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House
File
2596
-
Reprinted
HOUSE
FILE
2596
BY
COMMITTEE
ON
AGRICULTURE
(SUCCESSOR
TO
HSB
745)
(As
Amended
and
Passed
by
the
House
February
26,
2026
)
A
BILL
FOR
An
Act
regulating
the
marketing
of
grain,
making
penalties
1
applicable,
and
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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2596
(2)
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DIVISION
I
1
GRAIN
DEALERS
2
Section
1.
Section
203.3,
subsection
4,
paragraph
b,
Code
3
2026,
is
amended
to
read
as
follows:
4
b.
(1)
The
grain
dealer
shall
submit
to
the
department
,
5
as
required
by
the
department,
a
financial
statement
that
is
6
accompanied
by
an
unqualified
opinion
based
upon
an
audit
7
performed
by
a
certified
public
accountant
licensed
in
this
8
state.
9
(2)
Notwithstanding
subparagraph
(1),
if
a
grain
dealer
10
does
not
purchase
grain
by
credit-sale
contract,
the
department
11
may
accept
any
of
the
following:
12
(a)
A
qualification
in
an
opinion
based
on
an
audit
that
13
is
unavoidable
by
any
audit
procedure
that
is
permitted
under
14
generally
accepted
accounting
principles.
An
opinion
that
15
is
qualified
because
of
a
limited
audit
procedure
or
because
16
the
scope
of
an
audit
is
limited
shall
not
be
accepted
by
the
17
department.
18
(b)
A
financial
statement
that
is
accompanied
by
the
19
report
of
a
certified
public
accountant
licensed
in
this
20
state.
The
report
must
be
based
upon
a
review
performed
by
the
21
certified
public
accountant.
The
report
shall
be
in
lieu
of
an
22
unqualified
opinion
based
on
an
audit.
However,
at
any
time,
23
upon
good
cause,
the
department
may
require
the
grain
dealer
to
24
submit
to
the
department
a
subsequent
financial
statement
that
25
is
accompanied
by
the
report.
26
(3)
The
department
shall
not
require
that
a
grain
dealer
to
27
submit
to
the
department
more
than
one
such
unqualified
opinion
28
based
on
an
audit
per
year.
29
(4)
A
grain
dealer
shall
submit
one
or
more
financial
30
statements
to
the
department
in
addition
to
the
financial
31
statement
accompanied
by
an
unqualified
opinion
based
on
32
an
audit
as
required
in
this
paragraph
if
the
department
33
determines
that
it
is
necessary
to
verify
the
grain
dealer’s
34
financial
status
or
compliance
with
this
section
.
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Sec.
2.
Section
203.3,
subsection
5,
paragraph
b,
Code
2026,
1
is
amended
to
read
as
follows:
2
b.
(1)
The
grain
dealer
shall
submit
to
the
department
,
3
as
required
by
the
department,
a
financial
statement
that
is
4
accompanied
by
an
unqualified
opinion
based
upon
an
audit
5
performed
by
a
certified
public
accountant
licensed
in
this
6
state.
7
(2)
Notwithstanding
subparagraph
(1),
the
department
may
8
accept
any
of
the
following:
9
(a)
A
qualification
in
an
opinion
based
on
an
audit
that
10
is
unavoidable
by
any
audit
procedure
that
is
permitted
under
11
generally
accepted
accounting
principles.
An
opinion
that
12
is
qualified
because
of
a
limited
audit
procedure
or
because
13
the
scope
of
an
audit
is
limited
shall
not
be
accepted
by
the
14
department.
15
(b)
A
financial
statement
that
is
accompanied
by
the
16
report
of
a
certified
public
accountant
licensed
in
this
17
state.
The
report
must
be
based
upon
a
review
performed
by
the
18
certified
public
accountant.
The
report
shall
be
in
lieu
of
an
19
unqualified
opinion
based
on
an
audit.
However,
at
any
time,
20
upon
good
cause,
the
department
may
require
the
grain
dealer
to
21
submit
to
the
department
a
subsequent
financial
statement
that
22
is
accompanied
by
the
report.
23
(3)
The
department
shall
not
require
that
a
grain
dealer
to
24
submit
to
the
department
more
than
one
such
unqualified
opinion
25
based
on
an
audit
per
year.
