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SB 356 - This act modifies provisions pertaining to grain dealers and grain warehouses. The act requires that all licensed grain dealers or applicants for a grain dealer license must maintain a minimum net worth of 5% of the total amount of grain purchased in the previous fiscal year. Additionally, all licensed grain dealers and applicants must maintain current assets at least equal to current liabilities and the act specifies certain requirements related to the determination of assets and liabilities. The act raises the minimum surety bond requirement for licensed grain dealers from $20,000 to $50,000 and raises the maximum from $300,000 to $1 million. The act modifies the formula for determining the amount of surety bond required by specifying that the amount shall be equal to 5% of the dealer's previous year's grain purchases, instead of within a range of between 1% and 5% of such purchases. The act repeals the section of law that allows a grain dealer who has purchased less than $400,000 of grain the previous year to satisfy the bond requirement by filing bonds at the rate of $1,000 per $20,000 worth of grain purchased. Under current law, the owner of a licensed grain warehouse must maintain a net worth equal to 15 cents per bushel of storage capacity. The act increases the multiplication factor from 15 cents to 25 cents. ERIKA JAQUES
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