Read the full stored bill text
House
File
999
-
Introduced
HOUSE
FILE
999
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
508)
(SUCCESSOR
TO
HSB
131)
A
BILL
FOR
An
Act
providing
for
the
marketing
of
grain
by
licensed
1
warehouse
operators
and
grain
dealers,
including
by
2
providing
for
indemnity
fees
and
the
indemnification
3
of
grain
depositors
and
sellers
for
losses
following
4
the
cessation
of
a
license
or
bankruptcy,
and
including
5
effective
date
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
TLSB
2306HZ
(4)
91
da/ns
H.F.
999
Section
1.
Section
203.1,
subsection
3,
Code
2025,
is
1
amended
to
read
as
follows:
2
3.
“Credit-sale
contract”
means
a
contract
for
the
sale
of
3
grain
pursuant
to
which
the
sale
price
is
to
be
paid
more
than
4
thirty
days
after
the
delivery
of
the
grain
to
the
buyer,
or
a
5
contract
which
is
titled
as
a
credit-sale
contract,
including
6
but
not
limited
to
those
contracts
commonly
referred
to
as
7
deferred-payment
contracts,
contract
or
a
deferred-pricing
8
contracts,
and
price-later
contracts
contract
.
9
Sec.
2.
Section
203.1,
Code
2025,
is
amended
by
adding
the
10
following
new
subsections:
11
NEW
SUBSECTION
.
4A.
“Deferred-payment
contract”
means
a
12
contract
pursuant
to
which
the
purchase
price
for
grain
is
13
agreed
to
by
a
seller
and
licensed
grain
dealer,
if
payment
14
will
occur
more
than
thirty
days
from
the
date
of
delivery,
as
15
defined
in
section
203.8,
subsection
2,
paragraph
“a”
.
16
NEW
SUBSECTION
.
4B.
“Deferred-pricing
contract”
means
a
17
contract
by
a
seller
and
licensed
grain
dealer
if
delivery,
18
as
defined
in
section
203.8,
subsection
2,
paragraph
“a”
,
has
19
occurred
but
the
purchase
price
has
not
been
agreed
to
by
the
20
seller
and
licensed
grain
dealer.
21
Sec.
3.
Section
203.3,
subsection
4,
paragraph
b,
Code
2025,
22
is
amended
to
read
as
follows:
23
b.
(1)
The
Except
as
provided
in
subparagraph
(2),
the
24
grain
dealer
shall
submit,
as
required
by
the
department,
a
25
financial
statement
that
is
accompanied
by
an
unqualified
26
opinion
based
upon
an
audit
performed
by
a
certified
public
27
accountant
licensed
in
this
state.
However,
the
28
(2)
(a)
The
department
may
accept
a
qualification
in
an
29
opinion
that
is
unavoidable
by
any
audit
procedure
that
is
30
permitted
under
generally
accepted
accounting
principles.
An
31
The
department
shall
not
accept
an
opinion
that
is
qualified
32
because
of
a
limited
audit
procedure
or
because
the
scope
of
33
an
audit
is
limited
shall
not
be
accepted
by
the
department
.
34
The
department
shall
not
require
that
a
the
grain
dealer
35
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999
submit
more
than
one
such
unqualified
opinion
per
year.
The
1
grain
dealer
,
except
as
provided
in
section
203.15
,
may
elect
2
to
submit
a
financial
statement
that
is
accompanied
by
the
3
report
of
a
certified
public
accountant
licensed
in
this
state
4
that
is
based
upon
a
review
performed
by
the
certified
public
5
accountant
in
lieu
of
the
audited
financial
statement
specified
6
in
this
paragraph.
However,
at
any
time
the
department
may
7
require
that
the
grain
dealer
submit
to
the
department
a
8
financial
statement
that
is
accompanied
by
the
report
of
a
9
certified
public
accountant
licensed
in
this
state
that
is
10
based
upon
a
review
performed
by
a
certified
public
accountant
11
if
the
department
has
good
cause.
A
12
(b)
If
the
grain
dealer
purchases
grain
by
credit-sale
13
contract,
the
grain
dealer
shall
comply
with
the
financial
14
statement
requirements
in
section
203.15.
15
(c)
The
grain
dealer
shall
submit
one
or
more
financial
16
statements
to
the
department
in
addition
to
those
required
17
in
this
paragraph
if
the
department
determines
that
it
is
18
necessary
to
verify
the
grain
dealer’s
financial
status
or
19
compliance
with
this
subsection
.
20
Sec.
4.
Section
203.8,
subsection
1,
Code
2025,
is
amended
21
to
read
as
follows:
22
1.
a.
A
grain
dealer
licensed
or
required
to
be
licensed
23
pursuant
to
section
203.3
shall
pay
the
purchase
price
to
the
24
seller
for
grain
upon
as
follows:
25
(1)
Upon
delivery
or
later
upon
demand
by
the
seller
,
26
but
.
If
the
seller
does
not
make
a
demand,
the
grain
dealer
27
shall
pay
the
purchase
price
not
later
than
thirty
days
after
28
delivery
by
the
seller
unless
in
last
date
for
scheduled
29
payments
made
by
the
licensed
grain
dealer
to
sellers
for
30
delivered
grain
according
to
the
grain
dealer’s
standard
31
business
operation.
32
(2)
In
accordance
with
the
terms
of
a
credit-sale
33
contract
that
satisfies
the
requirements
of
this
chapter
.
34
The
department
shall
adopt
rules
for
payment
by
check
and
35
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electronic
funds
transfer.
1
b.
A
grain
dealer
licensed
or
required
to
be
licensed
2
pursuant
to
section
203.3
shall
not
hold
a
check
for
the
3
purchase
of
grain
more
than
five
days
after
the
grain
dealer
4
issues
a
check
to
the
seller.
After
that
date,
the
grain
5
dealer
shall
deliver
the
check
in
person
or
by
mail
to
the
6
seller’s
last
known
address.
The
department
shall
adopt
rules
7
pursuant
to
chapter
17A
for
a
grain
dealer’s
payment
by
check
8
and
electronic
funds
transfer.
9
Sec.
5.
Section
203.15,
subsections
1,
3,
4,
and
6,
Code
10
2025,
are
amended
to
read
as
follows:
11
1.
The
grain
dealer
shall
be
licensed
pursuant
to
section
12
203.3
.
All
of
the
following
shall
apply
to
a
grain
dealer
13
required
to
be
licensed
under
that
section
who
purchases
grain
14
by
credit-sale
contract:
15
a.
The
meaning
of
“credit-sale
contract”
,
including
16
“deferred-payment
contract”
or
“deferred-pricing
contract”
,
as
17
those
terms
are
defined
in
section
203.1,
shall
supersede
the
18
meaning
of
those
terms
in
a
contract
entered
into
by
a
seller
19
and
a
licensed
grain
dealer.
20
a.
b.
The
grain
dealer
shall
give
provide
written
notice
to
21
the
department
prior
to
engaging
in
the
purchase
of
grain
by
22
credit-sale
contract.
The
written
notice
shall
must
contain
23
all
of
the
following:
24
(1)
A
statement
that
the
grain
dealer
is
engaging
in
25
the
purchase
of
grain
by
deferred-pricing
contract
or
26
deferred-payment
contract
or
both.
27
(2)
Any
other
information
required
by
the
department.
28
b.
c.
All
The
grain
dealer
shall
maintain
credit-sale
29
contract
forms
in
the
possession
of
the
grain
dealer
shall
.
30
The
department
may
require
the
credit-sale
contract
forms
to
31
distinguish
between
the
purchase
of
grain
by
deferred-pricing
32
contract
or
deferred-payment
contract.
The
credit-sale
33
contract
forms
must
have
been
permanently
and
consecutively
34
numbered
at
the
time
of
printing
of
the
forms.
The
grain
35
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999
dealer
shall
maintain
an
accurate
record
of
all
credit-sale
1
contract
forms
and
numbers
obtained
by
that
grain
dealer.
The
2
record
shall
must
include
the
disposition
of
each
numbered
3
form,
whether
by
execution,
destruction,
or
otherwise.
4
c.
d.
The
grain
dealer
who
purchases
grain
by
credit-sale
5
contract
shall
maintain
records
as
required
by
the
department
6
in
compliance
with
this
section
.
The
department
may
require
7
the
grain
dealer
to
account
separately
for
deferred-pricing
8
contracts
and
deferred-payment
contracts.
9
3.
a.
Title
to
all
grain
sold
If
a
grain
dealer
purchases
10
grain
by
a
credit-sale
contract
,
is
in
the
purchasing
grain
11
dealer
as
of
the
time
the
contract
is
executed,
unless
the
12
contract
provides
otherwise
transferred
title
to
the
grain
13
upon
the
grain’s
delivery
to
the
grain
dealer.
As
used
in
14
this
paragraph,
“delivery”
means
the
same
as
defined
in
section
15
203.8
.
16
b.
The
contract
must
be
signed
and
dated
by
both
parties
17
and
executed
in
duplicate.
One
copy
shall
be
retained
by
the
18
grain
dealer
and
one
copy
shall
be
delivered
to
the
seller.
19
Upon
the
cessation
of
the
grain
dealer’s
license
by
revocation,
20
cancellation,
or
expiration
as
provided
in
section
203.10
,
the
21
payment
date
for
all
credit-sale
contracts
shall
be
advanced
to
22
a
date
not
later
than
thirty
days
after
the
effective
date
of
23
the
cessation,
and
the
purchase
price
for
all
unpriced
grain
24
shall
be
determined
as
of
the
effective
date
of
the
cessation
25
in
accordance
with
all
other
provisions
of
the
contract.
