Mississippi Grain Indemnity Act; enact.

H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~ G3/5
26/HR43/R2025
PAGE 1 (DJ\KP)

To: Agriculture
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Pigott

HOUSE BILL NO. 1647

AN ACT TO ESTABLISH THE "MISSISSIPPI GRAIN INDEMNITY ACT"; TO 1
CREATE NEW SECTION 75-46-1, MISSISSIPPI CODE OF 1972, TO NAME THE 2
ACT AS SUCH; TO CREATE NEW SECTION 75-46-3, MISSISSIPPI CODE OF 3
1972, TO PROVIDE FOR DEFINITIONS TO TERMINOLOGY USED IN THE ACT; 4
TO CREATE NEW SECTION 75-46-5, MISSISSIPPI CODE OF 1972, TO 5
ESTABLISH THE MISSISSIPPI GRAIN INDEMNITY BOARD, PROVIDE FOR ITS 6
COMPOSITION AND THE INITIAL AND SUBSEQUENT TERMS OF BOARD MEMBERS; 7
TO ESTABLISH THE MISSISSIPPI GRAIN INDEMNITY TRUST FUND AS A 8
SPECIAL FUND IN THE STATE TREASURY; TO STIPULATE THE USES OF 9
MONIES DEPOSITED INTO THE FUND; TO CREATE NEW SECTION 75-46-7, 10
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE FUND SHALL BE 11
ADMINISTERED BY THE BOARD, WHICH SHALL HAVE AUTHORITY TO CONTRACT 12
WITH A THIRD PARTY TO ADMINISTER PAYMENTS AND HANDLE ALL 13
ACCOUNTING FUNCTIONS RELATED TO THE FUND; TO CREATE NEW SECTION 14
75-46-9, MISSISSIPPI CODE OF 1972, TO REQUIRE GRAIN PRODUCERS TO 15
PAY AN ASSESSMENT ON ALL MARKETED GRAIN SOLD TO A FIRST PURCHASER 16
LICENSEE BEGINNING ON JULY 1, 2022; TO CREATE NEW SECTION 17
75-46-11, MISSISSIPPI CODE OF 1972, TO REQUIRE THE ASSESSMENT TO 18
BE COLLECTED BY THE FIRST PURCHASER LICENSEE OR ANY AGENT OR 19
REPRESENTATIVE OF THE LICENSEE, WHO SHALL DEDUCT SUCH ASSESSMENT 20
FROM THE PURCHASE PRICE; TO ESTABLISH THE DATE BY WHICH THE 21
LICENSEES MUST SUBMIT ASSESSMENTS TO THE BOARD FOLLOWING ITS 22
COLLECTION; TO CREATE NEW SECTION 75-46-13, MISSISSIPPI CODE OF 23
1972, TO DESIGNATE THE ASSESSMENT COLLECTION PERIOD AND ESTABLISH 24
AMOUNTS FOR THRESHOLD TRUST FUND BALANCES; TO CREATE NEW SECTION 25
75-46-15, MISSISSIPPI CODE OF 1972, TO REQUIRE FIRST PURCHASER 26
LICENSEES TO MAINTAIN A LEDGER OF ALL ASSESSMENTS COLLECTED, WHICH 27
SUCH RECORDS SHALL BE MADE AVAILABLE TO THE BOARD UPON REQUEST; TO 28
LIMIT THE COMMISSIONER OF AGRICULTURE AND COMMERCE'S AUTHORITY TO 29
DISCLOSE INFORMATION OBTAINED FROM THE LEDGER OF ASSESSMENTS; TO 30
CREATE NEW SECTION 75-46-17, MISSISSIPPI CODE OF 1972, TO PROVIDE 31
THAT PARTICIPATION IN THE FUND IS VOLUNTARY; TO REQUIRE 32
NONPARTICIPANTS TO NOTIFY THE COMMISSIONER BY THE PRECEDING JUNE 1 33
OF SUCH YEAR THAT THE PRODUCER HAS OPTED OUT; TO PROVIDE THAT 34
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 2 (DJ\KP)

NONPARTICIPATION IN THE FUND DISQUALIFIES SUCH INDIVIDUALS FROM 35
RECEIPT OF ANY PAYMENT FOR A CONTRACT OR STORAGE LOSS OF GRAIN 36
PRODUCED DURING SUCH CROP DUE TO THE FAILURE OF A FIRST PURCHASER 37
LICENSEE; TO PROVIDE ADDITIONAL NOTICE TO BE GIVEN TO THE FIRST 38
PURCHASER LICENSEE; TO ALLOW A REFUND OF ASSESSMENTS PAID TO 39
PRODUCERS WHO OPT OUT OF THE FUND; TO CREATE NEW SECTION 75-46-19, 40
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE COMMISSIONER SHALL 41
DETERMINE WHEN A FIRST PURCHASER LICENSEE HAS FAILED; TO PRESCRIBE 42
PROCEDURES TO BE FOLLOWED BY THE COMMISSIONER UPON THE MAKING OF 43
SUCH DETERMINATION OF FAILURE; TO CREATE NEW SECTION 75-46-21, 44
MISSISSIPPI CODE OF 1972, TO PRESCRIBE THE PROCESS TO BE FOLLOWED 45
FOR THE TIMELY ADJUDICATION OF CLAIMS ALLEGING FAILURE OF FIRST 46
PURCHASER LICENSEES; TO CREATE NEW SECTION 75-46-23, MISSISSIPPI 47
CODE OF 1972, TO REQUIRE THE COMMISSIONER OR THE DESIGNEES TO MAKE 48
A PRELIMINARY DETERMINATION OF ELIGIBILITY FOR PAYMENT FROM THE 49
FUND RESULTING FROM SUBMITTED CLAIMS; TO PROVIDE THAT THE BOARD 50
SHALL MAKE THE FINAL DETERMINATION ON PAYMENTS OF CLAIMS; TO 51
AUTHORIZE THE BOARD TO SEEK ANY ADDITIONAL INFORMATION NECESSARY 52
TO ADJUDICATE THE CLAIM; TO PRESCRIBE PROCEDURES TO BE FOLLOWED 53
WHEN ONLY A PARTIAL PAYMENT OF CLAIM IS MADE; TO SPECIFY THE 54
TIMELINE FOR CERTAIN RESPONSES AND ACTIONS BY THE BOARD AND 55
CLAIMANT; TO PROVIDE CLAIMANTS WITH AN OPTION TO REQUEST A REVIEW 56
OF THE BOARD'S FINAL ADJUDICATION OF THE CLAIM; TO PROVIDE FOR 57
ADMINISTRATIVE PROCEDURES PROCESS FOR APPEALS OF THE BOARD'S FINAL 58
ADJUDICATION; TO CREATE NEW SECTION 75-46-25, MISSISSIPPI CODE OF 59
1972, TO PRESCRIBE THE METHOD OF CALCULATING THE PAYMENT OF CLAIMS 60
FOR STORAGE OR CONTRACT LOSSES SUFFERED; TO CREATE NEW SECTION 61
75-46-27, MISSISSIPPI CODE OF 1972, TO REQUIRE THE BOARD TO MAKE 62
PAYMENTS OF CLAIMS ON A PRO RATA BASIS AT ANY TIME THE TOTAL 63
AMOUNT OF ELIGIBLE CLAIMS EXCEEDS THE AMOUNT OF FUNDS AVAILABLE; 64
TO CREATE NEW SECTION 75-46-29, MISSISSIPPI CODE OF 1972, TO 65
PROVIDE THE COMMISSIONER WITH THE AUTHORITY TO REVOKE THE LICENSE 66
OF A FIRST PURCHASER LICENSEE FOR FAILURE TO TIMELY COLLECT AND 67
SUBMIT ASSESSMENTS TO THE BOARD; TO CREATE NEW SECTION 75-46-31, 68
MISSISSIPPI CODE OF 1972, TO REQUIRE THE COMMISSIONER TO ESTABLISH 69
A TOLL-FREE HOTLINE AND OTHER INFORMATION COLLECTION PROCESSES FOR 70
THE PURPOSES OF RECEIVING INFORMATION ON LICENSEE FAILURE TO 71
PERFORM; TO CREATE NEW SECTION 75-46-33, MISSISSIPPI CODE OF 1972, 72
TO PROVIDE FOR THE INSPECTION OF THE BOARD'S RECORDS, ACCOUNTS AND 73
OTHER DOCUMENTS BY THE OFFICE OF THE STATE AUDITOR; TO CREATE NEW 74
SECTION 75-46-35, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE BOARD 75
TO ADOPT ANY RULES AND REGULATIONS DEEMED NECESSARY TO ADMINISTER 76
THE ACT; TO CREATE NEW SECTION 75-46-37, MISSISSIPPI CODE OF 1972, 77
TO AUTHORIZE THE BOARD TO ADOPT NECESSARY RULES AND REGULATIONS TO 78
CARRY OUT THE PROVISIONS OF THIS ACT; TO AMEND SECTIONS 75-44-29, 79
75-44-31, 75-44-35, 75-45-304, 75-45-305, 75-45-307 AND 75-45-311, 80
MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING 81
PROVISIONS; AND FOR RELATED PURPOSES. 82
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 83
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 3 (DJ\KP)

