Text: HF00081 Text: HF00083 Text: HF00000 - HF00099 Text: HF 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 1999, 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 1999, 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 1999, is amended by striking the paragraph and relettering 1 15 subsequent paragraphs. 1 16 Sec. 4. NEW SECTION. 203.11A CIVIL PENALTIES. 1 17 1. The department shall establish, by rule, civil 1 18 penalties which may be administratively or judicially assessed 1 19 against a grain dealer for a violation of this chapter. 1 20 2. The amount of a civil penalty shall not exceed one 1 21 thousand five hundred dollars. Each day that a violation 1 22 continues shall constitute a separate violation. The amount 1 23 of the civil penalty that may be assessed in a case shall not 1 24 exceed the amount recommended by the grain industry peer 1 25 review panel established pursuant to section 203.11B. Moneys 1 26 collected in civil penalties by the department or the attorney 1 27 general shall be deposited in the general fund of the state. 1 28 3. A civil penalty may be administratively assessed only 1 29 after an opportunity for a contested case hearing under 1 30 chapter 17A. The department may be represented in an 1 31 administrative hearing or judicial proceeding by the attorney 1 32 general. A civil penalty shall be paid within thirty days 1 33 from the date that an order or judgment for the penalty 1 34 becomes final. When a person against whom a civil penalty is 1 35 administratively assessed under this section seeks timely 2 1 judicial review of an order imposing the penalty as provided 2 2 under chapter 17A, the order is not final until all judicial 2 3 review processes are completed. When a person against whom a 2 4 civil penalty is judicially assessed under this section seeks 2 5 a timely appeal of judgment, the judgment is not final until 2 6 the right of appeal is exhausted. 2 7 4. A person who fails to timely pay a civil penalty as 2 8 provided in this section shall pay, in addition to the 2 9 penalty, interest at the rate of one and one-half percent of 2 10 the unpaid balance of the assessed penalty for each month or 2 11 part of a month that the penalty remains unpaid. 2 12 Sec. 5. NEW SECTION. 203.11B GRAIN INDUSTRY PEER REVIEW 2 13 PANEL. 2 14 1. The department shall establish a grain industry peer 2 15 review panel to assist the department in assessing civil 2 16 penalties pursuant to this section and section 203C.36A. The 2 17 secretary of agriculture shall appoint to the panel the 2 18 following members: 2 19 a. Two natural persons who are grain dealers licensed 2 20 under this chapter and actively engaged in the grain dealer 2 21 business. 2 22 b. Two natural persons who are warehouse operators 2 23 licensed pursuant to chapter 203C and actively engaged in the 2 24 grain warehouse business. 2 25 c. One natural person who is a producer actively engaged 2 26 in grain farming. 2 27 2. a. The members appointed pursuant to this section 2 28 shall serve four-year terms beginning and ending as provided 2 29 in section 69.19. However, the secretary of agriculture shall 2 30 appoint initial members to serve for less than four years to 2 31 ensure that members serve staggered terms. A member is 2 32 eligible for reappointment. A vacancy on the panel shall be 2 33 filled for the unexpired portion of the regular term in the 2 34 same manner as regular appointments are made. 2 35 b. The panel shall elect a chairperson who shall serve for 3 1 a term of one year. The panel shall meet on a regular basis 3 2 and at the call of the chairperson or upon the written request 3 3 to the chairperson of three or more members. Three members 3 4 constitute a quorum and the affirmative vote of a majority of 3 5 the members present is necessary for any substantive action to 3 6 be taken by the panel. The majority shall not include any 3 7 member who has a conflict of interest and a statement by a 3 8 member that the member has a conflict of interest is 3 9 conclusive for this purpose. A vacancy in the membership does 3 10 not impair the duties of the panel. 3 11 c. Notwithstanding section 7E.6, the members shall only 3 12 receive reimbursement for actual expenses for performance of 3 13 their official duties, as provided by the department. 