26
However,
if
the
business
of
the
grain
dealer
is
sold
to
another
27
licensed
grain
dealer,
credit-sale
contracts
may
be
assigned
to
28
the
purchaser
of
the
business.
29
4.
a.
A
grain
dealer
shall
not
purchase
grain
on
by
30
credit-sale
contract
during
any
time
period
in
which
any
of
the
31
grain
dealer
fails
to
maintain
following
apply:
32
(1)
The
grain
dealer
fails
to
maintain
fifty
cents
of
net
33
worth
for
each
outstanding
bushel
of
grain
purchased
under
34
credit
credit-sale
contract
.
The
grain
dealer
may
maintain
35
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999
a
deficiency
bond
or
an
irrevocable
letter
of
credit
in
the
1
amount
of
two
thousand
dollars
for
each
one
thousand
dollars
or
2
fraction
thereof
of
deficiency
in
net
worth.
3
b.
(2)
A
If
the
grain
dealer
who
is
also
a
warehouse
4
operator
licensed
by
the
department
under
chapter
203C
or
the
5
United
States
department
of
agriculture
under
the
United
States
6
Warehouse
Act,
and
who
does
not
the
warehouse
operator
fails
7
to
have
a
sufficient
quantity
or
quality
of
grain
to
satisfy
8
the
warehouse
operator’s
obligations
based
on
an
examination
by
9
the
department
or
the
United
States
department
of
agriculture
10
shall
not
purchase
grain
on
credit-sale
contract
to
correct
the
11
shortage
of
grain
.
12
b.
If
the
grain
dealer
purchases
grain
by
deferred-pricing
13
contract,
the
grain
dealer’s
last
financial
statement
required
14
to
be
submitted
to
the
department
pursuant
to
section
203.3
15
must
have
been
accompanied
by
an
unqualified
opinion
based
upon
16
an
audit
performed
by
a
certified
public
accountant
licensed
in
17
this
state.
The
department
shall
not
accept
a
qualification
18
in
an
opinion
or
a
review
performed
by
the
certified
public
19
accountant
in
lieu
of
the
audited
financial
statement.
20
c.
(1)
A
If
the
grain
dealer
purchases
grain
by
21
deferred-payment
contract,
the
grain
dealer
must
meet
at
least
22
either
of
the
following
conditions:
23
(a)
(1)
The
grain
dealer’s
last
financial
statement
24
required
to
be
submitted
to
the
department
pursuant
to
section
25
203.3
is
must
be
accompanied
by
an
unqualified
opinion
based
26
upon
an
audit
performed
by
a
certified
public
accountant
27
licensed
in
this
state.
28
(b)
(2)
The
grain
dealer
files
must
file
a
bond
with
29
the
department
in
the
amount
of
one
hundred
thousand
dollars
30
payable
to
the
department.
The
bond
is
subject
to
all
of
the
31
following:
32
(2)
(a)
The
bond
filed
with
the
department
under
this
33
paragraph
shall
must
be
used
to
indemnify
sellers
for
losses
34
resulting
from
a
breach
of
a
credit-sale
deferred-payment
35
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999
contract
as
provided
by
rules
adopted
by
the
department.
The
1
rules
shall
must
include
but
are
not
limited
to
procedures
and
2
criteria
for
providing
notice,
filing
claims,
valuing
losses,
3
and
paying
claims.
The
bond
provided
in
this
paragraph
shall
4
be
in
addition
to
any
other
bond
required
in
this
chapter
.
5
(b)
The
bond
shall
not
be
canceled
by
the
issuer
on
less
6
than
ninety
days’
notice
by
certified
mail
to
the
department
7
and
the
principal.
However,
if
an
adequate
replacement
bond
8
is
filed
with
the
department,
the
department
may
authorize
9
the
cancellation
of
the
original
bond
before
the
end
of
the
10
ninety-day
period.
11
(c)
If
an
adequate
replacement
bond
is
not
received
by
the
12
department
within
sixty
days
of
the
issuance
of
the
notice
of
13
cancellation,
the
department
shall
suspend
the
grain
dealer’s
14
license.
The
department
shall
cause
an
inspection
of
the
15
licensed
grain
dealer
immediately
at
the
end
of
the
sixty-day
16
period.
If
a
replacement
bond
is
not
filed
within
another
17
thirty
days
following
the
suspension,
the
department
shall
18
revoke
the
grain
dealer’s
license.
19
(3)
When
a
Upon
the
revocation
of
the
grain
dealer’s
20
license
is
revoked
,
the
department
shall
provide
notice
of
the
21
revocation
by
ordinary
mail
to
the
last
known
address
of
each
22
holder
of
an
outstanding
credit-sale
contract
and
all
known
23
sellers.
24
6.
a.
A
grain
dealer
who
purchases
grain
by
credit-sale
25
contract
shall
obtain
from
the
seller
a
signed
acknowledgment
26
stating
that
the
seller
has
received
a
written
notice
that
27
grain
purchased
by
credit-sale
contract
is
not
protected
by
the
28
grain
depositors
and
sellers
indemnity
fund
explaining
all
of
29
the
following:
30
(1)
Ordinarily,
a
person
who
sells
grain
to
a
licensed
grain
31
dealer
may
file
a
claim
with
the
Iowa
grain
indemnity
fund
32
board
for
a
loss
or
losses
caused
by
the
licensed
grain
dealer
.
33
(2)
For
a
grain
transaction,
other
than
by
credit-sale
34
contract,
the
seller
may
file
a
claim
for
indemnification
of
35
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999
ninety
percent
of
a
loss.
1
(3)
(a)
For
a
credit-sale
contract
classified
as
a
2
deferred-pricing
contract,
the
seller
may
file
a
claim
for
3
indemnification
of
seventy
percent
of
a
loss.
4
(b)
The
indemnification
limit
is
not
more
than
three
5
hundred
thousand
dollars
but
may
be
decreased
to
two
hundred
6
ten
thousand
dollars
depending
upon
the
extent
to
which
the
7
seller’s
loss
arose
form
a
deferred-pricing
contract.
8
(c)
For
a
credit-sale
contract
classified
as
a
9
deferred-payment
contract,
a
seller
is
not
eligible
to
claim
a
10
loss
for
indemnification.
11
b.
The
form
for
the
acknowledgment
shall
be
prescribed
by
12
the
department
,
and
the
.
13
c.
The
licensed
grain
dealer
and
the
seller
shall
each
be
14
provided
a
copy
of
the
acknowledged
form
.
15
Sec.
6.
Section
203D.1,
Code
2025,
is
amended
by
adding
the
16
following
new
subsections:
17
NEW
SUBSECTION
.
2A.
“Deferred-payment
contract”
means
the
18
same
as
defined
in
section
203.1.
19
NEW
SUBSECTION
.
2B.
“Deferred-pricing
contract”
means
the
20
same
as
defined
in
section
203.1.
21
NEW
SUBSECTION
.
8A.
“Indemnity
fees”
or
“fees”
means
a
22
participation
fee
and
per-bushel
fee
as
provided
in
sections
23
203D.3
and
203D.3A.
24
NEW
SUBSECTION
.
14A.
“Repayment
loss”
means
the
part
of
a
25
repayment
claim
filed
with
the
department
under
section
203D.6A
26
by
a
seller
that
includes
a
dollar
value
of
a
loss
incurred
27
by
the
seller
for
purchased
grain
that
the
seller
had
paid
28
back
or
is
required
to
pay
back
to
a
grain
dealer’s
bankruptcy
29
estate,
pursuant
to
an
order
issued,
judgment
entered,
or
30
settlement
agreement
approved
by
a
bankruptcy
court,
and
which
31
amount
has
not
been
subsequently
recovered
through
other
legal
32
or
equitable
remedies
including
the
liquidation
of
the
grain
33
dealer’s
assets.
34
Sec.
7.
Section
203D.1,
subsections
14
and
16,
Code
2025,
35
-7-
LSB
2306HZ
(4)
91
da/ns
7/
31
H.F.
999
are
amended
to
read
as
follows:
1
14.
a.
“Purchased
grain”
means
grain
any
of
the
following:
2
(1)
Grain
entered
in
the
company-owned
paid
position
as
3
evidenced
on
the
grain
dealer’s
daily
position
record.
4
(2)
Grain
purchased
under
a
deferred-pricing
contract.
5
b.
“Purchased
grain”
does
not
include
grain
that
is
subject
6
to
an
exempt
transaction
based
on
documentation
satisfactory
7
to
the
department
showing
that
the
grain
dealer
did
any
of
the
8
following:
9
(1)
Purchased
the
grain
from
the
United
States
government
or
10
any
of
its
subdivisions
or
agencies.
11
(2)
Purchased
the
grain
from
a
person
licensed
as
a
grain
12
dealer
in
any
jurisdiction.
13
(3)
Purchased
the
grain
under
a
credit-sale
14
deferred-payment
contract.
15
(4)
Entered
the
grain
in
the
company-owned
paid
position
as
16
a
cancellation
of
a
collateral
warehouse
receipt.
17
(5)
Entered
the
grain
in
the
company-owned
paid
position
as
18
an
intra-company
location
transfer.
19
16.
a.
“Seller”
means
a
person
who
sells
grain
which
,
that
20
the
person
has
produced
or
caused
to
be
produced
,
to
a
licensed
21
grain
dealer
,
but
excludes
a
person
who
executes
a
credit-sale
22
contract
as
a
seller
as
provided
in
section
203.15
.
However,
23
“seller”
24
b.
“Seller”
does
not
include
any
of
the
following:
25
a.
(1)
A
person
licensed
as
a
grain
dealer
in
any
26
jurisdiction
who
sells
grain
to
a
licensed
grain
dealer.
