ($125) fee per license collected by the department shall be used by the department to carry out its functions under KRS 248.290 to 248.440 . All fines collected for violations of the provisions of KRS 248.350 shall be paid into the State Treasury to the credit of a revolving account to be used in the enforcement of KRS 248.350 .

History. 4814c-16: amend. Acts 1956, ch. 133; 1978, ch. 270, § 1, effective June 17, 1978; 1998, ch. 183, § 1, effective July 15, 1998.

Opinions of Attorney General.

The Home Tobacco Warehouse Company, which owns four separate warehouses, clearly would be required under the terms of this section to pay a separate license fee of $250 for each warehouse building regardless of the fact that the company owns all four (4) buildings, and regardless of the fact that there may only be one general office, provided, of course, that tobacco is sold at each separate warehouse, but if some tobacco warehouse buildings are used solely for storing tobacco no license would be required for such buildings. OAG 78-438 .

When the word “building” is strictly construed as in the context of a licensing statute, it does not embrace parts or segments of a building or structure. OAG 78-438 .

Research References and Practice Aids

Cross-References.

Warehouses and warehouseman, KRS ch. 359.

Warehouses subject to legislative control, Ky. Const., § 206.

248.300. Department to supervise warehouses — Inspectors and employees.

  1. The department shall administer KRS 248.290 to 248.440 , and shall have general supervision over the sale of tobacco in warehouses throughout the state.
  2. The Commissioner shall employ such inspectors and other employees as are necessary for the enforcement of KRS 248.290 to 248.440 , and fix the duties and compensation of those employees.

History. 4814c-14: amend. Acts 1978, ch. 270, § 3, effective June 17, 1978; 1998, ch. 183, § 2, effective July 15, 1998.

248.310. Duties and powers of inspectors.

  1. The inspectors employed under KRS 248.300 shall carry out a general inspection service of all warehouses and shall strictly enforce KRS 248.280 to 248.440 .
  2. An inspector employed by the department may:
    1. Reweigh any reasonable amount of tobacco that has been received by the tobacco warehouse.
    2. Determine the weight of all containers and devices used in the transport for the purpose of weighing tobacco on the warehouse floor and establish a weight tare for each warehouse.

History. 4814c-15: amend. Acts 1950, ch. 9, § 16; 1964, ch. 108; 1978, ch. 270, § 4, effective June 17, 1978; 1998, ch. 183, § 3, effective July 15, 1998.

Opinions of Attorney General.

An inspector’s reasons for requiring the reweighing of any tobacco should be made known to the warehouseman or his agent in charge. OAG 63-1077 .

Although an inspector would not have to have absolute knowledge or proof of improper weight, his reason for reweighing must be based upon a fact or evidence known to him that the tobacco has been improperly weighed. OAG 63-1077 .

In view of the fact that tobacco warehouses are public warehouses and in view of legislation which grants the department of agriculture power to license, supervise and regulate such warehouses, agents of the department are authorized to examine the records of tobacco warehouses. OAG 76-175 .

248.320. Auctions to be free and open.

All sales of leaf tobacco at public auction shall be free and open to all responsible bidders.

History. 4812.

NOTES TO DECISIONS

1. Allocation Among Bidders.

In view of evidence that major tobacco manufacturers customarily purchased ninety percent of crop at particular warehouse, and there were usually five (5) or six (6) independent buyers or speculators, injunction requiring warehouseman to allocate to plaintiff speculator a number of baskets equal to approximately one percent (1%) of the number of baskets sold at ceiling prices in sales in which the speculator participated, was, not improper. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

The fact that under O.P.A. ceiling prices more than one bidder frequently bid the maximum price, with result that tobacco was allocated among the bidders on a proportionate basis, did not mean that tobacco sales were no longer “auction” sales within the meaning of KRS 248.320 to 248.340 . Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

2. Bid.

Permitting speculator to bid on tobacco would not injure producers, or disrupt government program of regulation of tobacco auctions. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

Refusal of tobacco warehouseman to permit tobacco speculator to bid for tobacco sold at warehouse violated these sections, notwithstanding federal O.P.A. regulations fixing ceilings on sales and restricting amount that might be sold to any one buyer. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

3. Conflict with Federal Law.

These sections are not in conflict with any federal law or regulation. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

Research References and Practice Aids

Cross-References.

Rights of bona fide purchaser against tobacco subject to lien of security interest, KRS 355.9-320.

Treatises

Caldwell’s Kentucky Form Book, 5th Ed., Practice Context for Auctions and Auctioneers, § 334.00.

248.330. Combination to control or interfere with bidding prohibited.

No persons shall combine, by any rule, bylaw or otherwise, for the purpose of controlling, or in any way interfering with the free and unrestricted right to bid on or purchase leaf tobacco offered for sale at public auction at any warehouse or place of sale where tobacco is sold by warehousemen for others in this state.

History. 4810.

NOTES TO DECISIONS

1. Bond.

Where warehouseman executed bond undertaking to pay consignors of tobacco the proceeds thereof and the bond recited that warehouseman had become bound to execute bond by reason of membership in tobacco exchange, liability on bond could not be avoided on ground that tobacco exchange was illegal, being in restraint of trade. Globe Tobacco Warehouse Co. v. Leach, 43 S.W. 423, 19 Ky. L. Rptr. 1287 (1897).

2. Allocation Among Bidders.

In view of evidence that major tobacco manufacturers customarily purchased ninety percent (90%) of crop at particular warehouse, and there were usually five (5) or six (6) independent buyers or speculators, injunction requiring warehouseman to allocate to plaintiff speculator a number of baskets equal to approximately one percent of the number of baskets sold at ceiling prices in sales in which the speculator participated, was, not improper. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

The fact that under O.P.A. ceiling prices more than one bidder frequently bid the maximum price, with result that tobacco was allocated among the bidders on a proportionate basis, did not mean that tobacco sales were no longer “auction” sales within the meaning of KRS 248.320 to 248.340 . Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

3. Bid.

Permitting speculator to bid on tobacco would not injure producers, or disrupt government program of regulation of tobacco auctions. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

Refusal of tobacco warehouseman to permit tobacco speculator to bid for tobacco sold at warehouse violated these sections, notwithstanding federal O.P.A. regulations fixing ceilings on sales and restricting amount that might be sold to any one buyer. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

4. Conflict with Federal Law.

These sections are not in conflict with any federal law or regulation. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

248.340. Preventing persons from bidding or purchasing prohibited.

No organization or corporation under the laws of this state shall prohibit any of its members or others from bidding on or purchasing leaf tobacco at any warehouse.

History. 4811.

NOTES TO DECISIONS

1. Allocation Among Bidders.

In view of evidence that major tobacco manufacturers customarily purchased ninety percent of crop at particular warehouse, and there were usually five (5) or six (6) independent buyers or speculators, injunction requiring warehouseman to allocate to plaintiff speculator a number of baskets equal to approximately one percent (1%) of the number of baskets sold at ceiling prices in sales in which the speculator participated, was, not improper. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

The fact that under O.P.A. ceiling prices more than one bidder frequently bid the maximum price, with result that tobacco was allocated among the bidders on a proportionate basis, did not mean that tobacco sales were no longer “auction” sales within the meaning of KRS 248.320 to 248.340 . Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

2. Bid.

Permitting speculator to bid on tobacco would not injure producers, or disrupt government program of regulation of tobacco auctions. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

Refusal of tobacco warehouseman to permit tobacco speculator to bid for tobacco sold at warehouse violated these sections, notwithstanding federal O.P.A. regulations fixing ceilings on sales and restricting amount that might be sold to any one buyer. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

3. Conflict with Federal Law.

These sections are not in conflict with any federal law or regulation. Germann v. Stanley, 300 Ky. 860 , 190 S.W.2d 547, 1945 Ky. LEXIS 658 ( Ky. 1945 ).

