Senate File 608 H-1296 Amend Senate File 608, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < Section 1. Section 203.1, subsection 3, Code 2025, is 5 amended to read as follows: 6 3. “Credit-sale contract” means a contract for the sale of 7 grain pursuant to which the sale price is to be paid more than 8 thirty days after the delivery of the grain to the buyer, or a 9 contract which is titled as a credit-sale contract, including 10 but not limited to those contracts commonly referred to as 11 deferred-payment contracts, contract or a deferred-pricing 12 contracts, and price-later contracts contract . 13 Sec. 2. Section 203.1, Code 2025, is amended by adding the 14 following new subsections: 15 NEW SUBSECTION . 4A. “Deferred-payment contract” means a 16 contract pursuant to which the purchase price for grain is 17 agreed to by a seller and licensed grain dealer, if payment 18 will occur more than thirty days from the date of delivery, as 19 defined in section 203.8, subsection 2, paragraph “a” . 20 NEW SUBSECTION . 4B. “Deferred-pricing contract” means a 21 contract by a seller and licensed grain dealer if delivery, 22 as defined in section 203.8, subsection 2, paragraph “a” , has 23 occurred but the purchase price has not been agreed to by the 24 seller and licensed grain dealer. 25 Sec. 3. Section 203.3, subsection 4, paragraph b, Code 2025, 26 is amended to read as follows: 27 b. The grain dealer shall submit, as required by the 28 department, a financial statement that is accompanied by 29 an unqualified opinion based upon an audit performed by a 30 certified public accountant licensed in this state. However, 31 the department may accept a qualification in an opinion that 32 is unavoidable by any audit procedure that is permitted under 33 generally accepted accounting principles. An opinion that 34 is qualified because of a limited audit procedure or because 35 -1- SF 608.1872 (1) 91 da/ns 1/ 24 #1.

the scope of an audit is limited shall not be accepted by 1 the department. The department shall not require that a 2 grain dealer submit more than one such unqualified opinion 3 per year. The grain dealer, except as provided in section 4 203.15 , may elect to submit a financial statement that is 5 accompanied by the report of a certified public accountant 6 licensed in this state that is based upon a review performed 7 by the certified public accountant in lieu of the audited 8 financial statement specified in this paragraph. However, at 9 any time the department may require a financial statement that 10 is accompanied by the report of a certified public accountant 11 licensed in this state that is based upon a review performed 12 by a certified public accountant if the department has good 13 cause. A grain dealer shall submit financial statements to 14 the department in addition to those the financial statement 15 accompanied by an unqualified opinion as required in this 16 paragraph if the department determines that it is necessary to 17 verify the grain dealer’s financial status or compliance with 18 this subsection section . 19 Sec. 4. Section 203.3, subsection 5, paragraph b, Code 2025, 20 is amended to read as follows: 21 b. The grain dealer shall submit, as required by the 22 department, a financial statement that is accompanied by 23 an unqualified opinion based upon an audit performed by a 24 certified public accountant licensed in this state. However, 25 the department may accept a qualification in an opinion that 26 is unavoidable by any audit procedure that is permitted under 27 generally accepted accounting principles. An opinion that 28 is qualified because of a limited audit procedure or because 29 the scope of an audit is limited shall not be accepted by the 30 department. The department shall not require that a grain 31 dealer submit more than one such unqualified opinion per year. 32 The grain dealer may elect, however, to submit a financial 33 statement that is accompanied by the report of a certified 34 public accountant licensed in this state that is based upon 35 -2- SF 608.1872 (1) 91 da/ns 2/ 24