27
b.
(2)
A
person
who
sells
grain
that
is
not
produced
in
28
this
state
unless
such
grain
is
delivered
to
a
licensed
grain
29
dealer
at
a
location
in
this
state
as
the
first
point
of
sale.
30
(3)
A
person
who
sells
grain
pursuant
to
a
deferred-payment
31
contract.
32
Sec.
8.
Section
203D.3,
subsections
1
and
4,
Code
2025,
are
33
amended
to
read
as
follows:
34
1.
The
grain
depositors
and
sellers
indemnity
fund
is
35
-8-
LSB
2306HZ
(4)
91
da/ns
8/
31
H.F.
999
created
in
the
state
treasury
as
a
separate
account.
The
1
general
fund
of
the
state
is
not
liable
for
claims
presented
2
against
the
fund
under
section
sections
203D.6
and
203D.6A
.
3
4.
The
moneys
collected
under
this
section
and
deposited
4
in
the
fund
shall
be
used
expended
by
the
board
exclusively
to
5
indemnify
do
all
of
the
following:
6
a.
Indemnify
depositors
and
sellers
who
have
submitted
7
eligible
claims
to
the
department
as
provided
in
section
8
sections
203D.6
and
to
pay
the
administrative
costs
of
this
9
chapter
203D.6A
.
10
b.
Pay
the
department,
the
board,
or
the
office
of
attorney
11
general
for
actual
and
necessary
costs
incurred
by
any
of
the
12
following:
13
(1)
The
department
for
acting
as
receiver
if
appointed
by
a
14
court
pursuant
to
section
203.12B
or
203C.3.
15
(2)
(a)
The
office
of
attorney
general
for
representing
16
the
department,
the
board,
or
the
office
in
a
legal
or
17
administrative
proceeding
involving
moneys
required
to
be
18
deposited
or
expended
from
the
fund.
19
(b)
Outside
counsel
for
representing
the
department,
20
the
board,
or
the
office
of
attorney
general
in
a
legal
or
21
administrative
proceeding
involving
moneys
required
to
be
22
deposited
or
expended
from
the
fund.
23
Sec.
9.
Section
203D.3A,
unnumbered
paragraph
1,
Code
2025,
24
is
amended
to
read
as
follows:
25
The
department
shall
collect
indemnity
fees
,
including
26
participation
fees
and
per-bushel
fees
as
provided
in
this
27
section
,
if
established
imposed
by
the
board
pursuant
to
28
section
203D.5
,
at
rates
determined
by
the
board
as
provided
29
in
that
section.
A
person
required
to
pay
a
fee
shall
use
30
licensee
shall
remit
indemnity
fees
and
forms
and
deliver
the
31
payment
to
the
department
as
required
by
the
department.
32
Sec.
10.
Section
203D.3A,
subsection
1,
paragraph
a,
33
subparagraph
(1),
Code
2025,
is
amended
to
read
as
follows:
34
(1)
In
calculating
the
amount
of
the
initial
participation
35
-9-
LSB
2306HZ
(4)
91
da/ns
9/
31
H.F.
999
fee,
an
applicant
for
a
new
license
shall
be
deemed
a
licensee
1
paying
the
full
annual
amount
of
the
participation
fee
owing
on
2
the
licensee’s
first
anniversary
date
as
provided
in
paragraph
3
“b”
.
The
department
must
be
satisfied
that
the
applicant
is
4
calculating
the
amount
due
in
good
faith
and
using
the
best
5
information
available.
6
(a)
For
a
licensed
grain
dealer,
the
anniversary
date
is
7
the
last
date
to
apply
for
the
renewal
of
the
grain
dealer’s
8
license
before
the
license
expires
as
provided
in
section
9
203.5.
10
(b)
For
a
licensed
warehouse
operator,
the
anniversary
date
11
is
the
last
date
to
apply
for
the
renewal
of
the
warehouse
12
operator’s
license
before
the
license
expires
as
provided
in
13
section
203C.37.
14
Sec.
11.
Section
203D.3A,
subsection
1,
paragraph
b,
Code
15
2025,
is
amended
to
read
as
follows:
16
b.
A
licensee
shall
pay
remit
a
participation
fee
in
one
17
installment
as
part
of
a
license
renewal
application
in
the
18
same
manner
provided
in
paragraph
“a”
.
However,
the
licensee
19
may
elect
to
remit
the
participation
fee
on
four
successive
20
installment
dates,
with
each
installment
date
occurring
on
in
21
the
month
succeeding
the
last
date
of
the
fund’s
assessment
22
quarter
as
provided
in
section
203D.3
,
on
a
date
determined
by
23
rules
adopted
by
the
department
.
The
licensee
shall
pay
remit
24
twenty-five
percent
of
the
total
participation
fee
assessed
on
25
each
installment
date.
However,
nothing
in
this
subsection
26
prevents
a
licensee
from
paying
the
participation
fee
on
an
27
accelerated
basis.
A
licensee
shall
pay
the
first
installment
28
on
the
last
date
of
the
fund’s
assessment
quarter
immediately
29
following
the
licensee’s
anniversary
date.
30
(1)
For
a
licensed
grain
dealer,
the
anniversary
date
is
31
the
last
date
to
apply
for
the
renewal
of
the
grain
dealer’s
32
license
before
the
license
expires
as
provided
in
section
33
203.5
.
34
(2)
For
a
licensed
warehouse
operator,
the
anniversary
date
35
-10-
LSB
2306HZ
(4)
91
da/ns
10/
31
H.F.
999
is
the
last
date
to
apply
for
the
renewal
of
the
warehouse
1
operator’s
license
before
the
license
expires
as
provided
in
2
section
203C.37
.
3
Sec.
12.
Section
203D.3A,
subsection
2,
Code
2025,
is
4
amended
to
read
as
follows:
5
2.
a.
A
licensed
grain
dealer
shall
remit
a
per-bushel
fee
6
shall
be
assessed
on
all
purchased
grain.
7
b.
The
licensed
grain
dealer
shall
forward
remit
the
8
per-bushel
fee
to
the
department
on
a
quarterly
basis
in
the
9
manner
and
using
the
forms
a
form
prescribed
by
the
department.
10
The
licensed
grain
dealer
shall
remit
the
per-bushel
fee
11
and
form
on
four
successive
installment
dates,
with
each
12
installment
date
occurring
in
the
month
succeeding
the
last
13
assessment
quarter
as
provided
in
section
203D.3,
on
December
14
15,
March
15,
June
15,
and
September
15.
15
c.
A
licensee
licensed
grain
dealer
is
delinquent
if
the
16
licensee
grain
dealer
fails
to
submit
remit
the
full
quarterly
17
per-bushel
fee
or
quarterly
forms
and
form
when
due
or
if,
18
upon
examination,
an
underpayment
of
the
fee
is
found
by
the
19
department.
The
licensed
grain
dealer
is
subject
to
a
penalty
20
of
ten
dollars
for
each
day
the
licensed
grain
dealer
is
21
delinquent
or
an
amount
equal
to
the
amount
of
the
deficiency,
22
whichever
is
less.
However,
a
licensee
licensed
grain
dealer
23
who
fails
to
submit
remit
the
full
quarterly
per-bushel
fee
or
24
quarterly
forms
form
when
due
,
is
subject
to
a
minimum
payment
25
of
ten
dollars.
The
department
may
establish
and
apply
a
26
margin
of
error
in
determining
whether
a
licensed
grain
dealer
27
is
delinquent.
The
per-bushel
fee
shall
be
collected
only
once
28
on
each
bushel
of
grain.
29
c.
d.
The
per-bushel
fee
shall
not
be
collected
more
30
than
once
on
each
bushel
of
grain.
A
licensed
grain
dealer
31
may
choose
to
pass
on
the
cost
of
a
per-bushel
fee
to
the
32
sellers
by
an
itemized
discount
noted
on
the
settlement
sheet.
33
However,
if
the
per-bushel
fee
is
not
in
effect,
no
a
licensed
34
grain
dealer
shall
not
make
such
a
discount
on
the
purchase
of
35
-11-
LSB
2306HZ
(4)
91
da/ns
11/
31
H.F.
999
grain.
A
discount
made
nominally
for
the
per-bushel
fee
while
1
the
per-bushel
fee
is
not
in
effect
is
grounds
for
a
license
2
suspension
or
revocation
under
chapter
203
.
3
Sec.
13.
Section
203D.5,
subsection
1,
unnumbered
paragraph
4
1,
Code
2025,
is
amended
to
read
as
follows:
5
The
board
shall
annually
review
the
debits
of
and
credits
6
to
the
grain
depositors
and
sellers
indemnity
fund
created
7
in
section
203D.3
and
shall
determine
whether
to
impose
the
8
participation
fee
and
per-bushel
fee
indemnity
fees
as
provided
9
in
section
203D.3A
,
make
adjustments
to
the
indemnity
fees
10
effective
on
the
previous
September
1,
or
waive
the
indemnity
11
fees
as
necessary
to
comply
with
this
section
.
The
board
shall
12
make
the
determination
not
later
than
May
1
of
each
year.
The
13
board
shall
impose
the
indemnity
fees
or
adjust
the
indemnity
14
fees
effective
on
the
previous
September
1
in
accordance
with
15
chapter
17A
.
The
imposition
or
adjustment
of
the
indemnity
16
fees
shall
become
effective
as
follows:
17
Sec.
14.
Section
203D.5,
subsections
4
and
5,
Code
2025,
are
18
amended
to
read
as
follows:
19
4.
If
on
the
last
date
of
the
fund’s
assessment
year
as
20
provided
in
section
203D.3
the
assets
of
the
fund
exceed
eight
21
sixteen
million
dollars,
less
any
encumbered
balances
or
22
pending
or
unsettled
claims,
all
of
the
following
apply:
23
a.
