Text: SSB02066 Text: SSB02068 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 203.15, Code 1997, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 7A. A grain dealer who purchases grain by 1 4 credit-sale contract shall meet at least one of the following 1 5 conditions: 1 6 a. The grain dealer's last financial statement required to 1 7 be submitted to the department pursuant to section 203.3 is 1 8 accompanied by an unqualified opinion based upon an audit 1 9 performed by a certified public accountant licensed in this 1 10 state. 1 11 b. The licensed grain dealer does all of the following: 1 12 (1) At all times maintains grain, rights in grain, 1 13 proceeds from the sale of grain, or a combination thereof 1 14 totaling at least ninety percent of the dealer's obligation 1 15 for grain purchased by credit-sale contract, as required 1 16 pursuant to rules adopted by the department. 1 17 (2) Files a bond with the department in the amount of one 1 18 hundred thousand dollars payable to the department. The bond 1 19 shall be for deposit in the grain depositors and sellers 1 20 indemnity fund created pursuant to section 203D.3. The bond 1 21 shall not be canceled by the issuer on less than ninety days' 1 22 notice by certified mail to the department and the principal. 1 23 When the department receives notice from an issuer that it has 1 24 canceled the bond, the department shall automatically suspend 1 25 the grain dealer's license if a replacement bond is not 1 26 received by the department within sixty days of the issuance 1 27 of the notice of cancellation. The department shall cause an 1 28 inspection of the licensed grain dealer immediately at the end 1 29 of the sixty-day period. If a replacement bond is not filed 1 30 within another thirty days following the suspension, the grain 1 31 dealer's license shall be automatically revoked. When a 1 32 license is revoked, the department shall provide notice of the 1 33 revocation by ordinary mail to the last known address of each 1 34 holder of an outstanding credit-sale contract and all known 1 35 sellers. 2 1 Sec. 2. Section 203.15, subsection 9, Code 1997, is 2 2 amended by striking the subsection. 2 3 Sec. 3. Section 203D.3, subsection 2, paragraph c, Code 2 4 1997, is amended by striking the paragraph. 2 5 Sec. 4. Section 203D.5, Code 1997, is amended to read as 2 6 follows: 2 7 203D.5 ADJUSTMENTS TO FEE. 2 8 1. The board shall review annually the debits of and 2 9 credits to the grain depositors and sellers indemnity fund 2 10 created in section 203D.3 and shall make any adjustments in 2 11 the per-bushel fee required under section 203D.3, subsection 2 12 2, and the dealer-warehouse fee required under section 203D.3, 2 13 subsection 3, that are necessary to maintain the fund within 2 14 the limits established under this section. Not later than the 2 15 first day of May of each year, the board shall determine the 2 16 proposed amount of the per-bushel fee based on the expected 2 17 volume of grain on which the fee is to be collected and that 2 18 is likely to be handled under this chapter, and shall also 2 19 determine any adjustment to the dealer-warehouse fee. The 2 20 board may establish a different per-bushel fee for grain 2 21 purchased by credit-sale contract. The board shall make any 2 22 changes in the previous year's fees in accordance with chapter 2 23 17A. Changes in the fees shall become effective on the 2 24 following first day of July. The per-bushel fee shall not 2 25 exceed one-quarter cent per bushel on all purchased grain as 2 26 defined in section 203D.3, other than grain purchased by 2 27 credit-sale contract. The per-bushel fee for grain purchased 2 28 by credit-sale contract shall not exceed one-half cent per 2 29 bushel on all purchased grain. Until the per-bushel fee is 2 30 adjusted or waived as provided in this section, the per-bushel 2 31 fee is one-quarter cent on all purchased grain. 2 32 2. If, at the end of any three-month period, the assets of 2 33 the fund exceed six million dollars, less any encumbered 2 34 balances or pending or unsettled claims, the per-bushel fee 2 35 required under section 203D.3, subsection 2, and the dealer- 3 1 warehouse fee required under section 203D.3, subsection 3, 3 2 shall be waived and the fees are not assessable or owing. The 3 3 board shall reinstate the fees if the assets of the fund, less 3 4 any unencumbered balances or pending or unsettled claims, are 3 5 three million dollars or less. However, the board is not 3 6 required to waive the per-bushel fee required to be paid for 3 7 purchases of grain by credit-sale contract. 3 8 Sec. 5. Section 203D.6, subsection 3, paragraph d, Code 3 9 1997, is amended to read as follows: 3 10 d. That the claim derives from a covered transaction. For 3 11 purposes of this paragraph, a claim derives from a covered 3 12 transaction if the claimant is a seller who transferred title 3 13 to the grain to the grain dealerother than by credit sale3 14contractwithin six months of the incurrence date, or if the 3 15 claimant is a depositor who delivered the grain to the 3 16 warehouse operator. 3 17 EXPLANATION 3 18 This bill amends provisions relating to credit-sale 3 19 contracts executed by licensed grain dealers and farmers. 3 20 Specifically, it allows farmers to be reimbursed for losses 3 21 arising from the default of the grain dealer. A credit-sale 3 22 contract is an agreement for the sale of grain in which the 3 23 sale price is to be paid more than 30 days after the delivery 3 24 of the grain to the buyer. Code chapter 203D establishes the 3 25 grain depositors and sellers indemnity fund. The purpose of 3 26 the fund is to reimburse persons who have suffered financial 3 27 loss because they have not been paid for grain sold to a 3 28 state-licensed grain dealer or deposited in a state-licensed 3 29 warehouse. The chapter provides that persons selling grain 3 30 according to credit-sale contract are not assessed a per- 3 31 bushel indemnity fee of one-quarter cent for deposit into the 3 32 fund and are not covered for losses sustained by the failure 3 33 of a grain dealer to make payment under the contract. This 3 34 bill provides that farmers executing such contracts are 3 35 covered under the fund and must pay a fee which may be double 4 1 the per-bushel fee otherwise required. This fee may be 4 2 assessable even if the ordinary fee is not assessable because 4 3 the assets in the fund have reached a certain level. 4 4 The bill also places more requirements on grain dealers who 4 5 execute credit-sale contracts. Currently, if a grain dealer's 4 6 last financial statement required to be submitted to the 4 7 department is not accompanied by an unqualified opinion based 4 8 upon an audit performed by a certified public accountant 4 9 licensed in this state, the grain dealer must post a bond with 4 10 the department for $100,000. This bill provides that in 4 11 addition to that bond, the grain dealer must maintain grain, 4 12 rights in grain, or proceeds from the sale of grain totaling 4 13 at least 90 percent of the dealer's obligation for grain 4 14 purchased by credit-sale contract, as required pursuant to 4 15 rules adopted by the department. 4 16 LSB 3637SC 77 4 17 da/jw/5.1
Text: SSB02066 Text: SSB02068 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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