Read the full stored bill text
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~ G1/2
26/SS26/R1049
PAGE 1 (ab\tb)
To: Agriculture
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) Whaley
SENATE BILL NO. 2631
AN ACT TO CREATE NEW SECTION 75-46-1, MISSISSIPPI CODE OF 1
1972, TO ESTABLISH THE "MISSISSIPPI GRAIN INDEMNITY ACT"; TO 2
CREATE NEW SECTION 75-46-3, MISSISSIPPI CODE OF 1972, TO DEFINE 3
THE RELEVANT TERMS OF THIS ACT; TO CREATE NEW SECTION 75-46-5, 4
MISSISSIPPI CODE OF 1972, TO CREATE THE MISSISSIPPI GRAIN 5
INDEMNITY BOARD; TO OUTLINE THE PURPOSE, COMPOSITION AND DUTIES OF 6
THE BOARD; TO CREATE THE MISSISSIPPI GRAIN INDEMNITY TRUST FUND 7
WITHIN THE STATE TREASURY; TO CREATE NEW SECTION 75-46-7, 8
MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE GRAIN INDEMNITY 9
TRUST FUND SHALL BE ADMINISTERED BY THE BOARD; TO CREATE NEW 10
SECTION 75-46-9, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT 11
BEGINNING JANUARY 1, 2027, GRAIN PRODUCERS WILL BE CHARGED AN 12
ASSESSMENT EQUAL TO .2% OF ALL MARKETED GRAIN THAT IS SOLD TO A 13
FIRST PURCHASER LICENSEE; TO CREATE NEW SECTION 75-46-11, 14
MISSISSIPPI CODE OF 1972, TO PROVIDE HOW GRAIN ASSESSMENTS SHALL 15
BE COLLECTED; TO CREATE NEW SECTION 75-46-13, MISSISSIPPI CODE OF 16
1972, TO PROVIDE THAT THE GRAIN INDEMNITY TRUST FUND SHALL NOT 17
FALL BELOW $20,000,000.00 AT THE END OF THE FISCAL YEAR; TO CREATE 18
NEW SECTION 75-46-15, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT 19
FIRST PURCHASER LICENSEES MUST MAINTAIN A LEDGER OF ALL 20
ASSESSMENTS COLLECTED; TO CREATE NEW SECTION 75-46-17, MISSISSIPPI 21
CODE OF 1972, TO PROVIDE THAT PARTICIPATION IN THE GRAIN INDEMNITY 22
TRUST FUND IS VOLUNTARY, AND HOW TO NOTIFY THE DEPARTMENT IF A 23
PRODUCER DOES NOT WANT TO PARTICIPATE IN ANY GIVEN YEAR; TO CREATE 24
NEW SECTION 75-46-19, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT 25
THE COMMISSIONER SHALL BE RESPONSIBLE FOR DETERMINING WHEN A FIRST 26
PURCHASER LICENSEE HAS FAILED OR WHEN A FAILURE HAS OCCURRED; TO 27
PROVIDE PROCEDURE REGARDING HOW NOTICE SHALL BE GIVEN; TO CREATE 28
NEW SECTION 75-46-21, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE 29
BOARD TO PROMULGATE RULES AND REGULATIONS NECESSARY FOR THE 30
OPERATION OF THE BOARD AND ADJUDICATION OF CLAIMS; TO CREATE NEW 31
SECTION 75-46-23, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT CLAIMS 32
SUBMITTED TO THE BOARD SHALL BE REVIEW BY A DESIGNEE OR DESIGNEES; 33
TO CREATE NEW SECTION 75-46-25, MISSISSIPPI CODE OF 1972, TO 34
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 2 (ab\tb)
PROVIDE HOW CLAIMS FOR STORAGE LOSS SHALL BE PAID; TO CREATE NEW 35
SECTION 75-46-27, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT WHEN 36
THE TOTAL AMOUNT OF ELIGIBLE CLAIMS EXCEEDS THE FUNDS AVAILABLE, 37
THE BOARD SHALL MAKE PAYMENTS ON A PRO RATA BASIS; TO CREATE NEW 38
SECTION 75-46-29, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE 39
COMMISSIONER SHALL HAVE THE AUTHORITY TO REVOKE THE LICENSE OF 40
FIRST PURCHASER LICENSEES FOR FAILURE TO TIMELY COLLECT AND SUBMIT 41
ASSESSMENTS; TO CREATE NEW SECTION 75-46-31, MISSISSIPPI CODE OF 42
1972, TO REQUIRE THE COMMISSIONER TO ESTABLISH A TOLL-FREE HOTLINE 43
FOR RECEIVING INFORMATION CONCERNING THE FAILURE OF A FIRST 44
PURCHASER LICENSEE TO MAKE TIMELY PAYMENTS FOR THE PURCHASE OF 45
GRAIN AND OTHER SUSPICIONS OF FRAUDULENT ACTIVITY BY A FIRST 46
PURCHASER LICENSEE; TO CREATE NEW SECTION 75-46-33, MISSISSIPPI 47
CODE OF 1972, TO PROVIDE THAT BOARD RECORDS ARE SUBJECT TO AN 48
AUDIT PERFORMED BY THE STATE AUDITOR AT ANY TIME; TO CREATE NEW 49
SECTION 75-46-35, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT 50
CLAIMANTS WHO ARE FULLY COMPENSATED UNDER THIS CHAPTER, SHALL HAVE 51
SUBROGATED ALL CLAIMANTS RIGHTS ON A BOND OR OTHER PLEDGED 52
FINANCIAL ASSETS; TO CREATE NEW SECTION 75-46-37, MISSISSIPPI CODE 53
OF 1972, TO AUTHORIZE THE BOARD TO HAVE THE AUTHORITY TO ADOPT ALL 54
RULES AND REGULATIONS NEEDED TO CARRY OUT THE POWERS AND DUTIES OF 55
THE BOARD; TO AMEND SECTIONS 75-44-29, 75-44-31, 75-44-35, 56
75-45-304, 75-45-307 AND 75-45-311, MISSISSIPPI CODE OF 1972, TO 57
CONFORM; AND FOR RELATED PURPOSES. 58
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 59
SECTION 1. The following shall be codified as Section 60
75-46-1, Mississippi Code of 1972: 61
75-46-1. This chapter shall be known as the "Mississippi 62
Grain Indemnity Act." 63
SECTION 2. The following shall be codified as Section 64
75-46-3, Mississippi Code of 1972: 65
75-46-3. As used in this act, the following terms shall have 66
the meaning ascribed in this section, unless the context clearly 67
requires otherwise: 68
(a) "Assessment" means the assessment established 69
pursuant to 75-46-9. 70
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 3 (ab\tb)
(b) "Board" means the Mississippi Grain Indemnity Trust 71
Fund Board. 72
(c) "Claimant" means a producer who: 73
(i) Has suffered either a contract loss or storage 74
loss as defined herein; 75
(ii) Has filed a claim pursuant to this chapter 76
and any rules issued by the board under this chapter; 77
(iii) Has paid assessments into the Mississippi 78
Grain Indemnity Trust Fund, including payments made pursuant to 79
75-46-17(5) or is a new producer; and 80
(iv) Has not opted out of paying the assessments 81
pursuant to 75-46-17. 82
(d) "Commissioner" means the Commissioner of 83
Agriculture and Commerce for the State of Mississippi or his or 84
her designee. 85
(e) "Contract loss" means a loss to a claimant when a 86
first purchaser licensee who has failed has not fully paid the 87
claimant for grain sold to the licensee under any type of sales 88
contract. 89
(f) "Deferred purchase" means a purchase by a first 90
purchaser licensee in which title to grain passes to the first 91
purchaser licensee and by voluntary agreement of the producer full 92
payment to producer is not made for said grain within one (1) 93
calendar year of the date that title to the grain passes to the 94
first purchaser licensee. 95
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 4 (ab\tb)
(g) "Department" means the Mississippi Department of 96
Agriculture and Commerce. 97
(h) "Failed" or "failure," subject to Section 75-46-19, 98
means: 99
(i) Nonpayment of a first purchaser licensee's 100
debts to a producer or inability of a first purchaser licensee to 101
satisfy all financial obligations due to a producer, unless there 102
is a good faith dispute regarding the legitimacy of the debt; 103
(ii) A declaration of insolvency of a first 104
purchaser licensee by the licensee or by the commissioner; 105
(iii) Revocation or suspension of the first 106
purchaser licensee's license by the State of Mississippi or the 107
United States Department of Agriculture, if the licensee has 108
outstanding indebtedness owed to producers or claimants; 109
(iv) Voluntary surrender of a first purchaser 110
licensee's license to the State of Mississippi or the United 111
States Department of Agriculture, if the licensee has outstanding 112
indebtedness owed to producers or claimants; or 113
(v) The filing of an involuntary or voluntary 114
petition for bankruptcy with regard to a first purchaser licensee. 115
(i) "First purchaser licensee" means a person who is 116
the first to purchase grain or is paid to store grain produced in 117