The
participation
fee
as
provided
in
section
203D.3A
24
shall
be
waived
and
shall
not
be
assessable
or
owing
for
the
25
following
assessment
year
of
the
fund.
However,
the
licensee
26
shall
continue
to
pay
remit
any
owing
participation
fee
that
27
was
in
effect
on
the
prior
September
1.
28
b.
The
per-bushel
fee
as
provided
in
section
203D.3A
29
shall
be
waived
and
shall
not
be
assessable
or
owing
for
the
30
following
assessment
year
.
The
waiver
shall
also
apply
to
31
purchased
grain
that
is
unpriced
on
the
last
date
of
the
fund’s
32
assessment
year.
However,
the
licensed
grain
dealer
shall
33
remit
any
per-bushel
fee
that
is
owing
on
that
date.
34
5.
The
board
shall
reinstate
the
indemnity
fees
as
35
-12-
LSB
2306HZ
(4)
91
da/ns
12/
31
H.F.
999
provided
in
this
section
if
the
assets
of
the
fund,
less
any
1
unencumbered
balances
or
pending
or
unsettled
claims,
are
three
2
eight
million
dollars
or
less.
3
Sec.
15.
Section
203D.6,
subsection
1,
Code
2025,
is
amended
4
to
read
as
follows:
5
1.
a.
Persons
who
may
file
claims.
A
depositor
or
seller
6
may
file
a
claim
with
the
department
for
the
indemnification
7
of
a
loss
dollar
value
losses
from
the
grain
depositors
and
8
sellers
indemnity
fund.
A
claim
shall
be
filed
by
a
depositer
9
or
seller
in
the
manner
prescribed
by
rules
adopted
by
the
10
board
department
.
11
b.
The
department
may
identify
each
claim
and
associated
12
claimant
by
a
unique
number
which
may
be
a
federal
tax
13
identification
number.
14
Sec.
16.
Section
203D.6,
subsection
4,
paragraph
d,
Code
15
2025,
is
amended
to
read
as
follows:
16
d.
(1)
That
the
claim
derives
from
a
covered
transaction.
17
For
purposes
of
this
paragraph,
a
claim
derives
from
a
covered
18
transaction
if
the
claimant
is
a
incurred
a
dollar
value
loss
19
as
any
of
the
following:
20
(a)
A
depositor
who
delivered
the
grain
to
a
licensed
21
warehouse
operator.
22
(b)
(i)
A
seller
who
transferred
title
to
the
grain
to
23
a
licensed
grain
dealer
other
than
by
credit-sale
contract
24
within
six
months
of
the
incurrence
date
for
a
claim
period
as
25
provided
in
subsection
2
,
or
if
the
claimant
is
a
depositor
who
26
delivered
the
grain
to
a
licensed
warehouse
operator
.
27
(ii)
A
seller
described
in
subparagraph
subdivision
(i)
28
who
incurred
a
repayment
claim
loss
against
a
grain
dealer
as
29
provided
in
section
203D.6A.
30
(2)
The
dollar
value
losses
incurred
by
a
depositor
31
or
seller
described
in
subparagraph
(1)
for
all
eligible
32
claims
are
subject
to
the
indemnification
limit
described
in
33
subsection
8.
34
(a)
The
department
shall
segregate
that
part
of
a
claim
35
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da/ns
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31
H.F.
999
that
includes
a
dollar
value
of
a
loss
incurred
by
a
seller
1
who
sold
grain
to
a
licensed
grain
dealer
pursuant
to
a
2
credit-sale
contract,
including
by
deferred-pricing
contract
3
and
deferred-payment
contract.
4
(b)
The
part
of
the
segregated
claim
that
includes
a
5
dollar
value
of
a
loss
incurred
by
a
seller
who
sold
grain
to
a
6
licensed
grain
dealer
pursuant
to
a
deferred-payment
contract
7
is
ineligible
for
indemnification.
8
Sec.
17.
Section
203D.6,
subsections
5,
6,
8,
and
9,
Code
9
2025,
are
amended
to
read
as
follows:
10
5.
Value
Dollar
value
of
loss
——
warehouse
claims
depositor
11
claim
.
12
a.
(1)
The
board
shall
determine
the
an
eligible
claim’s
13
dollar
value
of
a
claim
loss
incurred
by
a
depositor
holding
14
a
warehouse
receipt
or
a
scale
weight
ticket
for
grain
that
15
the
depositor
delivered
for
storage
to
the
licensed
warehouse
16
operator.
17
(a)
If
the
department
has
been
appointed
by
the
court
as
18
receiver
of
the
grain
assets
of
the
warehouse
operator,
the
19
dollar
value
of
the
loss
shall
be
presumed
to
be
as
stated
in
20
the
plan
of
disposition
approved
by
the
court.
21
(b)
If
the
warehouse
operator
has
filed
a
petition
in
22
bankruptcy,
the
dollar
value
of
the
loss
shall
be
presumed
to
23
be
based
upon
the
fair
market
price,
free-on-board
from
the
24
site
of
the
warehouse
operator,
being
paid
to
producers
for
25
grain
by
the
grain
terminal
operator
nearest
the
warehouse
26
operator
on
the
date
the
petition
was
filed.
27
(c)
If
there
is
neither
a
department
receivership
nor
28
a
bankruptcy
filing,
the
dollar
value
of
the
loss
shall
be
29
presumed
to
be
based
upon
the
fair
market
price,
free-on-board
30
from
the
site
of
the
warehouse
operator,
being
paid
to
31
producers
for
grain
by
the
grain
terminal
operator
nearest
the
32
warehouse
operator
on
the
incurrence
date
of
license
revocation
33
or
cancellation
.
If
more
than
one
incurrence
date
applies
to
a
34
claim,
the
board
may
choose
between
the
two.
However,
the
35
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31
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999
(d)
The
board
may
accept
an
alternative
valuation
dollar
1
value
of
a
claim
the
loss
upon
a
showing
of
just
cause
by
the
2
depositor
or
department.
All
depositors
3
(2)
The
dollar
value
of
the
loss
of
priced
or
unpriced
grain
4
shall
not
exceed
the
price
of
that
grain
if
the
grain
were
5
U.S.
No.
2
grain
according
to
standards
adopted
by
the
federal
6
grain
inspection
service
of
the
United
States
department
of
7
agriculture.
The
price
of
the
grain
shall
be
determined
in
8
accordance
with
the
relevant
date
used
to
determine
the
price
9
described
in
subparagraph
(1).
The
department
may
adjust
the
10
price
of
the
grain
if
necessary
to
better
account
for
the
11
condition
of
the
grain
when
stored.
12
b.
A
depositor
filing
claims
a
claim
for
a
dollar
value
13
loss
under
this
section
subsection
shall
be
bound
by
the
dollar
14
value
of
the
loss
determined
by
the
board.
The
dollar
value
of
15
the
loss
is
the
outstanding
balance
on
the
validated
claim
at
16
time
of
payment
the
claimant
is
indemnified
from
the
fund.
17
6.
Value
Dollar
value
of
loss
——
grain
dealer
claims
seller
18
claim
.
19
a.
(1)
The
dollar
value
of
a
claim
The
board
shall
20
determine
an
eligible
claim’s
dollar
value
of
a
loss
incurred
21
by
a
seller
who
has
sold
grain
or
delivered
grain
for
sale
or
22
exchange
and
who
is
a
creditor
of
the
licensed
grain
dealer
for
23
all
or
part
of
the
value
of
the
grain
shall
be
based
on
the
24
amount
stated
on
the
obligation
on
the
date
of
the
sale.
25
(a)
If
the
sold
grain
was
unpriced,
the
dollar
value
26
of
a
claim
the
loss
shall
be
presumed
to
be
based
upon
the
27
fair
market
price,
free-on-board
from
the
site
of
the
grain
28
dealer,
being
paid
to
producers
for
grain
by
the
grain
terminal
29
operator
nearest
the
grain
dealer
on
the
incurrence
date
of
the
30
license
revocation
or
cancellation
or
the
filing
of
a
petition
31
in
bankruptcy
.
If
more
than
one
incurrence
date
applies
to
a
32
claim,
the
board
may
choose
between
the
two.
However,
the
33
(b)
The
board
may
accept
an
alternative
valuation
dollar
34
value
of
a
claim
the
loss
upon
a
showing
of
just
cause
by
the
35
-15-
LSB
2306HZ
(4)
91
da/ns
15/
31
H.F.
999
seller
or
department.
All
sellers
1
(2)
The
dollar
value
of
the
loss
of
priced
or
unpriced
grain
2
shall
not
exceed
the
price
of
that
grain
if
the
grain
were
3
U.S.
No.
2
grain
according
to
standards
adopted
by
the
federal
4
grain
inspection
service
of
the
United
States
department
of
5
agriculture.
The
price
of
the
grain
shall
be
determined
in
6
accordance
with
the
relevant
date
used
to
determine
the
price
7
described
in
subparagraph
(1).
The
department
may
adjust
the
8
price
of
the
grain
if
necessary
to
better
account
for
the
9
condition
of
the
grain
when
purchased.
10
b.
A
seller
filing
claims
a
claim
for
a
dollar
value
of
the
11
loss
under
this
section
subsection
shall
be
bound
by
the
dollar
12
value
of
the
loss
determined
by
the
board.
The
dollar
value
of
13
the
loss
is
the
outstanding
balance
on
the
validated
claim
at
14
the
time
of
payment
the
claimant
is
indemnified
from
the
fund.
15
8.
Payment
Indemnification
of
claims
claimant
.
