The bill seeks to enhance the regulation of grain marketing by establishing a structured framework for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund. Key amendments include the introduction of new subsections that define "indemnity fees" and "repayment loss," and a clarified claims process for sellers and depositors following a grain dealer's license cessation. Claims must be filed within 120 days of such cessation, and the bill outlines the indemnity fund's obligations regarding these claims. Additionally, it introduces a new section for repayment claims, allowing sellers to seek indemnification for losses due to a grain dealer's bankruptcy, with a requirement to file within 30 days after a repayment loss is finalized by a bankruptcy court.

Furthermore, the legislation modifies existing laws related to the indemnity fund, particularly focusing on the reimbursement process for sellers who incur losses from licensed entities failing to meet their obligations. It establishes a special repayment claim process, enabling sellers to recover up to 90% of their loss, capped at $300,000, and sets a five-year expiration period for these claims. The bill also aligns the assessment year for the indemnity fund with the state fiscal year, increases the thresholds for waiving and reinstating indemnity fees, and includes emergency rulemaking provisions for swift implementation by the Department of Agriculture and Land Stewardship (DALS). Indemnity fees for grain purchased under credit-sale contracts will be assessed starting September 1 of the first assessment quarter.

Statutes affected:
Introduced: 203.12, 203D.6, 203C.14, 203D.3, 203D.1, 203D.5, 203D.3A