248.350. Discrimination prohibited.

  1. No warehouse or warehouseman or person acting on behalf of any warehouse or warehouseman shall discriminate against any grower of tobacco in any way, including but not limited to, the sale, transportation, or handling of tobacco. All tobacco growers shall be entitled to the exact same considerations as all other tobacco growers serviced by the same warehouse, except that a warehouseman may distinguish among different types of packaging in setting the fee or commission.
  2. Nothing in this section shall permit a warehouseman to discriminate in any way among growers marketing tobacco in the same kind of package.
  3. No tobacco warehouseman selling leaf tobacco in this state shall discriminate between purchasers as to charges, samples, warranty or otherwise, whether the purchasers are members of the tobacco exchange or not.

History. 4813, 4814c-10: amend. Acts 1978, ch. 270, § 2, effective June 17, 1978; 1982, ch. 95, § 1, effective July 15, 1982.

NOTES TO DECISIONS

1. Duty of Warehousemen.

Warehousemen must admit the deposit of tobacco in their warehouses from all growers so requesting as long as there is available space for the purpose, or reserved space theretofore procured by the applicant who had theretofore been granted space. May v. Clay-Gentry-Graves Tobacco Warehouse Co., 284 Ky. 502 , 145 S.W.2d 84, 1940 Ky. LEXIS 529 ( Ky. 1940 ).

Opinions of Attorney General.

In view of the fact that tobacco warehouses are public warehouses and in view of legislation which grants the department of agriculture power to license, supervise and regulate such warehouses, agents of the department are authorized to examine the records of tobacco warehouses. OAG 76-175 .

A warehouseman can offer such a service as lending money to tobacco growers only when such a service is extended to all those growers using his warehouse, and failure to do so violates this section. OAG 78-536 .

It would appear to be a violation of the anti-discrimination provisions of subsection (1) of this section for a tobacco warehouse to charge a lower commission to tobacco farmers who elect to sell their tobacco by the bale method than it charges to tobacco farmers who elect to sell their tobacco by the tied method since the general assembly has eliminated flexibility and precluded the utilization of reasonable classifications in connection with the sale of tobacco by tobacco warehouses. OAG 81-401 .

248.353. Enforcement by Attorney General.

  1. Compliance with the provisions of KRS 248.350 shall be monitored by the department with enforcement assistance provided by the Special Prosecutions Unit of the Office of the Attorney General.
  2. The Attorney General at the request of the commissioner:
    1. May make such public or private investigations within or outside of this state as he deems necessary to determine if any person has violated or is about to violate KRS 248.350 or any administrative regulation or order thereunder, or to aid in the enforcement of KRS 248.350 or in the prescribing of administrative regulations and forms thereunder;
    2. May require or permit any person to file a statement in writing, under oath or otherwise as the Attorney General may determine, as to all the facts and circumstances concerning the matter to be investigated; and
    3. May publish information concerning any violation of KRS 248.350 or any administrative regulation or order thereunder.
  3. For the purpose of any investigation or proceeding under KRS 248.350 , the Attorney General or any officer designated by him may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the Attorney General deems relevant or material to the inquiry.
  4. In case of contumacy by, or refusal to obey a subpoena issued to, any person, any court of competent jurisdiction, upon application by the Attorney General, may issue to that person an order requiring him to appear before the Attorney General, or the officer designated by him, there to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question; and any failure to obey the order of the court may be punished by the court as a contempt of court.
  5. No person is excused from attending and testifying or from producing any document or record before the Attorney General, or in obedience to the subpoena of the Attorney General or any officer designated by him, or in any proceeding instituted by the Attorney General, on the ground that the testimony or evidence (documentary or otherwise) required of him may tend to incriminate him or subject him to a penalty or forfeiture; but no individual may be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled, after claiming his privilege against self-incrimination, to testify or produce evidence (documentary or otherwise), except that the individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying.

History. Enact. Acts 1978, ch. 270, § 5, effective June 17, 1978; 1998, ch. 183, § 4, effective July 15, 1998.

248.355. Class action suit — Damages, computation and distribution.

  1. The Attorney General shall be authorized to file a class action suit on behalf of all persons discriminated against in violation of KRS 248.350 and may recover monetary damages against any warehouse found to be in violation.
  2. Damages shall be computed so as to equate the value of services or other considerations received by all growers of tobacco serviced by the warehouse found to be in violation.
  3. Damages recovered pursuant to this section shall be distributed as follows:
    1. Payment of court costs and all fees incidental to the litigation;
    2. Payment of the expenses incurred by the Office of the Attorney General;
    3. Payment of the balance to the aggrieved tobacco growers based on the poundage serviced at that warehouse found to be in violation.

History. Enact. Acts 1978, ch. 270, § 6, effective June 17, 1978.

248.360. Rebates, special privileges and services by warehouses prohibited. [Repealed.]

Compiler’s Notes.

This section (4814c-12) was repealed by Acts 1978, ch. 270, § 9, effective June 17, 1978.

248.370. Maximum basket sales per hour — Hours and days of operation.

  1. The maximum sales of baskets of tobacco on warehouse floors shall not exceed three hundred and sixty (360) baskets during any one (1) hour, nor shall the rate of sales exceed three hundred and sixty (360) baskets per hour.
  2. The operating day at every warehouse shall be limited to five (5) actual selling hours and the operating week of every warehouse shall be limited to five (5) actual selling days.

History. 4814c-8.

NOTES TO DECISIONS

Cited:

Bale v. Glasgow Tobacco Board of Trade, Inc., 339 F.2d 281, 1964 U.S. App. LEXIS 3655 (6th Cir. 1964).

248.380. Sales of vocational education tobacco.

  1. In addition to the days allowed for sales under KRS 248.370 each warehouse may operate one (1) Saturday during each season for the sale of tobacco grown by persons under twenty-one (21) years of age under a vocational education program sponsored by county agents or other county, state or federal agencies.
  2. KRS 248.440 shall not apply to such sales.

History. 4814c-9.

248.390. Maximum height and weight of baskets of tobacco. [Repealed.]

Compiler’s Notes.

This section (4814c-7) was repealed by Acts 2000, ch. 105, § 3, effective July 14, 2000. For present law, see KRS 248.391 .

248.391. Height and weight requirements for baskets of tobacco.

The Commissioner shall promulgate administrative regulations establishing the height and weight requirements of a basket of tobacco when placed on a warehouse floor for the purpose of sale. In establishing the requirements, the Commissioner shall consider traditional height and weight standards for baskets of tobacco, and shall consider experimental marketing standards that may be applied from time to time.

History. Enact. Acts 2000, ch. 105, § 1, effective July 14, 2000.

