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LEGISLATIVE BILL 894
Approved by the Governor April 14, 2026
Introduced by DeKay, 40; Brandt, 32; DeBoer, 10.
A BILL FOR AN ACT relating to grain; to amend sections 75-901, 75-904, 88-527,
88-529, 88-548, and 88-551, Reissue Revised Statutes of Nebraska, and
sections 75-902 and 75-903, Revised Statutes Cumulative Supplement, 2024;
to redefine a term; to change provisions relating to fees and licensure
requirements, create a fund, state legislative intent, and change and
eliminate provisions relating to a grain dealer's security under the Grain
Dealer Act; to change provisions relating to fees, licensure requirements,
certain federal licensees, and the use of certain grain probes under the
Grain Warehouse Act; to harmonize provisions; to repeal the original
sections; and to outright repeal section 75-905, Reissue Revised Statutes
of Nebraska.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 75-901, Reissue Revised Statutes of Nebraska, is
amended to read:
75-901 Sections 75-901 to 75-910 and section 5 of this act shall be known
and may be cited as the Grain Dealer Act.
Sec. 2. Section 75-902, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
75-902 For purposes of the Grain Dealer Act, unless the context otherwise
requires:
(1) Commission means the Public Service Commission;
(2) Direct delivery grain has the same meaning as in section 88-526;
(3) Direct delivery obligation has the same meaning as in section 88-526;
(4)(a) Grain means, but is not limited to, all unprocessed beans, whole
corn, milo and other sorghum, wheat, rye, barley, oats, millet, safflower seed
and processed plant pellets, alfalfa pellets, and any other bulk pelleted
agricultural storable commodity, except grain which has been processed or
packaged for distribution as seed.
(b) Grain includes all commodities described in subdivision (4)(a) of this
section whether grown and marketed as fungible commodities or within segregated
marketing channels, including, but not limited to, certified organic
commodities;
(5)(a) Grain dealer means any person, partnership, limited liability
company, corporation, or association that (i) buys grain from the producer of
the grain within this state for purposes of selling such grain or (ii) acts as
an employee or agent of a buyer or seller for purposes of collective bargaining
in the marketing of grain.
(b) Grain dealer does not include (i) a feeder or custom feeder of
livestock or poultry or (ii) a warehouse licensee under the Grain Warehouse Act
or a warehouse licensee under the United States Warehouse Act of a warehouse
located in Nebraska if the warehouse licensee does not buy, sell, or transport
grain other than grain that is received at its licensed warehouse facilities;
(6) In-store transfer has the same meaning as in section 88-526;
(7) Post-direct delivery storage position has the same meaning as in
section 88-526; and
(8) Producer means the owner, tenant, or operator of land in this state
who has an interest in and receives all or part of the proceeds from the sale
of grain produced on that land.
Sec. 3. Section 75-903, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
75-903 (1) All grain dealers doing business in this state shall be
licensed by the commission. If the applicant is an individual, the application
shall include the applicant's social security number. To procure and maintain a
license, each grain dealer shall:
(a)(i) Prior to July 1, 2027, pay (1) Pay an annual fee of one hundred
dollars which shall be due on or before the date established by the commission
for each license. Such fees shall be paid to the State Treasurer and credited
to the General Fund; and
(ii) Beginning on July 1, 2027, pay a fee that is established by the
commission. Such fee shall not exceed one thousand five hundred dollars for
each license. Such fee shall be remitted to the State Treasurer for credit to
the Grain Dealer and Grain Warehouse Cash Fund. On or before December 1, 2026,
the commission shall establish such fees and electronically submit a schedule
of such fees to the Clerk of the Legislature;
(b) (2) File a security pursuant to subsection (2) of this section; and
(c) File a reviewed or audited fiscal year-end financial statement
prepared by an independent certified public accounting firm as required in
subsection (3) of this section.
(2)(a) The security required under subdivision (1)(b) of this section
which may be a bond issued by a corporate surety company and payable to the
commission, an irrevocable letter of credit, or a certificate of deposit,
subject to the approval of the commission, for the benefit of any producer who
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files a valid claim arising from a sale to a grain dealer.