26
(4)
A
grain
dealer
shall
submit
one
or
more
financial
27
statements
to
the
department
in
addition
to
the
financial
28
statement
accompanied
by
an
unqualified
opinion
based
on
an
29
audit
required
in
this
paragraph
if
the
department
determines
30
that
it
is
necessary
to
verify
the
grain
dealer’s
financial
31
status
or
compliance
with
this
section
.
32
Sec.
3.
Section
203.8,
subsection
2,
paragraph
a,
Code
2026,
33
is
amended
to
read
as
follows:
34
a.
(1)
“Delivery”
Subject
to
subparagraph
(2),
“delivery”
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means
the
transfer
of
title
to
and
possession
of
grain
by
a
1
seller
to
a
grain
dealer
or
to
another
person
in
accordance
2
with
the
terms
of
an
agreement
of
by
the
seller
and
the
grain
3
dealer.
4
(2)
Unless
title
to
grain
was
previously
transferred
5
pursuant
to
an
ordinary
cash-sale
contract,
title
to
grain
sold
6
by
credit-sale
contract
is
deemed
to
have
transferred
to
the
7
grain
dealer
when
all
of
the
following
occurs:
8
(a)
The
credit-sale
contract
is
signed
by
both
the
grain
9
dealer
and
the
seller.
10
(b)
The
grain
dealer
has
possession
of
the
grain
or
another
11
person
has
possession
of
the
grain
in
accordance
with
the
terms
12
of
the
credit-sale
contract.
13
Sec.
4.
Section
203.12,
subsection
1,
Code
2026,
is
amended
14
to
read
as
follows:
15
1.
Upon
the
cessation
of
a
grain
dealer
license
by
16
revocation,
cancellation,
or
expiration
pursuant
to
section
17
203.10
or
upon
the
filing
of
a
petition
in
bankruptcy
by
a
18
grain
dealer
,
any
claim
for
the
purchase
price
of
grain
against
19
the
grain
dealer
shall
be
made
in
writing
and
filed
with
the
20
grain
dealer
and
with
the
issuer
of
a
deficiency
bond
or
of
an
21
irrevocable
letter
of
credit
and
with
the
department
within
22
one
hundred
twenty
days
after
the
date
of
the
cessation
or
the
23
filing
of
a
petition
in
bankruptcy,
whichever
occurs
earlier
.
24
A
failure
to
make
this
timely
claim
relieves
the
issuer
and
the
25
grain
depositors
and
sellers
indemnity
fund
provided
in
chapter
26
203D
of
all
obligations
to
the
claimant.
27
Sec.
5.
Section
203.12A,
subsection
5,
Code
2026,
is
amended
28
to
read
as
follows:
29
5.
The
Iowa
grain
indemnity
fund
board,
upon
written
demand
30
of
the
grain
dealer,
shall
file
a
termination
statement
with
31
the
secretary
of
state,
if
after
one
hundred
eighty
days
from
32
the
date
that
the
lien
is
perfected
the
grain
dealer’s
license
33
has
not
ceased
by
revocation,
cancellation,
or
expiration
34
pursuant
to
section
203C.10
.
Upon
filing
the
termination
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statement,
the
lien
becomes
unperfected.
The
board
shall
1
also
deliver
a
copy
of
the
termination
statement
to
the
grain
2
dealer.
3
DIVISION
II
4
GRAIN
OPERATORS
5
Sec.
6.
Section
203C.6,
subsection
4,
paragraph
b,
Code
6
2026,
is
amended
to
read
as
follows:
7
b.
(1)
The
warehouse
operator
shall
submit
to
the
8
department
,
as
required
by
the
department,
a
financial
9
statement
that
is
accompanied
by
an
unqualified
opinion
based
10
upon
an
audit
performed
by
a
certified
public
accountant
11
licensed
in
this
state.
12
(2)
Notwithstanding
subparagraph
(1),
the
department
may
13
accept
any
of
the
following:
14
(a)
A
qualification
in
an
opinion
based
on
an
audit
that
15
is
unavoidable
by
any
audit
procedure
that
is
permitted
under
16
generally
accepted
accounting
principles.
An
opinion
that
17
is
qualified
because
of
a
limited
audit
procedure
or
because
18
the
scope
of
an
audit
is
limited
shall
not
be
accepted
by
the
19
department.
20
(b)
A
financial
statement
that
is
accompanied
by
the
21
report
of
a
certified
public
accountant
licensed
in
this
22
state.