248.400. Commingling of tobacco without grower’s consent prohibited.

No person shall commingle crops of tobacco on the warehouse floor while that tobacco is still the property of the grower, unless express permission for the commingling is obtained from the grower.

History. 4814c-11.

Research References and Practice Aids

Cross-References.

Storage warehousemen may commingle tobacco, when, KRS 248.280 .

248.410. Weighmen must be bonded.

  1. Warehouses shall submit to the department a list of the names of all weighmen employed. Each weighman so listed shall furnish a bond in the amount of five hundred dollars ($500) to the department for the faithful performance of his duty. Should any weighman knowingly and willfully, for the purpose of misleading the public, misrepresent or attempt to misrepresent the weight of any tobacco weighed by him on the warehouse floor, his bond shall be forfeited and the proceeds of it paid into the State Treasury.
  2. No person other than a bonded weighman shall be permitted to weigh tobacco for the purpose of sale at any tobacco warehouse.

History. 4814c-5, 4814c-6.

NOTES TO DECISIONS

Cited:

Peoples Tobacco Warehouse, Inc. v. Commonwealth, 310 S.W.2d 781, 1958 Ky. LEXIS 406 ( Ky. 1958 ).

Research References and Practice Aids

Cross-References.

Forfeitures inure to state, KRS 431.100 .

248.420. Inducement of false report by weighman prohibited.

No warehouseman shall attempt by any means to influence a weighman to report falsely the weight of any tobacco sold on the floor of his warehouse.

History. 4814c-18.

248.430. Notice of sales and producers to be posted — False notice prohibited.

  1. Any person who receives or undertakes to receive or take care of leaf tobacco for sale at public auction, whether with or without compensation, shall post or cause to be posted, a notice in a conspicuous place upon his premises, stating the number of pounds in the aggregate, actually sold, and the average price per pound received on account of each day’s sale. He shall post the notice not later than 9:00 a.m. on the day following the sale. He shall also, not less than thirty (30) minutes prior to such a sale, post at a point in the office of his warehouse, convenient and accessible for public inspection, a typewritten or printed list showing the true name and post office address of the owner and producer and the number of pounds of tobacco of each person whose tobacco will that day be offered for sale in the warehouse. No tobacco shall be delivered to or received by any warehouse for sale at public auction, unless the true names and post office addresses of the producer and owner of the tobacco are furnished the warehouse by the person delivering the tobacco. He shall also post on the outside of the scale house and in the farmer’s waiting room, if such places are in the warehouse, a schedule setting forth the rates of all commissions, fees, discounts and deductions.
  2. No person shall, in the notice required by subsection (1), falsify the actual number of pounds sold or the average price of the tobacco sold, or falsely list the name, post office address or number of pounds of tobacco of any producer or owner whose tobacco will that day be offered for sale, or furnish a false name or address of the owner or producer to any warehouse.

History. 4814b-1, 4814b-2, 4814b-4: amend. Acts 1962, ch. 30.

NOTES TO DECISIONS

1. Name of Producer.

Subsection (1) of this section was complied with where name of tenant producing on shares and delivering tobacco to warehouse was furnished warehouseman. Boblitt v. Commonwealth, 214 Ky. 760 , 285 S.W. 237, 1926 Ky. LEXIS 437 ( Ky. 1926 ).

Opinions of Attorney General.

Pursuant to the division of weights and measures general supervisory power it can in accordance with 302 KAR 77.010 require that the weight bill include the commission charge by the warehouse so as to more clearly publicize the total cost involved in the sale. OAG 77-4 .

248.440. Daily reports to be furnished by warehouses and released by department.

  1. Each warehouse shall submit, under regulations of the Commissioner, a daily system of sworn statements to include the total number of pounds of tobacco sold, the total amount paid for that tobacco and the average for the day for the particular warehouse reporting.
  2. The department shall obtain the statements daily and release to the press a collaboration of the state average for the day and the average for each respective marketing center.

History. 4814c-13.

248.450. Equipment used for transporting tobacco during weighing operation to be of uniform weight — Copy of section to be posted in scale office.

  1. In each tobacco warehouse, redryer, prize room, or company, all pieces of each type of equipment used for transporting baskets of tobacco during a weighing operation in which the quantity value of the tobacco in the basket is determined shall be of uniform weight. In any case where the equipment being used for that purpose is not the property of the warehouse, redryer, prize room, or company in which the weighing operation is taking place, the weighman shall use the same tare as that set by the Division of Regulation and Inspection. In every weighing operation involving the same basket, the basket tare shall be the same as that originally determined by the Division of Regulation and Inspection.
  2. Every tobacco warehouse, redryer, prize room, or company weighing tobacco for commercial purposes shall post a copy of this law in a conspicuous place in the scale office.

History. Enact. Acts 1956, ch. 56, §§ 1, 2, effective May 18, 1956; 2002, ch. 49, § 3, effective July 15, 2002.

248.460. Liability of warehouseman for destruction of or damage to tobacco in storage.

  1. As used in this section:
    1. “Tobacco storage warehouseman” shall mean a person who is engaged in the business of long term storage of tobacco in a storage warehouse or related facility;
    2. “Owner” shall mean a person who has contracted or agreed with a tobacco storage warehouseman for the long term storage of tobacco;
    3. “Long term storage” and “tobacco in storage” shall mean the storage of redried tobacco, expressly excluding tobacco owned by a grower being held or stored in an auction warehouse by a warehouseman for the purpose of sale;
    4. “Grower” means a person who is a producer of tobacco, either by himself or by tenant, sharecropper or hired person;
    5. “Auction warehouse” means any tobacco warehouse operating as a place of sale for tobacco;
    6. “Warehouseman” means a person who is the owner, operator, manager, lessee or proprietor of a warehouse engaged in selling tobacco or his agents or employees;
    7. “Person” means any legal entity.
  2. A tobacco storage warehouseman shall be liable to the owner for damages to or destruction of tobacco in storage due to the negligence of the tobacco storage warehouseman, his agents or employees. Evidence that the owner delivered tobacco to the tobacco storage warehouseman and that the tobacco was damaged or destroyed while stored with or in the care and custody of the tobacco storage warehouseman shall not be sufficient to create a presumption of negligence on the part of the tobacco storage warehouseman, or a prima facie case in favor of the owner.

History. Enact. Acts 1978, ch. 270, § 8, effective June 17, 1978.

Research References and Practice Aids

ALR

Presumptions and burden of proof or of evidence where goods stored in situation governed by Uniform Warehouse Receipts Act are stolen, or are damaged or lost by fire or water. 13 A.L.R.2d 681.

Statute of limitations governing damage action against warehouseman for loss of or damage to stored goods. 23 A.L.R.2d 1466.

Damages recoverable from warehouseman for negligence causing injury to, or destruction of, goods of a perishable nature. 32 A.L.R.2d 910.

Warehouseman’s liability for injury to or destruction of stored goods from floods, heavy rains, or the like. 60 A.L.R.2d 1097.

Liability of warehouseman for injury to stored goods as result of failure to maintain proper temperature. 92 A.L.R.2d 1298.

Sufficiency of warehouseman’s precautions to protect goods against fire. 42 A.L.R.3d 908.

Bailee’s liability as affected by bailment condition that bailor procure insurance. 83 A.L.R.3d 519.

Liability of warehouseman or other bailee for loss of goods stored at other than agreed-upon place, 76 A.L.R.4th 883.