(b) The security shall be in an amount set by the commission of not less
than thirty-five thousand dollars and not more than one million dollars.
Amounts used in the calculation of the security:
(i) Shall shall include all direct delivery grain purchases and exchanges
valued on the date delivery is made; and .
(ii) Shall Amounts used in the calculation of the security shall not
include any transactions in which direct delivery grain is exchanged for a
post-direct delivery storage position and the post-direct delivery storage
position is created by an in-store transfer on the same date as the delivery of
the direct delivery grain.
(c) Such security shall be furnished on the following conditions, unless
otherwise provided in a written contract between the parties:
(i) If a written demand for payment is made and such demand is accompanied
by documented proof of delivery of grain, such payment shall occur not later
than ten business days after the date of such demand; and condition that the
licensee will pay for any grain purchased upon demand, not later than fifteen
days after the date of the last shipment of any contract.
(ii) If a licensee fails to pay for any grain that such licensee has
purchased within thirty days after such payment is due under subdivision (c)(i)
of this subsection, such licensee shall be liable to the seller for interest on
the unpaid amount pursuant to section 45-103.
(d) The liability of the surety shall cover purchases made by the grain
dealer during the time the bond is in force. A grain dealer's bond filed with
the commission shall be in continuous force and effect until canceled by the
surety. The liability of the surety on any bond required by this section shall
not accumulate for each successive license period during which the bond is in
force. ; and
(e) No seller shall have recourse to the licensee's security unless, as of
the date the commission initiates an administrative action against the
licensee, the seller has completed delivery of grain to the licensee for which
payment is due and payable. Any seller holding a deferred-pricing, price-later,
or similar contract under which title has passed but no payment obligation has
yet matured shall not be eligible to claim against the security unless the
payment obligation became due prior to the date of such administrative action.
(3) File a reviewed or audited fiscal year-end financial statement
prepared by an independent certified public accounting firm.
(3)(a) If licensing as an individual, the financial statement shall be
prepared in accordance with Other Comprehensive Basis of Accountancy, as filed
with the board, for a personal financial statement, using historical cost and
accrual basis of accounting. If licensing as a partnership, corporation, or
limited liability company, the financial statement shall be prepared in
accordance with accounting principles generally accepted.
(b) The financial statement shall include:
(i) (a) A statement of income showing profit or loss;
(ii) A (b) a balance sheet;
(iii) A (c) a statement of cash flow;
(iv) A (d) a statement of proprietor's capital or retained earnings;
(v) The (e) the volume and dollar value of the grain purchases the
licensee made in Nebraska during the fiscal year;
(vi) The (f) the volume and dollar value of transactions in which direct
delivery grain is exchanged for a post-direct delivery storage position and the
post-direct delivery storage position is not created by an in-store transfer on
the same date as the delivery of the direct delivery grain; and
(vii) The (g) the accounting firm's certification, assurances, opinions,
and comments and the notes with respect to the financial statement.
(c) If the volume and dollar value of the grain purchases is not reported,
the grain dealer shall file the maximum grain dealer security as required by
the Grain Dealer Act.
(d) (4) If an applicant for a grain dealer license is a wholly owned
subsidiary of a parent company and such a financial statement is not prepared
for the subsidiary, the parent company shall submit its reviewed or audited
fiscal year-end financial statement and shall execute an unconditional
guarantee agreement as prescribed by the commission.
Sec. 4. Section 75-904, Reissue Revised Statutes of Nebraska, is amended
to read:
75-904 Each grain dealer or his or her agent upon taking possession of
grain from a seller shall issue a receipt, contract, bill of lading, or other
written communication to the seller or his or her agent. The grain dealer
receipt, contract, bill of lading, or other written communication issued by the
grain dealer shall include the provisions of section 75-905 and be in such form
as the Public Service Commission may by rule and regulation require.