3 14 d. The panel shall be staffed by employees of the 3 15 department. 3 16 3. The panel may propose a schedule of civil penalties for 3 17 minor and serious violations of this chapter and chapter 203C. 3 18 The department may adopt rules based on the recommendations of 3 19 the panel as approved by the secretary of agriculture. 3 20 4. a. The panel shall review cases of grain dealers 3 21 regulated under this chapter and warehouse operators regulated 3 22 under chapter 203C who are subject to civil penalties as 3 23 provided in section 203.11A or 203C.36A. A review shall be 3 24 performed upon the request of the department or the person 3 25 subject to the civil penalty. 3 26 b. The department shall present reports to the panel in 3 27 regard to investigations of cases under review which may 3 28 result in the assessment of a civil penalty against a person. 3 29 The reports may be reviewed by the panel in closed session 3 30 pursuant to section 21.5, and are confidential records. In 3 31 presenting the reports, the department shall make available to 3 32 the panel records of persons which are otherwise confidential 3 33 under section 22.7, 203.16, or 203C.24. The panel members 3 34 shall maintain the confidentiality of records made available 3 35 to the panel. However, a determination to assess a civil 4 1 penalty against a person shall be made exclusively by the 4 2 department. 4 3 c. The panel may establish procedures for the review and 4 4 establish a system of prioritizing cases for review, 4 5 consistent with rules adopted by the department. The 4 6 department shall adopt rules establishing a period for the 4 7 review and response by the panel which must be completed prior 4 8 to a contested case hearing under chapter 17A. A hearing 4 9 shall not be delayed after the required period for review and 4 10 response, except as provided in chapter 17A or the Iowa rules 4 11 of civil procedure. The rules adopted by the department may 4 12 exclude review of minor violations. The review may also 4 13 include the manner of assessing and collecting the civil 4 14 penalty. 4 15 d. The findings and recommendations of the panel shall be 4 16 included in a response delivered to the department and the 4 17 person subject to the civil penalty. The response may include 4 18 a recommendation that a proposed civil penalty be modified or 4 19 suspended, that an alternative method of collection be 4 20 instituted, or that conditions be placed upon the license of a 4 21 grain dealer or warehouse operator. 4 22 5. This section does not apply to an action by the 4 23 department for a license suspension or revocation. This 4 24 section also does not require a review or response if the case 4 25 is subject to criminal prosecution or involves a petition 4 26 seeking injunctive relief. 4 27 6. A response by the panel may be used as evidence in an 4 28 administrative hearing or in a civil or criminal case except 4 29 to the extent that information contained in the response is 4 30 considered confidential pursuant to section 22.7, 203.16, or 4 31 203C.24. 4 32 Sec. 6. Section 203.15, subsection 7, paragraph c, 4 33 subparagraph (2), unnumbered paragraph 2, Code 1999, is 4 34 amended to read as follows: 4 35 A bond filed with the department under this paragraph shall 5 1 not be canceled by the issuer on less than ninety days notice 5 2 by certified mail to the department and the principal, unless 5 3 the bond is replaced with another bond and evidence of the new 5 4 bond is filed with the department at the time of cancellation 5 5 of the bond on file. When the department receives notice from 5 6 an issuer that it has canceled the bond, the department shall 5 7 automatically suspend the grain dealer's license if a 5 8 replacement bond is not received by the department within 5 9 sixty days of the issuance of the notice of cancellation. The 5 10 department shall cause an inspection of the licensed grain 5 11 dealer immediately at the end of the sixty-day period. If a 5 12 replacement bond is not filed within another thirty days 5 13 following the suspension, the grain dealer license shall be 5 14 automatically revoked. When a license is revoked, the 5 15 department shall provide notice of the revocation by ordinary 5 16 mail to the last known address of each holder of an 5 17 outstanding credit-sale contract and all known sellers. 