248.470. Deduction from sales of tobacco for tobacco labor fund — Use of tobacco labor fund — Refund — Fine. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1992, ch. 140, § 1, effective July 14, 1992) was repealed by Acts 1994, ch. 71, § 1, effective July 15, 1994.

248.480. Kentucky Tobacco Settlement Trust Corporation — Board of directors — Duties — Amnesty compensation program — Liability.

  1. As used in this section:
    1. “Settlement trust” means the national tobacco grower settlement trust established between tobacco companies and states with tobacco growers and tobacco quota owners in accordance with the master settlement agreement between certain tobacco companies and states’ attorneys general dated November 23, 1998;
    2. “Settlement trust agreement” means the agreement to provide economic assistance from the national tobacco grower settlement trust directly to tobacco growers and tobacco quota holders in the Commonwealth;
    3. “Trustee of the settlement trust” means the entity legally responsible for management of the national tobacco grower settlement trust; and
    4. “Corporation” means the Kentucky Tobacco Settlement Trust Corporation created by this section.
  2. The Kentucky Tobacco Settlement Trust Corporation is created and established as a de jure municipal corporation and political subdivision of the Commonwealth to perform essential governmental and public functions by assisting in the implementation of the national tobacco grower settlement trust agreement. The corporation shall be attached to the Finance and Administration Cabinet for administrative purposes. The corporation shall be a public agency within the meaning of KRS 61.805 , KRS 61.870 , and other applicable statutes.
  3. The corporation shall be directed by a board of directors, which shall include:
    1. The Governor, who shall serve as chair of the corporation;
    2. The Commissioner of Agriculture, who shall serve as vice chair of the corporation;
    3. The Attorney General, who shall serve as secretary of the corporation;
    4. One (1) member of the Senate appointed by the President of the Senate to serve as an ex officio, nonvoting member of the board;
    5. One (1) member of the House of Representatives appointed by the Speaker of the House of Representatives to serve as an ex officio, nonvoting member of the board;
    6. Six (6) citizen members who are tobacco growers or tobacco quota owners appointed by the Governor for a term of four (4) years;
    7. One (1) citizen member with a distinguished record of public service appointed by the Governor for a term of four (4) years; and
    8. Two (2) members appointed by the Governor for a term of four (4) years from a list of six (6) nominees selected and submitted to the Governor by the state’s congressional delegation.
  4. Members of the board shall not receive compensation for their services but be reimbursed for necessary travel and lodging expenses incurred in the performance of their duties.
  5. A quorum of the board shall consist of six (6) voting members. A majority of the voting members present may act upon any matter legally before the corporation. The board shall keep minutes and records of all meetings of the corporation and shall record all official actions.
  6. The corporation shall be a body corporate with full corporate powers. The board may develop articles of incorporation and other appropriate documentation to establish the corporation’s existence as a corporation authorized by law. The corporation shall not in any form hold, receive, or manage any proceeds from the National Tobacco Growers Settlement Trust.
  7. The corporation’s duties shall include, but not be limited to:
    1. Performing all duties and responsibilities of a state certification body as defined and directed under the terms of the settlement trust agreement;
    2. Preparing and submitting a plan to the trustee of the settlement trust for its approval. The plan shall identify those tobacco growers and tobacco quota owners who are to receive direct payment from the settlement trust and shall determine the respective amount each of the tobacco growers or tobacco quota owners is to receive;
    3. Determining the amount of any administrative expenses to be paid to the corporation under the terms of the settlement trust agreement;
    4. Appointing an officer to conduct executive functions for the corporation. The officer may be a state officer or employee who shall serve as a borrowed servant at no cost to the corporation;
    5. Requesting the trustee of the settlement trust to set aside reserve amounts in anticipation of a decrease in annual payments;
    6. Submitting information required by the trustee of the settlement trust;
    7. Establishing policies and procedures and contracting with other persons or entities if necessary to effectuate its purposes and functions;
    8. Discharging additional powers, duties, and functions as necessary or convenient to carry out the purposes of this section;
    9. Enacting bylaws concerning the conduct of its business and other administrative procedures as it deems necessary;
    10. Provide for the distribution of state funds appropriated in 2005 Ky. Acts ch. 173, Parts I and II to the beneficiaries of the National Tobacco Growers Settlement Trust in a manner consistent with this section; and
    11. Provide for the distribution of one (1) time payments under the amnesty compensation program described in subsection (8) of this section.
    1. The corporation shall establish an amnesty compensation program for tobacco quota owners who did not receive payments under the plan adopted by the corporation on March 22, 2004. The program shall grant one (1) time payments to eligible tobacco quota owners, defined in the March 22, 2004, plan, who did not attain certification status with the corporation in 2004. Tobacco quota owners who attained certification with the corporation in 2004 shall not be eligible for the amnesty compensation payments for any 2003 basic quota pounds that were certified previously by the corporation. The program developed by the corporation shall: (8) (a) The corporation shall establish an amnesty compensation program for tobacco quota owners who did not receive payments under the plan adopted by the corporation on March 22, 2004. The program shall grant one (1) time payments to eligible tobacco quota owners, defined in the March 22, 2004, plan, who did not attain certification status with the corporation in 2004. Tobacco quota owners who attained certification with the corporation in 2004 shall not be eligible for the amnesty compensation payments for any 2003 basic quota pounds that were certified previously by the corporation. The program developed by the corporation shall:
      1. Determine those quota owners not certified previously under the March 22, 2004, plan and institute an application process for those noncertified quota owners;
      2. Make a one (1) time payment to newly certified quota owners under the amnesty compensation program at the same rate per pound as those quota owners who were certified previously under the March 22, 2004, plan provisions; and
      3. Limit the application process to ninety (90) days, with an ending date no later than October 31, 2006, and make payments to certified beneficiaries within ninety (90) days after the application process has ended.
    2. Funds required under the amnesty compensation program, including administrative costs of the plan, shall be provided by the Governor’s Office of Agricultural Policy under 2006 Ky. Acts ch. 252, Pt. X, sec. B.1.a.(3). In the event funds provided under 2006 Ky. Acts ch. 252, Pt. X, are insufficient to fully carry out the provisions of paragraph (a)2. of this subsection, then the one (1) time payments to newly certified quota owners shall be made in accordance with paragraph (a)2. of this subsection, on a proportionate basis, until all available funds provided in 2006 Ky. Acts ch. 252, Pt. X, are expended.
    3. The provisions of this subsection shall expire on June 30, 2007.
  8. There shall be no liability on the part of, and no cause of action for damages shall arise against, the corporation or any member, officer, administrator, agent, or employee of the corporation, either as a part of the corporation’s operations or as an individual as a result of any act, omission, proceeding, conduct, or decision relating to the official duties, functions, and responsibilities of the corporation.

History. Enact. Acts 2000, ch. 221, § 1, effective July 14, 2000; 2005, ch. 173, § 1, effective March 20, 2005; 2006, ch. 252, Pt. XX, § 1, effective April 25, 2006.

Opinions of Attorney General.

