HCS/HBs 915 & 923 - Under current law, the amount of surety bond required of licensed grain dealers must be between $20,000 and $300,000. The act increases the minimum to $50,000 and the maximum to $600,000. The act modifies the formula for determining the amount of bond required. Instead of the principal amount of the bond having to be equal to or greater than 1% of the total value of grain purchased by the dealer in the previous year, the act raises the minimum to 1.5% of such amount. The act removes the maximum part of the formula of not greater than 5% of the total value of grain purchased in the previous year.
The act removes the requirement that the director of the Department of Agriculture promulgate rules regarding the amount of surety bonds required for grain dealers and for establishing the bond requirement formula.
It shall be a Class A misdemeanor for a licensed grain dealer to act outside the scope of his or her license or license classification.
The act removes Section 276.441,RSMo, regarding procedures for a licensed grain dealer to request a waiver of a surety bond in excess of the minimum bond amount. The act also removes Section 276.446, RSMo, regarding circumstances when a bond amount lower than the minimum may be approved.
ERIKA JAQUES