H-8469

   Amend Senate File 2465, as amended, passed, and reprinted by the Senate, as follows:
   1.  Page 13, after line 29 by inserting: 
   <Sec. ___.  Section 203.1, subsection 3, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:
   3.  “Credit-sale contract” means a contract for the sale of grain pursuant to which the sale price is to be paid more than thirty days after the delivery of the grain to the buyer, or a contract which is titled as a credit-sale contract, including but not limited to those contracts commonly referred to as deferred-payment contracts, deferred-pricing contracts, and price-later contracts.
   Sec. ___.  Section 203.1, subsections 5 and 6, Code 2026, are amended by striking the subsections.>
   2.  Page 15, by striking lines 17 through 32 and inserting: 
   <Sec. ___.  Section 203.8, subsection 1, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:
   1.  a.  A grain dealer licensed or required to be licensed pursuant to section 203.3 shall pay the purchase price to the seller for grain upon delivery or demand by the seller, but not later than thirty days after delivery by the seller unless in accordance with the terms of a credit-sale contract that satisfies the requirements of this chapter. The department shall adopt rules for payment by check and electronic funds transfer.
   b.  A grain dealer licensed or required to be licensed pursuant to section 203.3 shall not hold a check for the purchase of grain more than five days after the grain dealer issues a check to the seller. After that date, the grain dealer shall deliver the check in person or by mail to the seller’s last known address.>
   3.  By striking page 16, line 23, through page 18, line 7, and inserting: 
   <Sec. ___.  Section 203.15, subsections 1, 3, 4, and 6, Code 2026, are amended by striking the subsections and inserting in lieu thereof the following:
   1.  The grain dealer shall be licensed pursuant to section 203.3. All of the following shall apply to a grain dealer required to be licensed under that section who purchases grain by credit-sale contract:
   a.  The grain dealer shall give written notice to the department prior to engaging in the purchase of grain by credit-sale contract. The notice shall contain information required by the department.
   b.  All credit-sale contract forms in the possession of the grain dealer shall have been permanently and consecutively numbered at the time of printing of the forms. The grain dealer shall maintain an accurate record of all credit-sale contract forms and numbers obtained by that dealer. The record shall include the disposition of each numbered form, whether by execution, destruction, or otherwise.
   c.  The grain dealer who purchases grain by credit-sale contract shall maintain records as required by the department in compliance with this section.
   3.  Title to all grain sold by a credit-sale contract is in the purchasing grain dealer as of the time the contract is executed, unless the contract provides otherwise. The contract must be signed and dated by both parties and executed in duplicate. One copy shall be retained by the grain dealer and one copy shall be delivered to the seller. Upon the cessation of the grain dealer’s license by revocation, cancellation, or expiration, the payment date for all credit-sale contracts shall be advanced to a date not later than thirty days after the effective date of the cessation, and the purchase price for all unpriced grain shall be determined as of the effective date of the cessation in accordance with all other provisions of the contract. However, if the business of the grain dealer is sold to another licensed grain dealer, credit-sale contracts may be assigned to the purchaser of the business.
   4.  a.  A grain dealer shall not purchase grain on credit-sale contract during any time period in which the grain dealer fails to maintain fifty cents of net worth for each outstanding bushel of grain purchased under credit. The grain dealer may maintain a deficiency bond or an irrevocable letter of credit in the amount of two thousand dollars for each one thousand dollars or fraction thereof of deficiency in net worth.
   b.  A grain dealer who is also a warehouse operator licensed by the department under chapter 203C or the United States department of agriculture under the United States Warehouse Act, and who does not have a sufficient quantity or quality of grain to satisfy the warehouse operator’s obligations based on an examination by the department or the United States department of agriculture shall not purchase grain on credit-sale contract to correct the shortage of grain.
   c.  (1)  A grain dealer must meet at least either of the following conditions:
   (a)  The grain dealer’s last financial statement required to be submitted to the department pursuant to section 203.3 is accompanied by an unqualified opinion based upon an audit performed by a certified public accountant licensed in this state.
   (b)  The grain dealer files a bond with the department in the amount of one hundred thousand dollars payable to the department.
   (2)  (a)  The bond filed with the department under this paragraph shall be used to indemnify sellers for losses resulting from a breach of a credit-sale contract as provided by rules adopted by the department. The rules shall include but are not limited to procedures and criteria for providing notice, filing claims, valuing losses, and paying claims. The bond provided in this paragraph shall be in addition to any other bond required in this chapter.
