(a) There is hereby levied an assessment set by the board not to exceed $2 per cotton bale. The assessment shall be reviewed, set and communicated annually to growers.

(b) The assessment imposed shall be levied on a grower at the time of deposit at the cotton gin and shall be collected and remitted to the board as follows:

(1) If an in-state cotton gin serves as the selling agent for the cotton products, such cotton gin shall:

(A) Collect the assessment on behalf of the grower at the time of deposit at the gin by deducting the assessment from the ginning price of the cotton as a ginning cost or from any funds advanced for ginning costs;

(B) provide monthly reports to the board on or before the 15th day of each month regarding the assessments collected;

(C) remit all of the assessments collected each month to the board;

(D) provide the board with any other information reasonably requested by the board to ensure the collection of the assessments for each grower; and

(E) provide a copy of the sales invoice or other document evidencing the transaction to the grower that shows the amount of the assessment collected.

(2) If an out-of-state cotton gin is serving as the selling agent for the cotton produced, such gin may, subject to any contract with the board:

(A) Collect the assessment on behalf of the grower at the time of deposit at the gin; and

(B) remit all of the assessments collected each month to the board.

(c) Each cotton gin that is required to collect an assessment pursuant to this section shall forward to the board by June 1 of each year:

(1) An accounting of all assessments collected and paid; and

(2) payment for all assessments previously collected but not paid.

(d) All funds expended by the board in the administration of this act and for the payment of all claims arising out of the performance or neglect of any duties or activities pursuant to this act shall be paid from the proceeds derived from the assessment levied pursuant to this section.

(e) Each bank account used for operating and conducting the boll weevil program’s duties shall be secured by pledge of securities in the manner prescribed for state bank accounts under Kan. Stat. Ann. § 75-4218, and amendments thereto, or, if such bank account is in an institution outside the state of Kansas, the institution shall be licensed by a state or the federal government.

(f) All money collected from the assessments levied pursuant to this section shall be expended in the administration of this act, and for the payment of claims based upon obligations incurred in the performance of the activities and functions set forth in this act, and for no other purpose.