House File 999 H-1290 Amend House File 999 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 CLAIMS AGAINST GRAIN DEPOSITORS AND SELLERS INDEMNITY FUND 5 Section 1. Section 203.12, subsection 1, Code 2025, is 6 amended to read as follows: 7 1. Upon the cessation of a grain dealer license by 8 revocation, cancellation, or expiration, any claim for the 9 purchase price of grain against the grain dealer shall be made 10 in writing and filed with the grain dealer and with the issuer 11 of a deficiency bond or of an irrevocable letter of credit 12 and with the department within one hundred twenty days after 13 the date of the cessation. A failure to make this timely 14 claim relieves the issuer and the grain depositors and sellers 15 indemnity fund provided in chapter 203D section 203D.6 or 16 203D.6A of all obligations to the claimant. 17 Sec. 2. Section 203.15, subsection 6, Code 2025, is amended 18 by striking the subsection. 19 Sec. 3. Section 203C.14, subsection 2, paragraph a, Code 20 2025, is amended to read as follows: 21 a. Upon the cessation of a warehouse operator’s license due 22 to revocation, cancellation, or expiration, a claim against the 23 warehouse operator arising under this chapter shall be made in 24 writing with the warehouse operator, with the issuer of a bond 25 on agricultural products other than bulk grain, a deficiency 26 bond, or an irrevocable letter of credit, and, if the claim 27 relates to bulk grain, with the department. The claim must 28 be made within one hundred twenty days after the cessation 29 of the license. The failure to make a timely claim relieves 30 the issuer and, if the claim relates to bulk grain, the grain 31 depositors and sellers indemnity fund provided in chapter 203D 32 section 203D.6 or 203D.6A of all obligations to the claimant. 33 Sec. 4. Section 203D.1, Code 2025, is amended by adding the 34 following new subsections: 35 -1- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 1/ 12 #1.

NEW SUBSECTION . 8A. “Indemnity fees” or “fees” means a 1 participation fee and per-bushel fee as provided in sections 2 203D.3 and 203D.3A. 3 NEW SUBSECTION . 14A. “Repayment loss” means the amount of 4 a repayment claim held by a seller for purchased grain that the 5 seller has paid back to a grain dealer’s bankruptcy estate, 6 pursuant to an order issued, judgment entered, or settlement 7 agreement approved by a bankruptcy court, and which amount 8 has not been subsequently recovered through other legal or 9 equitable remedies including the liquidation of the grain 10 dealer’s assets. 11 Sec. 5. Section 203D.1, subsection 14, Code 2025, is amended 12 to read as follows: 13 14. a. “Purchased grain” means grain any of the following: 14 (1) Grain entered in the company-owned paid position as 15 evidenced on the grain dealer’s daily position record. 16 (2) Grain purchased under credit-sale contract. 17 b. “Purchased grain” does not include grain that is subject 18 to an exempt transaction based on documentation satisfactory 19 to the department showing that the grain dealer did any of the 20 following: 21 (1) Purchased the grain from the United States government or 22 any of its subdivisions or agencies. 23 (2) Purchased the grain from a person licensed as a grain 24 dealer in any jurisdiction. 25 (3) Purchased the grain under a credit-sale contract. 26 (4) (3) Entered the grain in the company-owned paid 27 position as a cancellation of a collateral warehouse receipt. 28 (5) (4) Entered the grain in the company-owned paid 29 position as an intra-company location transfer. 30 Sec. 6. Section 203D.1, subsection 16, Code 2025, is amended 31 to read as follows: 32 16. a. “Seller” means a person who sells grain which the 33 person has produced or caused to be produced to a licensed 34 grain dealer , but excludes a person who executes a credit-sale 35 -2- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 2/ 12

