The bill amends various sections of the Iowa Code to enhance the regulation of grain marketing by licensed warehouse operators and grain dealers. It introduces definitions for "deferred-payment contract" and "deferred-pricing contract," clarifying the terms of grain transactions. The bill modifies financial statement requirements for grain dealers, allowing for greater flexibility in accepted audits, and mandates that dealers provide written notice to sellers about indemnity protections available for different contract types. Notably, it establishes new indemnity fees and conditions for sellers to claim losses due to a dealer's bankruptcy or license cessation, with varying indemnification levels based on the contract type.

Additionally, the bill redefines "purchased grain" and "seller," clarifying the indemnity fund's liability and the conditions for collecting indemnity fees. It specifies procedures for filing claims, including eligibility criteria and loss calculations, and introduces penalties for delinquency in fee remittance. The bill also distinguishes between two types of credit-sale contracts, stipulating that indemnification for losses from deferred-payment contracts is not allowed, while limited indemnification is available for deferred-pricing contracts. Furthermore, it adjusts thresholds for waiving or reinstating indemnity fees and mandates the Department of Agriculture and Land Stewardship to adopt emergency rules for implementation within thirty business days of enactment.

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