80-9-206. Inspection fees -- filing of annual statement. (1) An inspection fee must be paid on all commercial feeds, including custom-mix feeds, except pet foods and specialty pet foods, distributed in this state as follows:
     (a) The inspection fee must be set by rule on a cents-per-ton basis, except that the first 10 tons are exempt. The department may adjust the fee by rule to adequately fund the administration of this chapter. Adjustments may be made only after holding a public hearing on the proposed changes as required in 80-9-103 and must remain within the limits of 5 cents to 25 cents per ton. The effective date of any rule adjusting fees is January 1 of the calendar year following the issuance of the rule. All permit holders are to be notified immediately of any changes in fees.
     (b) The feed manufacturer has primary responsibility for paying inspection fees. However, the distributor is responsible for inspection fees if the manufacturer has not paid them.
     (c) Inspection fees must be paid on each commercial feed, including custom-mix feeds and feed ingredients that are defined as commercial feeds even though they are used in the manufacture of other commercial feeds. However, premixes prepared and used within a feed plant are exempt but not premixes or ingredients transferred from one plant to another even within the same organization.
     (d) A person producing a commercial feed with a feed mixing plant at a feed lot or a poultry, swine, or dairy operation may not be required to pay inspection fees on the commercial feeds produced and used in his feeding operation at the site, but he is responsible for any unpaid inspection fees on commercial feed purchased by him and on any commercial feed he produces and distributes other than in his feeding operations at the site.
     (2) Each person who holds a permit as required in 80-9-201(1) shall:
     (a) file, not later than January 31 of each year, an annual statement setting forth the number of tons of commercial feeds distributed in this state during the preceding calendar year (January 1 through December 31) and upon filing the statement shall pay the inspection fee at the rate stated in subsection (1). Inspection fees that have not been remitted to the department on or before January 31 have a penalty fee of 10% with a minimum of $10 added to the amount due. The assessment of this penalty fee does not prevent the department from taking other action as provided in this chapter.
     (b) keep those records that are necessary or are required by the department to indicate accurately the tonnage of commercial feed distributed in this state. The department may examine the records to verify statements of tonnage.
     (c) make accurate and prompt reports as required. Failure to do so is sufficient cause for the department to cancel or refuse to reissue a permit.

     History: En. Sec. 8, Ch. 356, L. 1973; R.C.M. 1947, 3-2032; amd. Sec. 2, Ch. 38, L. 1989; amd. Sec. 56, Ch. 16, L. 1991.