contract as a seller as provided in section 203.15 . However, 1 “seller” 2 b. “Seller” does not include any of the following: 3 a. (1) A person licensed as a grain dealer in any 4 jurisdiction who sells grain to a licensed grain dealer. 5 b. (2) A person who sells grain that is not produced in 6 this state unless such grain is delivered to a licensed grain 7 dealer at a location in this state as the first point of sale. 8 Sec. 7. Section 203D.3, subsections 1 and 4, Code 2025, are 9 amended to read as follows: 10 1. The grain depositors and sellers indemnity fund is 11 created in the state treasury as a separate account. The 12 general fund of the state is not liable for claims presented 13 against the fund under section 203D.6 or 203D.6A . 14 4. The moneys collected under this section and deposited in 15 the fund shall be used exclusively to indemnify depositors and 16 sellers as provided in section 203D.6 or 203D.6A and to pay the 17 administrative costs of this chapter . 18 Sec. 8. Section 203D.3A, unnumbered paragraph 1, Code 2025, 19 is amended to read as follows: 20 The department shall collect indemnity fees , including 21 participation fees and per-bushel fees as provided in this 22 section , if established imposed by the board pursuant to 23 section 203D.5 , at rates determined by the board as provided 24 in that section. A person required to pay a fee shall use 25 licensee shall remit indemnity fees and forms and deliver the 26 payment to the department as required by the department. 27 Sec. 9. Section 203D.3A, subsection 1, paragraph a, 28 subparagraph (1), Code 2025, is amended to read as follows: 29 (1) In calculating the amount of the initial participation 30 fee, an applicant for a new license shall be deemed a licensee 31 paying remitting the full annual amount of the participation 32 fee owing on the licensee’s first anniversary date as provided 33 in paragraph “b” . The department must be satisfied that the 34 applicant is calculating the amount due in good faith and using 35 -3- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 3/ 12

the best information available. 1 (a) For a licensed grain dealer, the anniversary date is 2 the last date to apply for the renewal of the grain dealer’s 3 license before the license expires as provided in section 4 203.5. 5 (b) For a licensed warehouse operator, the anniversary date 6 is the last date to apply for the renewal of the warehouse 7 operator’s license before the license expires as provided in 8 section 203C.37. 9 Sec. 10. Section 203D.3A, subsection 1, paragraph b, Code 10 2025, is amended to read as follows: 11 b. A licensee shall pay remit a participation fee in 12 one installment as part of a license renewal application 13 in the same manner provided in paragraph “a” . However, the 14 licensee may elect to remit the participation fee on four 15 successive installment dates, with each installment date 16 occurring on determined by the department not later than in the 17 month succeeding each of the last date of the fund’s latest 18 assessment quarter quarters as provided in section 203D.3 . 19 The licensee shall pay remit twenty-five percent of the total 20 participation fee assessed on each installment date. However, 21 nothing in this subsection prevents a licensee from paying 22 the participation fee on an accelerated basis. A licensee 23 shall pay the first installment on the last date of the 24 fund’s assessment quarter immediately following the licensee’s 25 anniversary date. 26 (1) For a licensed grain dealer, the anniversary date is 27 the last date to apply for the renewal of the grain dealer’s 28 license before the license expires as provided in section 29 203.5 . 30 (2) For a licensed warehouse operator, the anniversary date 31 is the last date to apply for the renewal of the warehouse 32 operator’s license before the license expires as provided in 33 section 203C.37 . 34 Sec. 11. Section 203D.3A, subsection 2, Code 2025, is 35 -4- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 4/ 12

