(1) Indemnities shall be paid by the state or federal government for animals mandated to be destroyed or slaughtered on account of a reportable or United States Department of Agriculture (USDA) program disease. The indemnities shall be based on fair market value as determined by the USDA or independent appraisal.
(2) No state-funded indemnity shall be paid for any animal unless it was the property of the person claiming indemnity, and was within the state, for a period of at least six (6) months prior to the time of the first test, except when animals are destroyed or slaughtered on account of a foreign animal or zoonotic disease.
(3) No indemnity shall be paid for any animal:
(a) Owned by the United States, the state or any county or city;
(b) Brought into this state in violation of the law or any regulation of the board;
(c) When the owner at the time of coming into possession of the animal had any reason to believe that it was infected; or (d) When the board or its authorized agents have satisfactory evidence that the owner has been guilty of negligence in permitting the animal to become exposed to the communicable disease.