Mississippi from producers and is: 118
(i) Licensed by the State of Mississippi to store 119
grain under Chapter 44, Title 75, Mississippi Code of 1972; 120
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 5 (ab\tb)
(ii) Licensed by the State of Mississippi to act 121
as a grain dealer under Chapter 45, Title 75, Mississippi Code of 122
1972; or 123
(iii) Licensed by the United States under the 124
United States Warehouse Act to store grain and has entered into a 125
cooperative agreement with the department. 126
(j) "Fund" means the Mississippi Grain Indemnity Trust 127
Fund. 128
(k) "Grain" means whole kernel corn for all purposes, 129
soybeans and wheat grown in the State of Mississippi. Grain does 130
not include sweet corn, popcorn or any other corn for human 131
consumption. 132
(l) "Mississippi Grain Indemnity Trust Fund" or "Grain 133
Indemnity Fund" means the fund established as provided in this 134
chapter. 135
(m) "Mississippi Grain Indemnity Trust Fund Board" 136
means the board established under Section 75-46-5. 137
(n) "New producer" means a producer who produced grain 138
only after the payment and collection of the assessment was 139
suspended pursuant to Section 75-46-13. The term "new producer" 140
does not include a producer who opted out of payment of the 141
assessment pursuant to Section 75-46-17. 142
(o) "Person" means a natural person, trust, 143
partnership, corporation or any other business entity. 144
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 6 (ab\tb)
(p) "Producer" or "producers" means the owner(s), 145
tenant(s) or operator(s) of land in this state who possess an 146
interest in and receives all or any part of the proceeds from the 147
sale of the grain produced thereon. 148
(q) "Storage loss" means a loss to a producer or 149
claimant when a first purchaser licensee who has failed has not 150
fully satisfied the licensee's storage obligations for grain to 151
the producer or claimant, less any allowable charges that have not 152
been paid by the producer or claimant. 153
SECTION 3. The following shall be codified as Section 154
75-46-5, Mississippi Code of 1972: 155
75-46-5. (1) There is hereby created the Mississippi Grain 156
Indemnity Board, which is established for the purposes of 157
administering and overseeing the Grain Indemnity Trust Fund and 158
providing a process by which producers growing and selling grain 159
in the State of Mississippi can make claims for contract losses 160
due to a failure of a grain dealer licensed by the State of 161
Mississippi under Chapter 45, Title 75, Mississippi Code of 1972, 162
and/or for contract and storage losses due to the failure of a 163
grain warehouse operator licensed by the State of Mississippi 164
under Chapter 44, Title 75, Mississippi Code of 1972, or by the 165
United States Department of Agriculture under the United States 166
Warehouse Act. 167
(2) The board shall consist of the following seven (7) 168
voting members: 169
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 7 (ab\tb)
(a) The commissioner, who shall be the chairperson of 170
the board; 171
(b) Two (2) members appointed by the Governor; 172
(c) Two (2) members appointed by the Lieutenant 173
Governor; and 174
(d) Two (2) members appointed by the Speaker of the 175
House of Representatives who shall be active Mississippi grain 176
farmers. 177
All board members appointed under paragraphs (b) through (d) 178
of this subsection shall have demonstrated knowledge and/or 179
experience in the production, marketing and storage of grain. 180
(3) Members of the initial board shall be appointed as 181
follows: 182
(a) The Governor shall appoint members for terms of one 183
(1) year and three (3) years; 184
(b) The Lieutenant Governor shall appoint members for 185
two (2) and four (4) years; and 186
(c) The Speaker of the House of Representatives shall 187
appoint members for one (1) year and three (3) years. 188
Following the initial board, subsequent members appointed to 189
the board shall serve a term of four (4) years with staggered 190
expiration dates. Members of the board shall, while serving on 191
business of the board, be entitled to receive as compensation a 192
per diem, as provided by law, in addition to any actual and 193
necessary expenses incurred in the performance of the official 194
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 8 (ab\tb)
duties of the board. The commissioner may call a meeting of the 195
board upon reasonable notice to the board members. 196
(4) There is created in the State Treasury a special fund to 197
be designated the "Mississippi Grain Indemnity Trust Fund." Funds 198
collected by or appropriated to the board shall be held in trust 199
by the State Treasurer for use and benefit of the board, only to 200
pay claimants and to the board for costs for the administration of 201
this chapter. The Grain Indemnity Trust Fund shall consist of: 202
(a) Money collected under this chapter; 203
(b) Interest earned on any money in the Grain Indemnity 204
Trust Fund; 205
(c) Any funds appropriated by the Legislature or any 206
other public or private source; and 207
(d) Any bond proceeds for grain, proceeds from other 208
pledged financial assets for grain set forth in Section 75-44-29 209
and Section 75-45-305 or other financial obligations in favor of 210
the commissioner as provided in Sections 75-44-29 and 75-45-305. 211
(5) Amounts in the Grain Indemnity Trust Fund may be 212
invested and reinvested at the discretion of the State Treasurer 213
in cooperation with the board. Interest from these investments 214
shall be deposited in the Grain Indemnity Trust Fund and shall be 215
available for the same purposes as other monies deposited in the 216
Grain Indemnity Trust Fund. The monies in the Grain Indemnity 217
Trust Fund shall not be available for any purpose other than those 218
specified in subsection (1) of this section. 219
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 9 (ab\tb)
(6) The Grain Indemnity Trust Fund shall operate on a fiscal 220
year basis of July 1 to June 30. The board may accept and expend 221
funds deposited into the Grain Indemnity Trust Fund and funds not 222
expended at the end of the fiscal year shall remain in the Grain 223
Indemnity Trust Fund and said funds shall not lapse or otherwise 224
be placed into the State General Fund, and any investment earnings 225
or interest earned on such accounts shall be deposited only to the 226
credit of the Grain Indemnity Trust Fund. Administrative costs 227
such as those enumerated in Section 75-46-7 associated with 228
administering the Grain Indemnity Trust Fund shall not exceed Two 229
Hundred Thousand Dollars ($200,000.00) per fiscal year, unless 230
claims are filed and being administered. In such case, the 231
administrative costs shall not exceed Five Hundred Thousand 232
Dollars ($500,000.00) per fiscal year while claims are ongoing 233
and/or being administered from year to year. A report detailing 234
administrative costs shall be filed with the Legislature by the 235
board no later than December 1 of each year. 236
SECTION 4. The following shall be codified as Section 237
75-46-7, Mississippi Code of 1972: 238
75-46-7. (1) The Grain Indemnity Trust Fund shall be 239
administered by the board. All payments made to claimants under 240
this chapter may only be made with board approval, and the board 241