amended to read as follows: 1 2. a. A licensed grain dealer shall remit a per-bushel fee 2 shall be assessed on all purchased grain. 3 b. The licensed grain dealer shall forward remit the 4 per-bushel fee to the department on a quarterly basis in the 5 manner and using the forms a form prescribed by the department. 6 The licensed grain dealer shall remit the per-bushel fee 7 and form on four successive installment dates, with each 8 installment date determined by the department not later than 9 in the month succeeding each of the fund’s latest assessment 10 quarters as provided in section 203D.3. 11 c. A licensee licensed grain dealer is delinquent if the 12 licensee grain dealer fails to submit remit the full quarterly 13 per-bushel fee or quarterly forms and form when due or if, 14 upon examination, an underpayment of the fee is found by the 15 department. The licensed grain dealer is subject to a penalty 16 of ten dollars for each day the licensed grain dealer is 17 delinquent or an amount equal to the amount of the deficiency, 18 whichever is less. However, a licensee licensed grain dealer 19 who fails to submit remit the full quarterly per-bushel fee or 20 quarterly forms form when due , is subject to a minimum payment 21 of ten dollars. The department may establish and apply a 22 margin of error in determining whether a licensed grain dealer 23 is delinquent. The per-bushel fee shall be collected only once 24 on each bushel of grain. 25 c. d. The per-bushel fee shall not be collected more 26 than once on each bushel of grain. A licensed grain dealer 27 may choose to pass on the cost of a per-bushel fee to the 28 sellers by an itemized discount noted on the settlement sheet. 29 However, if the per-bushel fee is not in effect, no a licensed 30 grain dealer shall not make such a discount on the purchase of 31 grain. A discount made nominally for the per-bushel fee while 32 the per-bushel fee is not in effect is grounds for a license 33 suspension or revocation under chapter 203 . 34 Sec. 12. Section 203D.5, subsection 1, Code 2025, is amended 35 -5- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 5/ 12

to read as follows: 1 1. The board shall annually review the debits of and credits 2 to the grain depositors and sellers indemnity fund created 3 in section 203D.3 and shall determine whether to impose the 4 participation fee and per-bushel fee indemnity fees as provided 5 in section 203D.3A , make adjustments to the indemnity fees 6 effective on the previous September 1 in effect , or waive the 7 indemnity fees in effect as necessary to comply with this 8 section . The board shall make the determination not later 9 than May 1 of each year. The board shall impose the indemnity 10 fees or adjust the indemnity fees effective on the previous 11 September 1 in effect in accordance with chapter 17A . The 12 imposition or adjustment of the indemnity fees shall become 13 effective as follows: 14 a. For the participation fee, on the first day of the fund’s 15 following September 1 assessment year . However, the licensee 16 shall continue to pay the any owing participation fee at the 17 rate in effect on the prior September 1 first day of the fund’s 18 current assessment year , until the licensee has paid the amount 19 owing. 20 b. For a per-bushel fee, on the following September 1 first 21 day of the fund’s assessment year . 22 Sec. 13. Section 203D.5, subsections 4 and 5, Code 2025, are 23 amended to read as follows: 24 4. If on the last date of the fund’s assessment year as 25 provided in section 203D.3 the assets of the fund exceed eight 26 twelve million dollars, less any encumbered balances or pending 27 or unsettled claims, all of the following apply: 28 a. The participation fee shall be waived and shall not be 29 assessable or owing for the fund’s following assessment year 30 of the fund . However, the licensee shall continue to pay 31 any owing participation fee that was in effect on the prior 32 September 1 first day of the fund’s current assessment year . 33 b. The per-bushel fee shall be waived and shall not be 34 assessable or owing. 35 -6- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 6/ 12

5. The board shall reinstate the indemnity fees as 1 provided in this section if the assets of the fund, less any 2 unencumbered balances or pending or unsettled claims, are three 3 five million dollars or less. 4 Sec. 14. Section 203D.6, subsection 4, paragraph d, Code 5 2025, is amended to read as follows: 6 d. That the claim derives from a covered transaction. For 7 purposes of this paragraph, a claim derives from a covered 8 transaction if the claimant is a seller who transferred 9 title to the grain to a licensed grain dealer other than by 10 credit-sale contract within six months of the incurrence date 11 for a claim period as provided in subsection 2 , or if the 12 claimant is a depositor who delivered the grain to a licensed 13 warehouse operator. 14 Sec. 15. Section 203D.6, subsection 8, Code 2025, is amended 15 to read as follows: 16 8. Payment of claims. Upon a determination that the claim 17 is eligible for payment, the board shall provide for payment of 18 ninety percent of the loss, as determined under subsection 5 , 19 but not more than three hundred thousand dollars per claimant. 20 If at any time the board determines that there are insufficient 21 funds moneys to make payment payments of all claims under this 22 section and all repayment claims under section 203D.6A , the 23 board may order that payment payments be deferred on specified 24 claims. The department, upon the board’s instruction, shall 25 hold those claims for payment deferred payments until the board 26 determines that the fund again contains there are sufficient 27 assets moneys in the fund to make payments on all those claims . 28 Sec. 16. NEW SECTION . 203D.6A Repayment claims against 29 fund. 30 1. A separate indemnity claim process is established to 31 provide for the indemnification of a repayment loss incurred by 32 a seller against a grain dealer who is a debtor in bankruptcy 33 under the protections provided in Tit. 11 of the United States 34 Code. 35 -7- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 7/ 12

