This bill amends various sections of the Iowa Code concerning the marketing of grain by licensed warehouse operators and grain dealers. It introduces new definitions for "deferred-payment contract" and "deferred-pricing contract," which establish specific operational conditions for these contracts. The payment terms for grain dealers are modified to require payment upon delivery or upon demand, rather than 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 new indemnity fees to protect grain depositors and sellers in the event of a dealer's bankruptcy, detailing the collection and remittance process for these fees, which can be waived if the indemnity fund's assets exceed $16 million.

Further amendments address the claims process for grain depositors and sellers, allowing them to file claims for indemnification from the fund based on specific criteria. The bill clarifies that claims arise from covered transactions involving depositors who delivered grain or sellers who transferred title within six months of the claim's incurrence date. It specifies that the board will determine the dollar value of losses based on fair market prices, with a reimbursement structure that caps payments to depositors and sellers at $300,000. The bill also revises the payment schedule for indemnity fees, allowing for one or four installments, and increases the thresholds for waiving or reinstating these fees. Overall, the legislation aims to enhance financial security and streamline the regulatory framework for grain transactions in Iowa.

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