a review performed by the certified public accountant in 1 lieu of the audited financial statement specified in this 2 paragraph. However, at any time the department may require 3 a financial statement that is accompanied by the report of a 4 certified public accountant licensed in this state that is 5 based upon a review performed by a certified public accountant 6 if the department has good cause. A grain dealer shall submit 7 financial statements to the department in addition to those 8 the financial statement accompanied by an unqualified opinion 9 required in this paragraph if the department determines that it 10 is necessary to verify the grain dealer’s financial status or 11 compliance with this section . 12 Sec. 5. Section 203.8, subsection 1, Code 2025, is amended 13 to read as follows: 14 1. a. A grain dealer licensed or required to be licensed 15 pursuant to section 203.3 shall pay the purchase price to the 16 seller for grain upon as follows: 17 (1) Upon delivery or later upon demand by the seller , 18 but . If the seller does not make a demand, the grain dealer 19 shall pay the purchase price not later than thirty days after 20 delivery by the seller unless in last date for scheduled 21 payments made by the licensed grain dealer to sellers for 22 delivered grain according to the grain dealer’s standard 23 business operation as provided by rules adopted by the 24 department. 25 (2) In accordance with the terms of a credit-sale 26 contract that satisfies the requirements of this chapter . 27 The department shall adopt rules for payment by check and 28 electronic funds transfer. 29 b. A grain dealer licensed or required to be licensed 30 pursuant to section 203.3 shall not hold a check for the 31 purchase of grain more than five days after the grain dealer 32 issues a check to the seller. After that date, the grain 33 dealer shall deliver the check in person or by mail to the 34 seller’s last known address. The department shall adopt rules 35 -3- SF 608.1872 (1) 91 da/ns 3/ 24

pursuant to chapter 17A for a grain dealer’s payment by check 1 and electronic funds transfer. 2 Sec. 6. Section 203.15, unnumbered paragraph 1, Code 2025, 3 is amended to read as follows: 4 A grain dealer shall not purchase grain by a credit-sale 5 contract except as provided in this section . 6 Sec. 7. Section 203.15, subsections 1, 3, 4, and 6, Code 7 2025, are amended to read as follows: 8 1. The grain dealer shall be licensed pursuant to section 9 203.3 . All of the following shall apply to a grain dealer 10 required to be licensed under that section who purchases grain 11 by credit-sale contract: 12 a. The meaning of “credit-sale contract” , including 13 “deferred-payment contract” or “deferred-pricing contract” , as 14 those terms are defined in section 203.1, shall supersede the 15 meaning of those terms in a contract entered into by a seller 16 and a licensed grain dealer. 17 a. b. The grain dealer shall give provide written notice to 18 the department prior to engaging in the purchase of grain by 19 credit-sale contract. The written notice shall must contain 20 all of the following: 21 (1) A statement that the grain dealer is engaging in 22 the purchase of grain by deferred-pricing contract or 23 deferred-payment contract or both. 24 (2) Any other information required by the department. 25 b. c. All The grain dealer shall maintain credit-sale 26 contract forms in the possession of the grain dealer shall . 27 The department may require the credit-sale contract forms to 28 distinguish between the purchase of grain by deferred-pricing 29 contract or deferred-payment contract. The credit-sale 30 contract forms must have been permanently and consecutively 31 numbered at the time of printing of the forms. The grain 32 dealer shall maintain an accurate record of all credit-sale 33 contract forms and numbers obtained by that grain dealer. The 34 record shall must include the disposition of each numbered 35 -4- SF 608.1872 (1) 91 da/ns 4/ 24

form, whether by execution, destruction, or otherwise. 1 c. d. The grain dealer who purchases grain by credit-sale 2 contract shall maintain records as required by the department 3 in compliance with this section . The department may require 4 the grain dealer to account separately for deferred-pricing 5 contracts and deferred-payment contracts. 6 3. a. Title to all grain sold If a grain dealer purchases 7 grain by a credit-sale contract , is in the purchasing grain 8 dealer as of the time the contract is executed, unless the 9 contract provides otherwise transferred title to the grain 10 upon the grain’s delivery to the grain dealer. As used in 11 this paragraph, “delivery” means the same as defined in section 12 203.8 . 13 b. The contract must be signed and dated by both parties 14 and executed in duplicate. One copy shall be retained by the 15 grain dealer and one copy shall be delivered to the seller. 16 Upon the cessation of the grain dealer’s license by revocation, 17 cancellation, or expiration as provided in section 203.10 , the 18 payment date for all credit-sale contracts shall be advanced to 19 a date not later than thirty days after the effective date of 20 the cessation, and the purchase price for all unpriced grain 21 shall be determined as of the effective date of the cessation 22 in accordance with all other provisions of the contract. 23 However, if the business of the grain dealer is sold to another 24 licensed grain dealer, credit-sale contracts may be assigned to 25 the purchaser of the business. 26 4. a. A grain dealer shall not purchase grain on by 27 credit-sale contract during if any time period in which of the 28 following apply: 29 a. The grain dealer fails at any time to maintain fifty 30 cents of net worth for each outstanding bushel of grain 31 purchased under credit by credit-sale contract . The However, 32 the grain dealer may maintain a deficiency bond or an 33 irrevocable letter of credit in the amount of two thousand 34 dollars for each one thousand dollars or fraction thereof of 35 -5- SF 608.1872 (1) 91 da/ns 5/ 24