SECTION 1. The following shall be codified as Section 84
75-46-1, Mississippi Code of 1972: 85
75-46-1. This chapter shall be known as the "Mississippi 86
Grain Indemnity Act." 87
SECTION 2. The following shall be codified as Section 88
75-46-3, Mississippi Code of 1972: 89
75-46-3. As used in this act, the following terms shall have 90
the meaning ascribed in this section, unless the context clearly 91
requires otherwise: 92
(a) "Assessment" means the assessment established 93
pursuant to Section 75-46-9. 94
(b) "Board" means the Mississippi Grain Indemnity Trust 95
Fund Board. 96
(c) "Claimant" means a producer who: 97
(i) Has suffered either a "contract loss" or 98
"storage loss" as defined herein; 99
(ii) Has filed a claim pursuant to this chapter 100
and any rules issued by the board under this chapter; 101
(iii) Has paid assessment into the Mississippi 102
Grain Indemnity Trust Fund, including payments made pursuant to 103
Section 75-46-17(5), or is a new producer; and 104
(iv) Has not opted out of paying the assessment 105
pursuant to Section 75-46-17. 106
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 4 (DJ\KP)

(d) "Commissioner" means the Commissioner of 107
Agriculture and Commerce for the State of Mississippi or his or 108
her designee. 109
(e) "Contract loss" means a loss to a claimant when a 110
first purchaser licensee who has failed, has not fully paid the 111
claimant for grain sold to the licensee under any type of sales 112
contract. 113
(f) "Department" means the Mississippi Department of 114
Agriculture and Commerce. 115
(g) "Failed" or "failure" means: 116
(i) Nonpayment of a first purchaser licensee's 117
debts to a producer or inability of a first purchaser licensee to 118
satisfy all financial obligations due to a producer, unless there 119
is a good faith dispute regarding the legitimacy of the debt; 120
(ii) A declaration of insolvency of a first 121
purchaser licensee by the licensee or by the commissioner; 122
(iii) Revocation or suspension of the first 123
purchaser licensee's license by the State of Mississippi or the 124
United States Department of Agriculture, if the licensee has 125
outstanding indebtedness owed to producers or claimants; 126
(iv) Voluntary surrender of a first purchaser 127
licensee's license to the State of Mississippi or the United 128
States Department of Agriculture, if the licensee has outstanding 129
indebtedness owed to claimants; or 130
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 5 (DJ\KP)

(v) The filing of an involuntary or voluntary 131
petition for bankruptcy with regard to a first purchaser licensee. 132
(h) "First purchaser licensee" means a person who is 133
the first entity to purchase grain or is paid to store grain 134
produced in Mississippi from producers, and is: 135
(i) Licensed by the State of Mississippi to store 136
grain under Chapter 44, Title 75, Mississippi Code of 1972; 137
(ii) Licensed by the State of Mississippi to act 138
as a grain dealer under Chapter 45, Title 75, Mississippi Code of 139
1972; or 140
(iii) Licensed by the United States under the 141
United States Warehouse Act to store grain and has entered into a 142
cooperative agreement with the department. 143
(i) "Fund" means the Mississippi Grain Indemnity Trust 144
Fund. 145
(j) "Grain" means whole kernel corn for all purposes, 146
soybeans and wheat grown in the State of Mississippi. Grain does 147
not include sweet corn, popcorn and any other corn for human 148
consumption. 149
(k) "Mississippi Grain Indemnity Trust Fund" means the 150
fund established as provided in this chapter. 151
(l) "Mississippi Grain Indemnity Trust Fund Board" 152
means the board established under Section 75-46-5. 153
(m) "New producer" means a producer who produced grain 154
only after the payment and collection of the assessment was 155
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 6 (DJ\KP)

suspended pursuant to Section 75-46-13. The term "new producer" 156
does not include a producer who opted out of payment of the 157
assessment pursuant to Section 75-46-17. 158
(n) "Person" means a natural person, trust, 159
partnership, corporation or any other business entity. 160
(o) "Producer" or "producers" means the owners, tenants 161
or operators of land in this state who possess an interest in and 162
receives all or any part of the proceeds from the sale of grain 163
produced thereon. 164
(p) "Storage loss" means a loss to a producer or 165
claimant when a failed first purchaser licensee, who has failed, 166
has not fully satisfied the licensee's storage obligations for 167
grain to the producer or claimant, less any allowable charges that 168
have not been paid by the producer or claimant. 169
SECTION 3. The following shall be codified as Section 170
75-46-5, Mississippi Code of 1972: 171
75-46-5. (1) (a) There is hereby created the Mississippi 172
Grain Indemnity Board, which is established for the purposes of 173
administering and overseeing the Grain Indemnity Fund and 174
providing a process by which producers growing and selling grain 175
in the State of Mississippi can make claims for contract losses 176
due to a failure of a grain dealer licensed by the State of 177
Mississippi under Chapter 45, Title 75, Mississippi Code of 1972, 178
and for contract and storage losses due to the failure of a grain 179
warehouse operator licensed by the State of Mississippi under 180
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 7 (DJ\KP)