a. A repayment claim shall be filed with the department in 1 the manner prescribed by the department. 2 b. A seller may file an eligible claim for a loss under 3 section 203D.6 and an eligible repayment claim for a repayment 4 loss under this section. 5 2. To be timely, a seller must file a repayment claim with 6 the department not later than sixty days after the repayment 7 loss is finalized by a bankruptcy court, whether by an order 8 issued, judgment entered, or settlement agreement approved. 9 3. The department may provide notice of the repayment claim 10 process to a seller that may become or has become subject to 11 an order issued, judgment entered, or settlement agreement 12 approved by a bankruptcy court that requires the seller to 13 pay back amounts previously received for grain purchased by a 14 licensed grain dealer, in the bankruptcy of the grain dealer. 15 If the department chooses to provide a notice to the seller, it 16 shall have discretion to determine any reasonable method and 17 manner of providing such notice. A failure by the department 18 to provide a notice or a failure by a seller to receive a notice 19 under this subsection, does not relieve the seller of the 20 requirement to timely file a repayment claim. 21 4. The board shall determine that a repayment claim is 22 eligible for payment from the fund if the board finds all of 23 the following: 24 a. The repayment claim was timely filed. 25 b. The repayment claimant qualifies as a seller. 26 c. The repayment claim derives from a covered transaction. 27 For purposes of this paragraph, a claim derives from a covered 28 transaction if the claimant is a seller who transferred title 29 to the grain to a licensed grain dealer within six months of 30 the incurrence date as provided in section 203D.6, subsection 31 2. 32 d. The seller submits adequate proof to establish the 33 repayment claim and the amount of the repayment loss. 34 e. A claim has not been paid for the same repayment loss. 35 -8- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 8/ 12

5. A seller is not entitled to indemnify a claim for a 1 repayment loss if the repayment loss is incurred as a result of 2 a fraudulent transfer or conveyance by the seller. 3 6. The dollar value of a repayment claim is the amount a 4 seller has paid back that was previously received for the grain 5 as a result of an order issued, judgment entered, or settlement 6 agreement approved by a bankruptcy court and which has not been 7 recovered through other legal or equitable remedies including 8 the liquidation of assets. 9 7. The department acting on behalf of the board shall 10 deliver a notice to a seller filing a claim under this section. 11 The notice must include the board’s determination of the 12 seller’s eligibility and the value of the seller’s repayment 13 loss. Within twenty days of delivering the notice, the seller 14 may request a hearing for the review of either determination. 15 The request shall be made in the manner provided by the 16 board. The hearing and any further appeal shall be conducted 17 as a contested case subject to chapter 17A. A seller whose 18 repayment claim has been refused by the board may appeal the 19 refusal to either the district court of Polk county or the 20 district court of the county in which the seller resides. 21 8. Upon a determination that the claim is eligible for 22 indemnification, the board shall provide for payment of ninety 23 percent of the repayment loss, as determined by the board, 24 but not more than three hundred thousand dollars counting 25 the dollar value losses paid to the same grain dealer during 26 the claim period as provided in section 203D.6. If at any 27 time the board determines that there are insufficient moneys 28 in the fund to make payment of all claims under section 29 203D.6 and this section, the board may order that payment be 30 deferred on specified claims. The department, upon the board’s 31 instruction, shall hold the claims for deferred payment until 32 the board determines that the fund again contains sufficient 33 assets. 34 9. In the event of the payment of a repayment loss under 35 -9- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 9/ 12

