1. 1. The department is hereby authorized to pay, within the limit of its appropriations, an indemnity in the manner and in the amounts herein set forth to the owner of any cattle carrying on an approved brucellosis control program in his herd, in order to reimburse such owner for a part of the loss suffered by such owner in disposing of the cattle exposed to, infected with, or reacting to a test for brucellosis.
2. 2. The value of any cattle on which an indemnity is sought by the owner thereof shall not exceed an amount recognized by the state veterinarian and the owner as just compensation in relation to current market conditions, breeding value and other criteria of valuation for the animal destroyed. Each animal destroyed shall be identified separately on the appraisement form. The appraisement form shall be made out in triplicate, and one copy sent to the department, one copy retained by the duly authorized agent, and one copy retained by the owner.
3. 3. Any such cattle on which an indemnity is sought shall be kept in isolation and within fifteen days of identification or branding shall be sold for slaughter and a report of the net proceeds (being the total amount received less expense of transportation, commissions and other expense of such sale) derived from the sale of such infected or reactor cattle shall be delivered by the owner to the department. The department shall determine the owner's loss by deducting the amount of the net proceeds so derived by the sale of the cattle for slaughter from the appraised value.
4. 4. The indemnity to be paid by the department shall be an amount set at the discretion of the state veterinarian and shall not exceed breeding value of the animal. The department shall certify to the state commissioner of administration the amount to be paid by the department, and such amount shall constitute a legal claim against the state within the limits of available appropriations, and the commissioner of administration shall approve the same and cause the same to be paid by issuing his warrant on the state treasurer therefor in payment to such owner.
5. 5. Indemnity for animals slaughtered as reactors or as infected cattle shall be paid to the owner thereof, only if the owner cooperates with the department, if requested by the state veterinarian or his agent, in carrying out recommended practices in eradicating the disease from his animals.
6. 6. No indemnity shall be paid if, in the judgment of the state veterinarian, the animal does not qualify for indemnity or the owner is ineligible for payments.

(L. 1955 p. 5 § 267.280, A.L. 1973 S.B. 291)