deficiency in net worth. 1 b. A The grain dealer who is also a warehouse operator 2 licensed by the department of agriculture and land stewardship 3 under chapter 203C or the United States department of 4 agriculture under the United States Warehouse Act, and who 5 does not the warehouse operator fails to have a sufficient 6 quantity or quality of grain to satisfy the warehouse 7 operator’s obligations based on an examination by the 8 department of agriculture and land stewardship or the United 9 States department of agriculture shall not purchase grain on 10 credit-sale contract to correct the shortage of grain . 11 c. (1) A The grain dealer must meet at least either of the 12 following conditions: 13 (a) The fails to submit to the department the grain 14 dealer’s last financial statement required to be submitted 15 to the department pursuant to section 203.3 is accompanied 16 by an unqualified opinion based upon an audit performed by a 17 certified public accountant licensed in this state as required 18 pursuant to section 203.3 . 19 (b) The grain dealer files a bond with the department in 20 the amount of one hundred thousand dollars payable to the 21 department. 22 (2) (a) The bond filed with the department under this 23 paragraph shall be used to indemnify sellers for losses 24 resulting from a breach of a credit-sale contract as provided 25 by rules adopted by the department. The rules shall include 26 but are not limited to procedures and criteria for providing 27 notice, filing claims, valuing losses, and paying claims. The 28 bond provided in this paragraph shall be in addition to any 29 other bond required in this chapter . 30 (b) The bond shall not be canceled by the issuer on less 31 than ninety days’ notice by certified mail to the department 32 and the principal. However, if an adequate replacement bond 33 is filed with the department, the department may authorize 34 the cancellation of the original bond before the end of the 35 -6- SF 608.1872 (1) 91 da/ns 6/ 24

ninety-day period. 1 (c) If an adequate replacement bond is not received by the 2 department within sixty days of the issuance of the notice of 3 cancellation, the department shall suspend the grain dealer’s 4 license. The department shall cause an inspection of the 5 licensed grain dealer immediately at the end of the sixty-day 6 period. If a replacement bond is not filed within another 7 thirty days following the suspension, the department shall 8 revoke the grain dealer’s license. 9 (3) When a license is revoked, the department shall provide 10 notice of the revocation by ordinary mail to the last known 11 address of each holder of an outstanding credit-sale contract 12 and all known sellers. 13 6. a. A grain dealer who purchases grain by credit-sale 14 contract shall obtain from the seller a signed acknowledgment 15 stating that the seller has received a written notice that 16 grain purchased by credit-sale contract is not protected by the 17 grain depositors and sellers indemnity fund explaining all of 18 the following: 19 (1) Ordinarily, a person who sells grain to a licensed grain 20 dealer may file a claim with the Iowa grain indemnity fund 21 board for a loss or losses caused by the licensed grain dealer . 22 (2) For a grain transaction, other than by credit-sale 23 contract, the seller may file a claim for indemnification of 24 ninety percent of a loss. 25 (3) (a) For a credit-sale contract classified as a 26 deferred-pricing contract, the seller may file a claim for 27 indemnification of seventy-five percent of a loss. 28 (b) The indemnification limit for all losses is not more 29 than four hundred thousand dollars but may be decreased to 30 three hundred thousand dollars depending upon the extent to 31 which the seller’s loss arose from a deferred-pricing contract. 32 (c) For a credit-sale contract classified as a 33 deferred-payment contract, a seller is not eligible to claim a 34 loss for indemnification. 35 -7- SF 608.1872 (1) 91 da/ns 7/ 24