16
a.
Upon
a
determination
by
the
board
that
the
claim
is
17
an
eligible
for
payment
claim
satisfies
the
requirements
in
18
subsection
4
,
the
board
shall
provide
for
payment
of
ninety
19
percent
of
the
loss,
as
determined
under
indemnify
the
claimant
20
as
a
depositor
under
subsection
5
,
but
not
more
than
three
21
hundred
thousand
dollars
per
claimant
and
a
seller
under
22
subsection
6
.
Upon
a
determination
by
the
board
that
an
23
eligible
repayment
claim
filed
by
that
seller
under
section
24
203D.6A
derives
from
the
same
covered
transaction
during
the
25
claim
period,
and
the
repayment
loss
incurred
for
that
claim,
26
the
board
shall
indemnify
the
claimant
as
a
seller
subject
to
27
the
requirements
of
this
section
and
section
203D.6A.
28
b.
Subject
to
the
indemnification
limit
described
in
29
paragraph
“c”
,
the
board
shall
indemnify
a
claimant
ninety
30
percent
of
the
combined
dollar
value
losses,
including
any
31
repayment
loss,
incurred
by
the
claimant
as
described
in
32
paragraph
“a”
,
except
for
a
segregated
dollar
value
loss
33
incurred
from
the
sale
of
grain
under
a
credit-sale
contract.
34
The
board
shall
indemnify
the
seller
seventy
percent
of
the
35
-16-
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2306HZ
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16/
31
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999
dollar
value
loss
incurred
from
the
sale
of
grain
under
a
1
deferred-pricing
contract
and
zero
percent
of
the
dollar
2
value
loss
for
the
sale
of
grain
under
a
deferred-payment
3
contract.
The
full
indemnity
amount
paid
to
a
claimant
shall
4
be
calculated
as
the
sum
of
the
following:
5
(1)
Ninety
cents
for
each
dollar
value
loss,
including
any
6
repayment
loss,
incurred
by
the
claimant
other
than
a
dollar
7
value
loss
for
the
sale
of
grain
under
a
credit-sale
contract.
8
(2)
For
the
sale
of
grain
under
a
credit-sale
contract,
all
9
of
the
following:
10
(a)
Seventy
cents
for
each
dollar
value
loss
incurred
by
the
11
claimant
other
than
a
dollar
value
loss
for
the
sale
of
grain
12
under
a
deferred-pricing
contract.
13
(b)
Zero
cents
for
each
dollar
value
loss
incurred
by
the
14
claimant
under
a
deferred-payment
contract.
15
c.
The
board
shall
not
indemnify
any
claimant
for
more
than
16
three
hundred
thousand
dollars
for
an
eligible
claim
for
all
17
dollar
value
losses
described
in
paragraphs
“a”
and
“b”
that
are
18
part
of
the
same
covered
transaction
during
the
indemnity
claim
19
period.
20
d.
(1)
If
at
any
time
the
board
determines
that
there
21
are
insufficient
funds
moneys
in
the
fund
to
make
payment
of
22
fully
indemnify
all
eligible
claims,
the
board
may
shall
order
23
that
payment
be
deferred
on
specified
claims.
The
department,
24
upon
the
board’s
instruction,
shall
hold
those
claims
for
25
payment
until
the
board
determines
that
the
fund
again
contains
26
sufficient
assets
the
eligible
claims
be
indemnified
according
27
to
the
following
order:
28
(a)
First,
by
indemnifying
all
claims
for
dollar
value
29
losses
other
than
segregated
dollar
value
losses
arising
from
30
the
sale
of
grain
under
credit-sale
contract
as
provided
in
31
subsection
4
.
32
(b)
Second,
by
indemnifying
all
claims
for
segregated
33
dollar
value
losses
arising
from
the
sale
of
grain
under
a
34
deferred-pricing
contract
as
provided
in
subsection
4.
35
-17-
LSB
2306HZ
(4)
91
da/ns
17/
31
H.F.
999
(2)
The
board
may
establish
one
or
more
eligible
claim
1
indemnification
periods
required
to
fully
indemnify
all
2
eligible
claims.
The
department
shall
hold
those
claims
that
3
have
not
been
fully
indemnified
until
a
later
period
or
periods
4
for
the
full
indemnification
of
those
claims
as
moneys
in
the
5
fund
are
available.
6
9.
Subrogation
of
fund.
In
the
event
of
payment
the
7
indemnification
of
a
dollar
value
loss
under
this
section
,
8
the
fund
is
subrogated
to
the
extent
of
the
amount
of
any
9
payments
to
all
rights,
powers,
privileges,
and
remedies
of
the
10
depositor
or
seller
against
any
person
regarding
the
dollar
11
value
loss.
The
depositor
or
seller
shall
render
all
necessary
12
assistance
to
aid
the
department
and
the
board
in
securing
13
the
rights
granted
in
this
section
.
No
An
action
or
claim
14
initiated
by
a
depositor
or
seller
and
pending
at
the
time
of
15
payment
indemnification
from
the
fund
shall
not
be
compromised
16
or
settled
without
the
consent
of
the
board.
17
Sec.
18.
Section
203D.6,
subsection
10,
paragraph
b,
Code
18
2025,
is
amended
to
read
as
follows:
19
b.
The
fund
shall
not
be
liable
for
the
payment
20
indemnification
of
an
expired
claim.
21
Sec.
19.
NEW
SECTION
.
203D.6A
Indemnification
of
repayment
22
loss
against
fund.
23
1.
A
separate
process
is
established
to
provide
for
24
indemnification
of
a
repayment
loss
incurred
by
a
seller
25
against
a
grain
dealer
who
is
a
debtor
in
bankruptcy
under
the
26
protections
provided
in
Tit.
11
of
the
United
States
Code.
27
a.
A
repayment
claim
that
includes
the
repayment
loss
shall
28
be
filed
with
the
department
in
the
manner
prescribed
by
the
29
department.
30
b.
A
seller
may
file
an
eligible
claim
for
a
dollar
value
31
loss
under
section
203D.6
and
an
eligible
repayment
claim
for
a
32
repayment
loss
under
this
section.
33
c.
The
department
may
consolidate
a
repayment
claim
filed
34
under
this
subsection
with
a
claim
filed
by
the
same
claimant
35
-18-
LSB
2306HZ
(4)
91
da/ns
18/
31
H.F.
999
that
is
part
of
the
same
covered
transaction
under
the
claim
1
period
as
provided
in
section
203D.6.
2
2.
To
be
timely,
a
seller
must
file
a
repayment
claim
with
3
the
department
not
later
than
sixty
days
after
the
repayment
4
claim’s
dollar
value
loss
is
finalized
by
a
bankruptcy
court,
5
whether
by
an
order
issued,
judgment
entered,
or
settlement
6
agreement
approved.
7
3.
The
department
may
provide
notice
of
the
repayment
claim
8
process
to
a
seller
that
may
become
or
has
become
subject
to
9
an
order
issued,
judgment
entered,
or
settlement
agreement
10
approved
by
a
bankruptcy
court
that
requires
the
seller
to
11
pay
back
amounts
previously
received
for
grain
purchased
by
a
12
licensed
grain
dealer,
in
the
bankruptcy
of
the
grain
dealer.
13
If
the
department
chooses
to
provide
a
notice
to
the
seller,
it
14
shall
have
discretion
to
determine
any
reasonable
method
and
15
manner
of
providing
such
notice.
A
failure
by
the
department
16
to
provide
a
notice
or
a
failure
by
a
seller
to
receive
a
17
notice
under
this
subsection
does
not
relieve
the
seller
of
the
18
requirement
to
timely
file
a
repayment
claim.
19
4.
The
board
shall
determine
that
a
repayment
claim
is
20
eligible
for
indemnification
from
the
fund
if
the
board
finds
21
all
of
the
following:
22
a.
The
repayment
claim
was
timely
filed.
23
b.
The
repayment
claimant
qualifies
as
a
seller.
24
c.
The
repayment
claim
derives
from
a
covered
transaction.
25
For
purposes
of
this
paragraph,
a
repayment
claim
derives
26
from
a
covered
transaction
if
the
claimant
is
a
seller
who
27
transferred
title
to
the
grain
to
a
licensed
grain
dealer
28
within
six
months
of
the
incurrence
date
as
provided
in
section
29
203D.6,
subsection
2.
30
d.
The
seller
submits
adequate
proof
to
establish
the
31
repayment
claim
and
the
amount
of
the
repayment
loss.
32
e.
A
claim
has
not
been
paid
for
the
same
loss.
33
5.
A
seller
is
not
entitled
to
indemnify
a
claim
for
a
34
repayment
loss
if
the
repayment
loss
is
incurred
as
a
result
of
35
-19-
LSB
2306HZ
(4)
91
da/ns
19/
31
H.F.
999
a
fraudulent
transfer
or
conveyance
by
the
seller.
1
6.
The
dollar
value
loss
of
a
repayment
claim
is
the
amount
2
a
seller
is
required
to
pay
back
that
was
previously
received
3
for
the
grain
as
a
result
of
an
order
issued,
judgment
entered,
4
or
settlement
agreement
approved
by
a
bankruptcy
court
and
5
which
has
not
been
recovered
through
other
legal
or
equitable
6
remedies
including
the
liquidation
of
the
grain
dealer’s
7
assets.
8
7.
The
department
acting
on
behalf
of
the
board
shall
9
deliver
a
notice
to
a
seller
filing
a
repayment
claim
10
under
this
section.
The
notice
must
include
the
board’s
11
determination
of
the
seller’s
eligibility
and
the
dollar
value
12
of
the
seller’s
loss.
