Text: HF00616 Text: HF00618 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 617 1 2 1 3 AN ACT 1 4 REQUIRING THAT DEALERS OF CERTAIN SWINE FILE EVIDENCE OF 1 5 FINANCIAL RESPONSIBILITY WITH THE DEPARTMENT OF AGRICULTURE 1 6 AND LAND STEWARDSHIP. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 163.30, subsection 3, unnumbered 1 11 paragraph 1, Code 2003, is amended to read as follows: 1 12NoA person shall not act as a dealerwithout first1 13securingunless the department issues the person a dealer's 1 14 licensefrom the department. The person must be licensed as a 1 15 dealer regardless of whether the swine originate in this state 1 16 or another jurisdiction or the person resides in this state or 1 17 another jurisdiction. The jurisdiction may be in another 1 18 state or a foreign nation. 1 19 a. The fee for a dealer's licenseshall beis five dollars 1 20per annum and all licenses shall expireeach year. A license 1 21 expires on the first day of July following the date of issue. 1 22LicensesA license shall be numbered and the dealer shall 1 23 retain the number from year to year. 1 24 3A. Tosecurebe issued a license,thean applicant must 1 25 file a surety bond with the departmenta bond in the sum of. 1 26 The applicant shall file a standard surety bond of ten 1 27 thousand dollars with the secretary named as trustee, for the 1 28 use and benefit of anyone damaged by a violation of this 1 29 section, except that the bond shall not be required for 1 30 dealers who are bonded in the same or a greater amount than 1 31 required pursuant to the federal Packers and Stockyards Act. 1 32 In addition, the department may require that a licensee file 1 33 evidence of financial responsibility with the department prior 1 34 to a license being issued or renewed as provided in section 1 35 202C.2. 2 1 Sec. 2. NEW SECTION. 202C.1 DEFINITIONS. 2 2 As used in this chapter, unless the context otherwise 2 3 requires: 2 4 1. "Dealer" means a person required to be licensed as a 2 5 dealer pursuant to section 163.30. However, a dealer does not 2 6 include a person who operates a livestock market, as defined 2 7 in section 459.102. 2 8 2. "Department" means the department of agriculture and 2 9 land stewardship. 2 10 3. "Feeder pig" means an immature swine fed for purposes 2 11 of direct slaughter which weighs one hundred pounds or less. 2 12 4. "Financial institution" means a bank or savings and 2 13 loan association authorized by this state or by the laws of 2 14 the United States, which is a member of the federal deposit 2 15 insurance corporation or the federal savings and loan 2 16 insurance corporation. 2 17 5. "Purchaser" means the owner or operator of a farm as 2 18 provided in section 163.30 who is delivered feeder pigs 2 19 pursuant to a sales agreement in which the owner or operator 2 20 is a party. 2 21 6. "Sales agreement" means an oral or written contract 2 22 executed between a dealer and a purchaser for the sale of 2 23 feeder pigs. 2 24 Sec. 3. NEW SECTION. 202C.2 EVIDENCE OF FINANCIAL 2 25 RESPONSIBILITY – REQUIREMENTS. 2 26 1. A dealer shall provide the department with evidence of 2 27 financial responsibility as required by the department. The 2 28 evidence of financial responsibility shall consist of a surety 2 29 bond furnished by a surety or an irrevocable letter of credit 2 30 issued by a financial institution. 2 31 2. The evidence of financial responsibility shall be 2 32 provided to the department before the dealer's license is 2 33 issued or renewed pursuant to section 163.30. 2 34 3. The amount of the evidence of financial responsibility 2 35 shall be established by rules which shall be adopted by the 3 1 department. Unless the department otherwise has good cause, 3 2 the rules shall be based upon the volume of sales reported by 3 3 the dealer to the United States packers and stockyards 3 4 administration. However, the evidence of financial 3 5 responsibility shall not be for less than fifty thousand 3 6 dollars or for more than three hundred thousand dollars. 3 7 4. The evidence of financial responsibility must be 3 8 conditioned upon the dealer's faithful performance of the 3 9 terms and conditions of the sales agreement. The surety's or 3 10 issuer's liability extends to each such sales agreement 3 11 executed while the surety bond or letter of credit is in force 3 12 and until performance or the recision of the sales agreement. 3 13 5. The evidence of financial responsibility shall be 3 14 continuous in nature until canceled by the surety or issuer. 3 15 The surety or issuer shall provide at least ninety days' 3 16 notice in writing to the dealer and the department indicating 3 17 the surety's or issuer's intent to cancel the surety bond or 3 18 letter of credit and the effective date of the cancellation. 3 19 The dealer shall have sixty days from the date of receipt of 3 20 the surety's or issuer's notice of cancellation to file a 3 21 replacement. However, the surety or issuer remains liable for 3 22 damages arising from sales agreements which were executed 3 23 during the effective period of the evidence of financial 3 24 responsibility. 3 25 Sec. 4. NEW SECTION. 202C.3 SURETY OR ISSUER – 3 26 LIABILITY. 3 27 1. The purchaser may bring a legal action arising from the 3 28 breach of a sales agreement against the surety on the bond or 3 29 issuer on the irrevocable letter of credit in the purchaser's 3 30 own name in district court to recover any damages as allowed 3 31 by law. The purchaser may also be awarded interest as 3 32 determined pursuant to section 668.13, beginning from the date 3 33 that the sales agreement was executed. The purchaser may also 3 34 be awarded court costs and reasonable attorney fees, which 3 35 shall be taxed as part of the costs of the legal action. 4 1 2. The aggregate liability of the surety or issuer due to 4 2 a breach of a sales agreement shall not exceed the amount of 4 3 the evidence of financial responsibility. 4 4 Sec. 5. NEW SECTION. 202C.4 DEPARTMENTAL RULES. 4 5 The department shall adopt rules as required to administer 4 6 this chapter, including but not limited to rules providing for 4 7 amounts of evidence of financial responsibility, 4 8 qualifications for a surety or financial institution, 4 9 procedures for filing evidence of financial responsibility, 4 10 including replacement bonds or letters of credit, requirements 4 11 for the cancellation of the evidence of financial 4 12 responsibility, and the liability of a surety or issuer after 4 13 cancellation. 4 14 4 15 4 16 4 17 CHRISTOPHER C. RANTS 4 18 Speaker of the House 4 19 4 20 4 21 4 22 MARY E. KRAMER 4 23 President of the Senate 4 24 4 25 I hereby certify that this bill originated in the House and 4 26 is known as House File 617, Eightieth General Assembly. 4 27 4 28 4 29 4 30 MARGARET THOMSON 4 31 Chief Clerk of the House 4 32 Approved , 2003 4 33 4 34 4 35 5 1 THOMAS J. VILSACK 5 2 Governor
Text: HF00616 Text: HF00618 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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