   (b)  The bond shall not be canceled by the issuer on less than ninety days’ notice by certified mail to the department and the principal. However, if an adequate replacement bond is filed with the department, the department may authorize the cancellation of the original bond before the end of the ninety-day period.
   (c)  If an adequate replacement bond is not received by the department within sixty days of the issuance of the notice of cancellation, the department shall suspend the grain dealer’s license. The department shall cause an inspection of the licensed grain dealer immediately at the end of the sixty-day period. If a replacement bond is not filed within another thirty days following the suspension, the department shall revoke the grain dealer’s license.
   (3)  When a license is revoked, the department shall provide notice of the revocation by ordinary mail to the last known address of each holder of an outstanding credit-sale contract and all known sellers.
   6.  A grain dealer who purchases grain by credit-sale contract shall obtain from the seller a signed acknowledgment stating that the seller has received notice that grain purchased by credit-sale contract is not protected by the grain depositors and sellers indemnity fund. The form for the acknowledgment shall be prescribed by the department, and the licensed grain dealer and the seller shall each be provided a copy.>
   4.  By striking page 19, line 33, through page 20, line 16, and inserting: 
   <Sec. ___.  Section 203D.1, subsections 3 and 4, Code 2026, are amended by striking the subsections.
   Sec. ___.  Section 203D.1, subsections 17 and 20, Code 2026, are amended by striking the subsections and inserting in lieu thereof the following:
   17.  a.  “Purchased grain” means grain entered in the company-owned paid position as evidenced on the grain dealer’s daily position record.
   b.  “Purchased grain” does not include grain that is subject to an exempt transaction based on documentation satisfactory to the department showing that the grain dealer did any of the following:
   (1)  Purchased the grain from the United States government or any of its subdivisions or agencies.
   (2)  Purchased the grain from a person licensed as a grain dealer in any jurisdiction.
   (3)  Purchased the grain under a credit-sale contract.
   (4)  Entered the grain in the company-owned paid position as a cancellation of a collateral warehouse receipt.
   (5)  Entered the grain in the company-owned paid position as an intra-company location transfer.
   20.  “Seller” means a person who sells grain which the person has produced or caused to be produced to a licensed grain dealer, but excludes a person who executes a credit-sale contract as a seller as provided in section 203.15. However, “seller” does not include any of the following:
   a.  A person licensed as a grain dealer in any jurisdiction who sells grain to a licensed grain dealer.
   b.  A person who sells grain that is not produced in this state unless such grain is delivered to a licensed grain dealer at a location in this state as the first point of sale.
   Sec. ___.  Section 203D.5, subsection 4, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   If on the last date of the fund’s assessment year as provided in section 203D.3 the assets of the fund exceed sixteen eight million dollars, less any encumbered balances or pending or unsettled claims, all of the following apply:
   Sec. ___.  Section 203D.5, subsection 5, Code 2026, is amended to read as follows:
   5.  The board shall reinstate the indemnity fees as provided in this section if the assets of the fund, less any unencumbered balances or pending or unsettled claims, are eight three million dollars or less.
   Sec. ___.  Section 203D.6, subsection 4, paragraph d, Code 2026, is amended to read as follows:
   d.  (1)  That the claim derives from a covered transaction. For purposes of this paragraph, a claim derives from a covered transaction if the claimant incurred a dollar value loss as any of the following:
   (a)  (1)  A depositor who delivered the grain to a licensed warehouse operator.
   (b)  (i)  (2)  A seller who transferred title to the grain to a licensed grain dealer, other than by credit-sale contract, within six months of the incurrence date for a claim period as provided in subsection 2.
   (ii)  (3)  A seller described in subparagraph subdivision (i) who incurred a repayment loss against a grain dealer as provided in section 203D.6A.
   (2)  The dollar value losses incurred by a depositor or seller described in subparagraph (1) for all eligible claims are subject to the indemnification limit described in subsection 8.
   (a)  The department shall segregate that part of a claim that includes a dollar value loss incurred by a seller who sold grain to a licensed grain dealer pursuant to a credit-sale contract, including by deferred-pricing contract and deferred-payment contract.
   (b)  The part of the segregated claim that includes a dollar value loss incurred by a seller who sold grain to a licensed grain dealer pursuant to a deferred-payment contract is ineligible for indemnification.