shall provide advice to the commissioner on the day-to-day 242
operations of the Grain Indemnity Trust Fund. The board shall 243
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 10 (ab\tb)
have the authority to contract with individuals or entities 244
regarding: 245
(a) Claims administration; 246
(b) Legal, accounting, audit and financial matters; and 247
(c) Any other matters the board deems relevant and 248
appropriate. 249
(2) Subject to the approval of the board, the commissioner 250
shall be responsible for the day-to-day operations of the Grain 251
Indemnity Trust Fund, including the disbursement of payments 252
approved by the board under subsection (1) of this section. The 253
department is authorized to make such disbursements to claimants 254
on behalf of the board without further appropriation by the 255
Legislature. 256
SECTION 5. The following shall be codified as Section 257
75-46-9, Mississippi Code of 1972: 258
75-46-9. Beginning on January 1, 2027, producers of grain 259
shall be charged an assessment equal to two-tenths percent (0.2%) 260
of the price on all marketed grain that is sold to a first 261
purchaser licensee. 262
SECTION 6. The following shall be codified as Section 263
75-46-11, Mississippi Code of 1972: 264
75-46-11. Assessments shall be collected by the first 265
purchaser licensee and by any agent or representative of the 266
licensee. The first purchaser licensee shall deduct the 267
assessment from the purchase price of the grain and shall document 268
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 11 (ab\tb)
the amount of the assessment that was deducted on an invoice 269
provided to the producer. The first purchaser licensee shall 270
submit monthly assessments to the department on behalf of the 271
board by the twentieth day of the following month. 272
SECTION 7. The following shall be codified as Section 273
75-46-13, Mississippi Code of 1972: 274
75-46-13. (1) Initial assessments shall be collected 275
beginning January 1, 2027, and shall be collected until the board 276
determines that the amount in the Grain Indemnity Trust Fund is 277
Twenty-five Million Dollars ($25,000,000.00). 278
(2) If the amount in the Grain Indemnity Trust Fund is less 279
than Twenty-five Million Dollars ($25,000,000.00) or the board has 280
determined that the failure of a first purchaser licensee will 281
likely result in the issuance of payments to claimants that will 282
reduce the amount in the Grain Indemnity Trust Fund to less than 283
Twenty Million Dollars ($20,000,000.00) at the end of the current 284
fiscal year, assessments shall be required beginning January 1 of 285
the following calendar year. 286
(3) If the amount in the Grain Indemnity Trust Fund exceeds 287
Twenty-Five Million Dollars ($25,000,000.00) at any time during a 288
calendar year when assessments are being collected, assessments 289
shall continue until the end of such calendar year without regard 290
to the maximum amount authorized to be in the fund. 291
SECTION 8. The following shall be codified as Section 292
75-46-15, Mississippi Code of 1972: 293
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 12 (ab\tb)
75-46-15. First purchaser licensees shall maintain a ledger 294
of all assessments collected by the licensee that specifies the 295
date of the collection, from whom the assessment was collected, 296
and the amount of the assessment collected. Ledgers for the 297
corresponding time frame shall be submitted to the department in 298
conjunction with the payment of assessments required by Section 299
75-46-11. 300
SECTION 9. The following shall be codified as Section 301
75-46-17, Mississippi Code of 1972: 302
75-46-17. (1) Participation by producers in the Grain 303
Indemnity Trust Fund is voluntary, pursuant to subsection (2) of 304
this section. 305
(2) During any calendar year in which assessments are 306
collected under this chapter, a producer who does not desire to 307
pay the assessment set forth at Section 75-46-9 must notify the 308
department in writing by March 1 of such year. Such written 309
notice must be submitted on an official form provided by the 310
department. Within thirty (30) days of receipt of the form, the 311
department must send to the producer and the board an executed 312
copy of the form or other official acknowledgement that the 313
producer has opted out of the payment of the assessment. The 314
department shall also enter as soon as practicable the producer's 315
name into a publicly available live registry made available 316
through the department website. The effective opt-out date shall 317
be the date upon which the department sends to the producer an 318
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 13 (ab\tb)
executed copy of the form or other official acknowledgement that 319
the producer has opted out of the payment of the assessment, or 320
March 1 of such year if said executed form or other official 321
acknowledgment is sent after March 1 of such year. 322
(3) Subject to subsections (5) and (8) of this section, a 323
producer, who pursuant to subsection (2) of this section, opts out 324
of the payment of the assessment shall not be eligible to be a 325
claimant or otherwise be eligible to receive any past or future 326
payment or benefit from the Grain Indemnity Trust Fund beginning 327
January 1 of the calendar year in which the producer opted out of 328
the payment of the assessment. A producer who opts out of payment 329
of the assessment, pursuant to subsection (2) of this section, 330
shall remain permanently ineligible to be a claimant until that 331
producer has fully satisfied the requirements of subsection (5) of 332
this section. 333
(4) A producer who, pursuant to subsection (2) of this 334
section, opts out of payment of the assessment must notify any 335
first purchaser licensee of the election to opt out of the payment 336
of the assessment. Subject to Section 75-46-29, the first 337
purchaser licensee may require the producer to provide a copy of 338
the executed copy of the form or other official acknowledgement 339
referenced in subsection (1) of this section. 340
(5) A producer who has, pursuant to subsection (2) of this 341
section, opted out of payment of the assessment, may begin paying 342
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 14 (ab\tb)
assessments only upon the satisfaction of the following 343
requirements: 344
(a) The producer petitions the board for approval of 345
reentry into the grain indemnity program by hand delivering or 346
sending by certified mail, return receipt requested, a written 347
request to begin paying assessments in a form required by the 348
board; 349
(b) The board reviews the producer's petition for 350
reentry and, subject to satisfying the requirement of paragraph 351
(c) of this subsection, approves the petition; 352
(c) The producer pays into the fund: 353
(i) The year-over-year amount that would have been 354
paid in since January 1 of the year in which the producer 355
requested to opt out pursuant to subsection (b) of this section; 356
and 357
(ii) Interest on the year-over-year amount, as 358
determined by the board. 359
(6) A producer who satisfies the requirements of subsection 360
(5) of this section is eligible to be a claimant beginning ninety 361