By the express terms of KRS 248.480(2), and without restriction, the Kentucky Tobacco Settlement Trust Corporation is deemed a public agency for open records and open meetings purposes. Neither KRS 248.480(2) nor KRS 61.870 (1)(f) exclude from public inspection records of the Corporation that are “not related to functions, activities, programs, or operations funded by state or local authority.” The latter phrase applies only to records owned or maintained by or for a body referred to in subsection (1)(h) of KRS 61.870 ; the Corporation does not fall within the parameters of KRS 61.870(1)(h). OAG 03-ORD-214.

Tobacco Exhibition Center

248.500. Establishment of Kentucky Tobacco Exhibition Center.

  1. There shall be established the official Kentucky Tobacco Exhibition Center celebrating and documenting the contributions of tobacco to the history and economy of the Commonwealth and the role of Nelson County in tobacco’s growth, manufacturing, and sale in the state.
  2. The Kentucky Tobacco Exhibition Center shall be located in Nelson County.

History. Enact. Acts 1988, ch. 399, §§ 1, 2, effective July 15, 1988.

Tobacco Research Board

248.510. Tobacco research board membership — Compensation — Meetings — Quorum.

  1. The Kentucky Tobacco Research Board is hereby created. The board shall be composed of thirteen (13) voting members and one (1) nonvoting member as follows:
    1. Ten (10) permanent members who shall be the following officeholders or shall be designated by the following organizations: the Kentucky Farm Bureau Federation; the Kentucky Innovations Commission; the commissioner of the Kentucky Department of Agriculture; the dean of the University of Kentucky College of Agriculture; the Burley Growers Cooperative Association; the Council for Burley Tobacco; the Dark Fired Tobacco Association; the Kentucky Science and Technology Corporation; the chairman of the Senate Committee on Agriculture; and the chairman of the House Committee on Agriculture and Small Business. Each officeholder and organization shall designate an alternate who is authorized to serve when the member cannot be present at a meeting.
    2. Three (3) members at large, at least one (1) of whom is a tobacco farmer in Kentucky and at least one (1) of whom has research and development experience in the public or private sector, who shall be appointed by the Governor with the advice and consent of the Legislative Research Commission.
    3. One (1) nonvoting member from the University of Kentucky, who shall be the University of Kentucky Vice President for Research, or the Vice President’s designee. The nonvoting member of the board may be counted in determining a quorum, but the nonvoting member shall not vote on matters before the board.
  2. No member of the board shall receive any salary, fee, or other remuneration for his services as a member of the board but each member shall be reimbursed for his ordinary travel expenses, including meals and lodging, incurred in the performance of his duties incident to implementation of the provisions of KRS 248.510 to 248.570 .
  3. The term of the ten (10) members designated in paragraph (a) of subsection (1) of this section shall not change but they shall be permanent members in terms of the organizations and offices named. At-large members and the tobacco industry member shall serve two (2) year terms.
  4. The board shall elect, by a majority vote of the thirteen (13) voting members, a chairman and a vice chair. The chairman shall be the presiding officer of the board, shall preside at all meetings, and coordinate the functions and activities of the board. The chairman shall be elected or reelected annually and shall be a permanent member or an at-large member of the board. The vice chair shall conduct meetings in the absence of the chairman. The board shall have such other organization as deemed necessary and approved by the board.
  5. Meetings of the board shall be held at least quarterly but may be held more frequently as deemed necessary subject to call by the chairman or by request of a majority of the board members. Board meetings shall concern, among other things, policy matters relating to research projects and programs, research progress reports, authorization of projects and financial plans, and such other matters as necessary to carry out the intent of KRS 248.510 to 248.570 .
  6. Seven (7) members of the board shall constitute a quorum for doing business. Each member shall have one (1) vote and a majority vote of the members present shall control on all questions.

History. Enact. Acts 1970, ch. 255, § 1; 1972, ch. 212, § 1; 1982, ch. 324, § 1, effective July 15, 1982; 2002, ch. 98, § 2, effective July 15, 2002; 2009, ch. 32, § 2, effective June 25, 2009.

Compiler’s Notes.

The provisions in this section which authorize the Legislative Research Commission to advise and consent on certain appointments to the Tobacco Research Board were declared unconstitutional in Legislative Research Comm’n ex rel. Prather v. Brown, 664 S.W.2d 907 ( Ky. 1984 ).

NOTES TO DECISIONS

1. Constitutionality.

The provisions in this section which authorize the Legislative Research Commission to advise and consent on certain appointments to the Tobacco Research Board are invalid as an impermissible incursion into the appointment power of the executive branch of government. Legislative Research Com. by Prather v. Brown, 664 S.W.2d 907, 1984 Ky. LEXIS 300 ( Ky. 1984 ).

Opinions of Attorney General.

This section does not authorize members of the Kentucky tobacco research board to appoint another member of the board as their proxy to act in their absence. OAG 72-29 .

The board’s action in extending the terms of its officers and at large members pending appointments by the Governor under the 1982 amendment to this section was a prudent way of ensuring the stability and continuity of the tobacco research program and was thus consistent with the board’s legislative charge. OAG 82-330 .

Research References and Practice Aids

Kentucky Law Journal.

Snyder and Irland, The Separation of Governmental Powers Under the Constitution of Kentucky: A Legal and Historical Analysis of L.R.C. v. Brown, 73 Ky. L.J. 165 (1984-85).

248.520. Duties of board.

The Kentucky Tobacco Research Board shall:

  1. Formulate policies and procedures as necessary to carry out the provisions of KRS 248.510 to 248.570 .
  2. Promulgate rules and regulations as necessary to carry out the provisions of KRS 248.510 to 248.570 and to ensure proper expenditure of state funds appropriated for the purposes of KRS 248.510 to 248.570 .
  3. Review and authorize research projects and programs to be undertaken and financed under the provisions of KRS 248.510 to 248.570 .
    1. The facilities designated the Tobacco and Health Research Institute before July 15, 2002, shall be retained and operated by the University of Kentucky exclusively for the program and activities described in KRS 248.580 .
    2. In addition to the research and development funded by authority of the Kentucky Tobacco Research Board, the board is authorized to allow other research operations having related or complementary interests to share this physical facility with the Kentucky Tobacco Research and Development Center, subject to approval of the board.
  4. Review and approve all progress and final research reports on projects authorized under the provisions of KRS 248.510 to 248.570 .
  5. Ensure that state funds, appropriated by KRS 248.510 to 248.570 or any other act for tobacco research, are not diverted to any other use and that all authorized research projects are directed toward:
    1. Preserving and strengthening tobacco agriculture in Kentucky;
    2. Facilitating the progress of commercial endeavors in crop agriculture which have potential to provide entirely new market opportunities for tobacco growers; and
    3. Applying, when appropriate, previously authorized research initially conducted with tobacco to other plants which might be grown commercially in Kentucky, thus obtaining the fullest possible practical benefit from the research progress.
  6. Provide the Governor, the General Assembly, and the Legislative Research Commission an annual report by January 30 of each year showing the status of funds appropriated under KRS 248.510 to 248.570 for tobacco research and the progress of the board in terms of the results of its tobacco research efforts.
  7. Advise the General Assembly by January 30 during each even-numbered-year regular session of the need for continuation of the Kentucky Tobacco Research Board and the tax levied by Chapter 255 of the Acts of 1970 for the purpose of financing tobacco and related new crops research programs as provided by KRS 248.510 to 248.570 .
  8. Approve and release public statements relating to the progress and results of research projects.

