The bill amends the Iowa Code to enhance the regulatory framework for grain transactions, particularly focusing on the roles of licensed warehouse operators and grain dealers. It introduces new definitions for "deferred-payment contract" and "deferred-pricing contract," and modifies payment terms for grain dealers, requiring them to pay sellers upon delivery or upon demand instead of within a fixed thirty-day period. Additionally, the bond amount that grain dealers must file with the department is increased from $100,000 to $250,000. The bill also establishes indemnity fees to protect grain depositors and sellers in the event of a dealer's bankruptcy, detailing the collection process and waiving fees if the fund's assets exceed $16 million.

Moreover, the bill outlines the claims process for depositors and sellers seeking indemnification from the grain depositors and sellers indemnity fund, allowing claims to be filed based on specific criteria related to covered transactions. It sets a reimbursement cap of 90% of the loss or $300,000 for sellers and depositors, and mandates that the board prioritize payments to them in case of insufficient funds. The bill also clarifies that grain sold under deferred-pricing contracts is considered a covered transaction, ensuring sellers can claim losses from defaults. Overall, the legislation aims to provide better financial security for sellers and improve the operational standards for grain dealers.

Statutes affected:
Introduced: 203.1, 203.8, 203.3, 203.15, 203D.3, 203D.6, 203D.5, 203D.3A