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PAG LIN
1 1 HOUSE CONCURRENT RESOLUTION NO.
1 2 BY REASONER, BELL, BERRY, BUKTA, COHOON, CONNORS,
1 3 DANDEKAR, DAVITT, FOEGE, FREVERT, GASKILL, GREIMANN,
1 4 HEDDENS, HUNTER, HUSER, JOCHUM, KUHN, LENSING,
1 5 LYKAM, MASCHER, McCARTHY, MERTZ, MILLER, MURPHY,
1 6 MYERS, D. OLSON, OSTERHAUS, PETERSEN, QUIRK,
1 7 SMITH, STEVENS, STRUYK, SWAIM, D. TAYLOR, THOMAS,
1 8 WENDT, WHITAKER, WINCKLER, and WISE
1 9 A Concurrent Resolution urging the United States
1 10 Department of Agriculture to rescind an administrative
1 11 regulation regarding grain warehouse licensing.
1 12 WHEREAS, in August 2002, the United States
1 13 Department of Agriculture adopted an administrative
1 14 regulation, 7 C.F.R. } 735.1, which provides that
1 15 federally licensed grain warehouses must no longer
1 16 comply with state laws relating to merchandising,
1 17 including recordkeeping, debt-to-asset requirements,
1 18 liquidity requirements, sales arrangements, and
1 19 participation in grain indemnity funds; and
1 20 WHEREAS, historically, state regulatory agencies
1 21 have regulated the merchandising of grain while the
1 22 United States Department of Agriculture has regulated
1 23 the storage of grain in federally licensed warehouses;
1 24 and
1 25 WHEREAS, adoption of this regulation effectively
1 26 preempts Iowa regulation of federally licensed grain
1 27 warehouses, which will then not be required to carry
1 28 an Iowa state grain dealer's license, leaving Iowa
1 29 grain producers unprotected from warehouses and
1 30 elevators that file for bankruptcy or become insolvent
2 1 as federal regulators have not developed an
2 2 indemnification system; and
2 3 WHEREAS, in 2001, the Iowa Grain Indemnity Fund
2 4 paid out nearly $700,000 to Iowa grain producers after
2 5 Crestland Cooperative, a federally licensed grain
2 6 elevator, filed for bankruptcy; and
2 7 WHEREAS, the states were not given an opportunity
2 8 to comment on this regulation prior to its adoption as
2 9 it was not included in the original drafting and
2 10 comment phase of the rulemaking procedure; and
2 11 WHEREAS, the adoption of this regulation will lead
2 12 to costly and time-consuming litigation and could
2 13 cause large losses to farmers left unprotected by
2 14 state regulations and indemnification programs; NOW
2 15 THEREFORE,
2 16 BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES, THE
2 17 SENATE CONCURRING, That the General Assembly of the
2 18 State of Iowa urges the Honorable Ann Veneman,
2 19 Secretary of Agriculture, and the United States
2 20 Department of Agriculture to rescind 7 C.F.R. } 735.1,
2 21 regarding federally licensed grain warehouses'
2 22 compliance with state grain warehouse merchandising
2 23 laws; and
2 24 BE IT FURTHER RESOLVED, That, upon adoption, the
2 25 Clerk of the House of Representatives shall prepare an
2 26 official copy of this Resolution and send it to
2 27 Secretary of Agriculture Veneman.
2 28 LSB 1904HH 80
2 29 kk/cf/24
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