Chapter 44, Title 75, Mississippi Code of 1972, or by the United 181
States Department of Agriculture under the United States Warehouse 182
Act. 183
(2) The board shall consist of the following voting members: 184
(a) The commissioner who shall be the chairperson of 185
the board; 186
(b) Two (2) members selected by the Governor; 187
(c) Two (2) members selected by the Lieutenant 188
Governor; and 189
(d) Two (2) members selected by the Speaker of the 190
House of Representatives, who shall be active Mississippi grain 191
farmers. 192
All board members appointed under paragraphs (b) through (d) 193
of this subsection shall have demonstrated knowledge and expertise 194
in the production, marketing and storage of grain. 195
(3) Members of the initial board shall be appointed as 196
follows: 197
(i) The Governor shall appoint members for terms 198
of one (1) and three (3) years; 199
(ii) The Lieutenant Governor shall appoint members 200
for two (2) and four (4) years; and 201
(iii) The Speaker of the House of Representatives 202
shall appoint members for one (1) and three (3) years. 203
Following the initial board, subsequent members appointed to 204
the board shall serve a term of four (4) years with staggered 205
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 8 (DJ\KP)

expiration dates. Members of the board shall, while serving on 206
business of the board, be entitled to receive as compensation a 207
per diem, as provided by law, in addition to any actual and 208
necessary expenses incurred in the performance of the official 209
duties of the board. The commissioner may call a meeting of the 210
board upon reasonable notice to the board members. 211
(4) There is created in the State Treasury a special fund to 212
be designated the "Mississippi Grain Indemnity Trust Fund." Funds 213
collected by or appropriated to the board shall be held in trust 214
by the State Treasurer for use and benefit of the board, only to 215
pay claimants and costs for the administration of this chapter. 216
Claimants shall be accorded rights under this act. The fund shall 217
consist of: 218
(a) Money collected under this chapter; 219
(b) Interest earned on any money in the fund; 220
(c) Any funds appropriated by the Legislature or any 221
other public or private source; and 222
(d) Any bond proceeds or other financial obligation in 223
favor of the commissioner as provided in Sections 75-44-29 and 224
75-45-305, or other financial obligations in favor of the 225
commissioner, as provided in Sections 75-44-29 and 75-45-305. 226
(5) Amounts in the fund may be invested and reinvested at 227
the discretion of the State Treasurer in cooperation with the 228
board. Interest from these investments shall be deposited in the 229
fund and shall be available for the same purposes as other monies 230
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 9 (DJ\KP)

deposited in the fund. The monies in the fund shall not be 231
available for any purpose other than those specified in subsection 232
(2) of this section. 233
(6) The grain indemnity fund shall operate on a fiscal year 234
basis of July 1 to June 30. The board may accept and expend funds 235
deposited into the grain indemnity fund and funds not expended at 236
the end of the fiscal year shall remain in the grain indemnity 237
fund and said funds shall not lapse or otherwise be placed into 238
the State General Fund, and any investment earnings or interest 239
earned on such accounts shall be deposited only to the credit of 240
the grain indemnity fund. Administrative costs such as those 241
enumerated at Section 75-46-7, associated with administering the 242
grain indemnity fund shall not exceed Two Hundred Thousand Dollars 243
($200,000.00) per fiscal year, unless claims are filed and being 244
administered. In such case, the administrative costs shall not 245
exceed Five Hundred Thousand Dollars ($500,000.00) per fiscal year 246
while claims are ongoing and/or being administered from year to 247
year. A report detailing administrative costs shall be filed by 248
the board annually with the Legislature by December 1 of each 249
year. 250
SECTION 4. The following shall be codified as Section 251
75-46-7, Mississippi Code of 1972: 252
75-46-7. (1) The fund shall be administered by the board. 253
All payments made to claimants under this chapter may only be made 254
with board approval, and the board shall provide advice to the 255
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 10 (DJ\KP)

commissioner on the day-to-day operation of the fund. The board 256
shall have the authority to contract with individuals and entities 257
regarding: 258
(a) Claims administration; 259
(b) Legal, accounting, audits and financial matters; 260
and 261
(c) Any other matters the board deems appropriate. 262
(2) Subject to approval of the board, the commissioner shall 263
be responsible for the day-to-day operation of the fund including 264
the disbursement of payments approved by the board under 265
subsection (1) of this section. The department is authorized to 266
make such disbursement to claimants on behalf of the board without 267
further appropriation by the Legislature. 268
SECTION 5. The following shall be codified as Section 269
75-46-9, Mississippi Code of 1972: 270
75-46-9. Beginning on January 1, 2027, producers of grain 271
shall be charged an assessment equal to two-tenths percent (0.2%) 272
of the price on all marketed grain that is sold to a first 273
purchaser licensee. 274
SECTION 6. The following shall be codified as Section 275
75-46-11, Mississippi Code of 1972: 276
75-46-11. Assessments shall be collected by the first 277
purchaser licensee and by any agent or representative of the 278
licensee. The first purchaser licensee shall deduct the 279
assessment from the purchase price of the grain and shall document 280
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 11 (DJ\KP)

the amount of the assessment that was deducted on an invoice 281
provided to the producer. The first purchaser licensee shall 282
submit monthly assessments to the department on behalf of the 283
board by the twentieth day of the following month. 284
SECTION 7. The following shall be codified as Section 285
75-46-13, Mississippi Code of 1972: 286
75-46-13. (1) Initial assessments shall be collected 287
beginning January 1, 2027, and shall be collected until the board 288
determines that the amount in the fund is Twenty-five Million 289
Dollars ($25,000,000.00). 290
(2) If the amount in the fund is less than Twenty-five 291
Million Dollars ($25,000,000.00) or the board has determined that 292
the failure of a first purchaser licensee will likely result in 293
the issuance of payments to claimants that will reduce the amount 294
in the fund to less than Twenty Million Dollars ($20,000,000.00) 295
at the end of the current fiscal year, assessments shall be 296
required beginning January 1 of the following calendar year. 297
(3) If the amount in the fund exceeds Twenty-five Million 298
Dollars ($25,000,000.00) at any time during a calendar year when 299
assessments are being collected, assessments shall continue until 300
the end of such calendar year without regard to the maximum amount 301
authorized to be in the fund. 302
SECTION 8. The following shall be codified as Section 303
75-46-15, Mississippi Code of 1972: 304
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 12 (DJ\KP)