5 18 Sec. 7. Section 203.16, Code 1999, is amended by adding 5 19 the following new subsection: 5 20 NEW SUBSECTION. 8. Disclosure to the grain industry peer 5 21 review panel as provided in section 203.11B. 5 22 Sec. 8. NEW SECTION. 203.18 NOTICE OF DISPOSITION OF 5 23 GRAIN. 5 24 When a seller, including a seller's agent, delivers grain 5 25 to a grain dealer, the seller must notify the grain dealer 5 26 about the grain's disposition, such as whether the grain is to 5 27 be held for storage under warehouse receipt, open storage, 5 28 pursuant to credit-sale contract, according to an agreement 5 29 with the federal government, or according to any other 5 30 arrangement. The seller may make the notification orally. As 5 31 used in this section, grain is deemed delivered when 5 32 possession of, but not necessarily title to, the grain is 5 33 transferred. 5 34 Sec. 9. Section 203C.17, subsection 1, Code 1999, is 5 35 amended to read as follows: 6 1 1. Any grain which has been received at any licensed 6 2 warehouse for which the actual sale price is not fixed and 6 3 proper documentation made or payment made shall be construed 6 4 to be grain held for storage within the meaning of this 6 5 chapter. Grain may be held in open storage or placed on 6 6 warehouse receipt.Warehouse receiptsA warehouse receipt 6 7 shall be issued for all grain held in open storage,withinsix6 8monthsone year from the date of delivery to the warehouse, 6 9 unless the depositor has signed a statement that the depositor 6 10 does not desire a warehouse receipt. The warehouse operator's 6 11 tariff shall apply for any grain that is retained in open 6 12 storage or under warehouse receipt. 6 13 Sec. 10. Section 203C.24, Code 1999, is amended by adding 6 14 the following new subsection: 6 15 NEW SUBSECTION. 8. Disclosure to the grain industry peer 6 16 review panel as provided in section 203.11B. 6 17 Sec. 11. NEW SECTION. 203C.36A CIVIL PENALTIES. 6 18 1. The department shall establish, by rule, civil 6 19 penalties which may be administratively or judicially assessed 6 20 against a warehouse operator for a violation of this chapter. 6 21 2. The amount of a civil penalty shall not exceed one 6 22 thousand five hundred dollars. Each day that a violation 6 23 continues shall constitute a separate violation. The amount 6 24 of the civil penalty that may be assessed in an administrative 6 25 case shall not exceed the amount recommended by the grain 6 26 industry peer review panel established pursuant to section 6 27 203.11B. Moneys collected in civil penalties by the 6 28 department or the attorney general shall be deposited in the 6 29 general fund of the state. 6 30 3. A civil penalty may be administratively assessed only 6 31 after an opportunity for a contested case hearing under 6 32 chapter 17A. The department may be represented in an 6 33 administrative hearing or judicial proceeding by the attorney 6 34 general. A civil penalty shall be paid within thirty days 6 35 from the date that an order or judgment for the penalty 7 1 becomes final. When a person against whom a civil penalty is 7 2 administratively assessed under this section seeks timely 7 3 judicial review of an order imposing the penalty as provided 7 4 under chapter 17A, the order is not final until all judicial 7 5 review processes are completed. When a person against whom a 7 6 civil penalty is judicially assessed under this section seeks 7 7 a timely appeal of judgment, the judgment is not final until 7 8 the right of appeal is exhausted. 7 9 4. A person who fails to timely pay a civil penalty as 7 10 provided in this section shall pay, in addition to the 7 11 penalty, interest at the rate of one and one-half percent of 7 12 the unpaid balance of the assessed penalty for each month or 7 13 part of a month that the penalty remains unpaid. 