Text: SSB02023 Text: SSB02025 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 203.1, subsection 8, unnumbered 1 2 paragraph 1, Code 1997, is amended to read as follows: 1 3 "Grain dealer" means a person who buys during any calendar 1 4 monthfive hundredone thousand bushels of grain or more from 1 5 the producers of the grain for purposes of resale, milling, or 1 6 processing. However, "grain dealer" does not include any of 1 7 the following: 1 8 Sec. 2. Section 203.1, subsection 8, paragraph a, Code 1 9 1997, is amended to read as follows: 1 10 a. A producer of grain whois buyingbuys less than fifty 1 11 thousand bushels of grain during a calendar year for the 1 12 producer's own use as seed or feed. 1 13 Sec. 3. Section 203.1, subsection 8, paragraph d, Code 1 14 1997, is amended by striking the paragraph and relettering 1 15 subsequent paragraphs. 1 16 Sec. 4. Section 203.9, unnumbered paragraph 1, Code 1997, 1 17 is amended to read as follows: 1 18 The department may inspect the premises used byanya grain 1 19 dealer in the conduct of the dealer's business at any time,1 20and the. The books, accounts, records, and papers ofeverya 1 21 grain dealerwhich pertain to grain purchasesare subject to 1 22 inspection by the department during ordinary business hours. 1 23 The department shallcauseinspect the business premises and 1 24 books, accounts, records, and papers of every grain dealerto1 25be inspectedat least once each eighteen-month periodwithout1 26justification. The department shall prioritize inspections 1 27 based on the system provided in section 203.22. The 1 28 department may use a risk rating produced by a statistical 1 29 model provided in section 203.22 as justification to conduct 1 30 an inspection. The transporter of grain in transit shall 1 31 possess bills of lading or other documents covering the grain, 1 32 and shall present them to any law enforcement officer or to a 1 33 person designated as an enforcement officer under section 1 34 203.13 on demand. If there is justification to believe that a 1 35 person is engaged without a license in the business of a grain 2 1 dealer in this state, the department may inspect the books, 2 2 papers, and records of the person which pertain to grain 2 3 purchases. 2 4 Sec. 5. NEW SECTION. 203.11A CIVIL PENALTIES. 2 5 1. The department shall establish, by rule, civil 2 6 penalties which may be administratively or judicially assessed 2 7 against a grain dealer for a violation of this chapter. 2 8 2. The amount of a civil penalty shall not exceed one 2 9 thousand five hundred dollars. Each day that a violation 2 10 continues shall constitute a separate violation. The amount 2 11 of the civil penalty that may be assessed in a case shall not 2 12 exceed the amount recommended by the grain industry peer 2 13 review panel established pursuant to section 203.11B. Moneys 2 14 collected in civil penalties by the department or the attorney 2 15 general shall be deposited in the grain depositors and sellers 2 16 indemnity fund created in section 203D.3. 2 17 3. A civil penalty may be administratively assessed only 2 18 after an opportunity for a contested case hearing under 2 19 chapter 17A. The department may be represented in an 2 20 administrative hearing or judicial proceeding by the attorney 2 21 general. A civil penalty shall be paid within thirty days 2 22 from the date that an order or judgment for the penalty 2 23 becomes final. When a person against whom a civil penalty is 2 24 administratively assessed under this section seeks timely 2 25 judicial review of an order imposing the penalty as provided 2 26 under chapter 17A, the order is not final until all judicial 2 27 review processes are completed. When a person against whom a 2 28 civil penalty is judicially assessed under this section seeks 2 29 a timely appeal of judgment, the judgment is not final until 2 30 the right of appeal is exhausted. 2 31 4. A person who fails to timely pay a civil penalty as 2 32 provided in this section shall pay, in addition to the 2 33 penalty, interest at the rate of one and one-half percent of 2 34 the unpaid balance of the assessed penalty for each month or 2 35 part of a month that the penalty remains unpaid. 3 1 Sec. 6. NEW SECTION. 203.11B GRAIN INDUSTRY PEER REVIEW 3 2 PANEL. 