75-46-15. First purchaser licensees shall maintain a ledger 305
of all assessments collected by the licensee that specifies the 306
date of the collection, from whom the assessment was collected, 307
and the amount of the assessment collected. Ledgers for the 308
corresponding time frame shall be submitted to the department in 309
conjunction with the payment of assessments required by Section 310
75-46-11. 311
SECTION 9. The following shall be codified as Section 312
75-46-17, Mississippi Code of 1972: 313
75-46-17. (1) Participation by producers in the grain 314
indemnity fund is voluntary, pursuant to subsection (2) of this 315
section. 316
(2) During any calendar year in which assessments are 317
collected under this chapter, a producer who does not desire to 318
pay the assessment set forth at Section 75-46-9 must notify the 319
department in writing by March 1st of such year. Such written 320
notice must be submitted on an official form provided by the 321
department. Within thirty (30) days of receipt of the form, the 322
department must send to the producer and the board an executed 323
copy of the form or other official acknowledgement that the 324
producer has opted out of the payment of the assessment. The 325
department shall also enter as soon as practicable the producer's 326
name into a publicly available live registry made available 327
through the department website. The effective opt out date shall 328
be the date upon which the department sends to the producer an 329
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 13 (DJ\KP)

executed copy of the form or other official acknowledgement that 330
the producer has opted out of the payment of the assessment, or 331
March 1 if said executed form or other official acknowledgment is 332
sent after March 1. 333
(3) Subject to subsection (5) and subsection (8) of this 334
section, a producer who, pursuant to subsection (2) of this 335
section, opts out of the payment of the assessment shall not be 336
eligible to be a claimant or otherwise be eligible to receive any 337
past or future payment or benefit from the grain indemnity fund 338
beginning January 1 of the calendar year in which the producer 339
opted out of the payment of the assessment. A producer who opts 340
out of payment of the assessment pursuant to subsection (2) of 341
this section shall remain permanently ineligible to be a claimant 342
until that producer has fully satisfied the requirements of 343
subsection (5) of this section. 344
(4) A producer who pursuant to subsection (2) of this 345
section opts out of payment of the assessment must notify any 346
first purchaser licensee of the election to opt out of the 347
payment of the assessment. Subject to Section 75-46-29, the first 348
purchaser licensee may require the producer to provide a copy of 349
the executed copy of the form or other official acknowledgement 350
referenced in subsection (1) of this section. 351
(5) A producer who has pursuant to subsection (2) of this 352
section opted out of payment of the assessment, may begin paying 353
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 14 (DJ\KP)

assessments only upon the satisfaction of the following 354
requirements: 355
(a) The producer petitions the board for approval of 356
reentry into the grain indemnity program by hand delivering or 357
sending by certified mail, return receipt requested, a written 358
request to begin paying assessments in a form required by the 359
board; 360
(b) The board reviews the producer's petition for 361
reentry and, subject to satisfying the requirement of paragraph 362
(c) of this subsection (5), approves the petition; 363
(c) The producer pays into the fund: 364
(i) The year-over-year amount that would have been 365
paid in since January 1 of the year in which the producer 366
requested to opt out pursuant subsection (b) of this section; and 367
(ii) Interest on the year-over-year amount, as 368
determined by the board. 369
(6) A producer who satisfies the requirements of subsection 370
(5) of this section is eligible to be a claimant beginning ninety 371
(90) days after the board approves the petition for reentry. 372
(7) If an assessment is collected by a first purchaser 373
licensee from a producer during the same calendar year the 374
producer opted out of payment of the assessment pursuant to 375
subsection (2) of this section, the producer may obtain a refund 376
of the amount paid in the manner and on a form established by the 377
board. 378
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 15 (DJ\KP)

(8) In the event the payment and collection of assessments 379
is suspended pursuant to Section 75-46-13 but before the payment 380
of assessments is reinstituted by the board: 381
(a) A new producer who has experienced a contract loss 382
or a storage loss may elect to be a claimant but in so doing shall 383
not be eligible to opt out of paying the assessment for five 384
calendar years following January 1 of the year in which the 385
payment and collection of assessments is reinstituted by the 386
board; and 387
(b) A producer who pursuant to subsection (5) of this 388
section reentered the payment of assessments shall not be eligible 389
to opt out of paying the assessment for five calendar years 390
following January 1 of the year in which the payment and 391
collection of assessments is reinstituted by the board. 392
(9) A producer who pursuant to subsection (2) of this 393
section opts out of the payment of the assessment in a calendar 394
year is eligible to be a claimant for a contract loss or a storage 395
loss that occurred in relation to grain delivered during the prior 396
calendar year, if the producer paid the assessments in the prior 397
calendar year, so long as the producer has a binding legal 398
agreement with the first purchaser licensee to receive full 399
payment for said grain from the first purchaser licensee before 400
March 1 of the calendar year in which the producer opted out of 401
the payment of the assessment. 402
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 16 (DJ\KP)

SECTION 10. The following shall be codified as Section 403
75-46-19, Mississippi Code of 1972: 404
75-46-19. The Commissioner shall be responsible for 405
determining when a first purchaser licensee has failed and/or when 406
a failure has occurred. Upon making such a determination, the 407
Commissioner shall have the authority to call a special meeting of 408
the board on three (3) days notice or shorter if agreed to by the 409
board members. The Commissioner shall issue a legal notice in a 410
paper of general circulation once a week for two (2) consecutive 411
weeks in the county or counties in which the first purchaser 412
licensee operates setting forth the name of the failed first 413
purchaser licensee and details on how a producer may file a claim 414
for a payment from the grain indemnity fund. The Commissioner 415
shall take any other action the Commissioner deems to be 416
appropriate to provide notice to affected producers. 417
SECTION 11. The following shall be codified as Section 418
75-46-21, Mississippi Code of 1972: 419
75-46-21. (1) The board is authorized to promulgate rules 420
and regulations necessary for the operation of the board and to 421
provide for a timely process to receive and adjudicate claims 422
submitted in connection to the failure of a first purchaser 423
licensee. 424
Claims submitted to the board must, at a minimum, meet the 425
following requirements: 426
(a) Must be on a form prescribed by the board; 427
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 17 (DJ\KP)