(90) days after the board approves the petition for reentry. 362
(7) If an assessment is collected by a first purchaser 363
licensee from a producer during the same calendar year the 364
producer opted out of payment of the assessment pursuant to 365
subsection (2) of this section, the producer may obtain a refund 366
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 15 (ab\tb)
of the amount paid in the manner and on a form established by the 367
board. 368
(8) In the event the payment and collection of assessments 369
is suspended, pursuant to Section 75-46-13, but before the payment 370
of assessments is reinstituted by the board: 371
(a) A new producer who has experienced a contract loss 372
or a storage loss may elect to be a claimant but in so doing shall 373
not be eligible to opt out of paying the assessment for five (5) 374
calendar years following January 1 of the year in which the 375
payment and collection of assessments is reinstituted by the 376
board; and 377
(b) A producer who, pursuant to subsection (5) of this 378
section, reentered the payment of assessments shall not be 379
eligible to opt out of paying the assessment for five (5) calendar 380
years following January 1 of the year in which the payment and 381
collection of assessments is reinstituted by the board. 382
(9) A producer who, pursuant to subsection (2) of this 383
section, opts out of the payment of the assessment in a calendar 384
year is eligible to be a claimant for a contract loss or a storage 385
loss that occurred in relation to grain delivered during the prior 386
calendar year, if the producer paid the assessments in the prior 387
calendar year, so long as the producer has a binding legal 388
agreement with the first purchaser licensee to receive full 389
payment for said grain from the first purchaser licensee before 390
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 16 (ab\tb)
March 1 of the calendar year in which the producer opted out of 391
the payment of the assessment. 392
SECTION 10. The following shall be codified as Section 393
75-46-19, Mississippi Code of 1972: 394
75-46-19. The commissioner shall be responsible for 395
determining when a first purchaser licensee has failed and/or when 396
a failure has occurred. Upon making such a determination, the 397
commissioner shall have the authority to call a special meeting of 398
the board on three (3) days' notice or shorter if agreed to by the 399
board members. The commissioner shall issue a legal notice in a 400
paper of general circulation once a week for two (2) consecutive 401
weeks in the county or counties in which the first purchaser 402
licensee operates setting forth the name of the failed first 403
purchaser licensee and details on how a producer may file a claim 404
for a payment from the Grain Indemnity Trust Fund. The 405
commissioner shall take any other action the commissioner deems to 406
be appropriate to provide notice to affected producers. 407
SECTION 11. The following shall be codified as Section 408
75-46-21, Mississippi Code of 1972: 409
75-46-21. (1) The board is authorized to promulgate rules 410
and regulations necessary for the operation of the board and to 411
provide for a timely process to receive and adjudicate claims 412
submitted in connection to the failure of a first purchaser 413
licensee. 414
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 17 (ab\tb)
Claims submitted to the board must, at a minimum, meet the 415
following requirements: 416
(a) Must be on a form prescribed by the board; 417
(b) Must be submitted not later than ninety (90) days 418
after the announcement made by the commissioner under Section 419
75-46-19; 420
(c) Must include a copy of the written agreement for 421
the sale or storage of grain to the failed first purchaser 422
licensee by the producer; 423
(d) Must be made under oath subject to the penalty of 424
perjury, set forth the relevant circumstances and attest that the 425
amount claimed to be owed for the sale of grain to the failed 426
first purchaser licensee by the producer is true and correct; and 427
(e) Must submit a copy of any warehouse receipt, scale 428
ticket or other similar document showing the delivery of grain by 429
the producer to the failed first purchaser licensee. 430
(f) Cannot be a claim for a contract loss or a storage 431
loss arising from a deferred purchase. 432
(2) Additionally, claimants must file a claim with the 433
commissioner against the bond or other pledged financial assets, 434
as set forth in Sections 75-44-35 and 75-45-311. In the event 435
claimant is fully compensated for his/her storage loss or contract 436
loss, the claimant's claims under the bond shall be assigned as a 437
matter of law to the commissioner. Any such recovery on the bond 438
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 18 (ab\tb)
shall be deposited into the Grain Indemnity Trust Fund by the 439
commissioner. 440
(3) The board may authorize the commissioner to extend the 441
time for filing a claim upon a finding that extenuating 442
circumstances exist that warrant an extension. 443
SECTION 12. The following shall be codified as Section 444
75-46-23, Mississippi Code of 1972: 445
75-46-23. (1) All claims submitted to the board shall be 446
reviewed by a designee or designees of the board. The designee(s) 447
shall make a preliminary determination regarding the eligibility 448
for payment from the Grain Indemnity Trust Fund. If the 449
preliminary determination provides that less than the full amount 450
of the claimed loss should be paid, the determination shall set 451
forth an explanation of why the lesser amount, if any, should be 452
paid. All preliminary determinations shall be provided to the 453
board for final review and determination of eligibility for 454
payment from the Grain Indemnity Trust Fund. 455
(2) The board or its designee(s) may request additional 456
information from a claimant determined to be necessary for 457
adjudication of the claim. The claimant may be provided an 458
opportunity to provide oral testimony to the board and/or its 459
designee(s). 460
(3) If a claim is denied in whole or part, the board shall 461
provide a written determination to the claimant which will set 462
forth the amount, if any, to be awarded. The determination shall 463
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 19 (ab\tb)
set forth the basis for the board's decision to include an 464
explanation why a partial payment was made. 465
(4) Within thirty (30) days of the receipt of the 466
determination in which a claim has been denied in whole or part, a 467
claimant may file with the board a request for reconsideration of 468
the claim. The board, in its discretion, may accept or deny the 469
request for reconsideration. The board's decision shall be in 470
writing and forwarded to the claimant. 471
(5) A claimant may seek review of a final determination of 472
the board by filing an appeal with the Chancery Court of the First 473
Judicial District of Hinds County, Mississippi. The appeal must 474
be filed within thirty (30) days of the date of the final 475
determination or where reconsideration has been requested within 476
thirty (30) days of the date of the board's decision to deny 477
reconsideration. The chancery court shall render a decision based 478
on the administrative record prepared by the board without a trial 479