7 14 EXPLANATION 7 15 This bill amends Code chapters 203 and 203C, providing for 7 16 the regulation of grain dealers and warehouse operators 7 17 required to be licensed by the department of agriculture and 7 18 land stewardship, and providing for the grain depositors and 7 19 sellers indemnity fund. 7 20 The bill increases the amount of grain that a person may 7 21 purchase during a calendar year for resale, milling, or 7 22 processing from less than 500 to less than 1,000 bushels 7 23 without being regulated as a grain dealer. However, the bill 7 24 also amends a provision which exempts producers of grain 7 25 purchasing grain for their own use from regulation under Code 7 26 chapter 203. The bill provides that a producer of grain who 7 27 buys 50,000 bushels or more of grain during a calendar year is 7 28 regulated as a grain dealer. The bill also eliminates an 7 29 exemption applying to persons purchasing grain for sale in a 7 30 nonregistered customer-formula feed. Under the bill, these 7 31 persons must be regulated as grain dealers. 7 32 The bill amends a provision requiring a grain dealer to 7 33 file and maintain a bond with the department. The provision 7 34 prohibits the issuer of the bond from cancellation without 7 35 providing the department with 90 days' notice. The bill 8 1 provides that the notice requirement does not apply if the 8 2 bond is replaced with another bond and evidence of the new 8 3 bond is filed with the department at the time of the old 8 4 bond's cancellation. 8 5 The bill requires the department to establish, by rule, 8 6 civil penalties which may be administratively or judicially 8 7 assessed against a grain dealer or warehouse operator for a 8 8 violation of the chapters regulating those persons. The 8 9 amount of the civil penalty shall not exceed $1,500. The bill 8 10 provides procedures for administratively assessing the civil 8 11 penalties. The amount of the civil penalty cannot exceed the 8 12 amount recommended by the grain industry peer review panel as 8 13 established by the bill. The bill provides that moneys 8 14 collected in civil penalties by the department or the attorney 8 15 general must be deposited in the general fund of the state. 8 16 The bill establishes a grain industry peer review panel to 8 17 assist the department in assessing civil penalties. The bill 8 18 provides that the secretary of agriculture shall appoint 8 19 members to the panel who represent grain dealers, warehouse 8 20 operators, and grain producers. The bill provides procedures 8 21 for the operation of the panel and reimbursement of member 8 22 expenses. The bill provides that the panel may propose a 8 23 schedule of penalties for minor and serious violations, and 8 24 may review cases of persons required to be licensed as grain 8 25 dealers or warehouse operators and who are subject to civil 8 26 penalties. A review is performed upon request by the 8 27 department or the person subject to the civil penalty. The 8 28 bill provides for the consideration of information by the 8 29 panel that would otherwise be confidential. The findings and 8 30 recommendations of the panel must be included in a response 8 31 delivered to the department and the person subject to the 8 32 penalty. The response may include a recommendation that a 8 33 proposed civil penalty be modified or suspended, that an 8 34 alternative method of collection be instituted, or that 8 35 conditions be placed upon the license of a grain dealer or 9 1 warehouse operator. The panel cannot take action relating to 9 2 a license suspension or revocation. A review or response is 9 3 not required if the department refers a violation for criminal 9 4 prosecution, or in an action involving injunctive relief. The 9 5 bill provides that a response by the panel may be used as 9 6 evidence in an administrative hearing, or a civil or criminal 9 7 case, except to the extent that information contained in the 9 8 report is considered confidential. 9 9 The bill requires a seller to at least orally notify a 9 10 grain dealer about the grain's disposition when the grain is 9 11 delivered, such as whether the grain is to be held for storage 9 12 under warehouse receipt, open storage, pursuant to credit-sale 9 13 contract, according to an agreement with the federal 9 14 government, or according to any other arrangement. 9 15 Finally, the bill increases the time from six months to one 9 16 year from the date of delivery to the warehouse before a 9 17 warehouse receipt must be issued for grain held in open 9 18 storage (i.e., unpurchased grain). 9 19 LSB 1157YH 78 9 20 da/sc/14.1
Text: HF00081 Text: HF00083 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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