1. An inspection fee of ten dollars or twenty cents per ton [907.18 kilograms], whichever is greater, must be paid to the commissioner on a beneficial substance distributed in this state.

2. This subsection does not apply to: a. Exchanges of product between a manufacturer and distributor; or b. An individual beneficial substance sold exclusively in a package of ten pounds [4.54 kilograms] or less.

3. On or before January thirty-first, each licensed person that distributes a beneficial substance in this state shall: a. File with the commissioner a form stating the number of net tons [kilograms] of each listed product distributed in this state during the preceding calendar year; and b. Submit to the commissioner the inspection fee required by this section.

4. If a person fails to submit an inspection fee, at the time and in the manner required by this section, the commissioner may impose a penalty of ten dollars or ten percent of the amount due, whichever is greater. The requirements of subsection 3 apply only to the last licensed person to handle the same lot of a beneficial substance.

5. Each distributor shall keep records regarding purchases and sales for three years. The records may be examined by the commissioner upon request.

6. The commissioner shall forward all fees received under this section to the state treasurer for deposit in the environment and rangeland protection fund.