Sec. 5. The Grain Dealer and Grain Warehouse Cash Fund is created. The
fund shall be administered by the commission. The fund shall consist of money
credited to the fund pursuant to sections 75-903 and 88-529 and, unless
otherwise provided, all fees received by the commission pursuant to the Grain
Dealer Act or the Grain Warehouse Act. It is the intent of the Legislature to
appropriate all money in the fund to the commission for the purpose of
defraying the expenses of administering the Grain Dealer Act and the Grain
Warehouse Act. Any money in the fund available for investment shall be invested
by the state investment officer pursuant to the Nebraska Capital Expansion Act
and the Nebraska State Funds Investment Act. All money derived from investment
earnings of money in the fund shall be credited to the Grain Dealer and Grain
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Warehouse Cash Fund. Money in the fund shall not be transferred to the General
Fund or any other legislatively created fund. It is the intent of the
Legislature that the revenue generated by the license fees established by the
commission shall not exceed twenty-five percent of the commission costs to
implement the Grain Dealer Act and the Grain Warehouse Act.
Sec. 6. Section 88-527, Reissue Revised Statutes of Nebraska, is amended
to read:
88-527 (1) No person shall act as a warehouse operator without a license
issued pursuant to the Grain Warehouse Act . Warehouses , including except
warehouses that which are licensed under the federal United States Warehouse
Act , shall be licensed and regulated by the commission.
(2)(a) The commission shall issue a license under the Grain Warehouse Act
to each warehouse that is licensed under the federal United States Warehouse
Act.
(b) A warehouse that is licensed under the Grain Warehouse Act and the
federal United States Warehouse Act:
(i) Shall submit to the commission copies of all regulatory filings that
such warehouse has submitted to or received from the United States Department
of Agriculture, including regulatory filings relating to securities, insurance,
yearly audits, and licenses; and
(ii) Shall not be required by the commission to submit any regulatory
filing that is not described in subdivision (b)(i) of this subsection.
(c) Except to enforce this section, the commission shall not take any
administrative action against a warehouse that is licensed under the federal
United States Warehouse Act without the written consent of the United States
Department of Agriculture.
(3)(a) A warehouse that is not licensed under the federal United States
Warehouse Act shall be licensed and regulated by the commission as provided in
this subsection.
(b) If the applicant is an individual, the application shall include the
applicant's social security number. Such warehouses shall be inspected by the
commission at least once every twelve months.
(c) (2) If the commission determines that additional examinations are
necessary after a regular examination is completed at a warehouse, the
commission may charge such warehouse for the cost of the additional
examinations according to the commission's fee schedule. Warehouses shall only
be charged if such examinations are for reasons of irregularities from the
previous examination or if financial conditions warrant additional
examinations.
(d) (3) The commission may make available to the United States Government
or any of its agencies, including the Commodity Credit Corporation, the results
of inspections made and inspection reports submitted by employees of the
commission upon payment of such fees as may be determined by the commission.
The fees shall cover the actual cost of the services rendered in regard to
providing the information.
(e) (4) The commission may charge for inspections conducted at the request
of a warehouse licensee.
(f) (5) The commission may assess a surveillance fee against the assets of
a warehouse licensee for actual expenses incurred by the commission in
suspending a license or terminating the operations of a warehouse licensee. The
commission may enter into contracts for such purpose and shall keep a record of
all surveillance fees collected. All surveillance fees collected by the
commission shall be remitted to the State Treasurer for credit to the Nebraska
Grain Warehouse Surveillance Cash Fund.
(g) (6) The commission may enter into agreements and contracts with
regulators in states which border Nebraska for the purpose of licensing or
examining any public grain warehouse operator which operates facilities in such
states. The commission shall assume all jurisdiction over any warehouse
operator headquartered in Nebraska regarding his or her warehouse activity. A
warehouse operator headquartered and licensed in another state which acquires
facilities in Nebraska is under the jurisdiction of the headquarter state under
the terms of such agreement or contract.
Sec. 7. Section 88-529, Reissue Revised Statutes of Nebraska, is amended
to read:
88-529 (1)(a) The commission shall charge an annual license fee for each
warehouse that is not licensed under the federal United States Warehouse Act to
be operated, except as provided in section 88-531. Such fee is due on or before
the date established by the commission for each license. The fee for any
license issued for less than twelve months shall be prorated based on its
duration.