Within
twenty
days
of
delivering
the
13
notice,
the
seller
may
request
a
hearing
for
the
review
of
14
either
determination.
The
request
shall
be
made
in
the
manner
15
provided
by
the
board.
The
hearing
and
any
further
appeal
16
shall
be
conducted
as
a
contested
case
subject
to
chapter
17A.
17
A
seller
whose
repayment
claim
has
been
refused
by
the
board
18
may
appeal
the
refusal
to
either
the
district
court
of
Polk
19
county
or
the
district
court
of
the
county
in
which
the
seller
20
resides.
21
8.
Upon
a
determination
that
the
repayment
claim
is
22
eligible,
the
board
shall
provide
for
indemnification
of
ninety
23
percent
of
the
repayment
loss,
as
determined
by
the
board,
24
subject
to
section
203D.6.
If
at
any
time
the
board
determines
25
that
there
are
insufficient
moneys
in
the
fund
to
fully
26
indemnify
all
eligible
claims
under
section
203D.6
and
all
27
eligible
repayment
claims
under
this
section,
the
board
shall
28
order
that
the
eligible
claims
be
fully
indemnified
during
one
29
or
more
indemnification
periods
as
provided
in
section
203D.6.
30
9.
In
the
event
of
the
indemnification
of
a
repayment
loss
31
under
this
section,
the
fund
is
subrogated
to
the
extent
of
32
the
amount
of
any
payments
to
all
rights,
powers,
privileges,
33
and
remedies
of
the
seller
against
any
person
regarding
34
the
repayment
loss.
The
seller
shall
render
all
necessary
35
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assistance
to
the
department
and
the
board
in
securing
the
1
rights
granted
in
this
section.
An
action
or
claim
initiated
2
by
a
seller
and
pending
at
the
time
of
indemnification
from
the
3
fund
shall
not
be
compromised
or
settled
without
the
consent
4
of
the
board.
5
10.
a.
A
repayment
claim
shall
expire
if
five
years
after
6
the
board
determines
that
the
repayment
claim
is
eligible,
the
7
claimant
has
failed
to
do
any
of
the
following:
8
(1)
Provide
for
the
fund’s
subrogation
or
render
all
9
necessary
assistance
to
the
department
and
the
board
in
10
securing
the
department’s
rights
of
subrogation
as
required
in
11
this
section.
12
(2)
Provide
necessary
documentation
or
information
required
13
by
the
board
in
order
to
process
the
indemnification
claim.
14
b.
The
fund
is
not
liable
for
the
indemnification
of
an
15
expired
repayment
claim.
16
Sec.
20.
EMERGENCY
RULES.
The
department
of
agriculture
17
and
land
stewardship
shall
adopt
emergency
rules
under
section
18
17A.4,
subsection
3,
and
section
17A.5,
subsection
2,
paragraph
19
“b”,
to
implement
the
provisions
of
this
Act
within
thirty
20
business
days
of
the
effective
date
of
this
section
of
this
21
Act
and
shall
submit
such
rules
to
the
administrative
rules
22
coordinator
and
the
administrative
code
editor
pursuant
to
23
section
17A.5,
subsection
1,
within
the
same
period.
The
rules
24
shall
be
effective
immediately
upon
filing
unless
a
later
date
25
is
specified
in
the
rules.
Any
rules
adopted
in
accordance
26
with
this
section
shall
also
be
published
as
a
notice
of
27
intended
action
as
provided
in
section
17A.4.
28
Sec.
21.
ASSESSMENT
OF
INDEMNITY
FEES.
A
grain
dealer
29
licensed
under
chapter
203
who
is
a
party
to
a
credit-sale
30
contract
shall
owe
any
indemnity
fees
assessed
on
grain
31
purchased
under
the
credit-sale
contract
beginning
on
the
32
following
September
1
of
the
first
assessment
quarter
pursuant
33
to
section
203D.3A.
34
Sec.
22.
EFFECTIVE
DATE.
The
following,
being
deemed
of
35
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immediate
importance,
takes
effect
upon
enactment:
1
The
section
of
this
Act
requiring
the
department
of
2
agriculture
and
land
stewardship
to
adopt
emergency
rules.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
BACKGROUND
——
REGULATION
OF
GRAIN
MARKETERS
(GRAIN
DEALERS
7
AND
WAREHOUSE
OPERATORS).
This
bill
amends
provisions
8
regulating
commercial
transactions
involving
grain
(e.g.,
9
corn
and
soybeans)
made
by
a
grain
marketer
who
has
made
10
a
promise
regarding
the
transaction
with
a
person
for
the
11
sale
or
storage
of
the
grain.
The
grain
is
usually
in
bulk
12
form,
meaning
unpackaged.
For
purposes
of
the
bill,
a
grain
13
marketer
is
referred
to
as
a
grain
dealer
purchasing
grain
14
from
a
seller,
especially
a
seller
who
is
a
grain
producer.
15
A
grain
marketer
may
also
be
a
bailor,
referred
to
as
a
16
warehouse
operator,
storing
grain
under
bailment
on
behalf
of
17
the
bailee,
referred
to
as
a
depositor.
The
seller
and
the
18
grain
dealer,
or
the
depositor
and
the
warehouse
operator,
are
19
the
respective
parties
to
a
legal
transaction,
evidenced
by
a
20
sales
contract
entered
into
by
the
seller
and
grain
dealer,
21
or
a
document
of
title
in
the
form
of
a
receipt
such
as
a
22
warehouse
receipt
or
scale
weight
ticket
issued
by
a
warehouse
23
operator
to
a
depositor.
The
department
of
agriculture
and
24
land
stewardship
(DALS)
regulates
grain
dealers
(Code
chapter
25
203)
and
warehouse
operators
(Code
chapter
203C).
DALS
and
the
26
Iowa
grain
indemnity
fund
board
(board)
indemnifies
sellers
and
27
depositors
for
losses
incurred
by
the
management
of
grain
by
28
grain
marketers
when
performing
legal
obligations
arising
under
29
the
sale
or
deposit
of
the
grain
(Code
chapter
203D).
The
30
indemnification
is
made
as
a
payment
from
the
grain
depositors
31
and
sellers
indemnity
fund
(fund).
The
fund
is
comprised
32
of
fees
established
by
the
board
and
contributed
to
DALS
by
33
grain
marketers.
The
payment
is
a
percentage
of
the
dollar
34
value
loss
incurred
by
the
seller
or
a
depositor
based
on
35
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the
contract
price
or
the
market
price
offered
for
the
same
1
quantity
and
quality
of
grain.
2
BACKGROUND
——
LICENSURE
REQUIREMENTS
——
GENERAL.
DALS
3
regulates
grain
marketers
by
licensure
either
as
a
grain
dealer
4
or
warehouse
operator
(licensee).
DALS
licenses
a
grain
5
dealer
purchasing
at
least
1,000
bushels
from
sellers
who
are
6
producers
during
any
calendar
month
(Code
section
203.1).
7
DALS
licenses
a
warehouse
operator
in
the
business
of
storing
8
bushels
of
grain
on
behalf
of
depositors
for
more
than
30
days
9
(Code
section
203C.1).
Alternatively,
a
warehouse
operator
10
storing
grain
may
be
licensed
by
the
United
States
department
11
of
agriculture
(USDA)
under
the
federal
United
States
Warehouse
12
Act
(Code
section
203C.16).
DALS
must
issue
a
class
1
or
class
13
2
license
to
an
applicant
based
on
the
applicant’s
business
14
size.
A
person
applying
to
be
licensed
as
a
grain
dealer
must
15
be
issued
a
class
1
license
if
the
value
of
grain
purchased
by
16
the
grain
dealer
exceeds
$500,000
(Code
section
203.3).
In
17
addition,
the
grain
dealer
must
maintain
a
net
worth
of
at
18
least
$75,000,
or
alternatively
maintain
a
deficiency
bond
19
or
an
irrevocable
letter
of
credit
in
the
amount
of
$2,000
20
for
each
$1,000
of
net
worth
deficiency.
However,
the
class
21
1
grain
dealer’s
net
worth
cannot
be
less
than
$37,500.
The
22
grain
dealer
must
also
maintain
current
assets
equal
to
at
23
least
100
percent
of
current
liabilities
or
provide
a
bond
24
based
on
the
deficiency
to
meet
that
minimum
requirement.
The
25
grain
dealer
must
annually
submit
to
DALS
a
financial
statement
26
accompanied
by
an
unqualified
opinion
based
upon
an
audit
27
performed
by
a
certified
public
accountant
(CPA)
licensed
in
28
this
state.
However,
rather
than
submitting
an
unqualified
29
opinion,
the
grain
dealer
may
elect
to
submit
a
financial
30
statement
that
is
accompanied
by
the
report
of
a
CPA
licensed
31
in
this
state
that
is
based
upon
a
review
in
lieu
of
an
audit.
32
The
requirements
for
a
class
2
license
are
similar
to
those
of
33
a
class
1
license
except
the
grain
dealer
must
maintain
a
net
34
worth
of
at
least
$37,500
or
maintain
a
deficiency
bond
or
an
35
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irrevocable
letter
of
credit
for
$2,000
for
each
$1,000
of
net
1
worth
deficiency.
A
class
2
licensee
must
maintain
a
minimum
2
net
worth
of
$17,500.
3
BACKGROUND
——
SPECIAL
REQUIREMENTS
FOR
GRAIN
DEALERS
AND
4
SELLERS
ENTERING
INTO
CREDIT-SALE
CONTRACTS.
The
parties
5
under
a
sales
contract
must
each
perform
their
respective
6
obligations.