The
report
must
be
based
upon
a
review
performed
by
23
the
certified
public
accountant.
The
report
shall
be
in
lieu
24
of
an
unqualified
opinion
based
on
an
audit.
However,
at
any
25
time,
upon
good
cause,
the
department
may
require
the
warehouse
26
operator
to
submit
to
the
department
a
subsequent
financial
27
statement
that
is
accompanied
by
the
report.
28
(3)
The
department
shall
not
require
that
a
warehouse
29
operator
to
submit
to
the
department
more
than
one
such
30
unqualified
opinion
based
on
an
audit
per
year.
31
(4)
A
warehouse
operator
shall
submit
one
or
more
financial
32
statements
to
the
department
in
addition
to
the
financial
33
statement
accompanied
by
an
unqualified
opinion
based
on
34
an
audit
as
required
in
this
paragraph
if
the
department
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determines
that
it
is
necessary
to
verify
the
warehouse
1
operator’s
financial
status
or
compliance
with
this
section
.
2
Sec.
7.
Section
203C.6,
subsection
5,
paragraph
b,
Code
3
2026,
is
amended
to
read
as
follows:
4
b.
(1)
The
warehouse
operator
shall
submit
to
the
5
department
,
as
required
by
the
department,
a
financial
6
statement
that
is
accompanied
by
an
unqualified
opinion
based
7
upon
an
audit
performed
by
a
certified
public
accountant
8
licensed
in
this
state.
9
(2)
Notwithstanding
subparagraph
(1),
the
department
may
10
accept
any
of
the
following:
11
(a)
A
qualification
in
an
opinion
based
on
an
audit
that
12
is
unavoidable
by
any
audit
procedure
that
is
permitted
under
13
generally
accepted
accounting
principles.
An
opinion
that
14
is
qualified
because
of
a
limited
audit
procedure
or
because
15
the
scope
of
an
audit
is
limited
shall
not
be
accepted
by
the
16
department.
17
(b)
A
financial
statement
that
is
accompanied
by
the
18
report
of
a
certified
public
accountant
licensed
in
this
19
state.
The
report
must
be
based
upon
a
review
performed
by
20
the
certified
public
accountant.
The
report
shall
be
in
lieu
21
of
an
unqualified
opinion
based
on
an
audit.
However,
at
any
22
time,
upon
good
cause,
the
department
may
require
the
warehouse
23
operator
to
submit
to
the
department
a
subsequent
financial
24
statement
that
is
accompanied
by
the
report.
25
(3)
The
department
shall
not
require
that
a
warehouse
26
operator
to
submit
more
than
one
such
unqualified
opinion
based
27
on
an
audit
per
year.
28
(4)
A
warehouse
operator
shall
submit
one
or
more
financial
29
statements
to
the
department
in
addition
to
the
financial
30
statement
accompanied
by
an
unqualified
opinion
based
on
31
an
audit
as
required
in
this
paragraph
if
the
department
32
determines
that
it
is
necessary
to
verify
the
warehouse
33
operator’s
financial
status
or
compliance
with
this
section
.
34
Sec.
8.
Section
203C.12A,
subsection
5,
Code
2026,
is
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2596
amended
to
read
as
follows:
1
5.
The
Iowa
grain
indemnity
fund
board
shall
upon
written
2
demand
of
the
warehouse
operator
file
a
termination
statement
3
with
the
secretary
of
state,
if
after
one
hundred
eighty
4
days
from
the
date
that
the
lien
is
perfected
the
warehouse
5
operator’s
license
has
not
ceased
by
revocation,
cancellation,
6
or
expiration
pursuant
to
section
203C.10
.
Upon
filing
the
7
termination
statement,
the
lien
becomes
unperfected.
The
board
8
shall
also
deliver
a
copy
of
the
termination
statement
to
the
9
warehouse
operator.
10
Sec.
9.
Section
203C.14,
subsection
2,
paragraphs
a
and
c,
11
Code
2026,
are
amended
to
read
as
follows:
12
a.
Upon
the
cessation
of
a
warehouse
operator’s
license
due
13
to
revocation,
cancellation,
or
expiration
pursuant
to
section
14
203C.10
or
upon
the
filing
of
a
petition
in
bankruptcy
by
a
15
warehouse
operator
,
a
claim
against
the
warehouse
operator
16
arising
under
this
chapter
shall
be
made
in
writing
with
the
17
warehouse
operator,
with
the
issuer
of
a
bond
on
agricultural
18
products
other
than
bulk
grain,
a
deficiency
bond,
or
an
19
irrevocable
letter
of
credit,
and,
if
the
claim
relates
to
bulk
20
grain,
with
the
department.