b. The form for the acknowledgment shall be prescribed by 1 the department , and the . 2 c. The licensed grain dealer and the seller shall each be 3 provided a copy of the acknowledged form . 4 Sec. 8. Section 203C.6, subsection 4, paragraph b, Code 5 2025, is amended to read as follows: 6 b. The warehouse operator shall submit, as required by 7 the department, a financial statement that is accompanied by 8 an unqualified opinion based upon an audit performed by a 9 certified public accountant licensed in this state. However, 10 the department may accept a qualification in an opinion that 11 is unavoidable by any audit procedure that is permitted under 12 generally accepted accounting principles. An opinion that 13 is qualified because of a limited audit procedure or because 14 the scope of an audit is limited shall not be accepted by the 15 department. The department shall not require that a warehouse 16 operator submit more than one such unqualified opinion per 17 year. The warehouse operator may elect, however, to submit 18 a financial statement that is accompanied by the report of 19 a certified public accountant licensed in this state that 20 is based upon a review performed by the certified public 21 accountant in lieu of the audited financial statement specified 22 in this paragraph. However, at any time the department may 23 require a financial statement that is accompanied by the report 24 of a certified public accountant licensed in this state that is 25 based upon a review performed by a certified public accountant 26 if the department has good cause. A warehouse operator shall 27 submit financial statements to the department in addition to 28 those the financial statement accompanied by an unqualified 29 opinion as required in this paragraph if the department 30 determines that it is necessary to verify the warehouse 31 operator’s financial status or compliance with this subsection 32 section . 33 Sec. 9. Section 203C.6, subsection 5, paragraph b, Code 34 2025, is amended to read as follows: 35 -8- SF 608.1872 (1) 91 da/ns 8/ 24

b. The warehouse operator shall submit, as required by 1 the department, a financial statement that is accompanied by 2 an unqualified opinion based upon an audit performed by a 3 certified public accountant licensed in this state. However, 4 the department may accept a qualification in an opinion that 5 is unavoidable by any audit procedure that is permitted under 6 generally accepted accounting principles. An opinion that 7 is qualified because of a limited audit procedure or because 8 the scope of an audit is limited shall not be accepted by the 9 department. The department shall not require that a warehouse 10 operator submit more than one such unqualified opinion per 11 year. The warehouse operator may elect, however, to submit 12 a financial statement that is accompanied by the report of 13 a certified public accountant licensed in this state that 14 is based upon a review performed by the certified public 15 accountant in lieu of the audited financial statement specified 16 in this paragraph. However, at any time the department may 17 require a financial statement that is accompanied by the report 18 of a certified public accountant licensed in this state that is 19 based upon a review performed by a certified public accountant 20 if the department has good cause. A warehouse operator shall 21 submit financial statements to the department in addition to 22 those the financial statement accompanied by an unqualified 23 opinion as required in this paragraph if the department 24 determines that it is necessary to verify the warehouse 25 operator’s financial status or compliance with this subsection 26 section . 27 Sec. 10. Section 203D.1, Code 2025, is amended by adding the 28 following new subsections: 29 NEW SUBSECTION . 2A. “Deferred-payment contract” means the 30 same as defined in section 203.1. 31 NEW SUBSECTION . 2B. “Deferred-pricing contract” means the 32 same as defined in section 203.1. 33 NEW SUBSECTION . 8A. “Indemnity fees” or “fees” means a 34 participation fee and per-bushel fee as provided in sections 35 -9- SF 608.1872 (1) 91 da/ns 9/ 24

203D.3 and 203D.3A. 1 NEW SUBSECTION . 14A. “Repayment loss” means the part of 2 a repayment claim filed with the department by a seller that 3 includes the dollar value loss incurred by the seller resulting 4 from the seller receiving an amount from the sale of grain to a 5 purchasing grain dealer that the seller has paid back to the 6 grain dealer’s bankruptcy estate subject to the requirements 7 and limitations in sections 203D.6 and 203D.6A. 8 Sec. 11. Section 203D.1, subsections 14 and 16, Code 2025, 9 are amended to read as follows: 10 14. a. “Purchased grain” means grain any of the following: 11 (1) Grain entered in the company-owned paid position as 12 evidenced on the grain dealer’s daily position record. 13 (2) Grain purchased by deferred-pricing contract. 14 b. “Purchased grain” does not include grain that is subject 15 to an exempt transaction based on documentation satisfactory 16 to the department showing that the grain dealer did any of the 17 following: 18 (1) Purchased the grain from the United States government or 19 any of its subdivisions or agencies. 20 (2) Purchased the grain from a person licensed as a grain 21 dealer in any jurisdiction. 22 (3) Purchased the grain under a credit-sale by 23 deferred-payment contract. 24 (4) Entered the grain in the company-owned paid position as 25 a cancellation of a collateral warehouse receipt. 26 (5) Entered the grain in the company-owned paid position as 27 an intra-company location transfer. 28 16. a. “Seller” means a person who sells grain which , that 29 the person has produced or caused to be produced , to a licensed 30 grain dealer , but excludes a person who executes a credit-sale 31 contract as a seller as provided in section 203.15 . However, 32 “seller” 33 b. “Seller” does not include any of the following: 34 a. (1) A person licensed as a grain dealer in any 35 -10- SF 608.1872 (1) 91 da/ns 10/ 24