by jury. The chancery court's decision may then be appealed to 480
the Mississippi Supreme Court. Any such appeal to chancery court 481
or to the Supreme Court shall be in accordance with existing laws 482
and regulations governing such appeals. Neither an appeal to 483
chancery court or any other legal or equitable action against the 484
board with regard to payment or reconsideration of a claim shall 485
be appropriate until the board has made a final determination. 486
(6) The board shall have subpoena power for witnesses to 487
attend hearings and for production of documents for any and all 488
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 20 (ab\tb)
proceedings under the board's jurisdiction. The subpoenas shall 489
be enforced by the chancery court of the residence of the witness. 490
SECTION 13. The following shall be codified as Section 491
75-46-25, Mississippi Code of 1972: 492
75-46-25. (1) Subject to Section 75-46-27, claims for 493
storage losses shall be paid at one hundred percent (100%) of the 494
amount of loss of the claimant less any amount received by the 495
claimant from any other source. The value of the grain, subject 496
to the claim, shall be the market price of the grain as determined 497
by the board as of the date of failure of the first purchaser 498
licensee. The board may adjust the value of the grain, subject to 499
the claim, if there is sufficient evidence on a warehouse receipt, 500
scale ticket or other similar document showing the quality of the 501
grain. 502
(2) (a) Subject to Section 75-46-27, claims for contract 503
losses shall be paid at one hundred percent (100%) of the amount 504
of loss of the claimant less any amount received by the claimant 505
from any other source, including the sale of the grain to another 506
entity. The board shall use the purchase price set forth in the 507
contract for sale to determine the amount of loss. If a specific 508
purchase price amount is not set forth in the contract, the board 509
in its discretion may establish the price of grain to be used to 510
determine claims amounts. In making this determination, the board 511
may consider such factors as it deems are relevant, including, 512
without limitation, normal marketing practices, the need to make 513
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 21 (ab\tb)
timely payments and the risk of harm to producers if payments are 514
delayed due to having to await a future price determination. 515
(b) A claim for a contract loss shall not be approved 516
by the board if the claimant engaged in conduct or practices that 517
differ from generally accepted marketing practices within the 518
grain industry to an extent the claimant's actions have 519
substantially contributed to the claimant's loss. 520
(c) A failed first purchaser licensee may not file a 521
claim for payment from the fund for any loss associated with a 522
grain warehouse owned, in whole or in part, by the licensee or a 523
person that is a grain dealer owned, in whole or in part, by the 524
licensee. 525
(d) Payments from the Grain Indemnity Trust Fund shall 526
be available for storage and contract losses incurred with respect 527
to crops produced after January 1, 2027. 528
SECTION 14. The following shall be codified as Section 529
75-46-27, Mississippi Code of 1972: 530
75-46-27. If the total amount of eligible claims exceeds the 531
amount of funds available to the board from the Grain Indemnity 532
Trust Fund, the board shall make payments on a pro rata basis. 533
Assessments subsequently collected and submitted to the Grain 534
Indemnity Trust Fund shall not be used to make an additional 535
payment for prior payments made at less than the full amount. 536
SECTION 15. The following shall be codified as Section 537
75-46-29, Mississippi Code of 1972: 538
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 22 (ab\tb)
75-46-29. The failure of a first purchaser licensee to 539
timely collect and submit assessments required by Section 75-46-11 540
of this act shall be basis for the commissioner to revoke a 541
license issued to the licensee under Sections 75-44-23 and 542
75-45-309. 543
SECTION 16. The following shall be codified as Section 544
75-46-31, Mississippi Code of 1972: 545
75-46-31. The commissioner shall establish a toll-free 546
hotline and other information collection processes for the 547
purposes of receiving information concerning the failure of a 548
first purchaser licensee to make timely payments for the purchase 549
of grain and information concerning any suspected fraudulent 550
activity of a first purchaser licensee. Upon receipt of 551
information from the hotline or other information collection 552
processes established by the commissioner, the commissioner shall 553
take such action as the commissioner determines to be appropriate, 554
including referral of the matter to the Attorney General. 555
Information received through the hotline shall not be subject to 556
disclosure. 557
SECTION 17. The following shall be codified as Section 558
75-46-33, Mississippi Code of 1972: 559
75-46-33. All the board's books, records, accounts and other 560
papers shall be subject to inspection, copying and audit by the 561
Office of the State Auditor at any time. 562
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 23 (ab\tb)
SECTION 18. The following shall be codified as Section 563
75-46-35, Mississippi Code of 1972: 564
75-46-35. (1) A claimant fully compensated under this 565
chapter shall, as a matter of law, be deemed to have subrogated 566
all claimant's rights on a bond or other pledged financial assets 567
set forth in Sections 75-44-29 and 75-45-305 and all the 568
claimant's rights to any other compensation from the grain dealer 569
or warehouse operator. 570
(2) To the extent that a claimant who is fully compensated 571
under this chapter is also entitled to recover under the bonds, 572
set forth in Sections 75-44-29 and 75-45-305, the amount that 573
would be otherwise owed to the claimant of proceeds of the bonds 574
or other pledged financial assets set forth in Sections 75-44-29 575
and 75-45-305, as alternatives to posting a bond, shall be 576
deposited in the Grain Indemnity Trust Fund by commissioner for 577
the benefit of the Grain Indemnity Trust Fund. The commissioner 578
shall take such steps, including legal action as required to 579
ensure such bond proceeds shall be deposited in accordance with 580
this section. 581
SECTION 19. The following shall be codified as Section 582
75-46-37, Mississippi Code of 1972: 583
75-46-37. The board may adopt any and all rules and 584
regulations deemed necessary or desirable by the board to carry 585
out the powers and duties of the board, including, but not limited 586
to, the collection and receipt of assessments, the procedure for 587
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 24 (ab\tb)
adjudicating the claims of loss by the producers and the refunding 588
of assessment to producers and the subrogation of procedures' 589
claims against a warehouse or dealer in return for payment from 590
the trust fund. 591
SECTION 20. Section 75-44-29, Mississippi Code of 1972, is 592
amended as follows: 593
75-44-29. (1) Before any person is granted a license, 594
pursuant to Section 75-44-23, such person shall give a bond to the 595