History. Enact. Acts 1970, ch. 255, § 2; 1972, ch. 212, § 2; 2001, ch. 58, § 19, effective June 21, 2001; 2002, ch. 98, § 3, effective July 15, 2002.

Opinions of Attorney General.

The board, in its discretion, has the authority to employ full or part-time employees and consultants. OAG 70-495 .

A small percentage of the research of the tobacco and health research institute could be subcontracted. OAG 70-659 .

Some of the research may be done at a physical location other than the campus of the University of Kentucky. OAG 70-659 .

The Kentucky tobacco research board could not move a portion of, or all of, the research work to Spindletop. OAG 70-659 .

The provision of subsection (5) of this section charges the Kentucky tobacco research board with the duty of making certain that title to all research equipment remains in the Commonwealth, although certain research projects may now be conducted in places other than the University of Kentucky Tobacco and Health Research Institute. OAG 72-547 .

The board’s action in extending the terms of its officers and at large members pending appointments by the Governor under the 1982 amendment to KRS 248.510 was a prudent way of ensuring the stability and continuity of the tobacco research program and was thus consistent with the board’s legislative charge. OAG 82-330 .

248.530. Technical adviser. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1970, ch. 255, § 3) was repealed by Acts 2002, ch. 98, § 9, effective March 28, 2002. For present law, see KRS 248.580 .

248.540. Tobacco research-trust fund.

  1. The tax revenues received from the additional one-half cent ($0.005) tax levied by Chapter 255 of the Acts of 1970 shall be credited to a tobacco research-trust fund which is hereby created.
  2. Federal funds which may be made available to supplement or match state funds for research programs provided for by KRS 248.510 to 248.570 shall be credited to the trust fund created in subsection (1) of this section.
  3. Funds deposited to the credit of the tobacco research-trust fund shall be used to finance the research programs authorized under the provisions of KRS 248.510 to 248.570 and for no other purpose.
  4. Funds unexpended at the close of a fiscal year shall not lapse but shall be carried forward to the next fiscal year or biennium, provided, however, that such surplus shall be included in the budget considered and approved by the board for the ensuing period.

History. Enact. Acts 1970, ch. 255, § 6; 2002, ch. 98, § 4, effective July 15, 2002.

248.550. Appropriation and use of funds — Revenue estimates to be supplied by Office of State Budget Director.

  1. The amount of revenues collected and/or credited to the tobacco research-trust fund shall be appropriated each year to the Kentucky Tobacco Research and Development Center to finance research projects and programs as provided in KRS 248.510 to 248.570 and shall be expended by the institute only on those projects and programs authorized by the Kentucky Tobacco Research Board.
  2. The Office of State Budget Director shall supply revenue estimates of the amount of revenue anticipated to be collected during each fiscal year by the added one-half cent ($0.005) tax on cigarettes which estimate, along with any federal funds available, shall be the basis for preparing tobacco research programs and budget requests for each fiscal year.

History. Enact. Acts 1970, ch. 255, § 7; 1988, ch. 273, § 12, effective July 15, 1988; 2000, ch. 46, § 28, effective July 14, 2000; 2002, ch. 98, § 5, effective July 15, 2002.

248.560. Proposed research program — Budget.

  1. The Kentucky Tobacco Research and Development Center shall prepare a proposed research program and budget request for each fiscal year and shall present such documents to the Kentucky Tobacco Research Board for consideration and approval. The budget shall be based on revenue estimates as provided in KRS 248.550 .
  2. The budget shall provide for payment of expenses incurred by Kentucky Tobacco Research Board members as provided in subsection (2) of KRS 248.510 , and for other administrative costs of the board.
  3. The Kentucky Tobacco Research Board shall consider the university recommendations and shall approve a budget for each fiscal year which shall be the basis for expending funds appropriated by KRS 248.510 to 248.570 . The budget and proposed research program shall be considered by the board in terms of the intent of KRS 248.510 to 248.570 .
  4. The university is authorized to proceed to execute the budget approved by the Kentucky Tobacco Research Board and may expend funds accordingly, and, the Finance and Administration Cabinet is hereby authorized to issue warrants for this purpose upon request by the university.
  5. Copies of the approved budget shall be filed by the board with the Legislative Research Commission and the Finance and Administration Cabinet.

History. Enact. Acts 1970, ch. 255, § 8; 2002, ch. 98, § 6, effective July 15, 2002.

248.570. Records — Quarterly financial report to board.

  1. The Finance and Administration Cabinet and the University of Kentucky shall maintain such records as necessary to account for all receipts and expenditures credited to or charged against the tobacco research-trust fund and shall establish such rules and regulations as may be necessary to implement the provisions of KRS 248.510 to 248.570 .
  2. The University of Kentucky shall furnish to the Kentucky Tobacco Research Board and the Legislative Research Commission a quarterly financial report showing the status of funds and the status of all research projects authorized under the provisions of KRS 248.510 to 248.570 .

History. Enact. Acts 1970, ch. 255, § 9; 1982, ch. 324, § 2, effective July 15, 1982.

Opinions of Attorney General.

In light of this section and KRS ch. 45, the Kentucky tobacco research board does not have the power to establish its own regulations governing the payment of travel expense vouchers and, while the board may appropriate funds for the payment of its members’ expense vouchers, any disbursements from this account must be approved by the department of finance. OAG 72-547 .

248.580. Kentucky Tobacco Research and Development Center — Use of certain state funds.

  1. The Kentucky Tobacco Research and Development Center is hereby created.
  2. The Kentucky Tobacco Research and Development Center is to be overseen by the Kentucky Tobacco Research Board and shall undertake not only research into tobacco but also other research having related or complementary interests, including but not limited to commercialization potential of tobacco and plant research, plant natural products research and research into development of new crops based on tobacco and other plants.
  3. The Kentucky Tobacco Research and Development Center may share its physical facility with other research operations having these and similar interests, subject to approval of the Kentucky Tobacco Research Board.
  4. State funds appropriated by the General Assembly under KRS 248.510 to 248.570 shall be used solely for research conducted by, or operations of, the Kentucky Tobacco Research and Development Center and the Kentucky Tobacco Research Board.

History. Enact. Acts 2002, ch. 98, § 1, effective July 15, 2002.

248.610. Restriction on use of tobacco stalks — Exception.

  1. No person shall use, and no person shall purchase or otherwise acquire for intended use, any tobacco stalks in any manner that could result in human consumption by smoking or other use of tobacco stalks. This section does not prohibit the use of tobacco stalks in new and innovative uses for tobacco.
  2. The Department of Agriculture shall enforce this section, and shall initiate prosecution whenever and wherever it has reasonable grounds to believe this section is being violated.

History. Enact. Acts 1972, ch. 308, § 1; 1994, ch. 146, § 1, effective July 15, 1994; 2002, ch. 98, § 7, effective July 15, 2002.

Agriculture Diversification and Development Council

248.650. Agricultural Diversification and Development Council — Members — Authority for administrative regulations. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 586, § 1, effective July 15, 1998) was repealed by Acts 2006, ch. 122, § 1, effective July 12, 2006.

248.652. Agricultural diversification and development fund — Source of moneys — Administration. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 586, § 2, effective July 15, 1998) was repealed by Acts 2006, ch. 122, § 1, effective July 12, 2006.