jurisdiction who sells grain to a licensed grain dealer. 1 b. (2) A person who sells grain that is not produced in 2 this state unless such grain is delivered to a licensed grain 3 dealer at a location in this state as the first point of sale. 4 (3) A person who sells grain by deferred-payment contract. 5 Sec. 12. Section 203D.3, subsections 1 and 4, Code 2025, are 6 amended to read as follows: 7 1. The grain depositors and sellers indemnity fund is 8 created in the state treasury as a separate account. The 9 general fund of the state is not liable for claims presented 10 against the fund under section sections 203D.6 and 203D.6A . 11 4. The moneys collected under this section and deposited 12 in the fund shall be used expended by the board exclusively to 13 indemnify do all of the following: 14 a. Indemnify depositors and sellers who have submitted 15 eligible claims to the department as provided in section 16 sections 203D.6 and to pay the administrative costs of this 17 chapter 203D.6A . 18 b. Pay the department, the board, or the office of attorney 19 general for actual and necessary costs incurred by any of the 20 following: 21 (1) The department for acting as receiver if appointed by a 22 court pursuant to section 203.12B or 203C.3. 23 (2) (a) The office of attorney general for representing 24 the department, the board, or the office in a legal or 25 administrative proceeding involving moneys required to be 26 deposited or expended from the fund. 27 (b) Outside counsel for representing the department, 28 the board, or the office of attorney general in a legal or 29 administrative proceeding involving moneys required to be 30 deposited or expended from the fund. 31 Sec. 13. Section 203D.3A, unnumbered paragraph 1, Code 32 2025, is amended to read as follows: 33 The department shall collect indemnity fees , including 34 participation fees and per-bushel fees as provided in this 35 -11- SF 608.1872 (1) 91 da/ns 11/ 24

section , if established imposed by the board pursuant to 1 section 203D.5 , at rates determined by the board as provided 2 in that section. A person required to pay a fee shall use 3 licensee shall remit indemnity fees and forms and deliver the 4 payment to the department as required by the department. 5 Sec. 14. Section 203D.3A, subsection 1, paragraph a, 6 subparagraph (1), Code 2025, is amended to read as follows: 7 (1) In calculating the amount of the initial participation 8 fee, an applicant for a new license shall be deemed a licensee 9 paying the full annual amount of the participation fee owing on 10 the licensee’s first anniversary date as provided in paragraph 11 “b” . The department must be satisfied that the applicant is 12 calculating the amount due in good faith and using the best 13 information available. 14 (a) For a licensed grain dealer, the anniversary date is 15 the last date to apply for the renewal of the grain dealer’s 16 license before the license expires as provided in section 17 203.5. 18 (b) For a licensed warehouse operator, the anniversary date 19 is the last date to apply for the renewal of the warehouse 20 operator’s license before the license expires as provided in 21 section 203C.37. 22 Sec. 15. Section 203D.3A, subsection 1, paragraph b, Code 23 2025, is amended to read as follows: 24 b. A licensee shall pay remit a participation fee in one 25 installment as part of a license renewal application in the 26 same manner provided in paragraph “a” . However, the licensee 27 may elect to remit the participation fee on four successive 28 installment dates, with each installment date occurring on in 29 the month succeeding the last date of the fund’s assessment 30 quarter as provided in section 203D.3 , on a date determined by 31 rules adopted by the department . The licensee shall pay remit 32 twenty-five percent of the total participation fee assessed on 33 each installment date. However, nothing in this subsection 34 prevents a licensee from paying the participation fee on an 35 -12- SF 608.1872 (1) 91 da/ns 12/ 24