The
buyer
must
pay,
or
tender
payment
of,
the
7
sales
price
for
a
purchased
good
to
the
seller
and
the
seller
8
must
deliver
(transfer
possession
and
title),
or
tender
9
delivery
of,
the
purchased
good
to
the
buyer,
all
according
10
to
the
sales
contract’s
terms.
Under
Code
chapter
203,
the
11
sales
price
is
more
commonly
referred
to
as
the
purchase
12
price.
Generally,
as
a
buyer
under
a
sales
contract,
the
13
grain
dealer
must
pay
the
seller
the
sales/purchase
price
for
14
grain
upon
the
grain’s
delivery
or
upon
demand
for
payment
by
15
the
seller,
but
not
later
than
30
days
after
delivery
of
the
16
grain
by
the
seller
(Code
section
203.8).
Delivery
occurs
17
when
title
to
and
possession
of
the
grain
is
transferred
to
18
the
grain
dealer
or
another
person
in
accordance
with
the
19
contract
terms.
Otherwise,
a
transaction
in
which
a
grain
20
dealer
pays
the
seller
for
the
purchased
grain
more
than
30
21
days
after
the
grain’s
delivery
is
considered
a
credit-sale
22
contract
and
subject
to
special
requirements.
The
grain
23
dealer
must
be
issued
a
class
1
license
(Code
section
203.3).
24
In
addition,
the
grain
dealer
must
account
for
credit-sale
25
contract
transactions
by
using
forms
and
keeping
records
26
involving
those
transactions
(Code
section
203.15).
The
grain
27
dealer
must
maintain
50
cents
of
net
worth
for
each
outstanding
28
bushel
of
grain
purchased
under
credit-sale
contract
or
may
29
maintain
a
deficiency
bond
or
an
irrevocable
letter
of
credit
30
or
$2,000
for
each
$1,000
of
deficiency.
The
grain
dealer
must
31
also
meet
at
least
one
of
two
conditions.
The
grain
dealer’s
32
last
financial
statement
must
be
accompanied
by
an
unqualified
33
opinion
based
upon
an
audit
performed
by
a
CPA
licensed
in
34
this
state
or
the
grain
dealer
must
file
a
bond
with
DALS
in
35
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the
amount
of
$100,000
payable
to
DALS
for
use
in
indemnifying
1
a
seller
for
a
loss
resulting
from
a
breach
of
a
credit-sale
2
contract.
Finally,
the
seller
must
sign
a
form
presented
by
a
3
grain
dealer
acknowledging
that
the
seller
knows
that
a
loss
4
arising
from
a
credit-sale
contract
is
not
indemnified
by
the
5
fund.
6
BILL
——
SPECIAL
REQUIREMENTS
FOR
GRAIN
DEALERS
AND
SELLERS
7
ENTERING
INTO
CREDIT-SALE
CONTRACTS.
The
bill
distinguishes
8
between
two
types
of
credit-sale
contracts:
a
deferred-payment
9
contract
and
a
deferred-pricing
contract
(Code
section
10
203.1).
Under
a
deferred-payment
contract,
the
licensed
grain
11
dealer
and
seller
have
agreed
to
the
purchase
price
for
grain
12
but
payment
is
delayed
more
than
30
days
from
the
date
of
13
delivery
regardless
of
whether
delivery
has
or
has
not
yet
14
occurred.
For
example,
a
seller
may
elect
to
deliver
(transfer
15
possession
and
title)
grain
on
December
1
and
receive
payment
16
after
January
1
to
claim
income
in
the
subsequent
tax
year.
17
Under
a
deferred-pricing
contract,
delivery
occurs
but
the
18
sales/purchase
price
has
not
been
agreed
to
by
the
licensed
19
grain
dealer
and
the
seller.
The
grain’s
sales/purchase
price
20
paid
to
the
seller
may
depend
upon
a
speculative
decision
by
21
the
seller
to
sell
the
grain
at
a
future
market
price
with
the
22
expectation
of
increasing
a
profit
or
decreasing
a
loss.
The
23
bill
provides
that
a
seller
still
cannot
claim
a
dollar
value
24
of
a
loss
for
indemnification
from
the
fund
arising
from
a
25
credit-sale
contract
classified
as
a
deferred-payment
contract
26
but
that
a
seller
may
claim
a
limited
dollar
value
loss
for
27
indemnification
arising
from
a
deferred-pricing
contract.
28
BACKGROUND
——
FUND
——
INDEMNITY
FEES.
In
addition
to
license
29
fees
collected
by
DALS
for
deposit
into
the
general
fund
of
30
the
state
(Code
sections
203.6
and
203C.33),
each
licensee
may
31
be
required
to
remit
either
one
or
two
special
fees
(indemnity
32
fees)
collected
by
DALS
for
deposit
in
the
fund,
referred
33
to
as
a
participation
fee
and
per-bushel
fee.
The
licensed
34
grain
dealer’s
participation
fee
is
calculated
according
to
35
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the
following
formula:
the
assessment
rate
of
not
more
than
1
$0.014
multiplied
by
all
bushels
of
purchased
grain
during
the
2
grain
dealer’s
prior
fiscal
year
with
a
minimum
of
$50
and
no
3
maximum
limit.
The
licensed
grain
dealer’s
per-bushel
fee
is
4
calculated
according
to
a
similar
formula:
the
assessment
5
rate
of
not
more
than
$0.25
multiplied
by
all
bushels
of
6
purchased
grain
for
the
grain
dealer’s
assessment
year
with
7
no
minimum
or
maximum
limit.
The
qualifying
term
“purchased
8
grain”
equals
the
total
number
of
bushels
purchased
from
a
9
seller
by
a
grain
dealer
minus
a
number
of
exempt
bushels,
10
including
those
purchased
under
credit-sale
contract
(Code
11
section
203D.1).
Purchased
grain
is
reported
to
DALS
as
“paid
12
company-owned”
(Code
section
203D.1).
The
licensed
warehouse
13
operator’s
participation
fee
is
based
on
the
number
of
bushels
14
of
bulk
grain
storage
capacity
of
the
warehouse
(Code
section
15
203D.5).
The
licensed
warehouse
operator’s
participation
16
fee
is
calculated
according
to
the
following
formula:
the
17
assessment
rate
of
not
more
than
$0.014
multiplied
by
the
18
bulk
grain
storage
capacity
for
the
licensed
warehouse
with
a
19
minimum
$50
and
a
maximum
$500
limit
(Code
section
203D.5).
An
20
assessment
year
begins
September
1
and
ends
August
31
(Code
21
sections
203D.3
and
203D.5).
The
assessment
year
is
further
22
divided
into
four
three-month
assessment
quarters.
A
grain
23
dealer
or
warehouse
operator
may
remit
a
participation
fee
24
annually
(with
an
application
for
an
initial
license
or
the
25
renewal
of
a
license)
or
for
the
renewal
of
a
license
on
a
26
quarterly
basis.
A
grain
dealer
must
remit
a
per-bushel
fee
on
27
a
quarterly
basis
(Code
section
203D.3A).
28
BACKGROUND
——
BOARD
REVIEW
OF
FUND.
The
board
must
29
annually
review
the
debits
of
and
credits
to
the
fund
and
30
by
May
1
determine
whether
to
impose
the
indemnity
fees,
31
make
adjustments
to
the
existing
indemnity
fees,
or
waive
32
the
existing
indemnity
fees
as
necessary
to
comply
with
two
33
triggers.
The
balance
in
the
fund
triggers
the
indemnity
34
fees
waiver
or
reinstatement
(Code
section
203D.5).
When
the
35
-26-
LSB
2306HZ
(4)
91
da/ns
26/
31
H.F.
999
balance
in
the
fund
reaches
$8
million,
the
indemnity
fees
1
are
automatically
waived.
The
indemnity
fees
are
reinstated
2
by
the
board
if
the
balance
in
the
fund
is
$3
million
or
less
3
(Code
section
203D.5).
The
triggered
waiver
or
reinstatement
4
is
effective
on
the
first
day
of
the
following
assessment
year
5
(September
1).
A
licensee
is
required
to
remit
the
outstanding
6
amount
of
the
waived
participation
fee
that
is
otherwise
owing
7
for
the
current
assessment
year.
However,
a
licensed
grain
8
dealer
is
no
longer
obligated
to
remit
the
outstanding
amount
9
of
the
per-bushel
fee
otherwise
owing
for
that
period,
unless
10
the
amount
is
delinquent
(Code
section
203D.5).
11
BACKGROUND
——
FUND
——
VALUE
OF
LOSS.
Generally,
a
loss
12
incurred
by
a
depositor
(holding
a
warehouse
receipt
or
scale
13
weight
ticket)
or
seller
who
is
a
party
to
a
sale
is
the
amount
14
stated
in
an
eligible
claim
held
by
a
depositor
that
states
the
15
amount
owed
by
a
warehouse
operator
or
held
by
a
seller
that
16
states
the
amount
owed
by
a
grain
dealer,
if
either
such
amount
17
has
not
been
recovered
by
other
legal
and
equitable
remedies
18
(Code
section
203D.1).
The
dollar
value
of
the
loss
may
be
19
determined
using
several
methods
of
valuation
(Code
section
20
203D.6).
For
a
depositor,
it
may
be
part
of
a
court
order
21
after
hearing
the
matter
in
a
DALS’
receivership.
Otherwise,
22
the
loss
is
based
on
the
fair
market
price
paid
to
producer
23
sellers
at
a
nearby
terminal
on
an
incurrence
date.
For
a
24
seller,
it
may
be
the
sales
price
agreed
to
by
the
parties.
25
If
the
grain
has
not
yet
been
priced,
the
loss
is
again
based
26
on
the
fair
market
price
paid
at
the
terminal
on
one
of
those
27
incurrence
dates.