(b) Must be submitted not later than ninety (90) days 428
after the announcement made by the Commissioner under Section 429
75-46-19; 430
(c) Must include a copy of the written agreement for 431
the sale or storage of grain to the failed first purchaser 432
licensee by the producer; 433
(d) Must be made under oath subject to the penalty of 434
perjury, set forth the relevant circumstances, and attest that the 435
amount claimed to be owed for the sale of grain to the failed 436
first purchaser licensee by the producer is true and correct; and 437
(e) Must submit a copy of any warehouse receipt, scale 438
ticket or other similar document showing the delivery of grain by 439
the producer to the failed first purchaser licensee. 440
(f) Cannot be a claim for a contract loss or a storage 441
loss arising from a deferred purchase. 442
(2) Additionally, claimants must file a claim with the 443
Commissioner against the bond or other pledged financial assets as 444
set forth in Section 75-44-35 and Section 75-45-311. In the event 445
claimant is fully compensated for his/her storage loss or contract 446
loss, the claimant's claims under the bond shall be assigned as a 447
matter of law to the Commissioner. Any such recovery on the bond 448
shall be deposited into the grain indemnity fund by the 449
Commissioner. 450
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 18 (DJ\KP)

(3) The board may authorize the Commissioner to extend the 451
time for filing a claim upon a finding that extenuating 452
circumstances exist that warrant an extension. 453
SECTION 12. The following shall be codified as Section 454
75-46-23, Mississippi Code of 1972: 455
75-46-23. (1) All claims submitted to the board shall be 456
reviewed by a designee or designees of the board. The designees 457
shall make a preliminary determination regarding the eligibility 458
for payment from the fund. If the preliminary determination 459
provides that less than the full amount of the claimed loss should 460
be paid, the determination shall set forth an explanation of why 461
the lesser amount, if any, should be paid. All preliminary 462
determinations shall be provided to the board for a final review 463
and determination of eligibility for payment from the fund. 464
(2) The board or its designee may request additional 465
information from a claimant determined to be necessary for 466
adjudication of the claim. The claimant may provide an 467
opportunity to provide oral testimony to the board or its 468
designee. 469
(3) If a claim is denied in whole or in part, the board 470
shall provide a written determination to the claimant which will 471
set forth the amount, if any, to be awarded. The determination 472
shall be set forth the basis for the board's decision to include 473
an explanation why a partial payment was made. 474
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 19 (DJ\KP)

(4) Within thirty (30) days of the receipt of the 475
determination in which a claim has been denied in whole or in 476
part, a claimant may file with the board a request for 477
reconsideration of the claim. The board in its discretion, may 478
accept or deny the request for reconsideration. The board's 479
decision shall be in writing and forwarded to the claimant. 480
(5) A claimant may seek review of a final determination of 481
the board by filing an appeal with the Chancery Court of the First 482
Judicial District of Hinds County, Mississippi. The appeal must 483
be filed within thirty (30) days of the date of the final 484
determination or where reconsideration has been requested within 485
thirty (30) days of the date of the board's decision to deny 486
reconsideration. The chancery court shall render a decision based 487
on the administrative record prepared by the board without a trial 488
by jury. The chancery court's decision may then be appealed to 489
the Mississippi Supreme Court. Any such appeal to chancery court 490
or to the Supreme Court shall be in accordance with existing laws 491
and regulations governing such appeals. Neither an appeal to 492
chancery court or any other legal or equitable action against the 493
board with regard to payment or reconsideration of a claim shall 494
be appropriate until the board has made a final determination. 495
(6) The board shall have subpoena power for witnesses to 496
attend hearings and for production of documents for any and all 497
proceedings under the board's jurisdiction. The subpoenas shall 498
be enforced by the chancery court of the residence of the witness. 499
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 20 (DJ\KP)

SECTION 13. The following shall be codified as Section 500
75-46-25, Mississippi Code of 1972: 501
75-46-25. (1) Subject to Section 75-46-27, claims for 502
storage losses shall be paid at one hundred percent (100%) of the 503
amount of loss of the claimant less any amount received by the 504
claimant from any other source. The value of the grain subject to 505
the claim shall be the market price of the grain as determined by 506
the board as of the date of failure of the first purchaser 507
licensee. The board may adjust the value of the grain subject to 508
the claim if there is sufficient evidence on a warehouse receipt, 509
scale ticket or other similar document showing the quality of the 510
grain. 511
(2) (a) Subject to Section 75-46-27, claims for contract 512
losses shall be paid at one hundred percent (100%) of the amount 513
of loss of the claimant less any amount received by the claimant 514
from any other source including the sale of the grain to another 515
entity. The board shall use the purchase price set forth in the 516
contract for sale to determine the amount of loss. If a specific 517
purchase price amount is not set forth in the contract, the board 518
in its discretion may establish the price of grain to be used to 519
determine claims amounts. In making this determination, the board 520
may consider such factors as it deems are relevant, including 521
without limitation, normal marketing practices, the need to make 522
timely payments, and the risk of harm to producers if payments are 523
delayed due to having to await a future price determination. 524
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 21 (DJ\KP)

(b) A claim for a contract loss shall not be approved 525
by the board if the claimant engaged in conduct or practices that 526
differ from generally accepted marketing practices within the 527
grain industry to an extent the claimant's actions have 528
substantially contributed to the claimant's loss. 529
(c) A failed first purchaser licensee may not file a 530
claim for payment from the fund for any loss associated with a 531
grain warehouse owned in whole or in part by the licensee or a 532
person that is a grain dealer owned in whole or in part by the 533
licensee. 534
(d) Payments from the grain indemnity fund shall be 535
available for storage and contract losses incurred with respect to 536
crops produced after January 1, 2027. 537
SECTION 14. The following shall be codified as Section 538
75-46-27, Mississippi Code of 1972: 539
75-46-27. If the total amount of eligible claims exceeds the 540
amount of funds available to the board from the fund, the board 541
shall make initial payments on a pro rata basis. Assessments 542
subsequently collected and submitted to the fund shall not be used 543
to make an additional payment for prior payments made at less than 544
the full amount. 545
SECTION 15. The following shall be codified as Section 546
75-46-29, Mississippi Code of 1972: 547
75-46-29. The failure of a first purchaser licensee to 548
timely collect and submit assessments required by Section 75-46-11 549
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 22 (DJ\KP)

of this act shall be basis for the commissioner to revoke a 550
license issued to the licensee under Sections 75-44-23 and 551
75-45-309. 552
SECTION 16. The following shall be codified as Section 553
75-46-31, Mississippi Code of 1972: 554
75-46-31. The commissioner shall establish a toll-free 555
hotline and other information collection processes for the 556
purposes of receiving information concerning the failure of a 557
first purchaser licensee to make timely payments for the purchase 558
of grain and information concerning any suspected fraudulent 559
activity of a first purchaser licensee. Upon receipt of 560
information from the hotline or other information collection 561
processes established by the commissioner, the commissioner shall 562
take such action as the commissioner determines to be appropriate 563
including referral of the matter to the Attorney General. 564
Information received through the hotline shall not be subject to 565
disclosure. 566
SECTION 17. The following shall be codified as Section 567
75-46-33, Mississippi Code of 1972: 568
75-46-33. All the board's books, records, accounts, and 569
other papers shall be subject to inspection, copying and audit by 570
the Office of the State Auditor at any time. 571
SECTION 18. The following shall be codified as Section 572
75-46-35, Mississippi Code of 1972: 573
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 23 (DJ\KP)