The
claim
must
be
made
within
one
21
hundred
twenty
days
after
the
cessation
of
the
license
or
the
22
filing
of
a
petition
in
bankruptcy,
whichever
occurs
earlier
.
23
The
failure
to
make
a
timely
claim
relieves
the
issuer
and,
24
if
the
claim
relates
to
bulk
grain,
the
grain
depositors
25
and
sellers
indemnity
fund
provided
in
chapter
203D
of
all
26
obligations
to
the
claimant.
27
c.
This
subsection
does
not
apply
if
a
receiver
is
appointed
28
as
provided
in
this
chapter
pursuant
to
a
petition
which
that
29
is
filed
by
the
department
prior
to
the
expiration
of
one
30
hundred
twenty
days
after
cessation
of
a
warehouse
operator’s
31
license
pursuant
to
section
203C.10
.
32
Sec.
10.
Section
203C.18,
subsection
3,
Code
2026,
is
33
amended
to
read
as
follows:
34
3.
A
form
for
a
warehouse
receipt
shall
only
be
printed
by
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a
person
approved
by
the
department.
A
form
for
a
warehouse
1
receipt
shall
be
printed
in
accordance
with
specifications
set
2
forth
by
the
department.
A
warehouse
operator
shall
surrender
3
to
the
department
all
forms
for
warehouse
receipts
that
are
4
unused
at
the
time
that
the
warehouse
operator’s
license
5
is
suspended
or
ceases
due
to
revocation,
cancellation,
or
6
expiration
pursuant
to
section
203C.10
.
The
warehouse
operator
7
shall
surrender
the
warehouse
receipts
in
a
manner
required
by
8
the
department.
9
DIVISION
III
10
GRAIN
DEPOSITORS
AND
SELLERS
INDEMNIFICATION
11
Sec.
11.
Section
203D.3A,
subsection
2,
Code
2026,
is
12
amended
by
adding
the
following
new
paragraph:
13
NEW
PARAGRAPH
.
e.
(1)
If
the
per-bushel
fee
is
passed
14
on
to
a
seller,
the
per-bushel
fee
shall
occur
at
the
time
of
15
payment.
16
(2)
As
used
in
subparagraph
(1),
“payment”
means
the
same
as
17
defined
in
section
203.8.
18
Sec.
12.
Section
203D.6,
subsection
8,
paragraph
a,
Code
19
2026,
is
amended
to
read
as
follows:
20
a.
Upon
a
determination
by
the
board
that
an
eligible
21
claim
satisfies
the
requirements
in
subsection
4
,
the
board
22
shall
indemnify
the
claimant
as
a
depositor
under
subsection
23
5
,
and
a
seller
under
subsection
6
.
Upon
a
determination
by
24
the
board
that
an
eligible
repayment
claim
was
filed
by
that
25
seller
under
section
203D.6A
derives
from
the
same
covered
26
transaction
during
the
claim
period,
and
the
repayment
loss
27
incurred
for
that
claim
,
the
board
shall
indemnify
the
claimant
28
as
a
seller
subject
to
the
requirements
of
this
section
and
29
section
203D.6A
.
30
Sec.
13.
Section
203D.6A,
subsection
2,
Code
2026,
is
31
amended
to
read
as
follows:
32
2.
To
be
timely,
a
seller
must
file
a
repayment
claim
with
33
the
department
not
later
than
sixty
days
after
the
amount
34
of
the
seller’s
loss
is
finalized
by
a
bankruptcy
court,
35
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whether
by
an
order
issued,
judgment
entered,
or
settlement
1
agreement
approved.
However,
if
a
seller’s
loss
is
based
upon
2
a
bankruptcy
court’s
default
judgment,
to
be
timely,
the
seller
3
must
file
a
repayment
claim
with
the
department
not
later
than
4
sixty
days
after
the
bankruptcy
court’s
default
judgment
is
5
entered
or
a
subsequent
settlement
agreement
is
approved
and
6
entered,
whichever
is
later.
7
DIVISION
IV
8
EFFECTIVE
DATE
9
Sec.
14.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
10
immediate
importance,
takes
effect
upon
enactment.
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