commissioner executed by the grain warehouseman as principal and 596
by a corporate surety licensed to do business in this state as a 597
surety. The bond shall be in favor of the commissioner for the 598
benefit of all persons interested, their legal representatives, 599
attorneys or assigns, conditioned upon the faithful compliance by 600
the grain warehouseman with the provisions of this chapter, the 601
provisions of the "Mississippi Grain Dealers Law of 1978," 602
authorized under Article 7, Title 75, Chapter 45, Mississippi Code 603
of 1972, and the rules and regulations of the State Department of 604
Agriculture and Commerce applicable thereto. The aggregate 605
liability of the surety to all depositors or storers of grain 606
under this chapter and to sellers of grain under the "Mississippi 607
Grain Dealers Law of 1978" shall not exceed the sum of such bond. 608
However, the liability under a bond additionally issued under the 609
"Mississippi Grain Dealers Law of 1978" shall not be limited by 610
payment under the bond required under this chapter. The bond may 611
be cancelled at any time by the surety by giving written notice to 612
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 25 (ab\tb)
the Commissioner of Agriculture and Commerce of its intention to 613
cancel the bond and all liability thereunder shall terminate 614
thirty-five (35) days after the mailing of such notice except that 615
such notice shall not affect any claims arising under the bond, 616
whether presented or not, before the effective date of the 617
cancellation notice. 618
(2) In lieu of the bond required in subsection (1) of this 619
section an applicant for a license may be a self-insurer by 620
posting with the commissioner any of the following: 621
(a) Cash; 622
(b) Certificates of deposit from any bank or banking 623
corporation insured by the Federal Deposit Insurance Corporation; 624
(c) Irrevocable letters of credit from any bank or 625
banking corporation insured by the Federal Deposit Insurance 626
Corporation; 627
(d) Federal Treasury Bills; or 628
(e) Notes, securities or bonds secured by the federal 629
government or the State of Mississippi. 630
Self-insurers shall post an amount equivalent to the amount 631
of the bond required in Section 75-44-31. 632
SECTION 21. Section 75-44-31, Mississippi Code of 1972, is 633
amended as follows: 634
75-44-31. (1) The amount of bond to be furnished for each 635
grain warehouse shall be fixed at a rate of Twenty-five Cents 636
(25¢) per bushel for the first one million (1,000,000) bushels of 637
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 26 (ab\tb)
licensed capacity; Twenty Cents (20¢) per bushel for the next one 638
million (1,000,000) bushels of licensed capacity; and Fifteen 639
Cents (15¢) per bushel for all licensed capacity over two million 640
(2,000,000) bushels; provided that in no case shall the amount of 641
the bond be less than Fifteen Thousand Dollars ($15,000.00) or 642
more than One Million Dollars ($1,000,000.00), except as 643
prescribed in subsection (3) of this section. The licensed 644
capacity shall be equal to the maximum number of bushels of grain 645
that the grain warehouse can accommodate for storage. In no event 646
shall the liability of the surety accumulate for each successive 647
license period during which this bond is in force but shall be 648
limited in the aggregate to the bond amount or changed by 649
appropriate rider or endorsement. 650
(2) A grain warehouseman who is licensed or is applying for 651
licenses to operate two (2) or more grain warehouses may give a 652
single bond meeting the requirements of this chapter to cover all 653
such grain warehouses within the state. In such cases all grain 654
warehouses to be covered by the bond shall be deemed to be one (1) 655
warehouse for purposes of determining the amount of bond required 656
under subsection (1) of this section. 657
(3) In case of a deficiency in the net assets required by 658
Section 75-44-21, there shall be added to the amount of the bond, 659
determined in accordance with subsection (1) of this section, an 660
amount equal to such deficiency. In any other case in which the 661
commissioner finds that conditions exist which warrant requiring 662
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 27 (ab\tb)
additional bond, there shall be added to the amount of bond such 663
further amount as is determined to be reasonable by the 664
commissioner. 665
(4) If a public grain warehouseman is licensed under this 666
chapter and also conducts grain transactions under the 667
"Mississippi Grain Dealers Law of 1978" authorized under Article 7 668
of Title 75, Chapter 45, Mississippi Code of 1972, the entire 669
bond, in addition to any other required bond, shall be available 670
to satisfy claims filed under this chapter and the Mississippi 671
Grain Dealers Law of 1978. 672
SECTION 22. Section 75-44-35, Mississippi Code of 1972, is 673
amended as follows: 674
75-44-35. (1) It shall be the duty of the grain 675
warehouseman to deliver grain to the holder of a warehouse receipt 676
within ten (10) days of the demand for the redemption of such 677
receipt. In the event the grain warehouseman fails to deliver 678
grain to the holder of a warehouse receipt within ten (10) days of 679
the demand the holder of the warehouse receipt may make demand of 680
the surety for payment under the bond. The surety has the 681
responsibility to pay within fifteen (15) days following receipt 682
by the surety of the notice of the demand for redemption. Any 683
holder of a warehouse receipt issued by a grain warehouseman who 684
has made demand for redemption of such receipt, which demand was, 685
without lawful excuse, not satisfied within ten (10) days, shall 686
notify the commissioner in writing and the holder shall have the 687
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 28 (ab\tb)
right to * * * file a claim with the commissioner against the 688
grain warehouseman and the surety on the grain warehouseman's bond 689
for payment of the market value of the grain represented by such 690
warehouse receipt, such market value to be determined as of the 691
date of the demand, plus legal interest accrued from the date of 692
the demand. In the event the grain warehouseman is a self-insurer 693
as provided in Section 75-44-29 the holder of a warehouse receipt 694
shall have the right to * * * file a claim with the commissioner 695
against the grain warehouseman to the extent of the amount posted 696
in lieu of the bond. * * * The commissioner may also pay to the 697
holder of a warehouse receipt the amount of the market value of 698
the grain provided that the grain warehouseman agrees to such 699
payment * * *. 700
(2) * * * (a) Upon receipt of any claim, the commissioner 701
shall provide written notice, via certified mail, return receipt 702
requested, to the warehouseman and the corporate surety of the 703
claims. The notice shall be effective upon receipt of proof of 704
delivery or a receipt marked as refused delivery. If the 705
commissioner determines, in his or her opinion, that there are or 706
may be other competing claims as to bond, the commissioner shall 707
give notice to other interested parties, which shall include the 708
holders of outstanding and uncanceled receipts and scale tickets, 709
