House File 2031

                                       HOUSE FILE       
                                       BY  ALONS, KLEMME, HUSEMAN,
                                           CHAMBERS, and MERTZ


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to persons engaged in the business of buying or
  2    selling feeder pigs.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5502HH 80
  5 da/pj/5

PAG LIN

  1  1    Section 1.  Section 202C.2, subsection 3, Code Supplement
  1  2 2003, is amended to read as follows:
  1  3    3.  The amount of the evidence of financial responsibility
  1  4 shall be established by rules which shall be adopted by the
  1  5 department.  Unless the department otherwise has good cause,
  1  6 the rules shall be based upon the volume of sales of feeder
  1  7 pigs as provided in this subsection.  The volume of sales
  1  8 shall be the same as reported by the dealer to the United
  1  9 States department of agriculture grain inspection, packers and
  1 10 stockyards administration.  However, the volume of sales shall
  1 11 not include sales attributable to a sales agreement executed
  1 12 between a dealer and another party if both parties hold an
  1 13 ownership interest in the feeder pigs.  In addition, the
  1 14 evidence of financial responsibility shall not be for less
  1 15 than fifty thousand dollars or for more than three hundred
  1 16 thousand dollars.
  1 17                           EXPLANATION
  1 18    During the 2003 Session, the general assembly enacted House
  1 19 File 617 (Code chapter 202C), which provides that a dealer of
  1 20 feeder pigs must file evidence of financial security with the
  1 21 department of agriculture and land stewardship.  The evidence
  1 22 of financial security may be a bond or irrevocable letter of
  1 23 credit.  The dealer must file the evidence of financial
  1 24 security before being licensed by the department to conduct a
  1 25 feeder pig dealer business under Code section 163.30.
  1 26    Code section 202C.2 provides that the amount of the
  1 27 evidence of financial responsibility must be established by
  1 28 departmental rule, which is generally based on the volume of
  1 29 sales reported by the dealer to the United States department
  1 30 of agriculture grain inspection, packers and stockyards
  1 31 administration.  This bill provides that the volume of sales
  1 32 excludes those attributable to a sales agreement executed
  1 33 between a dealer and another party if both parties hold an
  1 34 ownership interest in the feeder pigs.
  1 35 LSB 5502HH 80
  2  1 da/pj/5