(1) To meet the emergency caused by any outbreak of contagious or infectious disease, the governor may cause to be issued the state's certificate of indebtedness with which to indemnify owners of property destroyed to pay the necessary costs and expense of exterminating and eradicating such contagion or infection. This section shall not apply to the diseases for which federal indemnity is paid to the owners. In the case of a disease for which federal indemnity is paid, combined state and federal indemnity shall not exceed actual appraised value when an appraisal is required. (2) The commissioner, upon the recommendation of the state veterinarian, may authorize the payment of indemnity to any livestock owner whose herd, pursuant to written agreement with the state veterinarian, is sold for slaughter or destroyed because it is exposed to or diagnosed with an infectious or contagious disease; except that such indemnification, when combined with any other moneys received by the owner for the livestock, shall not exceed ninety percent of the market value for animals of comparable grade and of the same or similar type. Notwithstanding any provision of this section to the contrary, indemnity shall not be paid for brucellosis reactor livestock. (3) There is hereby created in the state treasury the diseased livestock indemnity fund. The unexpended and unencumbered balance of moneys appropriated by the general assembly for payments for the services of commissioned or appointed personnel pursuant to section 35-50- 104 shall be credited to the diseased livestock indemnity fund, upon approval of the commissioner, at the end of each fiscal year. The moneys in the fund are continuously appropriated for the purpose of making payments as provided in this section. (4) No indemnity shall be paid when: (a) The livestock are owned by the United States or a state, county, municipality, or other government entity; (b) The livestock were brought into the state contrary to this article, the rules of the commissioner, or an order of the commissioner; (c) The livestock were found to be diseased upon arrival in the state or were exposed to the disease prior to their arrival; (d) The livestock were previously affected by any other disease that by its nature and development was incurable and necessarily fatal; (e) The livestock were purchased at the time of a quarantine or purchased when due diligence and caution would have shown the livestock to be diseased; (f) The owner of the livestock willfully exposed the livestock to the disease; (g) The owner knew the livestock to be diseased or had notice of the disease at the time the livestock came into the owner's possession; (h) The owner or the owner's agent has not used reasonable diligence to prevent disease or exposure to disease; (i) The owner or the owner's agent has not complied with this article, the rules adopted by the commissioner, or an order issued by the commissioner; (j) The destruction order was not complied with within the specified time period; or (k) The owner attempted to unlawfully or improperly obtain indemnity funds.
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