Senate File 2465 H-8462 Amend Senate File 2465, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. By striking page 13, line 28, through page 19, line 30, 3 and inserting: 4 < PART ___ 5 GRAIN DEALERS 6 Sec. ___. Section 203.3, subsection 4, paragraph b, Code 7 2026, is amended to read as follows: 8 b. (1) The grain dealer shall submit to the department , 9 as required by the department, a financial statement that is 10 accompanied by an unqualified opinion based upon an audit 11 performed by a certified public accountant licensed in this 12 state. 13 (2) Notwithstanding subparagraph (1), if a grain dealer 14 does not purchase grain by credit-sale contract, the department 15 may accept any of the following: 16 (a) A qualification in an opinion based on an audit that 17 is unavoidable by any audit procedure that is permitted under 18 generally accepted accounting principles. An opinion that 19 is qualified because of a limited audit procedure or because 20 the scope of an audit is limited shall not be accepted by the 21 department. 22 (b) A financial statement that is accompanied by the 23 report of a certified public accountant licensed in this 24 state. The report must be based upon a review performed by the 25 certified public accountant. The report shall be in lieu of an 26 unqualified opinion based on an audit. However, at any time, 27 upon good cause, the department may require the grain dealer to 28 submit to the department a subsequent financial statement that 29 is accompanied by the report. 30 (3) The department shall not require that a grain dealer to 31 submit to the department more than one such unqualified opinion 32 based on an audit per year. 33 (4) A grain dealer shall submit one or more financial 34 statements to the department in addition to the financial 35 -1- SF 2465.4457 (2) 91 da/js 1/ 7 #1.
statement accompanied by an unqualified opinion based on 1 an audit as required in this paragraph if the department 2 determines that it is necessary to verify the grain dealer’s 3 financial status or compliance with this section . 4 Sec. ___. Section 203.3, subsection 5, paragraph b, Code 5 2026, is amended to read as follows: 6 b. (1) The grain dealer shall submit to the department , 7 as required by the department, a financial statement that is 8 accompanied by an unqualified opinion based upon an audit 9 performed by a certified public accountant licensed in this 10 state. 11 (2) Notwithstanding subparagraph (1), the department may 12 accept any of the following: 13 (a) A qualification in an opinion based on an audit that 14 is unavoidable by any audit procedure that is permitted under 15 generally accepted accounting principles. An opinion that 16 is qualified because of a limited audit procedure or because 17 the scope of an audit is limited shall not be accepted by the 18 department. 19 (b) A financial statement that is accompanied by the 20 report of a certified public accountant licensed in this 21 state. The report must be based upon a review performed by the 22 certified public accountant. The report shall be in lieu of an 23 unqualified opinion based on an audit. However, at any time, 24 upon good cause, the department may require the grain dealer to 25 submit to the department a subsequent financial statement that 26 is accompanied by the report. 27 (3) The department shall not require that a grain dealer to 28 submit to the department more than one such unqualified opinion 29 based on an audit per year. 30 (4) A grain dealer shall submit one or more financial 31 statements to the department in addition to the financial 32 statement accompanied by an unqualified opinion based on an 33 audit required in this paragraph if the department determines 34 that it is necessary to verify the grain dealer’s financial 35 -2- SF 2465.4457 (2) 91 da/js 2/ 7
status or compliance with this section . 1 Sec. ___. Section 203.8, subsection 2, paragraph a, Code 2 2026, is amended to read as follows: 3 a. (1) “Delivery” Subject to subparagraph (2), “delivery” 4 means the transfer of title to and possession of grain by a 5 seller to a grain dealer or to another person in accordance 6 with the terms of an agreement of by the seller and the grain 7 dealer. 8 (2) Unless title to grain was previously transferred 9 pursuant to an ordinary cash-sale contract, title to grain sold 10 by credit-sale contract is deemed to have transferred to the 11 grain dealer when all of the following occurs: 12 (a) The credit-sale contract is signed by both the grain 13 dealer and the seller. 14 (b) The grain dealer has possession of the grain or another 15 person has possession of the grain in accordance with the terms 16 of the credit-sale contract. 17 Sec. ___. Section 203.12, subsection 1, Code 2026, is 18 amended to read as follows: 19 1. Upon the cessation of a grain dealer license by 20 revocation, cancellation, or expiration pursuant to section 21 203.10 or upon the filing of a petition in bankruptcy by a 22 grain dealer , any claim for the purchase price of grain against 23 the grain dealer shall be made in writing and filed with the 24 grain dealer and with the issuer of a deficiency bond or of an 25 irrevocable letter of credit and with the department within 26 one hundred twenty days after the date of the cessation or the 27 filing of a petition in bankruptcy, whichever occurs earlier . 28 A failure to make this timely claim relieves the issuer and the 29 grain depositors and sellers indemnity fund provided in chapter 30 203D of all obligations to the claimant. 31 Sec. ___. Section 203.12A, subsection 5, Code 2026, is 32 amended to read as follows: 33 5. The Iowa grain indemnity fund board, upon written demand 34 of the grain dealer, shall file a termination statement with 35 -3- SF 2465.4457 (2) 91 da/js 3/ 7