An
incurrence
date
is
either
the
cessation
28
of
the
license
of
a
warehouse
operator
or
grain
dealer
(by
29
revocations,
cancellation,
or
expiration)
or
the
licensee’s
30
filing
of
a
petition
in
bankruptcy.
31
BACKGROUND
——
FUND
——
PAYMENT
OF
CLAIMS.
A
claim
must
32
meet
eligibility
requirements,
including
that
it
is
timely
33
filed,
there
is
evidence
of
a
loss
incurred
by
a
claimant,
34
and
the
claim
derives
from
a
covered
transaction
during
35
-27-
LSB
2306HZ
(4)
91
da/ns
27/
31
H.F.
999
the
claim
period.
For
a
claimant
who
is
a
depositor,
a
1
covered
transaction
requires
that
the
grain
must
have
been
2
delivered
to
a
licensed
warehouse
operator.
For
a
claimant
3
who
is
a
seller,
a
covered
transaction
requires
that
title
4
be
transferred
within
six
months
of
the
incurrence
date.
A
5
covered
transaction
excludes
sale
by
credit-sale
contract.
The
6
board
must
indemnify
a
claimant
(a
grain
dealer
and
warehouse
7
operator)
90
percent
of
the
combined
losses,
if
the
losses
are
8
part
of
the
same
covered
transaction
during
the
indemnity
claim
9
period.
However,
the
board
cannot
indemnify
a
claimant
more
10
than
$300,000
for
all
such
losses
(Code
section
203D.6).
11
BILL
——
FUND
——
INDEMNITY
FEES.
After
paying
the
initial
12
participation
fee
for
the
issuance
of
a
new
license,
the
13
licensee
must
remit
a
participation
fee
in
one
installment
14
as
part
of
a
license
renewal
application
in
the
same
manner
15
provided
for
a
new
license
(Code
section
203D.3A).
However,
16
the
bill
allows
the
licensee
to
continue
to
elect
to
remit
the
17
participation
fee
on
four
successive
installment
dates.
The
18
bill
provides
that
each
installment
date
occurs
in
the
month
19
succeeding
the
last
assessment
quarter
on
a
date
determined
20
by
rules
adopted
by
DALS.
The
bill
requires
a
licensed
21
grain
dealer
to
remit
the
per-bushel
fee
on
the
following
22
four
successive
installment
dates:
December
15,
March
15,
23
June
15,
and
September
15.
The
bill
provides
a
special
24
per-bushel
waiver
is
applicable
to
purchased
grain
that
25
is
unpriced
on
the
last
date
of
the
fund’s
assessment
year
26
(Code
section
203D.5).
The
bill
provides
that
grain
sold
by
27
deferred-pricing
contract
is
considered
purchased
grain
and
28
grain
sold
by
deferred-payment
contract
is
not.
Therefore,
29
a
licensed
grain
dealer
is
only
assessed
an
indemnity
fee
on
30
the
deferred-pricing
contract
grain
(Code
sections
203D.3
and
31
203D.3A).
32
BILL
——
INDEMNITY
FEES
——
TRIGGERS.
The
bill
adjusts
both
33
triggers
waiving
or
reinstating
the
two
indemnity
fees.
The
34
bill
increases
from
$8
million
to
$16
million
the
balance
in
35
-28-
LSB
2306HZ
(4)
91
da/ns
28/
31
H.F.
999
the
fund
required
to
trigger
a
waiver
and
increases
from
$3
1
million
to
$8
million
the
balance
in
the
fund
required
to
2
trigger
a
reinstatement
(Code
section
203D.5).
3
BILL
——
FUND
——
DOLLAR
VALUE
OF
LOSSES.
The
bill
4
requires
that
a
loss
incurred
by
a
seller
who
was
a
party
5
to
a
credit-sale
contract
must
be
segregated,
including
a
6
deferred-pricing
contract
and
deferred-payment
contract.
The
7
bill
provides
special
valuation
rules
for
losses
incurred
by
8
a
depositor
or
seller.
The
dollar
value
of
a
loss
of
priced
9
or
unpriced
grain
cannot
exceed
the
price
of
that
grain
if
the
10
grain
were
valued
as
U.S.
No.
2
grain
according
to
standards
11
adopted
by
the
federal
grain
inspection
service
of
the
USDA.
12
DALS
may
adjust
the
price
of
the
grain
if
necessary
to
better
13
account
for
its
condition
when
stored
or
sold.
14
BILL
——
INDEMNIFICATION
OF
REPAYMENT
LOSSES
(REPAYMENT
15
CLAIMS).
The
bill
allows
a
seller
to
file
a
special
repayment
16
claim
against
the
fund
as
a
result
of
the
grain
dealer’s
17
bankruptcy
(Code
section
203D.6A).
The
special
repayment
18
process
allows
such
a
seller
to
recover
the
amount
of
the
19
grain
dealer
payment
that
the
seller
was
forced
to
repay
to
20
the
grain
dealer’s
bankruptcy
estate.
To
be
timely,
a
seller
21
must
file
a
repayment
claim
with
DALS
not
later
than
30
days
22
after
the
repayment
loss
is
finalized
by
a
bankruptcy
court.
23
DALS
may
provide
notice
of
the
repayment
claim
process
to
24
a
seller
who
may
file
a
repayment
claim.
If
DALS
chooses
25
to
provide
a
notice
to
the
seller,
DALS
has
discretion
to
26
determine
a
reasonable
method
and
manner
of
providing
such
27
notice.
The
board
must
determine
that
a
repayment
claim
is
28
eligible
for
payment
from
the
indemnity
fund,
including
whether
29
the
repayment
claim
derives
from
a
covered
transaction.
DALS
30
is
required
to
deliver
notice
to
a
seller
filing
a
repayment
31
claim
regarding
the
indemnity
board’s
determination
in
the
same
32
manner
as
for
an
ordinary
loss.
33
BILL
——
INDEMNIFICATION
OF
DOLLAR
VALUE
LOSSES.
The
bill
34
provides
that
upon
a
determination
by
the
board
that
a
claim
is
35
-29-
LSB
2306HZ
(4)
91
da/ns
29/
31
H.F.
999
eligible,
the
board
must
indemnify
the
claimant
as
a
depositor
1
or
a
seller
incurring
ordinary
dollar
value
losses
and
as
a
2
seller
incurring
repayment
(dollar
value)
losses,
if
all
such
3
dollar
value
losses
derive
from
the
same
covered
transaction
4
during
the
claim
period
(Code
section
203D.6).
With
one
5
exception,
the
board
must
indemnify
a
claimant
90
percent
6
of
the
combined
dollar
value
losses.
The
exception
applies
7
to
a
segregated
dollar
value
loss
incurred
from
the
sale
of
8
grain
under
a
credit-sale
contract.
The
board
must
indemnify
9
the
seller
70
percent
of
the
dollar
value
loss
incurred
from
10
the
sale
of
grain
under
a
deferred-pricing
contract
and
0
11
percent
of
the
dollar
value
loss
for
the
sale
of
grain
under
a
12
deferred-payment
contract.
The
full
indemnity
amount
paid
to
a
13
claimant
still
cannot
exceed
the
existing
limit
of
$300,000.
14
BILL
——
ORDER
OF
INDEMNIFICATION
AND
INDEMNIFICATION
15
PERIODS.
The
board
must
indemnify
claims
by
giving
priority
to
16
claims
that
are
not
segregated
(arising
from
a
deferred-pricing
17
contract).
If
there
are
not
sufficient
moneys
in
the
indemnity
18
fund
to
indemnify
all
claims,
the
board
may
establish
one
or
19
more
eligible
claim
indemnification
periods
required
to
fully
20
indemnify
claims
that
have
not
been
satisfied.
21
BILL
——
EMERGENCY
RULES.
DALS
is
authorized
to
adopt
22
rules
on
an
emergency
basis
necessary
to
administer
the
23
bill’s
provisions.
When
a
statute
authorizes
emergency
24
rulemaking,
an
agency
may
adopt
a
rule
immediately
without
25
going
through
the
periods
of
the
rulemaking
process
known
26
as
regulatory
analysis
(Code
section
17A.4A)
and
notice
of
27
intended
action
(Code
section
17A.4(3)).
The
bill
requires
28
that
such
emergency
rulemaking
be
“double
barreled”.
Under
29
that
process,
when
an
agency
files
an
emergency
rule,
it
also
30
files
the
same
rule
as
a
notice
of
intended
action
that
will
31
follow
the
regular
rulemaking
process.
Normally,
a
rule
32
cannot
be
effective
prior
to
35
days
after
its
filing
with
the
33
administrative
rules
coordinator
and
publication
in
the
Iowa
34
administrative
bulletin.
Under
emergency
rulemaking,
a
rule
35
-30-
LSB
2306HZ
(4)
91
da/ns
30/
31
H.F.
999
can
be
made
effective
on
the
date
of
filing
and
acceptance
1
by
the
administrative
rules
coordinator
or
any
subsequent
2
date,
as
specified
by
the
agency
in
the
filing
(Code
section
3
17A.5(2)(b)(1)).
This
provision
of
the
bill
takes
effect
upon
4
enactment.
5
BILL
——
ASSESSMENT
OF
INDEMNITY
FEES
(CREDIT-SALE
CONTRACT).
6
A
grain
dealer
who
is
a
party
to
a
credit-sale
contract
owing
7
an
indemnity
fee
assessed
on
grain
purchased
by
credit-sale
8
contract
as
provided
in
the
bill
is
imposed
on
September
1
of
9
the
first
assessment
quarter.
10
-31-
LSB
2306HZ
(4)
91
da/ns
31/
31