248.654. Tobacco settlement agreement fund — Source of moneys — Distribution of funds.

There is established in the State Treasury a permanent and perpetual fund to be known as the “Tobacco Settlement Agreement Fund” to which shall be credited any funds designated to the Commonwealth from the master settlement agreement signed on November 22, 1998, between the participating tobacco manufacturers and the forty (40) settling states or related federal legislation. All investment income earned from moneys deposited in the fund prior to and after April 26, 2000, shall accrue to the fund. Any funds designated to the Commonwealth from the settlement agreement or related federal legislation and all investment income accruing to the fund shall not be expended until appropriated by the General Assembly. The General Assembly’s highest priority for distributing any funds from this account shall be for tobacco farmers and tobacco-impacted communities and health-related areas. Moneys in the fund, including all investment income accruing to the fund, shall be distributed within twenty (20) days of April 26, 2000, and within twenty (20) days of receipt of any moneys deposited to the fund after April 26, 2000, as follows:

  1. Fifty percent (50%) to the rural development fund created in KRS 248.655 ;
  2. Twenty-five percent (25%) to the early childhood development fund created in KRS 200.151 ; and
  3. Twenty-five percent (25%) to the Kentucky health care improvement fund created in KRS 194A.055 .

History. Enact. Acts 1998, ch. 586, § 3, effective July 15, 1998; 2000, ch. 546, § 1, effective April 26, 2000.

Research References and Practice Aids

2020-2022 Budget Reference.

See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, A, 19, (1) at 858.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, F, 8, (2), at 878.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. V, D, 4 at 940.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, (5), at 944.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, A, at 944.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, B, at 944.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, C, at 945.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, D, at 946.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, E, at 947.

2018-2020 Budget Reference.

See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, (5a), at 1386.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, (5b), at 1386.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, (5c), at 1386.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, (5d), at 1386.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, (5e), at 1386.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, A, at 1387.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, B, at 1387.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, C, at 1387.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, D, at 1388.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, E, at 1389.

248.655. Rural development fund — Purpose — Source of moneys — Strategic plan for fund distribution — Annual report and audit.

There is established in the State Treasury a fund to be known as the “Rural Development Fund.” This fund shall exist for the purpose of receipt and expenditure of moneys to improve and promote agricultural development for residents of the Commonwealth. The fund may receive state appropriations, gifts, grants, and federal funds and shall be disbursed by the State Treasurer upon the warrant of the chair of the rural development board. Before and after July 1, 2000, fifty percent (50%) of the proceeds in the tobacco settlement agreement fund shall be deposited in this fund as provided under KRS 248.654 . All investment income earned from moneys deposited in the fund shall accrue to the fund. The moneys in the fund shall not lapse at the close of any fiscal year but shall be carried forward in the next fiscal year for the purpose of the fund. The board shall develop and oversee the implementation of a strategic plan. The strategic plan shall identify both short-term and long-term goals and the appropriate oversights to measure progress toward achievement of those goals, and it shall be updated every two (2) years. The board shall submit an annual report to the Governor and the Legislative Research Commission by September 1 of each year for the preceding fiscal year, outlining its activities and expenditures. The Auditor of Public Accounts, on an annual basis, shall conduct a thorough review of all expenditures from the fund and, if necessary in the opinion of the Auditor, an audit of the operations of the fund. No money in the fund shall be allocated until the board has adopted a strategic plan.

History. Enact. Acts 2000, ch. 546, § 2, effective April 26, 2000.

Compiler’s Notes.

Section 6 of Acts 2000, ch. 546, effective April 26, 2000, read: “Fifty percent of the proceeds of the tobacco settlement agreement fund on the effective date of this Act, and of any additions thereto prior to July 1, 2000, shall be deposited in the rural development fund establish by Section 2 of this Act [this section] for the purpose set forth in that section for that fund.”

Research References and Practice Aids

2020-2022 Budget Reference.

See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. V, D, 4 at 940.

248.656. Entities eligible to receive moneys from the agricultural diversification and development fund. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 586, § 4, effective July 15, 1998) was repealed by Acts 2006, ch. 122, § 1, effective July 12, 2006.

248.658. Authorization for council to distribute grant and loan funds from the agricultural diversification and development fund. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 586, § 5, effective July 15, 1998) was repealed by Acts 2006, ch. 122, § 1, effective July 12, 2006.

248.660. Permissible uses for funds distributed to the Kentucky Department of Agriculture. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 586, § 6, effective July 15, 1998) was repealed by Acts 2006, ch. 122, § 1, effective July 12, 2006.

248.662. Permissible uses for funds distributed to the University of Kentucky and Kentucky State University Extension Service programs and the University of Kentucky College of Agriculture. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 1998, ch. 586, § 7, effective July 15, 1998) was repealed by Acts 2006, ch. 122, § 1, effective July 12, 2006.

248.664. List of recipients of moneys from tobacco settlement agreement fund for child support administration.

Before distribution of the funds, a list of individuals or entities that are awarded tobacco settlement moneys from the tobacco settlement agreement fund under KRS 248.654 , or related state or federal legislation, shall be forwarded by the cabinet, agency, corporation, authority, or other entity responsible for the distribution of the moneys to all designees of the Cabinet for Health and Family Services for the administration of the child support program.

History. Enact. Acts 2000, ch. 430, § 8, effective July 14, 2000; 2005, ch. 99, § 567, effective June 20, 2005.

Tobacco Master Settlement Agreement

248.701. Definitions for KRS 248.701 to 248.727.

As used in KRS 248.701 to 248.727 , unless the context requires otherwise:

  1. “Board” means the Agricultural Development Board created by KRS 248.707 ;
  2. “Fund” means the agricultural development fund established in KRS 248.655 as the “Rural Development Fund;”
  3. “Subcommittee” means the Tobacco Settlement Agreement Fund Oversight Committee created by KRS 248.723 ;
  4. “Council” means an agricultural development council required by KRS 248.721 ;
  5. “Master Settlement Agreement” means the settlement agreement dated November 23, 1998, entered into by the Commonwealth of Kentucky and major United States tobacco product manufacturers; and
  6. “Phase II Agreement” means the National Tobacco Grower Settlement Trust Agreement dated July 19, 1999, entered into by tobacco states and major tobacco companies to compensate tobacco growers and quota owners for losses resulting from the Master Settlement Agreement.

History. Enact. Acts 2000, ch. 530, § 1, effective April 26, 2000.

