This bill establishes a grain indemnity account in Minnesota aimed at providing financial protection for grain producers in the event of a grain buyer or warehouse operator's failure to fulfill payment or redelivery obligations. It introduces a new subdivision that defines "failure" in the context of grain transactions and modifies existing laws concerning claims for breach of contract, bond requirements, and the responsibilities of grain buyers and sellers. A key feature of the bill is the introduction of guidelines for the grain indemnity account, including eligibility criteria for producers, the process for filing claims, and the requirement for producers to pay a grain indemnity premium capped at 0.2% of the sale price of marketed grain.

Additionally, the bill outlines penalties for non-compliance with the new regulations, including civil penalties for individuals who fail to collect or pay premiums or make false statements. It mandates that grain buyers must pay any owed premiums into the grain indemnity account, along with potential interest. The bill also requires new grain buyers and public grain warehouse operators to file a $100,000 grain bond before obtaining a license, with certain exemptions. It repeals outdated statutes related to bonding and claims, streamlining the process for grain warehouse operators, and allocates $5,000,000 from the general fund to the grain indemnity account for fiscal year 2024, with an effective date of July 1, 2023.

Statutes affected:
Introduction: 223.16, 223.17, 223.175, 223.19, 232.22
1st Engrossment: 223.16, 223.17, 223.175, 223.19, 232.22
1st Engrossment: 223.16, 223.17, 223.175, 223.19, 232.22