Text: SSB1112            Text: SSB1114


Senate Study Bill 1113

SENATE FILE BY (PROPOSED COMMITTEE ON AGRICULTURE BILL BY CHAIRPERSON FRAISE) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the grain depositors and sellers indemnity 2 fund. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1171XC 83 5 da/nh/14 PAG LIN 1 1 Section 1. Section 203D.5, subsection 2, Code 2009, is 1 2 amended to read as follows: 1 3 2. If, at the end of any three=month period, the assets of 1 4 the fund exceed six twelve million dollars, less any 1 5 encumbered balances or pending or unsettled claims, the 1 6 per=bushel fee required under section 203D.3, subsection 2, 1 7 and the dealer=warehouse fee required under section 203D.3, 1 8 subsection 3, shall be waived and the fees are not assessable 1 9 or owing. The board shall reinstate the fees if the assets of 1 10 the fund, less any unencumbered balances or pending or 1 11 unsettled claims, are three six million dollars or less. 1 12 Sec. 2. Section 203D.6, subsection 7, Code 2009, is 1 13 amended to read as follows: 1 14 7. PAYMENT OF CLAIMS. Upon a determination that the claim 1 15 is eligible for payment, the board shall provide for payment 1 16 of ninety percent of the loss, as determined under subsection 1 17 4, but not more than one three hundred fifty thousand dollars 1 18 per claimant. If at any time the board determines that there 1 19 are insufficient funds to make payment of all claims, the 1 20 board may order that payment be deferred on specified claims. 1 21 The department, upon the board's instruction, shall hold those 1 22 claims for payment until the board determines that the fund 1 23 again contains sufficient assets. 1 24 EXPLANATION 1 25 BACKGROUND. This bill amends Code chapter 203D which 1 26 establishes the grain depositors and sellers indemnity fund 1 27 for use in indemnifying a "depositor" who has stored grain 1 28 with a warehouse operator licensed in this state, for losses 1 29 resulting from the depositor's right to receive possession of 1 30 the grain, and a "seller" who is a producer selling grain to a 1 31 grain dealer, for losses resulting from a failure to receive 1 32 payment for that grain. The fund is administered by the Iowa 1 33 grain indemnity fund board, and grain dealers and warehouse 1 34 operators are regulated by the department of agriculture and 1 35 land stewardship. 2 1 The fund is supported by the following fees: (1) a 2 2 dealer=warehouse fee which is a fixed amount imposed upon 2 3 licensed grain dealers and warehouse operators (for grain 2 4 dealers an amount based on whether they hold a class 1 or 2 5 class 2 license, and for warehouse operators an amount based 2 6 on warehouse storage capacity), and (2) a per=bushel fee 2 7 imposed on "purchased grain", which is grain sold to a grain 2 8 dealer by a seller, remitted by the grain dealer to the 2 9 department, and allowed to be passed through to the seller. 2 10 The board is provided discretion in its administration of 2 11 the fund. It may suspend ("waive") the assessment of the 2 12 dealer=warehouse fee or the per=bushel fee, if the 2 13 unencumbered balance of the fund (less pending claims) is more 2 14 than $3 million. Conversely, the fees are automatically 2 15 waived once the balance exceeds $6 million. 2 16 A person who timely files an eligible claim with the board 2 17 is entitled to receive 90 percent of a loss with a maximum 2 18 payout of $150,000. 2 19 BILL'S PROVISIONS. The balance in the fund required to 2 20 automatically waive the assessment of the dealer=warehouse fee 2 21 and the per=bushel fee, is increased from $6 million to $12 2 22 million. The balance in the fund required to automatically 2 23 reinstate the fees is increased from $3 million to $6 million. 2 24 The amount of the maximum payout for a loss by an eligible 2 25 claimant is increased from $150,000 to $300,000. 2 26 LSB 1171XC 83 2 27 da/nh/14.2
Text: SSB1112            Text: SSB1114