this section, the fund is subrogated to the extent of the 1 amount of any payments to all rights, powers, privileges, 2 and remedies of the seller against any person regarding 3 the repayment loss. The seller shall render all necessary 4 assistance to the department and the board in securing the 5 rights granted in this section. No action or claim initiated 6 by a seller and pending at the time of payment from the fund 7 shall be compromised or settled without the consent of the 8 board. 9 10. a. A repayment claim shall expire if five years after 10 the board determines that the repayment claim is eligible, and 11 the claimant has failed to do any of the following: 12 (1) Provide for the fund’s subrogation or render all 13 necessary assistance to the department and the board in 14 securing the department’s rights of subrogation as required in 15 this section. 16 (2) Provide necessary documentation or information required 17 by the board in order to process the repayment claim. 18 b. The fund is not liable for the payment of an expired 19 repayment claim. 20 Sec. 17. EMERGENCY RULES. The department of agriculture 21 and land stewardship shall adopt emergency rules under section 22 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph 23 “b”, to implement the provisions of this division of this 24 Act within thirty business days of the effective date of 25 this section of this Act and shall submit such rules to the 26 administrative rules coordinator and the administrative code 27 editor pursuant to section 17A.5, subsection 1, within the same 28 period. The rules shall be effective immediately upon filing 29 unless a later date is specified in the rules. Any rules 30 adopted in accordance with this section shall also be published 31 as a notice of intended action as provided in section 17A.4. 32 Sec. 18. ASSESSMENT OF INDEMNITY FEES. A grain dealer 33 licensed under chapter 203 who is a party to a credit-sale 34 contract shall owe any indemnity fees assessed on grain 35 -10- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 10/ 12

purchased under the credit-sale contract beginning on September 1 1 of the first assessment quarter pursuant to section 203D.3A. 2 Sec. 19. EFFECTIVE DATE. The following, being deemed of 3 immediate importance, takes effect upon enactment: 4 The section of this division of this Act requiring the 5 department of agriculture and land stewardship to adopt 6 emergency rules. 7 Sec. 20. APPLICABILITY. 8 1. The process established in section 203D.6A, as enacted 9 by this Act, providing for the indemnification of a repayment 10 claim applies to a seller who incurs a repayment loss against 11 a grain dealer, if the grain dealer is a debtor in bankruptcy 12 under the protections provided in Tit. 11 of the United States 13 Code on or after October 24, 2022. 14 2. For a repayment loss incurred prior to July 1, 2025, the 15 end of the claim period in section 203D.6A, subsection 2, as 16 enacted by this Act, is August 29, 2025. 17 DIVISION II 18 ASSESSMENT YEAR 19 Sec. 21. Section 203D.3, subsection 3, Code 2025, is amended 20 to read as follows: 21 3. The assessment year of the fund begins September is the 22 same as the state fiscal year beginning on July 1 and ends 23 ending on August 31 June 30 . Assessment quarters of the fund 24 begin September on July 1, December October 1, March January 1, 25 and June April 1. The finances of the fund shall be calculated 26 on an accrual basis in accordance with generally accepted 27 accounting principles. 28 Sec. 22. CONTINGENT EFFECTIVE DATE. 29 1. This division of this Act takes effect on the publication 30 date of the issue of the Iowa administrative bulletin that 31 includes a notice by the secretary of agriculture stating 32 that the indemnity fees paid by grain dealers and warehouse 33 operators have been waived as provided in section 203D.5. 34 2. The department of agriculture and land stewardship shall 35 -11- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 11/ 12

send a copy of the notice to the Code editor at least two 1 weeks prior to the publication date of the Iowa administrative 2 bulletin as described in subsection l. > 3 2. Title page, by striking lines 1 through 6 and inserting 4 < An Act regulating the marketing of grain, by providing for 5 fees paid by grain dealers and warehouse operators into the 6 grain depositors and sellers indemnity fund, and the payment of 7 claims to reimburse sellers and depositors for losses covered 8 by the fund, and including effective date and applicability 9 provisions. > 10 ______________________________ MOMMSEN of Clinton -12- HF 999.1492 (2) 91 (amending this HF 999 to CONFORM to SF 608) da/ns 12/ 12 #2.