The bill amends various sections of the Iowa Code to enhance regulations surrounding grain transactions conducted by licensed warehouse operators and grain dealers. It introduces new definitions for "deferred-payment contract" and "deferred-pricing contract," clarifying the terms of these agreements. The bill modifies financial statement requirements for grain dealers, allowing for certain qualifications in audit opinions and permitting the department to request additional financial disclosures as needed. Key changes include the requirement for grain dealers to notify sellers about the limitations of the indemnity fund, particularly concerning credit-sale contracts, and the establishment of indemnification percentages for losses based on contract types, with sellers of deferred-pricing contracts receiving a lower indemnification rate.

Additionally, the bill redefines "purchased grain" and updates the definition of "seller" to exclude certain transactions. It introduces provisions for the collection and remittance of indemnity fees, including conditions under which these fees may be waived based on fund asset levels. The bill outlines a process for indemnifying losses incurred by sellers against bankrupt grain dealers, specifying eligibility criteria and indemnification rates. It also modifies the indemnity fee structure, increasing thresholds for waiving and reinstating fees. Emergency rulemaking by the Department of Agriculture and Land Stewardship is mandated to implement the bill's provisions, ultimately aiming to improve protections for sellers and enhance the clarity of grain dealer regulations.

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