(b) The commission shall not charge an annual license fee for a warehouse
that is licensed under the federal United States Warehouse Act.
(2) Prior to July 1, 2027, the The annual license fee shall be as provided
in this subsection section.
Capacity in Bushels Fee
0 — 10,000 $ 45
10,001 — 25,000 57
25,001 — 50,000 68
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50,001 — 75,000 78
75,001 — 100,000 90
100,001 — 150,000 102
150,001 — 200,000 113
200,001 — 250,000 125
250,001 — 300,000 135
300,001 — 350,000 147
350,001 — 400,000 156
400,001 — 450,000 170
450,001 — 500,000 180
500,001 — 600,000 192
600,001 — 700,000 203
700,001 — 800,000 215
800,001 — 900,000 225
900,001 — 1,000,000 237
1,000,001 — 2,000,000 338
2,000,001 — 3,000,000 395
3,000,001 — 4,000,000 450
4,000,001 — 5,000,000 507
5,000,001 — 6,000,000 563
6,000,001 — 7,000,000 620
7,000,001 — 8,000,000 675
8,000,001 — 9,000,000 732
9,000,001 — 10,000,000 788
10,000,001 — 11,000,000 845
11,000,001 — 15,000,000 1,070
15,000,001 — 20,000,000 1,350
20,000,001 — 25,000,000 1,632
25,000,001 — 30,000,000 1,913
30,000,001 — 40,000,000 2,475
40,000,001 or more 3,375
(3)(a) On or before December 1, 2026, the commission shall establish the
annual license fees that apply beginning July 1, 2027, to warehouses that are
not licensed under the federal United States Warehouse Act and electronically
submit a schedule of such fees to the Clerk of the Legislature.
(b) Beginning in 2027, on or after July 1 of each year, the commission may
modify the annual license fees established under subdivision (a) of this
subsection.
(c) An annual license fee that is established or modified under this
subsection shall not exceed the fee established for the applicable commodity in
the 2025/2026 Rates Charged for AMS Services notice for entities with a
Commodity Credit Corporation agreement, as such notice existed on January 1,
2026, that was published by the Agricultural Marketing Service of the United
States Department of Agriculture.
(4) Fees collected under this section shall be remitted to the State
Treasurer. The State Treasurer shall credit such fees that are paid:
(a) Prior to July 1, 2027, to the General Fund; and
(b) On or after July 1, 2027, to the Grain Dealer and Grain Warehouse Cash
Fund.
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Sec. 8. Section 88-548, Reissue Revised Statutes of Nebraska, is amended
to read:
88-548 (1) Any grain dealer, person, firm, corporation, or association in
this state licensed under the federal United States Warehouse Act shall be
exempt from the Grain Warehouse Act, except that each licensee under the United
States Warehouse Act shall (a) annually notify the commission in writing of
such license and shall notify the commission at once in writing if the license
is terminated, canceled, or suspended and (b) post notification of such
licensee's bond under the United States Warehouse Act in a conspicuous place of
business listing the total amount of bond on the stored grain.
(2) No warehouse licensee, licensee under the federal United States
Warehouse Act, or grain dealer licensed pursuant to section 75-903 shall use
end-intake air probes that are not approved by the commission which use a
vacuum to collect a sample from a load of grain to determine foreign material
content. The commission shall adopt and promulgate rules and regulations
regarding approval of grain probes. Any person who violates this subsection
shall be guilty of a Class I misdemeanor.
Sec. 9. Section 88-551, Reissue Revised Statutes of Nebraska, is amended
to read:
88-551 Except as provided in sections 88-527, 88-529, 88-545.01, and
88-552, all fees collected pursuant to the Grain Warehouse Act shall be paid to
the State Treasurer and credited to the Grain Dealer and Grain Warehouse Cash
Fund General Fund.
Sec. 10. Original sections 75-901, 75-904, 88-527, 88-529, 88-548, and
88-551, Reissue Revised Statutes of Nebraska, and sections 75-902 and 75-903,
Revised Statutes Cumulative Supplement, 2024, are repealed.
Sec. 11. The following section is outright repealed: Section 75-905,
Reissue Revised Statutes of Nebraska.
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