75-46-35. (1) A claimant fully compensated under this 574
chapter shall as a matter of law be deemed to have subrogated all 575
claimant's rights on a bond or other pledged financial assets set 576
forth in Sections 75-44-29 and 75-45-305 and all the claimant's 577
rights to any other compensation from the grain dealer or 578
warehouse operator. 579
(2) To the extent that a claimant who is fully compensated 580
under this Chapter also is entitled to recover under the bonds, 581
set forth in Sections 75-44-29 and 75-45-305, the amount that 582
would be otherwise owed to the claimant of proceeds of the bonds 583
or other pledged financial assets set forth in Sections 75-44-29 584
and 75-45-305 as alternatives to posting a bond shall be deposited 585
in the grain indemnity fund by Commissioner for the benefit of the 586
grain indemnity fund. The Commissioner shall take such steps 587
including legal action as required to ensure such bond proceeds 588
shall be deposited in accordance with this section. 589
SECTION 19. The following shall be codified as Section 590
75-46-37, Mississippi Code of 1972: 591
75-46-37. The board may adopt any and all rules and 592
regulations deemed necessary or desirable by the board to carry 593
out the powers and duties of the board, including, but not limited 594
to, the collection and receipt of assessments, the procedure for 595
adjudicating the claims of loss by the producers, the refunding of 596
assessment to producers and the subrogation of procedures' claims 597
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 24 (DJ\KP)

against a warehouse or dealer in return for payment from the trust 598
fund. 599
SECTION 20. Section 75-44-29, Mississippi Code of 1972, is 600
amended as follows: 601
75-44-29. (1) Before any person is granted a license 602
pursuant to Section 75-44-23 such person shall give a bond to the 603
commissioner executed by the grain warehouseman as principal and 604
by a corporate surety licensed to do business in this state as a 605
surety. The bond shall be in favor of the commissioner for the 606
benefit of all persons interested, their legal representatives, 607
attorneys or assigns, conditioned upon the faithful compliance by 608
the grain warehouseman with the provisions of this chapter, the 609
provision of the "Mississippi Grain Dealers Law of 1978," 610
authorized under Article 7, Title 75, Chapter 45, Mississippi Code 611
of 1972, and the rules and regulations of the State Department of 612
Agriculture and Commerce applicable thereto. The aggregate 613
liability of the surety to all depositors or storers of 614
grain * * * under this chapter and to sellers of grain under the 615
"Mississippi Grain Dealers Law of 1978" shall not exceed the sum 616
of such bond. However, the liability under a bond additionally 617
issued under the "Mississippi Grain Dealers Law of 1978" shall not 618
be limited by payment under the bond required under this chapter. 619
The bond may be cancelled at any time by the surety by giving 620
written notice to the Commissioner of Agriculture and Commerce of 621
its intention to cancel the bond and all liability thereunder 622
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 25 (DJ\KP)

shall terminate thirty-five (35) days after the mailing of such 623
notice except that such notice shall not affect any claims arising 624
under the bond, whether presented or not, before the effective 625
date of the cancellation notice. 626
(2) In lieu of the bond required in subsection (1) of this 627
section an applicant for a license may be a self-insurer by 628
posting with the commissioner any of the following: 629
(a) Cash; 630
(b) Certificates of deposit from any bank or banking 631
corporation insured by the Federal Deposit Insurance Corporation; 632
(c) Irrevocable letters of credit from any bank or 633
banking corporation insured by the Federal Deposit Insurance 634
Corporation; 635
(d) Federal treasury bills; or 636
(e) Notes, securities or bonds secured by the federal 637
government or the State of Mississippi. 638
Self insurers shall post an amount equivalent to the amount 639
of the bond required in Section 75-44-31. 640
SECTION 21. Section 75-44-31, Mississippi Code of 1972, is 641
amended as follows: 642
75-44-31. (1) The amount of bond to be furnished for each 643
grain warehouse shall be fixed at a rate of twenty-five cents 644
(25¢) per bushel for the first one million (1,000,000) bushels of 645
licensed capacity; twenty cents (20¢) per bushel for the next one 646
million (1,000,000) bushels of licensed capacity; and fifteen 647
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 26 (DJ\KP)

cents (15¢) per bushel for all licensed capacity over two million 648
(2,000,000) bushels; provided that in no case shall the amount of 649
the bond be less than fifteen thousand dollars ($15,000.00) or 650
more than one million dollars ($1,000,000.00), except as 651
prescribed in subsection (3) of this section. The licensed 652
capacity shall be equal to the maximum number of bushels of grain 653
that the grain warehouse can accommodate for storage. In no event 654
shall the liability of the surety accumulate for each successive 655
license period during which this bond is in force, but shall be 656
limited in the aggregate to the bond amount or changed by 657
appropriate rider or endorsement. 658
(2) A grain warehouseman who is licensed or is applying for 659
licenses to operate two (2) or more grain warehouses may give a 660
single bond meeting the requirements of this chapter to cover all 661
such grain warehouses within the state. In such cases all grain 662
warehouses to be covered by the bond shall be deemed to be one (1) 663
warehouse for purposes of determining the amount of bond required 664
under subsection (1) of this section. 665
(3) In case of a deficiency in the net assets required by 666
Section 75-44-21, there shall be added to the amount of the bond 667
determined in accordance with subsection (1) of this section an 668
amount equal to such deficiency. In any other case in which the 669
commissioner finds that conditions exist which warrant requiring 670
additional bond, there shall be added to the amount of bond such 671
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 27 (DJ\KP)

further amount as is determined to be reasonable by the 672
commissioner. 673
(4) If a public grain warehouseman is licensed under this 674
chapter and also conducts grain transactions under the 675
"Mississippi Grain Dealers Law of 1978" authorized under Article 7 676
of Title 75, Chapter 45, Mississippi Code of 1972, the entire 677
bond, in addition to any other required bond, shall be available 678
to satisfy claims filed under this chapter and the Mississippi 679
Grain Dealers Law of 1978. 680
SECTION 22. Section 75-44-35, Mississippi Code of 1972, is 681
amended as follows: 682
75-44-35. (1) It shall be the duty of the grain 683
warehouseman to deliver grain to the holder of a warehouse receipt 684
within ten (10) days of the demand for the redemption of such 685
receipt. In the event the grain warehouseman fails to deliver 686
grain to the holder of a warehouse receipt within ten (10) days of 687
the demand the holder of the warehouse receipt may make demand of 688
the surety for payment under the bond. The surety has the 689
responsibility to pay within fifteen (15) days following receipt 690
by the surety of the notice of the demand for redemption. Any 691
holder of a warehouse receipt issued by a grain warehouseman who 692
has made demand for redemption of such receipt, which demand was, 693
without lawful excuse, not satisfied within ten (10) days, shall 694
notify the commissioner in writing and the holder shall have the 695
right to * * * file a claim with the commissioner against the 696
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 28 (DJ\KP)