3 3 1. The department shall establish a grain industry peer 3 4 review panel to assist the department in assessing civil 3 5 penalties pursuant to this section and section 203C.36A. The 3 6 secretary of agriculture shall appoint the following members: 3 7 a. Two natural persons who are grain dealers licensed 3 8 under this chapter and actively engaged in the grain dealer 3 9 business. 3 10 b. Two natural persons who are warehouse operators 3 11 licensed pursuant to chapter 203C and actively engaged in the 3 12 grain warehouse business. 3 13 c. One natural person who is an agricultural producer 3 14 actively engaged in grain farming. 3 15 2. a. The members appointed pursuant to this section 3 16 shall serve four-year terms beginning and ending as provided 3 17 in section 69.19. However, the secretary of agriculture shall 3 18 appoint initial members to serve for less than four years to 3 19 ensure that members serve staggered terms. A member is 3 20 eligible for reappointment. A vacancy on the panel shall be 3 21 filled for the unexpired portion of the regular term in the 3 22 same manner as regular appointments are made. 3 23 b. The panel shall elect a chairperson who shall serve for 3 24 a term of one year. The panel shall meet on a regular basis 3 25 and at the call of the chairperson or upon the written request 3 26 to the chairperson of three or more members. Three members 3 27 constitute a quorum and the affirmative vote of a majority of 3 28 the members present is necessary for any substantive action to 3 29 be taken by the panel. The majority shall not include any 3 30 member who has a conflict of interest and a statement by a 3 31 member that the member has a conflict of interest is 3 32 conclusive for this purpose. A vacancy in the membership does 3 33 not impair the duties of the panel. 3 34 c. Notwithstanding section 7E.6, the members shall only 3 35 receive reimbursement for actual expenses for performance of 4 1 their official duties, as provided by the department. 4 2 d. The panel shall be staffed by employees of the 4 3 department. 4 4 3. The panel may propose a schedule of civil penalties for 4 5 minor and serious violations of this chapter and chapter 203C. 4 6 The department may adopt rules based on the recommendations of 4 7 the panel as approved by the secretary of agriculture. 4 8 4. a. The panel shall review cases of grain dealers 4 9 regulated under this chapter and warehouse operators regulated 4 10 under chapter 203C who are subject to civil penalties as 4 11 provided in section 203.11A or 203C.36A. A review shall be 4 12 performed upon request by the department or the person subject 4 13 to the civil penalty. 4 14 b. The department shall present reports to the panel in 4 15 regard to investigations of cases under review which may 4 16 result in the assessment of a civil penalty against a person. 4 17 The reports may be reviewed by the panel in closed session 4 18 pursuant to section 21.5, and are confidential records. In 4 19 presenting the reports, the department shall make available to 4 20 the panel records of persons which are otherwise confidential 4 21 under section 22.7, 203.16, or 203C.24. However, a 4 22 determination to assess a civil penalty against a person shall 4 23 be made exclusively by the department. 4 24 c. The panel may establish procedures for the review and 4 25 establish a system of prioritizing cases for review, 4 26 consistent with rules adopted by the department. The 4 27 department shall adopt rules establishing a period for the 4 28 review and response by the panel which must be completed prior 4 29 to a contested case hearing under chapter 17A. A hearing 4 30 shall not be delayed after the required period for review and 4 31 response, except as provided in chapter 17A or the Iowa rules 4 32 of civil procedure. The rules adopted by the department may 4 33 exclude review of minor violations. The review may also 4 34 include the manner of assessing and collecting the civil 4 35 penalty. 5 1 d. The findings and recommendations of the panel shall be 5 2 included in a response delivered to the department and the 5 3 person subject to the penalty. The response may include a 5 4 recommendation that a proposed civil penalty be modified or 5 5 suspended, that an alternative method of collection be 5 6 instituted, or that conditions be placed upon the license of a 5 7 grain dealer. 