Text: HF00349 Text: HF00351 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 163.30, subsection 3, unnumbered 1 2 paragraph 1, Code 2003, is amended to read as follows: 1 3NoA person shall not act as a dealerwithout first1 4securingunless the department issues the person a dealer's 1 5 licensefrom the department. The person must be licensed as a 1 6 dealer regardless of whether the swine originate in this state 1 7 or another jurisdiction or the person resides in this state or 1 8 another jurisdiction. The jurisdiction may be in another 1 9 state or a foreign nation. 1 10 a. The fee for a dealer's licenseshall beis five dollars 1 11per annum and all licenses shall expireeach year. A license 1 12 expires on the first day of July following the date of issue. 1 13LicensesA license shall be numbered and the dealer shall 1 14 retain the number from year to year. 1 15 3A. Tosecurebe issued a license,thean applicant must 1 16 file a surety bond with the departmenta bond in the sum of. 1 17 The applicant shall file a standard surety bond of ten 1 18 thousand dollars with the secretary named as trustee, for the 1 19 use and benefit of anyone damaged by a violation of this 1 20 section, except that the bond shall not be required for 1 21 dealers who are bonded in the same or a greater amount than 1 22 required pursuant to the federal Packers and Stockyards Act. 1 23 In addition, the department may require that a licensee file 1 24 an additional surety bond with the department prior to a 1 25 license being renewed as provided in section 202C.2. 1 26 Sec. 2. NEW SECTION. 202C.1 DEFINITIONS. 1 27 As used in this chapter, unless the context otherwise 1 28 requires: 1 29 1. "Dealer" means a person required to be licensed as a 1 30 dealer pursuant to section 163.30. 1 31 2. "Department" means the department of agriculture and 1 32 land stewardship. 1 33 3. "Feeder pig" means an immature swine fed for purposes 1 34 of direct slaughter which weighs one hundred pounds or less. 1 35 4. "Purchaser" means the owner or operator of a farm as 2 1 provided in section 163.30 who is delivered feeder pigs 2 2 pursuant to a sales agreement in which the owner or operator 2 3 is a party. 2 4 Sec. 3. NEW SECTION. 202C.2 SURETY BOND – REQUIREMENTS. 2 5 1. The department shall require that a dealer file a 2 6 surety bond if the department determines that the dealer is 2 7 delivering feeder pigs to purchasers pursuant to a sales 2 8 agreement and the delivered feeder pigs have a substantially 2 9 higher than average rate of morbidity or mortality. 2 10 2. The amount of the surety bond shall be established by 2 11 the department, but shall not exceed three hundred thousand 2 12 dollars. 2 13 3. The surety bond must be conditioned upon the dealer's 2 14 faithful performance of a sales agreement by delivering feeder 2 15 pigs that have a rate of morbidity or mortality in compliance 2 16 with the terms and conditions of the sales agreement. The 2 17 surety's liability extends to each such sales agreement 2 18 executed while the surety bond is in force and until 2 19 performance or the recision of the sales agreement. 2 20 4. The surety bond shall be continuous in nature until 2 21 canceled by the surety. The surety shall provide at least 2 22 ninety days' notice in writing to the dealer and the 2 23 department indicating the surety's intent to cancel the surety 2 24 bond and the effective date of the cancellation. The dealer 2 25 shall have sixty days from the date of receipt of the surety's 2 26 notice of cancellation to file a replacement surety bond. 2 27 5. The aggregate liability of the surety for a breach of 2 28 the conditions of the surety bond shall not exceed the amount 2 29 of the surety bond. 2 30 Sec. 4. NEW SECTION. 202C.3 SURETY – LIABILITY. 2 31 In a legal action based on breach of contract by a 2 32 purchaser for the delivery of feeder pigs which have a rate of 2 33 morbidity or mortality which is not in compliance with the 2 34 terms and conditions of the sales agreement, the surety is 2 35 liable to the purchaser. The purchaser may sue the surety to 3 1 recover actual damages caused by the breach, together with 3 2 interest as determined pursuant to section 668.13 from the 3 3 date of sale, reasonable attorney fees, and court costs. 3 4 Sec. 5. NEW SECTION. 202C.4 DEPARTMENTAL RULES. 3 5 The department shall adopt rules as required to administer 3 6 this chapter, including but not limited to rules providing for 3 7 threshold rates of mortality or morbidity, qualifications for 3 8 sureties, procedures for filing a surety bond or replacement 3 9 surety bond, requirements for the cancellation of the surety 3 10 bond by a surety, and the liability of a surety after 3 11 cancellation. 3 12 EXPLANATION 3 13 This bill provides that a dealer of feeder pigs may be 3 14 required to obtain a surety bond filed with the department of 3 15 agriculture and land stewardship. 3 16 Under Code chapter 163 regulating infectious and contagious 3 17 diseases among animal populations, a dealer who is engaged in 3 18 the business of selling swine must be licensed by the 3 19 department and secure a bond of $10,000. The bill amends Code 3 20 section 163.30 to provide that a dealer must be licensed 3 21 regardless of where the swine originate or where the dealer 3 22 resides. It also provides that in addition to the standard 3 23 bond, a dealer of feeder pigs may be required to file an 3 24 additional bond with the department as provided in new Code 3 25 chapter 202C. 3 26 Under the new Code chapter, the department must require 3 27 that a dealer required to be licensed under Code section 3 28 163.30 must file a surety bond if the department determines 3 29 that the dealer is delivering feeder pigs that have a 3 30 substantially higher than average rate of morbidity or 3 31 mortality. According to the bill, the amount of the bond 3 32 cannot exceed $300,000. The bond is conditioned upon the 3 33 dealer's faithful performance of a sales agreement by 3 34 delivering feeder pigs that have a rate of morbidity or 3 35 mortality that complies with the sales agreement. The bill 4 1 provides procedures for filing and canceling such a bond and 4 2 substituting a bond in case of cancellation. The bill 4 3 provides that a purchaser may bring a legal action against the 4 4 surety to recover damages and interest based on breach of 4 5 contract for the delivery of the feeder pigs. 4 6 LSB 1942HH 80 4 7 da/sh/8
Text: HF00349 Text: HF00351 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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