grain warehouseman and the surety on the grain warehouseman's bond 697
for payment of the market value of the grain represented by such 698
warehouse receipt, such market value to be determined as of the 699
date of the demand, plus legal interest accrued from the date of 700
the demand. In the event the grain warehouseman is a self-insurer 701
as provided in Section 75-44-29 the holder of a warehouse receipt 702
shall have the right to * * * file a claim with the commissioner 703
against the grain warehouseman to the extent of the amount posted 704
in lieu of the bond. * * * The commissioner may also pay to the 705
holder of a warehouse receipt the amount of the market value of 706
the grain provided that the grain warehouseman agrees to such 707
payment * * *. 708
(2) * * * (a) Upon receipt of any claim, the commissioner 709
shall provide written notice, via certified mail, return receipt 710
requested, to the warehouseman and the corporate surety of the 711
claims. The notice shall be effective upon receipt of proof of 712
delivery or a receipt marked as refused delivery. If the 713
commissioner determines, in his or her opinion, that there are or 714
may be other competing claims as to bond, the commissioner shall 715
give notice to other interested parties, which shall include the 716
holders of outstanding and uncanceled receipts and scale tickets, 717
any person having a claim for payment under Section 75-45-311, and 718
any other person or party claiming any rights under the bond. The 719
notice shall be deemed complete and sufficient upon the 720
publication once per week for three (3) consecutive weeks in a 721
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 29 (DJ\KP)

newspaper of general circulation. The commissioner shall 722
promulgate regulations which shall govern the procedure and 723
process to be followed in the hearing. The regulations shall, 724
among other things, set forth the county or counties, depending on 725
whether the licensee is a warehouseman, grain dealer, individual 726
or corporate entity or resident or nonresident, in which 727
publication of notice hereunder shall be made. 728
(b) The commissioner or his designated representative, 729
hereinafter "hearing officer," shall hear evidence and determine 730
whether a loss has occurred. Upon a determination that a loss has 731
occurred, the hearing officer shall determine the date of the 732
loss, the fair market value at the place of loss or in the region 733
immediately surrounding the place of loss, whether payments should 734
be made by the corporate surety and, if so, to what parties and in 735
what amounts. Recovery under the bond shall be prorated by the 736
hearing officer when the claims exceed the liability of the 737
corporate surety under the bond. The burden of establishing the 738
proration shall be on the corporate surety as a matter of defense. 739
The hearing officer shall enter a written order determining the 740
validity of claims under the bond and setting forth those 741
claimants who are entitled to recover thereunder. The order shall 742
be final, binding and conclusive on all interested parties. The 743
order shall be sent by registered or certified mail to all 744
interested parties who appeared in the hearing. Within thirty 745
(30) days after the mailing of said order, any interested party, 746
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 30 (DJ\KP)

if dissatisfied with the order of the hearing officer, may appeal 747
to the Chancery Court of the First Judicial District of Hinds 748
County, Mississippi, by filing a written notice of appeal alleging 749
the pertinent facts upon which the appeal is grounded. At the 750
time of the filing of the appeal, the appellant shall give a bond 751
for costs conditioned upon his prosecution of the appeal without 752
delay and payment of all costs assessed against him. Appeal may 753
be with supersedeas and shall be subject to the provisions of 754
Section 11-51-31. 755
(3) Where a warehouseman licensed under this chapter is 756
involved in the hearing, the claim determination provisions of 757
this chapter are applicable to claims arising both under this 758
chapter and Article 7, Title 75, Chapter 45, Mississippi Code of 759
1972. 760
SECTION 23. Section 75-45-304, Mississippi Code of 1972, is 761
amended as follows: 762
75-45-304. No person shall operate as a grain dealer without 763
first having obtained a license pursuant to this article; 764
provided, however, that grain dealers licensed under the 765
provisions of the United States Warehouse Act, as amended, or the 766
Mississippi Grain Warehouse Law shall not be required to have a 767
license issued pursuant to this article. Notwithstanding this 768
section, a person licensed under the Mississippi Grain Warehouse 769
Law who also conducts grain dealer transactions within the meaning 770
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 31 (DJ\KP)

of the Mississippi Grain Dealers Law of 1978 shall be required to 771
post the bond required in Section 75-45-305. 772
SECTION 24. Section 75-45-305, Mississippi Code of 1972, is 773
amended as follows: 774
75-45-305. (1) Every person licensed as a grain dealer 775
shall have filed with the department a surety bond signed by the 776
dealer as principal and by a responsible company authorized to 777
execute surety bonds within the State of Mississippi. A grain 778
dealer may file with the department, in lieu of a surety bond, a 779
certificate of deposit or irrevocable letter of credit from any 780
bank or banking corporation insured by the Federal Deposit 781
Insurance Corporation, payable to the commissioner, as trustee. 782
The principal amount of the certificate of deposit or the amount 783
of the letter of credit shall be the same as that required for a 784
surety bond under this article and the interest thereon shall be 785
made payable to the purchaser thereof. Such bond shall be a 786
principal amount (to the nearest One Thousand Dollars ($1,000.00)) 787
equal to ten percent (10%) of the aggregate dollar amount paid, by 788
the dealer to producers for grain purchased from them during the 789
dealer's last completed fiscal year or in the case of a dealer who 790
has been engaged in business as a grain dealer for less than one 791
(1) year or who has not theretofore engaged in such business, ten 792
percent (10%) of the estimated aggregate dollar amount to be paid 793
by the dealer to producers for grain purchased from them during 794
the next fiscal year. Such bond shall not be less than 795
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 32 (DJ\KP)

Twenty-five Thousand Dollars ($25,000.00) nor more than One 796
Hundred Thousand Dollars ($100,000.00), except as otherwise 797
authorized by this article. The commissioner shall determine the 798
sufficiency of any letter of credit. 799
(2) The commissioner may, when he questions a grain dealer's 800
ability to pay producers for grain purchased, require a grain 801
dealer to post an additional bond in a dollar amount deemed 802
appropriate by the commissioner. Failure to post such additional 803
bond or certificate of deposit or irrevocable letter of credit, 804
constitutes grounds for suspension or revocation of a license 805
issued under this article. 806
(3) Any required bond or bonds shall be executed by the 807
grain dealer as principal and by a corporate surety licensed to do 808
business in this state as a surety. The bond shall be in favor of 809
the commissioner for the benefit of all persons interested, their 810
legal representatives, attorneys or assigns, conditioned upon the 811
faithful compliance by the grain dealer with the provisions of 812
this article and the rules and regulations of the State Department 813
of Agriculture and Commerce applicable thereto. The aggregate 814
liability of the surety shall not exceed the sum of such bond. 815
The bond may be cancelled at any time by the surety by giving 816
written notice to the commissioner of its intention to cancel the 817
bond and all liability thereunder shall terminate sixty (60) days 818
after the mailing of such notice except that such notice shall not 819
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 33 (DJ\KP)