5 8 5. This section does not apply to an action by the 5 9 department for a license suspension or revocation. This 5 10 section also does not require a review or response if the case 5 11 is subject to criminal prosecution or involves a petition 5 12 seeking injunctive relief. 5 13 6. A response by the panel may be used as evidence in an 5 14 administrative hearing or a civil or criminal case except to 5 15 the extent that information contained in the response is 5 16 considered confidential pursuant to section 22.7, 203.16, or 5 17 203C.24. 5 18 Sec. 7. Section 203.15, subsection 7, paragraph c, 5 19 subparagraph (2), unnumbered paragraph 2, Code 1997, is 5 20 amended to read as follows: 5 21 A bond filed with the department under this paragraph shall 5 22 not be canceled by the issuer on less than ninety days notice 5 23 by certified mail to the department and the principal, unless 5 24 the bond is replaced with another bond and evidence of the new 5 25 bond is filed with the department at the time of cancellation 5 26 of the bond on file. When the department receives notice from 5 27 an issuer that it has canceled the bond, the department shall 5 28 automatically suspend the grain dealer's license if a 5 29 replacement bond is not received by the department within 5 30 sixty days of the issuance of the notice of cancellation. The 5 31 department shall cause an inspection of the licensed grain 5 32 dealer immediately at the end of the sixty-day period. If a 5 33 replacement bond is not filed within another thirty days 5 34 following the suspension, the grain dealer license shall be 5 35 automatically revoked. When a license is revoked, the 6 1 department shall provide notice of the revocation by ordinary 6 2 mail to the last known address of each holder of an 6 3 outstanding credit-sale contract and all known sellers. 6 4 Sec. 8. Section 203.16, Code 1997, is amended by adding 6 5 the following new subsection: 6 6 NEW SUBSECTION. 8. Disclosure to the grain industry peer 6 7 review panel as provided in section 203.11B. 6 8 Sec. 9. NEW SECTION. 203.18 NOTICE OF DISPOSITION OF 6 9 GRAIN. 6 10 When a seller, including a seller's agent, delivers grain 6 11 to a grain dealer, the seller must notify the grain dealer 6 12 about the grain's disposition, such as whether the grain is to 6 13 be held for storage under warehouse receipt, open storage, 6 14 pursuant to credit sale contract, according to an agreement 6 15 with the federal government, or according to any other 6 16 arrangement. The seller may make the notification verbally. 6 17 As used in this section, grain is deemed delivered when 6 18 possession of, but not necessarily title to, the grain is 6 19 transferred. 6 20 Sec. 10. Section 203C.1, subsection 11, Code 1997, is 6 21 amended by striking the subsection. 6 22 Sec. 11. Section 203C.1, subsection 23, Code 1997, is 6 23 amended to read as follows: 6 24 23. "Warehouse operator" means a person engaged in the 6 25 business of operating or controlling a warehouse for the 6 26 storing, shipping, handling or processing of agricultural 6 27 products, but does not include an incidental warehouse6 28operator. 6 29 Sec. 12. Section 203C.17, subsection 1, Code 1997, is 6 30 amended to read as follows: 6 31 1. Any grain which has been received at any licensed 6 32 warehouse for which the actual sale price is not fixed and 6 33 proper documentation made or payment made shall be construed 6 34 to be grain held for storage within the meaning of this 6 35 chapter. Grain may be held in open storage or placed on 7 1 warehouse receipt.Warehouse receiptsA warehouse receipt 7 2 shall be issued for all grain held in open storage,withinsix7 3monthsone year from the date of delivery to the warehouse, 7 4 unless the depositor has signed a statement that the depositor 7 5 does not desire a warehouse receipt. The warehouse operator's 7 6 tariff shall apply for any grain that is retained in open 7 7 storage or under warehouse receipt. 7 8 Sec. 13. Section 203C.24, Code 1997, is amended by adding 7 9 the following new subsection: 7 10 NEW SUBSECTION. 8. Disclosure to the grain industry peer 7 11 review panel as provided in section 203.11B. 7 12 Sec. 14. NEW SECTION. 203C.36A CIVIL PENALTIES. 7 13 1. The department shall establish, by rule, civil 7 14 penalties which may be administratively or judicially assessed 7 15 against a warehouse operator for a violation of this chapter. 