If a commercial feed is found to be deficient in a constituent guaranteed on the label by more than one “permitted analytical variation,” a monetary penalty is assessed in an amount equal to five percent of the purchase price of the product and 10 percent for each additional “permitted analytical variation deficiency.” An exception to this penalty rate will apply for nutrients in commercial feeds where the level in the feed is guaranteed to be one and one-half percent or less. If these nutrients are found to be deficient by one “permitted analytical variation,” a monetary penalty is assessed in the amount of two percent of the purchase price and two percent for each additional “permitted analytical variation.” The total penalty assessed under this section for major and minor constituents shall not exceed 25 percent of the selling price of the feed, with a minimum penalty of $10.00.

Penalties assessed under this section shall be paid by the guarantor of the feed to the consumer of the feed within 60 days from the date of notice if the consumer can be identified and located. The commissioner shall be notified of such payment in a form and manner prescribed in rules and regulations. When the consumer cannot be identified and located, then the penalty shall be paid to the commissioner for deposit to the credit of the Agricultural Fund of the State Treasury.