affect any claims arising under the bond, whether presented or 820
not, before the effective date of the cancellation notice. 821
(4) Any grain dealer who is of the opinion that his net 822
worth and assets are sufficient to guarantee payment to producers 823
for grain purchased by him may request the commissioner to be 824
relieved of the obligation of filing a bond in excess of the 825
minimum bond of Twenty-five Thousand Dollars ($25,000.00). Such 826
request shall be accompanied by a financial statement of the 827
applicant made within six (6) months of the date of such request 828
certified by a certified public accountant. If such financial 829
statement discloses net assets and a net worth of an amount equal 830
to at least three (3) times the amount of the bond required by 831
this article and the commissioner is otherwise satisfied as to the 832
financial ability and resources of the applicant, the commissioner 833
may waive that portion of the required bond in excess of 834
Twenty-five Thousand Dollars ($25,000.00). However, in the case 835
of a grain dealer whose net worth is not equal to three (3) times 836
the amount of bond required, the commissioner may allow such grain 837
dealer to waive in One Thousand Dollar ($1,000.00) increments a 838
portion of the bond required in excess of Twenty-five Thousand 839
Dollars ($ 25,000.00). The percentage factor to be applied to the 840
bond required in excess of Twenty-five Thousand Dollars 841
($25,000.00) shall be determined by dividing actual net worth by 842
the net worth required to waive all bond in excess of Twenty-five 843
Thousand Dollars ($25,000.00). If the result of this computation 844
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 34 (DJ\KP)

provides a percentage factor of eighty percent (80%) or greater, 845
then that same percentage of the bond in excess of Twenty-five 846
Thousand Dollars ($25,000.00) may be waived. The grain dealer 847
shall then provide to the commissioner a surety bond in the amount 848
of Twenty-five Thousand Dollars ($25,000.00) plus any additional 849
bond required in excess thereof. 850
(5) Any grain dealer who purchases grain from producers only 851
in connection with or as an incident to some other business and 852
whose total purchases of grain from producers during any fiscal 853
year do not exceed an aggregate amount of One Hundred Thousand 854
Dollars ($100,000.00) may satisfy the bonding requirements of this 855
article by filing with the commissioner a bond, or certificate of 856
deposit or irrevocable letter of credit from any bank or banking 857
corporation insured by the Federal Deposit Insurance Corporation, 858
at the rate of One Thousand Dollars ($1,000.00) for each Ten 859
Thousand Dollars ($10,000.00) or fraction thereof of the dollar 860
amount to be purchased, with a minimum bond, certificate of 861
deposit or irrevocable letter of credit of One Thousand Dollars 862
($1,000.00) and a current financial statement. 863
(6) Failure of a grain dealer to file a bond, or certificate 864
of deposit, or letter of credit, and to keep such bond, 865
certificate of deposit or line of credit in force, or to maintain 866
assets adequate to assure payment to producers for grain purchased 867
from them shall be grounds for the suspension or revocation of a 868
license issued under this article. 869
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 35 (DJ\KP)

(7) When the commissioner has determined that a grain dealer 870
has defaulted payment to producers for grain which he has 871
purchased from them, the commissioner shall determine * * *, using 872
the hearing procedures set out in Section 75-44-35, the producers 873
and the amount of defaulted payment and as trustee of the bond 874
shall immediately after such determination call for the dealer's 875
surety bond or bonds, or other pledged financial assets, to be 876
paid to him for distribution to those producers who should receive 877
the benefits. Should the defaulted amount owed the producers be 878
less than the principal amount of the bond or bonds or pledged 879
financial assets, then the surety bank, or banking corporation 880
shall be obligated to pay only the amount of the default. 881
SECTION 25. Section 75-45-307, Mississippi Code of 1972, is 882
amended as follows: 883
75-45-307. If the department is satisfied: 884
(a) That the applicant is of good business reputation, 885
(b) That the applicant has adequate bonding under 886
Section 75-45-305, 887
(c) That the applicant maintains a permanent business 888
location in this state, and 889
(d) That the applicant has sufficient financial 890
resources to guarantee payment to producers for grain purchased 891
from them, the commissioner shall issue a license to the applicant 892
or shall renew the applicant's license. Licenses shall be * * * 893
renewed annually * * * on July 1. The license or renewal thereof 894
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 36 (DJ\KP)

issued by the department under this section shall be posted in the 895
principal office of the licensee in this state. A certificate 896
shall be posted in each location listed on a licensee's 897
application where he engages in the business of buying grain. In 898
the case of a licensee operating a truck or tractor trailer unit 899
the licensee is required to have a certificate that the license is 900
in effect and that a bond or certificate of deposit has been filed 901
and is carried in each truck or tractor trailer unit used in 902
connection with the purchase of grain from producers. Upon 903
request of a licensee and payment of the fee thereof, the 904
commissioner shall issue to the licensee a certificate that a 905
license has been issued or renewed and a bond filed as required by 906
this article. 907
SECTION 26. Section 75-45-311, Mississippi Code of 1972, is 908
amended as follows: 909
75-45-311. If a grain dealer should fail or refuse to make 910
payment to a producer for grain purchased when such payment is 911
requested by the producer and the request is made within one 912
hundred sixty (160) days of the date of sale or the date of 913
delivery of such grain to the dealer, whichever is later, but in 914
case of deferred pricing, delayed pricing, priced-later, or 915
similar contractual arrangements, no more than two hundred seventy 916
(270) days after the date of delivery, the producer may notify the 917
commissioner in writing, by certified mail when possible, of such 918
failure or refusal within the period of * * * thirty (30) days 919
H. B. No. 1647 *HR43/R2025* ~ OFFICIAL ~
26/HR43/R2025
PAGE 37 (DJ\KP)
ST: Mississippi Grain Indemnity Act; enact.
after such refusal or failure to pay. The commissioner upon 920
receiving such notice shall * * * initiate a hearing procedure as 921
set forth in Section 75-44-35. The producer shall then file a 922
claim in accordance with any regulations promulgated by the 923
commissioner. The producer furnishing such written notice within 924
the prescribed length of time is entitled to the benefits of the 925
grain dealer's bond. However, if a producer fails to furnish 926
written notice to the commissioner within the prescribed time, 927
then such producer is not entitled to any benefits under the grain 928
dealer's bond. Grain dealer liability under priced-later 929
contracts, open-priced contracts, deferred price contracts, or 930
similar agreements shall accrue under the bond in effect at the 931
date of default as determined by the commissioner. Any bond 932
required under this chapter shall be in addition to the bond 933
required by an entity licensed under the "Mississippi Grain 934
Warehouse Law," established under Section 75-44-1 et seq. 935
SECTION 27. This act shall take effect and be in force from 936
and after July 1, 2026. 937