any person having a claim for payment under Section 75-45-311, and 710
any other person or party claiming any rights under the bond. The 711
notice shall be deemed complete and sufficient upon the 712
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 29 (ab\tb)
publication once per week for three (3) consecutive weeks in a 713
newspaper of general circulation. The commissioner shall 714
promulgate regulations which shall govern the procedure and 715
process to be followed in the hearing. The regulations shall, 716
among other things, set forth the county or counties, depending on 717
whether the licensee is a warehouseman, grain dealer, individual 718
or corporate entity or resident or nonresident, in which 719
publication of notice hereunder shall be made. 720
(b) The commissioner or his or her designated 721
representative, hereinafter "hearing officer," shall hear evidence 722
and determine whether a loss has occurred. Upon a determination 723
that a loss has occurred, the hearing officer shall determine the 724
date of the loss, the fair market value at the place of loss or in 725
the region immediately surrounding the place of loss, whether 726
payments should be made by the corporate surety and, if so, to 727
what parties and in what amounts. Recovery under the bond shall 728
be prorated by the hearing officer when the claims exceed the 729
liability of the corporate surety under the bond. The burden of 730
establishing the proration shall be on the corporate surety as a 731
matter of defense. The hearing officer shall enter a written 732
order determining the validity of claims under the bond and 733
setting forth those claimants who are entitled to recover 734
thereunder. The order shall be final, binding and conclusive on 735
all interested parties. The order shall be sent by registered or 736
certified mail to all interested parties who appeared in the 737
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 30 (ab\tb)
hearing. Within thirty (30) days after the mailing of said order, 738
any interested party, if dissatisfied with the order of the 739
hearing officer, may appeal to the Chancery Court of the First 740
Judicial District of Hinds County, Mississippi, by filing a 741
written notice of appeal alleging the pertinent facts upon which 742
the appeal is grounded. At the time of the filing of the appeal, 743
the appellant shall give a bond for costs conditioned upon his or 744
her prosecution of the appeal without delay and payment of all 745
costs assessed against him or her. Appeal may be with supersedeas 746
and shall be subject to the provisions of Section 11-51-31. 747
(3) Where a warehouseman licensed under this chapter is 748
involved in the hearing, the claim determination provisions of 749
this chapter are applicable to claims arising both under this 750
chapter and Article 7, Title 75, Chapter 45, Mississippi Code of 751
1972. 752
SECTION 23. Section 75-45-304, Mississippi Code of 1972, is 753
amended as follows: 754
75-45-304. No person shall operate as a grain dealer without 755
first having obtained a license pursuant to this article; 756
provided, however, that grain dealers licensed under the 757
provisions of the United States Warehouse Act, as amended, or the 758
Mississippi Grain Warehouse Law shall not be required to have a 759
license issued pursuant to this article. Notwithstanding this 760
section, a person licensed under the Mississippi Grain Warehouse 761
Law who also conducts grain dealer transactions within the meaning 762
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 31 (ab\tb)
of the Mississippi Grain Dealers Law of 1978 shall be required to 763
post the bond required in Section 75-45-305. 764
SECTION 24. Section 75-45-305, Mississippi Code of 1972, is 765
amended as follows: 766
75-45-305. (1) Every person licensed as a grain dealer 767
shall have filed with the department a surety bond signed by the 768
dealer as principal and by a responsible company authorized to 769
execute surety bonds within the State of Mississippi. A grain 770
dealer may file with the department, in lieu of a surety bond, a 771
certificate of deposit or irrevocable letter of credit from any 772
bank or banking corporation insured by the Federal Deposit 773
Insurance Corporation, payable to the commissioner, as trustee. 774
The principal amount of the certificate of deposit or the amount 775
of the letter of credit shall be the same as that required for a 776
surety bond under this article and the interest thereon shall be 777
made payable to the purchaser thereof. Such bond shall be a 778
principal amount (to the nearest One Thousand Dollars ($1,000.00)) 779
equal to ten percent (10%) of the aggregate dollar amount paid, by 780
the dealer to producers for grain purchased from them during the 781
dealer's last completed fiscal year or in the case of a dealer who 782
has been engaged in business as a grain dealer for less than one 783
(1) year or who has not theretofore engaged in such business, ten 784
percent (10%) of the estimated aggregate dollar amount to be paid 785
by the dealer to producers for grain purchased from them during 786
the next fiscal year. Such bond shall not be less than 787
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 32 (ab\tb)
Twenty-five Thousand Dollars ($25,000.00) nor more than One 788
Hundred Thousand Dollars ($100,000.00), except as otherwise 789
authorized by this article. The commissioner shall determine the 790
sufficiency of any letter of credit. 791
(2) The commissioner may, when he or she questions a grain 792
dealer's ability to pay producers for grain purchased, require a 793
grain dealer to post an additional bond in a dollar amount deemed 794
appropriate by the commissioner. Failure to post such additional 795
bond or certificate of deposit or irrevocable letter of credit, 796
constitutes grounds for suspension or revocation of a license 797
issued under this article. 798
(3) Any required bond or bonds shall be executed by the 799
grain dealer as principal and by a corporate surety licensed to do 800
business in this state as a surety. The bond shall be in favor of 801
the commissioner for the benefit of all persons interested, their 802
legal representatives, attorneys or assigns, conditioned upon the 803
faithful compliance by the grain dealer with the provisions of 804
this article and the rules and regulations of the State Department 805
of Agriculture and Commerce applicable thereto. The aggregate 806
liability of the surety shall not exceed the sum of such bond. 807
The bond may be cancelled at any time by the surety by giving 808
written notice to the commissioner of its intention to cancel the 809
bond and all liability thereunder shall terminate sixty (60) days 810
after the mailing of such notice except that such notice shall not 811
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 33 (ab\tb)
affect any claims arising under the bond, whether presented or 812
not, before the effective date of the cancellation notice. 813
(4) Any grain dealer who is of the opinion that his or her 814
net worth and assets are sufficient to guarantee payment to 815
producers for grain purchased by him or her may request the 816
commissioner to be relieved of the obligation of filing a bond in 817
excess of the minimum bond of Twenty-five Thousand Dollars 818
