House File 2198 - Introduced HOUSE FILE 2198 BY LANDON A BILL FOR An Act providing for the indemnification of claims from the 1 grain depositors and sellers indemnity fund, by persons 2 selling grain by credit-sale contract, and providing for 3 fees. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6018YH (3) 88 da/ns
H.F. 2198 Section 1. Section 203.15, subsection 6, Code 2020, is 1 amended by striking the subsection. 2 Sec. 2. Section 203D.1, subsection 2, Code 2020, is amended 3 by striking the subsection. 4 Sec. 3. Section 203D.1, subsection 14, paragraph b, 5 subparagraph (3), Code 2020, is amended by striking the 6 subparagraph. 7 Sec. 4. Section 203D.1, subsection 15, unnumbered paragraph 8 1, Code 2020, is amended to read as follows: 9 “Seller” means a person who sells grain which the person has 10 produced or caused to be produced to a licensed grain dealer , 11 but excludes a person who executes a credit-sale contract as a 12 seller as provided in section 203.15 . However, “seller” does 13 not include any of the following: 14 Sec. 5. Section 203D.6, subsection 4, paragraph d, Code 15 2020, is amended to read as follows: 16 d. That the claim derives from a covered transaction. For 17 purposes of this paragraph, a claim derives from a covered 18 transaction if the claimant is a seller who transferred 19 title to the grain to a licensed grain dealer other than by 20 credit-sale contract within six months of the incurrence date 21 for a claim period as provided in subsection 2 , or if the 22 claimant is a depositor who delivered the grain to a licensed 23 warehouse operator. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill provides that a person who executes a credit-sale 28 contract with a licensed grain dealer and who deposits 29 such grain in a licensed warehouse is insured by the grain 30 depositors and sellers indemnity fund. A grain dealer would 31 be subject to a per bushel fee assessed on grain purchased 32 by credit-sale contract for deposit in the fund. There are 33 three principal Code chapters regulating grain transactions 34 involving grain dealers and grain warehouse operators licensed 35 -1- LSB 6018YH (3) 88 da/ns 1/ 2
H.F. 2198 by the department of agriculture and land stewardship (DALS) 1 and the administration of the grain depositors and sellers 2 indemnity fund by DALS and the Iowa grain indemnity fund 3 board. Code chapter 203 regulates grain dealers, Code chapter 4 203C regulates warehouse operators, and Code chapter 203D 5 provides for the fund. The purpose of the fund is to reimburse 6 depositors or sellers of grain who may file claims for losses 7 incurred by the failure of a grain dealer or warehouse operator 8 to honor a contractual payment obligation. A credit-sale 9 contract (also referred to as deferred-payment contract, 10 deferred-pricing contract, or price-later contract) involves a 11 transaction for the sale of grain in which the sales price is 12 to be paid more than 30 days after the delivery of the grain to 13 the buyer. 14 -2- LSB 6018YH (3) 88 da/ns 2/ 2