Senate File 2401 - Reprinted
SENATE FILE 2401
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO SF 2393)
(SUCCESSOR TO SSB 3174)
(As Amended and Passed by the Senate April 2, 2024)
A BILL FOR
1 An Act regulating the marketing of grain, by providing for
2 fees paid by grain dealers and warehouse operators into
3 the grain depositors and sellers indemnity fund, and the
4 payment of claims to reimburse sellers and depositors for
5 losses covered by the fund, and including effective date
6 provisions.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 DIVISION I
2 CLAIMS AGAINST GRAIN DEPOSITORS AND SELLERS INDEMNITY FUND
3 Section 1. Section 203.15, subsection 6, Code 2024, is
4 amended by striking the subsection.
5 Sec. 2. Section 203D.1, subsection 2, Code 2024, is amended
6 by striking the subsection.
7 Sec. 3. Section 203D.1, subsection 14, paragraph b, Code
8 2024, is amended to read as follows:
9 b. “Purchased grain” does not include grain that is subject
10 to an exempt transaction based on documentation satisfactory
11 to the department showing that the grain dealer did any of the
12 following:
13 (1) Purchased the grain from the United States government or
14 any of its subdivisions or agencies.
15 (2) Purchased the grain from a person licensed as a grain
16 dealer in any jurisdiction.
17 (3) Purchased the grain under a credit-sale contract.
18 (4) (3) Entered the grain in the company-owned paid
19 position as a cancellation of a collateral warehouse receipt.
20 (5) (4) Entered the grain in the company-owned paid
21 position as an intra-company location transfer.
22 Sec. 4. Section 203D.1, subsection 16, Code 2024, is amended
23 to read as follows:
24 16. a. “Seller” means a person who sells grain which the
25 person has produced or caused to be produced to a licensed
26 grain dealer, but excludes a person who executes a credit-sale
27 contract as a seller as provided in section 203.15. However,
28 “seller”
29 b. “Seller” does not include any of the following:
30 a. (1) A person licensed as a grain dealer in any
31 jurisdiction who sells grain to a licensed grain dealer.
32 b. (2) A person who sells grain that is not produced in
33 this state unless such grain is delivered to a licensed grain
34 dealer at a location in this state as the first point of sale.
35 Sec. 5. Section 203D.5, subsections 4 and 5, Code 2024, are
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1 amended to read as follows:
2 4. If on the last date of the fund’s assessment year as
3 provided in section 203D.3 the assets of the fund exceed eight
4 twelve million dollars, less any encumbered balances or pending
5 or unsettled claims, all of the following apply:
6 a. The participation fee shall be waived and shall not be
7 assessable or owing for the following assessment year of the
8 fund. However, the licensee shall continue to pay any owing
9 participation fee that was in effect on the prior September 1.
10 b. The per-bushel fee shall be waived and shall not be
11 assessable or owing.
12 5. The board shall reinstate the fees as provided in this
13 section if the assets of the fund, less any unencumbered
14 balances or pending or unsettled claims, are three five million
15 dollars or less.
16 Sec. 6. Section 203D.6, subsection 4, paragraph d, Code
17 2024, is amended to read as follows:
18 d. That the claim derives from a covered transaction. For
19 purposes of this paragraph, a claim derives from a covered
20 transaction if the claimant is a seller who delivered the
21 grain, and transferred title to the that grain, to a licensed
22 grain dealer other than by credit-sale contract within six
23 months of the incurrence date for a claim period as provided in
24 subsection 2, or if the claimant is a depositor who delivered
25 the grain to a licensed warehouse operator.
26 Sec. 7. EMERGENCY RULES. The department of agriculture
27 and land stewardship shall adopt emergency rules under section
28 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph
29 “b”, to implement the provisions of this division of this Act
30 and the adopted rules shall be effective July 1, 2024. The
31 rules adopted in accordance with this section shall also be
32 published as a notice of intended action as provided in section
33 17A.4.
34 Sec. 8. ASSESSMENT OF FEES. A grain dealer licensed under
35 chapter 203 who is a party to a credit-sale contract shall
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1 owe any participation fee or per-bushel fee assessed on grain
2 purchased under the credit-sale contract beginning on September
3 1 of the first assessment quarter pursuant to section 203D.3A.
4 Sec. 9. EFFECTIVE DATE.
5 1. Except as provided in subsection 2, this division of this
6 Act takes effect July 1, 2024.
7 2. The section of this division of this Act requiring
8 the department of agriculture and land stewardship to adopt
9 emergency rules takes effect upon enactment.
10 DIVISION II
11 ASSESSMENT YEAR
12 Sec. 10. Section 203D.3, subsection 3, Code 2024, is amended
13 to read as follows:
14 3. The assessment year of the fund begins September is the
15 same as the state fiscal year beginning on July 1 and ends
16 ending on August 31 June 30. Assessment quarters of the fund
17 begin September on July 1, December October 1, March January 1,
18 and June April 1. The finances of the fund shall be calculated
19 on an accrual basis in accordance with generally accepted
20 accounting principles.
21 Sec. 11. Section 203D.5, subsection 1, Code 2024, is amended
22 to read as follows:
23 1. The board shall annually review the debits of and credits
24 to the grain depositors and sellers indemnity fund created
25 in section 203D.3 and shall determine whether to impose the
26 participation fee and per-bushel fee as provided in section
27 203D.3A, make adjustments to the fees effective on the previous
28 September July 1, or waive the fees as necessary to comply with
29 this section. The board shall make the determination not later
30 than May 1 of each year. The board shall impose the fees or
31 adjust the fees effective on the previous September July 1 in
32 accordance with chapter 17A. The imposition or adjustment of
33 the fees shall become effective as follows:
34 a. For the participation fee, on the following September
35 July 1. However, the licensee shall continue to pay the
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1 participation fee at the rate in effect on the prior September
2 July 1, until the licensee has paid the amount owing.
3 b. For a per-bushel fee, on the following September July 1.
4 Sec. 12. Section 203D.5, subsection 4, paragraph a, Code
5 2024, is amended to read as follows:
6 a. The participation fee shall be waived and shall not be
7 assessable or owing for the following assessment year of the
8 fund. However, the licensee shall continue to pay any owing
9 participation fee that was in effect on the prior September
10 July 1.
11 Sec. 13. CONTINGENT EFFECTIVE DATE.
12 1. This division of this Act takes effect on the publication
13 date of the issue of the Iowa administrative bulletin that
14 includes a notice by the secretary of agriculture stating that
15 the participation fee and per-bushel fee paid by grain dealers
16 and warehouse operators have been waived as provided in section
17 203D.5.
18 2. The department of agriculture and land stewardship shall
19 send a copy of the notice to the Code editor at least two
20 weeks prior to the publication date of the Iowa administrative
21 bulletin as described in subsection l.
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Statutes affected: Introduced: 203.15, 203D.1, 203D.5
Reprinted: 203.15, 203D.1, 203D.5, 17A.4, 203D.3