accelerated basis. A licensee shall pay the first installment 1 on the last date of the fund’s assessment quarter immediately 2 following the licensee’s anniversary date. 3 (1) For a licensed grain dealer, the anniversary date is 4 the last date to apply for the renewal of the grain dealer’s 5 license before the license expires as provided in section 6 203.5 . 7 (2) For a licensed warehouse operator, the anniversary date 8 is the last date to apply for the renewal of the warehouse 9 operator’s license before the license expires as provided in 10 section 203C.37 . 11 Sec. 16. Section 203D.3A, subsection 2, Code 2025, is 12 amended to read as follows: 13 2. a. A licensed grain dealer shall remit a per-bushel fee 14 shall be assessed on all purchased grain. 15 b. The licensed grain dealer shall forward remit the 16 per-bushel fee to the department on a quarterly basis in the 17 manner and using the forms a form prescribed by the department. 18 The licensed grain dealer shall remit the per-bushel fee 19 and form on four successive installment dates, with each 20 installment date occurring in the month succeeding the last 21 assessment quarter as provided in section 203D.3, on December 22 15, March 15, June 15, and September 15. 23 c. A licensee licensed grain dealer is delinquent if the 24 licensee grain dealer fails to submit remit the full quarterly 25 per-bushel fee or quarterly forms and form when due or if, 26 upon examination, an underpayment of the fee is found by the 27 department. The licensed grain dealer is subject to a penalty 28 of ten dollars for each day the licensed grain dealer is 29 delinquent or an amount equal to the amount of the deficiency, 30 whichever is less. However, a licensee licensed grain dealer 31 who fails to submit remit the full quarterly per-bushel fee or 32 quarterly forms form when due , is subject to a minimum payment 33 of ten dollars. The department may establish and apply a 34 margin of error in determining whether a licensed grain dealer 35 -13- SF 608.1872 (1) 91 da/ns 13/ 24

is delinquent. The per-bushel fee shall be collected only once 1 on each bushel of grain. 2 c. d. The per-bushel fee shall not be collected more 3 than once on each bushel of grain. A licensed grain dealer 4 may choose to pass on the cost of a per-bushel fee to the 5 sellers by an itemized discount noted on the settlement sheet. 6 However, if the per-bushel fee is not in effect, no a licensed 7 grain dealer shall not make such a discount on the purchase of 8 grain. A discount made nominally for the per-bushel fee while 9 the per-bushel fee is not in effect is grounds for a license 10 suspension or revocation under chapter 203 . 11 Sec. 17. Section 203D.5, subsection 1, unnumbered paragraph 12 1, Code 2025, is amended to read as follows: 13 The board shall annually review the debits of and credits 14 to the grain depositors and sellers indemnity fund created 15 in section 203D.3 and shall determine whether to impose the 16 participation fee and per-bushel fee indemnity fees as provided 17 in section 203D.3A , make adjustments to the indemnity fees 18 effective on the previous September 1, or waive the indemnity 19 fees as necessary to comply with this section . The board shall 20 make the determination not later than May 1 of each year. The 21 board shall impose the indemnity fees or adjust the indemnity 22 fees effective on the previous September 1 in accordance with 23 chapter 17A . The imposition or adjustment of the indemnity 24 fees shall become effective as follows: 25 Sec. 18. Section 203D.5, subsections 4 and 5, Code 2025, are 26 amended to read as follows: 27 4. If on the last date of the fund’s assessment year as 28 provided in section 203D.3 the assets of the fund exceed eight 29 sixteen million dollars, less any encumbered balances or 30 pending or unsettled claims, all of the following apply: 31 a. The participation fee as provided in section 203D.3A 32 shall be waived and shall not be assessable or owing for the 33 following assessment year of the fund. However, the licensee 34 shall continue to pay remit any owing participation fee that 35 -14- SF 608.1872 (1) 91 da/ns 14/ 24

was in effect on the prior September 1. 1 b. The per-bushel fee as provided in section 203D.3A 2 shall be waived and shall not be assessable or owing for the 3 following assessment year . The waiver shall also apply to 4 purchased grain that is unpriced on the last date of the fund’s 5 assessment year. However, the licensed grain dealer shall 6 remit any per-bushel fee that is owing on that date. 7 5. The board shall reinstate the indemnity fees as 8 provided in this section if the assets of the fund, less any 9 unencumbered balances or pending or unsettled claims, are three 10 eight million dollars or less. 11 Sec. 19. Section 203D.6, subsection 1, Code 2025, is amended 12 to read as follows: 13 1. a. Persons Person who may file claims a claim . A 14 depositor or seller may file a claim with the department for 15 the indemnification of a loss dollar value losses from the 16 grain depositors and sellers indemnity fund. A claim shall 17 be filed by a depositor or seller in the manner prescribed by 18 rules adopted by the board department . 19 b. The department may identify each claim and associated 20 claimant by a unique number which may be a federal tax 21 identification number. 22 Sec. 20. Section 203D.6, subsections 4, 5, 6, 8, and 9, Code 23 2025, are amended to read as follows: 24 4. Determination of eligible claims claim . The board shall 25 determine a claim to be eligible for payment indemnification 26 from the fund if the board finds all of the following: 27 a. That the claim was timely filed. 28 b. That the incurrence date was on or after May 15, 1986. 29 c. That the claimant qualifies as a depositor or seller. 30 d. (1) That the claim derives from a covered transaction. 31 For purposes of this paragraph, a claim derives from a covered 32 transaction if the claimant is a incurred a dollar value loss 33 as any of the following: 34 (a) A depositor who delivered the grain to a licensed 35 -15- SF 608.1872 (1) 91 da/ns 15/ 24