7 16 2. The amount of a civil penalty shall not exceed one 7 17 thousand five hundred dollars. Each day that a violation 7 18 continues shall constitute a separate violation. The amount 7 19 of the civil penalty that may be assessed in an administrative 7 20 case shall not exceed the amount recommended by the grain 7 21 industry peer review panel established pursuant to section 7 22 203.11B. Moneys collected in civil penalties by the 7 23 department or the attorney general shall be deposited in the 7 24 grain depositors and sellers indemnity fund created in section 7 25 203D.3. 7 26 3. A civil penalty may be administratively assessed only 7 27 after an opportunity for a contested case hearing under 7 28 chapter 17A. The department may be represented in an 7 29 administrative hearing or judicial proceeding by the attorney 7 30 general. A civil penalty shall be paid within thirty days 7 31 from the date that an order or judgment for the penalty 7 32 becomes final. When a person against whom a civil penalty is 7 33 administratively assessed under this section seeks timely 7 34 judicial review of an order imposing the penalty as provided 7 35 under chapter 17A, the order is not final until all judicial 8 1 review processes are completed. When a person against whom a 8 2 civil penalty is judicially assessed under this section seeks 8 3 a timely appeal of judgment, the judgment is not final until 8 4 the right of appeal is exhausted. 8 5 4. A person who fails to timely pay a civil penalty as 8 6 provided in this section shall pay, in addition to the 8 7 penalty, interest at the rate of one and one-half percent of 8 8 the unpaid balance of the assessed penalty for each month or 8 9 part of a month that the penalty remains unpaid. 8 10 Sec. 15. Section 203D.3, subsection 1, Code 1997, is 8 11 amended to read as follows: 8 12 1. The grain depositors and sellers indemnity fund is 8 13 created in the state treasury as a separate account. The 8 14 general fund of the state is not liable for claims presented 8 15 against thegrain depositors and sellers indemnityfund under 8 16 section 203D.6. The fund consists of a per-bushel fee on 8 17 purchased grain remitted by licensed grain dealers and 8 18 licensed warehouse operators; an annual fee charged to and 8 19 remitted by licensed grain dealers and licensed warehouse 8 20 operators; delinquency penalties; civil penalties collected by 8 21 the department or attorney general pursuant to sections 8 22 203.11A and 203C.36A; sums collected by the department by 8 23 legal action on behalf of the fund; and interest, property, or 8 24 securities acquired through the use of moneys in the fund. 8 25 The fiscal year of the fund begins July 1. Fiscal quarters of 8 26 the fund begin July 1, October 1, January 1, and April 1. The 8 27 finances of the fund shall be calculated on an accrual basis 8 28 in accordance with generally accepted accounting principles. 8 29 The moneys collected under this section and deposited in the 8 30 fund shall be used exclusively to indemnify depositors and 8 31 sellers as provided in section 203D.6 and to pay the 8 32 administrative costs of this chapter. 8 33 EXPLANATION 8 34 This bill amends Code chapters 203, 203C, and 203D, 8 35 providing for the regulation of grain dealers and warehouse 9 1 operators required to be licensed by the department of 9 2 agriculture and land stewardship, and providing for the grain 9 3 depositors and sellers indemnity fund. 9 4 The bill increases the amount of grain that a person may 9 5 purchase during a calendar year for resale, milling, or 9 6 processing from less than 500 to less than 1,000 bushels 9 7 without being regulated as a grain dealer. However, the bill 9 8 also amends a provision which exempts producers of grain 9 9 purchasing grain for their own use from regulation under Code 9 10 chapter 203. The bill provides that a producer of grain who 9 11 buys 50,000 bushels or more of grain during a calendar year is 9 12 regulated as a grain dealer. The bill also eliminates an 9 13 exemption applying to persons purchasing grain for sale in a 9 14 nonregistered customer-formula feed. Under the bill, these 9 15 persons must be regulated as grain dealers. In addition, the 9 16 bill eliminates a provision exempting incidental warehouse 9 17 operators from regulation as warehouse operators. An 9 18 incidental warehouse operator is a person regulated under Code 9 19 chapter 198 (the "Iowa Commercial Feed Law") who has limited 9 20 grain storage capacity, if the grain is used in a feeding 9 21 operation or as an ingredient in a customer-formula feed. 9 22 The bill amends a provision which allows the department to 9 23 inspect a grain dealer's premises, by eliminating a provision 9 24 which restricts the inspection to items which pertain to grain 9 25 purchases. 