248.703. Allocation of moneys received in tobacco settlement agreement fund from Master Settlement Agreement.

  1. Fifty percent (50%) of the moneys received in the tobacco settlement agreement fund from Master Settlement Agreement funding after June 30, 2000, along with accrued interest, shall be allocated within twenty (20) days of receipt of the moneys to the agricultural development fund created in KRS 248.655 . The moneys received in the fund, along with the accrued interest, shall be further allocated as follows:
    1. Thirty-five percent (35%) to the counties account; and
    2. Sixty-five percent (65%) for other projects throughout the state.
  2. The allocation within the counties account in the agricultural development fund for each county shall be assured for use in each county and shall be based on the following weighted factors:
    1. Fifty percent (50%) weight to the county’s percentage of the state’s tobacco allotment based on 1999 data;
    2. Twenty-five percent (25%) weight to the county’s number of farms with tobacco quotas in the county as a percentage of farms with tobacco quotas statewide, based on 1999 data; and
    3. Twenty-five percent (25%) weight to the economic impact index for each county which shall be calculated in the following manner:
      1. The tobacco income for each county (1997 burley tobacco production times average burley market price) divided by the total personal income for each county. The data used shall reflect the year most recently available for total personal income.
      2. The percentage derived in subparagraph 1. of this paragraph (tobacco income as a percentage of total personal income for each county) shall then be summed across all counties.
      3. The economic impact index amount shall be each county’s tobacco income as a percentage of total personal income, divided by the aggregate percentage stated in subparagraph 2. of this paragraph.
  3. When a county’s allocation is exhausted, applicants from that county may apply for funds from the other sixty-five percent (65%) of the moneys in the agricultural development fund. Failure by a county to exhaust its county allocation shall not preclude the county from receiving the benefits of a proposal approved by the board from state funds.
  4. Any funds directly appropriated by the General Assembly shall be assessed against the percentage of funds allocated to the state portion of the agricultural development fund.
  5. Interest earned on any moneys in any fund or account created in KRS 248.701 to 248.727 shall accrue to that fund or account until transferred to another fund or account created or referenced in KRS 248.701 to 248.727 .
  6. None of the moneys left at the end of a fiscal year in any fund or account created or referenced in KRS 248.701 to 248.727 shall lapse, but shall stay with the fund or account as long as the fund or account exists, or until the moneys are transferred to another fund or account created or referenced in KRS 248.701 to 248.727 . In the case of any fund or account created in KRS 248.701 to 248.727 that is terminated with a remaining balance, the balance shall remain in the agricultural development fund.

History. Enact. Acts 2000, ch. 530, § 2, effective April 26, 2000; 2005, ch. 173, § 2, effective March 20, 2005.

Research References and Practice Aids

2020-2022 Budget Reference.

See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, A, 5, (2) at 854.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, A, 19, (1) at 858.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. I, F, 8, (2) at 878.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, (5) at 944.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, A at 944.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, B at 944.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, C at 945.See State/Executive Branch Budget, 2020 Ky. Acts ch. 92, Pt. X, C, (2) at 945.

2018-2020 Budget Reference.

See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. I, A, 5, (2) at 1292.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, (5a) at 1386.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, (5b) at 1386.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, (5c) at 1386.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, (6) at 1386.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, A at 1387.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, B at 1140.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, C at 1387.See State/Executive Branch Budget, 2018 Ky. Acts ch. 169, Pt. X, C, (2) at 1387.

248.705. Phase II supplement funds. [Repealed.]

Compiler’s Notes.

This section (Enact. Acts 2000, ch. 530, § 3, effective April 26, 2000) was repealed by Act 173, Part XXII, § 3, effective March 20, 2005.

248.707. Agricultural Development Board.

  1. The Agricultural Development Board is created as a political subdivision of the Commonwealth to perform essential governmental and public functions by administering funds to provide economic assistance to the agriculture community of the Commonwealth. The board shall be a public agency within the meaning of KRS 61.805 , 61.870 , and other applicable statutes.
  2. The board shall consist of sixteen (16) members as follows:
    1. Five (5) voting members or their designees, as follows:
      1. The Governor of the Commonwealth of Kentucky, who shall serve as chair;
      2. The Commissioner of the Kentucky Department of Agriculture, who shall serve as vice chair and shall serve as chair in the absence of the Governor;
      3. The secretary of the Cabinet for Economic Development;
      4. The director of the University of Kentucky Cooperative Extension Service; and
      5. The president of Kentucky State University; and
    2. Eleven (11) voting members appointed by the Governor, who shall be geographically distributed throughout the state and subject to confirmation by the House of Representatives and Senate as provided in KRS 11.160(2). The members shall be as follows:
      1. Seven (7) active farmers, at least four (4) of whom shall be from counties that are substantially tobacco-impacted, as determined by a formula that includes tobacco income as a percentage of total personal income in the county, and at least two (2) of whom shall have experience in agricultural diversification;
      2. One (1) representative of the Kentucky Farm Bureau;
      3. One (1) representative of the Kentucky Chamber of Commerce, who shall be an agribusiness person;
      4. One (1) attorney with farm experience and familiarity with agricultural policy; and
      5. One (1) agricultural lender.
  3. The members appointed under subsection (2)(b)2. and 3. of this section shall be chosen from a list of three (3) nominees submitted to the Governor by each of the respective organizations.
  4. Consideration shall be given to racial and gender equity in the appointment of board members.
  5. The majority of the voting members shall be active farmers.
  6. Members of the board shall be reimbursed for expenses incurred in the performance of their duties.
  7. Except as provided in paragraphs (a) to (d) of this subsection, the terms of the members appointed by the Governor shall be for four (4) years and until their successors are appointed and confirmed. A vacancy on the board shall be filled for the remainder of the unexpired term in the same manner as the original appointment. Members may be reappointed. The initial appointments shall be for staggered terms, as follows:
    1. Two (2) members shall be appointed for one (1) year;
    2. Three (3) members shall be appointed for two (2) years;
    3. Three (3) members shall be appointed for three (3) years; and
    4. Three (3) members shall be appointed for four (4) years.
  8. The Governor shall convene the first meeting of the board by August 1, 2000.
  9. The board shall meet monthly, or at the call of the chair or a majority of the voting members.
  10. A quorum of the board shall consist of nine (9) voting members. A majority of the voting members present may act upon matters before the board.
  11. The board shall be attached to the Office of the Governor for administrative purposes.

History. Enact. Acts 2000, ch. 530, § 4, effective April 26, 2000; 2007, ch. 137, § 182, effective June 26, 2007.

248.709. Duties of board.

The board’s duties shall include but not be limited to:

  1. Administering the agricultural development fund, except as provided in KRS 248.717(2);
  2. Receiving requests and applications for funds and authorizing the distribution of funds. The board may receive applications from institutions of public postsecondary education for financial and technical assistance in conducting alternative crop development research. The board shall assist the applicants in obtaining any necessary federal permits that may be required to conduct alternative crop research. A recipient institution shall report the status and progress of the alternative crop development research to the board, the Interim Joint Committee on Agriculture, and the Tobacco Settlement Agreement Fund Oversight Committee. The board shall promulgate administrative regulations relating to growing and researching alternative crops at the selected postsecondary institution, and shall adopt any applicable federal regulations;
  3. Developing guidelines and criteria for eligibility for and disbursement of funds, the types of direct and indirect economic assistance to be awarded, and procedures for applying for funds and reviewing applications for assistance;
  4. Ensuring that each county agricultural development council’s plans and county recommendations and applications receive major consideration in decisions on use of a county’s funds;
  5. Completing a comprehensive plan:
    1. The comprehensive plan shall propose short-term and long-term goals, strategies, and investments in Kentucky agriculture that will assist farmers in remaining competitive in existing and new enterprises. The comprehensive plan shall identify a diversified mix of enterprises that are profitable to farmers and shall determine the investments necessary to support the viability of those enterprises. The plan shall be reviewed by the General Assembly and the subcommittee created in KRS 248.723 . The subcommittee may issue comment on the plan. However, the board may act without General Assembly approval;
    2. As soon as possible following enactment of KRS 248.701 to