the secretary of state, if after one hundred eighty days from 1 the date that the lien is perfected the grain dealer’s license 2 has not ceased by revocation, cancellation, or expiration 3 pursuant to section 203C.10 . Upon filing the termination 4 statement, the lien becomes unperfected. The board shall 5 also deliver a copy of the termination statement to the grain 6 dealer. 7 PART ___ 8 GRAIN OPERATORS 9 Sec. ___. Section 203C.6, subsection 4, paragraph b, Code 10 2026, is amended to read as follows: 11 b. (1) The warehouse operator shall submit to the 12 department , as required by the department, a financial 13 statement that is accompanied by an unqualified opinion based 14 upon an audit performed by a certified public accountant 15 licensed in this state. 16 (2) Notwithstanding subparagraph (1), the department may 17 accept any of the following: 18 (a) A qualification in an opinion based on an audit that 19 is unavoidable by any audit procedure that is permitted under 20 generally accepted accounting principles. An opinion that 21 is qualified because of a limited audit procedure or because 22 the scope of an audit is limited shall not be accepted by the 23 department. 24 (b) A financial statement that is accompanied by the 25 report of a certified public accountant licensed in this 26 state. The report must be based upon a review performed by 27 the certified public accountant. The report shall be in lieu 28 of an unqualified opinion based on an audit. However, at any 29 time, upon good cause, the department may require the warehouse 30 operator to submit to the department a subsequent financial 31 statement that is accompanied by the report. 32 (3) The department shall not require that a warehouse 33 operator to submit to the department more than one such 34 unqualified opinion based on an audit per year. 35 -4- SF 2465.4457 (2) 91 da/js 4/ 7
(4) A warehouse operator shall submit one or more financial 1 statements to the department in addition to the financial 2 statement accompanied by an unqualified opinion based on 3 an audit as required in this paragraph if the department 4 determines that it is necessary to verify the warehouse 5 operator’s financial status or compliance with this section . 6 Sec. ___. Section 203C.6, subsection 5, paragraph b, Code 7 2026, is amended to read as follows: 8 b. (1) The warehouse operator shall submit to the 9 department , as required by the department, a financial 10 statement that is accompanied by an unqualified opinion based 11 upon an audit performed by a certified public accountant 12 licensed in this state. 13 (2) Notwithstanding subparagraph (1), the department may 14 accept any of the following: 15 (a) A qualification in an opinion based on an audit that 16 is unavoidable by any audit procedure that is permitted under 17 generally accepted accounting principles. An opinion that 18 is qualified because of a limited audit procedure or because 19 the scope of an audit is limited shall not be accepted by the 20 department. 21 (b) A financial statement that is accompanied by the 22 report of a certified public accountant licensed in this 23 state. The report must be based upon a review performed by 24 the certified public accountant. The report shall be in lieu 25 of an unqualified opinion based on an audit. However, at any 26 time, upon good cause, the department may require the warehouse 27 operator to submit to the department a subsequent financial 28 statement that is accompanied by the report. 29 (3) The department shall not require that a warehouse 30 operator to submit more than one such unqualified opinion based 31 on an audit per year. 32 (4) A warehouse operator shall submit one or more financial 33 statements to the department in addition to the financial 34 statement accompanied by an unqualified opinion based on 35 -5- SF 2465.4457 (2) 91 da/js 5/ 7
an audit as required in this paragraph if the department 1 determines that it is necessary to verify the warehouse 2 operator’s financial status or compliance with this section . 3 Sec. ___. Section 203C.12A, subsection 5, Code 2026, is 4 amended to read as follows: 5 5. The Iowa grain indemnity fund board shall upon written 6 demand of the warehouse operator file a termination statement 7 with the secretary of state, if after one hundred eighty 8 days from the date that the lien is perfected the warehouse 9 operator’s license has not ceased by revocation, cancellation, 10 or expiration pursuant to section 203C.10 . Upon filing the 11 termination statement, the lien becomes unperfected. The board 12 shall also deliver a copy of the termination statement to the 13 warehouse operator. 14 Sec. ___. Section 203C.14, subsection 2, paragraphs a and c, 15 Code 2026, are amended to read as follows: 16 a. Upon the cessation of a warehouse operator’s license due 17 to revocation, cancellation, or expiration pursuant to section 18 203C.10 or upon the filing of a petition in bankruptcy by a 19 warehouse operator , a claim against the warehouse operator 20 arising under this chapter shall be made in writing with the 21 warehouse operator, with the issuer of a bond on agricultural 22 products other than bulk grain, a deficiency bond, or an 23 irrevocable letter of credit, and, if the claim relates to bulk 24 grain, with the department. The claim must be made within one 25 hundred twenty days after the cessation of the license or the 26 filing of a petition in bankruptcy, whichever occurs earlier . 27 The failure to make a timely claim relieves the issuer and, 28 if the claim relates to bulk grain, the grain depositors 29 and sellers indemnity fund provided in chapter 203D of all 30 obligations to the claimant. 31 c. This subsection does not apply if a receiver is appointed 32 as provided in this chapter pursuant to a petition which that 33 is filed by the department prior to the expiration of one 34 hundred twenty days after cessation of a warehouse operator’s 35 -6- SF 2465.4457 (2) 91 da/js 6/ 7
license pursuant to section 203C.10 . 1 Sec. ___. Section 203C.18, subsection 3, Code 2026, is 2 amended to read as follows: 3 3. A form for a warehouse receipt shall only be printed by 4 a person approved by the department. A form for a warehouse 5 receipt shall be printed in accordance with specifications set 6 forth by the department. A warehouse operator shall surrender 7 to the department all forms for warehouse receipts that are 8 unused at the time that the warehouse operator’s license 9 is suspended or ceases due to revocation, cancellation, or 10 expiration pursuant to section 203C.10 . The warehouse operator 11 shall surrender the warehouse receipts in a manner required by 12 the department. > 13 2. By renumbering as necessary. 14 ______________________________ COMMITTEE ON WAYS AND MEANS NORDMAN of Dallas, Chairperson -7- SF 2465.4457 (2) 91 da/js 7/ 7 #2.