The bill seeks to improve the marketing of grain in Iowa by enhancing the protections for grain depositors and sellers against losses resulting from the cessation of licenses or bankruptcy of grain dealers. Key provisions include the introduction of definitions for "deferred-payment contract" and "deferred-pricing contract," which clarify the terms of grain sales. The bill also modifies the requirements for grain dealers to submit financial statements, mandating unqualified opinions from certified public accountants. Additionally, it establishes a structure for indemnity fees to support the indemnity fund, with adjustments to participation and per-bushel fees that can now be paid in installments, and outlines conditions for waiving these fees based on fund asset levels.

Moreover, the legislation amends the indemnification process for grain depositors and sellers, allowing them to file claims for losses related to covered transactions. It specifies that depositors are entitled to 90% of their loss, capped at $300,000, while sellers under deferred-pricing contracts can claim 70% of their loss, capped at $210,000. The bill also increases the thresholds for waiving or reinstating indemnity fees and clarifies that only grain sold under deferred-pricing contracts will incur these fees. Overall, the bill aims to create a more robust framework for grain marketing while ensuring financial accountability and protection for stakeholders involved in grain transactions.

Statutes affected:
Introduced: 203.1, 203.3, 203.15, 203D.3, 203D.6, 203D.5, 203D.3A