   Sec. ___.  Section 203D.6, subsection 8, paragraphs a, b, c, and d, Code 2026, are amended to read as follows:
   a.  Upon a determination by the board that an eligible claim satisfies the requirements in subsection 4, the board shall indemnify the claimant as a depositor under subsection 5, and a seller under subsection 6. Upon a determination by the board that an eligible repayment claim was filed by that seller under section 203D.6A, derives from the same covered transaction during the claim period, and the repayment loss incurred for that claim, the board shall indemnify the claimant as a seller subject to the requirements of this section and section 203D.6A.
   b.  Subject to the indemnification limit described in paragraph “c”, the board shall indemnify a claimant ninety percent of the combined dollar value losses, including any repayment loss, incurred by the claimant as described in paragraph “a”, except for a segregated dollar value loss incurred from the sale of grain by credit-sale contract. The board shall indemnify the seller seventy-five percent of the dollar value loss, including any repayment loss, incurred from the sale of grain by deferred-pricing contract and zero percent of the dollar value loss for the sale of grain, including any repayment loss, by deferred-payment contract. The full indemnity amount paid to a claimant shall be calculated as the sum of the following:
   (1)  Ninety cents for each dollar value loss, including any repayment loss, incurred by the claimant other than a dollar value loss for the sale of grain by credit-sale contract.
   (2)  For the sale of grain by credit-sale contract, all of the following:
   (a)  Seventy-five cents for each dollar value loss, including any repayment loss, incurred by the claimant other than a dollar value loss for the sale of grain by deferred-pricing contract.
   (b)  Zero cents for each dollar value loss incurred by the claimant by deferred-payment contract.
   c.  The board shall not indemnify any claimant for more than four three hundred thousand dollars for an eligible claim for all dollar value losses described in paragraphs “a” and “b”, including any repayment loss.
   d.  (1)  If at any time the board determines that there are insufficient moneys in the fund to fully indemnify all eligible claims, the board shall order that the eligible claims be indemnified according to the following order: may order that payment be deferred on specified claims. The department, upon the board’s instruction, shall hold those claims for payment until the board determines that the fund again contains sufficient assets.
   (a)  First, by indemnifying all claims for dollar value losses other than segregated dollar value losses arising from the sale of grain by credit-sale contract as provided in subsection 4.
   (b)  Second, by indemnifying all claims for segregated dollar value losses arising from the sale of grain by deferred-pricing contract as provided in subsection 4.
   (2)  The board may establish one or more eligible claim indemnification periods required to fully indemnify all eligible claims. The department shall hold those claims that have not been fully indemnified until a later period or periods for the full indemnification of those claims as moneys in the fund are available.>
   5.  Page 20, after line 28 by inserting: 
   <Sec. ___.  Section 203D.6A, subsection 4, paragraph c, Code 2026, is amended to read as follows:
   c.  The repayment claim derives from a covered transaction. For purposes of this paragraph, a repayment claim derives from a covered transaction if the claimant is a seller who transferred title to the grain, other than by credit-sale contract, to a licensed grain dealer within six months of the incurrence date as provided in section 203D.6, subsection 2.>
   6.  Page 20, line 30, by striking <EFFECTIVE DATE> and inserting <MISCELLANEOUS PROVISIONS>
   7.  Page 20, after line 30 by inserting: 
   <Sec. ___.  REPEAL.  2025 Iowa Acts, chapter 105, section 24, is repealed.
   Sec. ___.  EMERGENCY RULES.  The department of agriculture and land stewardship shall adopt emergency rules under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, to implement the provisions of this division of this Act within thirty business days of the effective date of this division of this Act and shall submit such rules to the administrative rules coordinator and the administrative code editor pursuant to section 17A.5, subsection 1, within the same period. The rules shall be effective immediately upon filing unless a later date is specified in the rules. Any rules adopted in accordance with this section shall also be published as a notice of intended action as provided in section 17A.4.>
   8.  Page 20, after line 32 by inserting: 
   <Sec. ___.  APPLICABILITY.  A claim for the indemnification of a loss filed with the department of agriculture and land stewardship under chapter 203D prior to the effective date of this division of this Act, shall be governed by the provisions of chapters 203, 203C, and 203D Code 2026.>
   9.  By renumbering as necessary.

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MOMMSEN of Clinton