($25,000.00). Such request shall be accompanied by a financial 819
statement of the applicant made within six (6) months of the date 820
of such request certified by a certified public accountant. If 821
such financial statement discloses net assets and a net worth of 822
an amount equal to at least three (3) times the amount of the bond 823
required by this article and the commissioner is otherwise 824
satisfied as to the financial ability and resources of the 825
applicant, the commissioner may waive that portion of the required 826
bond in excess of Twenty-five Thousand Dollars ($25,000.00). 827
However, in the case of a grain dealer whose net worth is not 828
equal to three (3) times the amount of bond required, the 829
commissioner may allow such grain dealer to waive in One Thousand 830
Dollar ($1,000.00) increments a portion of the bond required in 831
excess of Twenty-five Thousand Dollars ($25,000.00). The 832
percentage factor to be applied to the bond required in excess of 833
Twenty-five Thousand Dollars ($25,000.00) shall be determined by 834
dividing actual net worth by the net worth required to waive all 835
bond in excess of Twenty-five Thousand Dollars ($25,000.00). If 836
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 34 (ab\tb)
the result of this computation provides a percentage factor of 837
eighty percent (80%) or greater, then that same percentage of the 838
bond in excess of Twenty-five Thousand Dollars ($25,000.00) may be 839
waived. The grain dealer shall then provide to the commissioner a 840
surety bond in the amount of Twenty-five Thousand Dollars 841
($25,000.00) plus any additional bond required in excess thereof. 842
(5) Any grain dealer who purchases grain from producers only 843
in connection with or as an incident to some other business and 844
whose total purchases of grain from producers during any fiscal 845
year do not exceed an aggregate amount of One Hundred Thousand 846
Dollars ($100,000.00) may satisfy the bonding requirements of this 847
article by filing with the commissioner a bond, or certificate of 848
deposit or irrevocable letter of credit from any bank or banking 849
corporation insured by the Federal Deposit Insurance Corporation, 850
at the rate of One Thousand Dollars ($1,000.00) for each Ten 851
Thousand Dollars ($10,000.00) or fraction thereof of the dollar 852
amount to be purchased, with a minimum bond, certificate of 853
deposit or irrevocable letter of credit of One Thousand Dollars 854
($1,000.00) and a current financial statement. 855
(6) Failure of a grain dealer to file a bond, or certificate 856
of deposit, or letter of credit, and to keep such bond, 857
certificate of deposit or line of credit in force, or to maintain 858
assets adequate to assure payment to producers for grain purchased 859
from them shall be grounds for the suspension or revocation of a 860
license issued under this article. 861
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 35 (ab\tb)
(7) When the commissioner has determined that a grain dealer 862
has defaulted payment to producers for grain which he or she has 863
purchased from them, the commissioner shall determine * * *, using 864
the hearing procedures set out in Section 75-44-35, the producers 865
and the amount of defaulted payment and as trustee of the bond 866
shall immediately, after such determination, call for the dealer's 867
surety bond or bonds, or other pledged financial assets, to be 868
paid to him or her for distribution to those producers who should 869
receive the benefits. Should the defaulted amount owed the 870
producers be less than the principal amount of the bond or bonds 871
or pledged financial assets, then the surety bank, or banking 872
corporation shall be obligated to pay only the amount of the 873
default. 874
SECTION 25. Section 75-45-307, Mississippi Code of 1972, is 875
amended as follows: 876
75-45-307. If the department is satisfied: 877
(a) That the applicant is of good business reputation, 878
(b) That the applicant has adequate bonding under 879
Section 75-45-305, 880
(c) That the applicant maintains a permanent business 881
location in this state, and 882
(d) That the applicant has sufficient financial 883
resources to guarantee payment to producers for grain purchased 884
from them, the commissioner shall issue a license to the applicant 885
or shall renew the applicant's license. Licenses shall be * * * 886
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 36 (ab\tb)
renewed annually * * * on July 1. The license or renewal thereof 887
issued by the department under this section shall be posted in the 888
principal office of the licensee in this state. A certificate 889
shall be posted in each location listed on a licensee's 890
application where he engages in the business of buying grain. In 891
the case of a licensee operating a truck or tractor trailer unit 892
the licensee is required to have a certificate that the license is 893
in effect and that a bond or certificate of deposit has been filed 894
and is carried in each truck or tractor trailer unit used in 895
connection with the purchase of grain from producers. Upon 896
request of a licensee and payment of the fee thereof, the 897
commissioner shall issue to the licensee a certificate that a 898
license has been issued or renewed and a bond filed as required by 899
this article. 900
SECTION 26. Section 75-45-311, Mississippi Code of 1972, is 901
amended as follows: 902
75-45-311. If a grain dealer should fail or refuse to make 903
payment to a producer for grain purchased when such payment is 904
requested by the producer and the request is made within one 905
hundred sixty (160) days of the date of sale or the date of 906
delivery of such grain to the dealer, whichever is later, but in 907
case of deferred pricing, delayed pricing, priced-later, or 908
similar contractual arrangements, no more than two hundred seventy 909
(270) days after the date of delivery, the producer may notify the 910
commissioner in writing, by certified mail when possible, of such 911
S. B. No. 2631 *SS26/R1049* ~ OFFICIAL ~
26/SS26/R1049
PAGE 37 (ab\tb)
ST: The Mississippi Grain Indemnity Act;
establish.
failure or refusal within the period of * * * thirty (30) days 912
after such refusal or failure to pay. The commissioner upon 913
receiving such notice shall * * * initiate a hearing procedure as 914
set forth in Section 75-44-35. The producer shall then file a 915
claim in accordance with any regulations promulgated by the 916
commissioner. The producer furnishing such written notice within 917
the prescribed length of time is entitled to the benefits of the 918
grain dealer's bond. However, if a producer fails to furnish 919
written notice to the commissioner within the prescribed time, 920
then such producer is not entitled to any benefits under the grain 921
dealer's bond. Grain dealer liability under priced-later 922
contracts, open-priced contracts, deferred price contracts, or 923
similar agreements shall accrue under the bond in effect at the 924
date of default as determined by the commissioner. Any bond 925
required under this chapter shall be in addition to the bond 926
required by an entity licensed under the "Mississippi Grain 927
Warehouse Law," established under Section 75-44-1 et seq. 928
SECTION 27. This act shall take effect and be in force from 929
and after July 1, 2026. 930