warehouse operator. 1 (b) (i) A seller who transferred title to the grain to 2 a licensed grain dealer other than by credit-sale contract 3 within six months of the incurrence date for a claim period as 4 provided in subsection 2 , or if the claimant is a depositor who 5 delivered the grain to a licensed warehouse operator . 6 (ii) A seller described in subparagraph subdivision (i) who 7 incurred a repayment loss against a grain dealer as provided 8 in section 203D.6A. 9 (2) The dollar value losses incurred by a depositor 10 or seller described in subparagraph (1) for all eligible 11 claims are subject to the indemnification limit described in 12 subsection 8. 13 (a) The department shall segregate that part of a claim 14 that includes a dollar value loss incurred by a seller 15 who sold grain to a licensed grain dealer pursuant to a 16 credit-sale contract, including by deferred-pricing contract 17 and deferred-payment contract. 18 (b) The part of the segregated claim that includes a 19 dollar value loss incurred by a seller who sold grain to a 20 licensed grain dealer pursuant to a deferred-payment contract 21 is ineligible for indemnification. 22 e. That there is adequate documentation to establish the 23 existence of a claim and to determine the amount of the loss. 24 f. A claim has not been paid for the same loss. 25 5. Value of Dollar value loss —— warehouse claims depositor . 26 a. (1) The board shall determine the an eligible claim’s 27 dollar value of a claim loss incurred by a depositor holding 28 a warehouse receipt or a scale weight ticket for grain that 29 the depositor delivered for storage to the licensed warehouse 30 operator. 31 (a) If the department has been appointed by the court as 32 receiver of the grain assets of the warehouse operator, the 33 dollar value loss shall be presumed to be as stated in the plan 34 of disposition approved by the court. 35 -16- SF 608.1872 (1) 91 da/ns 16/ 24

(b) If the warehouse operator has filed a petition in 1 bankruptcy, the dollar value loss shall be presumed to be based 2 upon the fair market price, free-on-board from the site of the 3 warehouse operator, being paid to producers for grain by the 4 grain terminal operator nearest the warehouse operator on the 5 date the petition was filed. 6 (c) If there is neither a department receivership nor a 7 bankruptcy filing, the dollar value loss shall be presumed to 8 be based upon the fair market price, free-on-board from the 9 site of the warehouse operator, being paid to producers for 10 grain by the grain terminal operator nearest the warehouse 11 operator on the incurrence date of license revocation or 12 cancellation . If more than one incurrence date applies to a 13 claim, the board may choose between the two. However, the 14 (d) The board may accept an alternative valuation of a claim 15 dollar value loss upon a showing of just cause by the depositor 16 or department. All depositors 17 (2) The dollar value loss of priced or unpriced grain 18 shall not exceed the price of that grain if the grain were 19 U.S. No. 2 grain according to standards adopted by the federal 20 grain inspection service of the United States department of 21 agriculture. The price of the grain shall be determined in 22 accordance with the relevant date used to determine the price 23 described in subparagraph (1). The department may adjust the 24 price of the grain if necessary to better account for the 25 condition of the grain when stored. 26 b. A depositor filing claims a claim for a dollar value 27 loss under this section subsection shall be bound by the dollar 28 value loss determined by the board. The dollar value of the 29 loss is the outstanding balance on the validated claim at time 30 of payment the claimant is indemnified from the fund. 31 6. Value of Dollar value loss —— grain dealer claims seller . 32 a. (1) The dollar value of a claim The board shall 33 determine an eligible claim’s dollar value loss incurred by 34 a seller who has sold grain or delivered grain for sale or 35 -17- SF 608.1872 (1) 91 da/ns 17/ 24