9 26 The bill amends a provision requiring a grain dealer to 9 27 file and maintain a bond with the department. The provision 9 28 prohibits the issuer of the bond from cancellation without 9 29 providing the department with 90 days' notice. The bill 9 30 provides that the notice requirement does not apply if the 9 31 bond is replaced with another bond and evidence of the new 9 32 bond is filed with the department at the time of the old 9 33 bond's cancellation. 9 34 The bill requires the department to establish, by rule, 9 35 civil penalties which may be administratively or judicially 10 1 assessed against a grain dealer or warehouse operator for a 10 2 violation of the chapters regulating those persons. The 10 3 amount of the civil penalty shall not exceed $1,500. The bill 10 4 provides procedures for administratively assessing the civil 10 5 penalties. The amount of the civil penalty cannot exceed the 10 6 amount recommended by the grain industry peer review panel as 10 7 established by the bill. The bill provides that moneys 10 8 collected in civil penalties by the department or the attorney 10 9 general must be deposited in the grain depositors and sellers 10 10 indemnity fund. 10 11 The bill establishes a grain industry peer review panel to 10 12 assist the department in assessing civil penalties. The bill 10 13 provides that the secretary of agriculture shall appoint 10 14 members to the panel who represent grain dealers, warehouse 10 15 operators, and agricultural producers. The bill provides 10 16 procedures for the operation of the panel and reimbursement of 10 17 member expenses. The bill provides that the panel may propose 10 18 a schedule of penalties for minor and serious violations, and 10 19 may review cases of persons required to be licensed as grain 10 20 dealers or warehouse operators and who are subject to civil 10 21 penalties. A review is performed upon request by the 10 22 department or the person subject to the civil penalty. The 10 23 bill provides for the consideration of information by the 10 24 panel that would otherwise be confidential. The findings and 10 25 recommendations of the panel must be included in a response 10 26 delivered to the department and the person subject to the 10 27 penalty. The response may include a recommendation that a 10 28 proposed civil penalty be modified or suspended, that an 10 29 alternative method of collection be instituted, or that 10 30 conditions be placed upon the license of a grain dealer or 10 31 warehouse operator. The panel cannot take action relating to 10 32 a license suspension or revocation. A review or response is 10 33 not required if the department refers a violation for criminal 10 34 prosecution, or in an action involving injunctive relief. The 10 35 bill provides that a response by the panel may be used as 11 1 evidence in an administrative hearing, or a civil or criminal 11 2 case, except to the extent that information contained in the 11 3 report is considered confidential. 11 4 The bill requires a seller to at least verbally notify a 11 5 grain dealer about the grain's disposition when the grain is 11 6 delivered, such as whether the grain is to be held for storage 11 7 under warehouse receipt, open storage, pursuant to credit sale 11 8 contract, according to an agreement with the federal 11 9 government, or according to any other arrangement. 11 10 Finally, the bill increases the time from six months to one 11 11 year from the date of delivery to the warehouse before a 11 12 warehouse receipt must be issued for grain held in open 11 13 storage (i.e., unpurchased grain). 11 14 LSB 3384XC 77 11 15 da/sc/14
Text: SSB02023 Text: SSB02025 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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