SB 0761 Numerous Changes to Grain Dealer/Warehouse Laws
LR Number:S1869.05I Fiscal Note:1869-05
Committee:Agriculture and Local Government
Last Action:01/31/96 - Hearing Conducted S Agriculture & Local Government Committ
Effective Date:Emergency Clause
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Current Bill Summary

SB 761 - This act make numerous changes to the Grain Dealer and Grain Warehouse laws.

(1) Revised Financial Statement Requirements: Current law, which goes into effect February 1, 1996, requires all warehouses and dealers posting letters of credit or certificates of deposit as security to submit financial statements which have been audited by a certified public accountant. Licensees submitting bonds as security must submit financial statements which have been reviewed by a certified public accountant.

This act requires all licensees to submit at least review level financial statements.

(2) Increased Financial Requirements for Credit Sales Contracts: This act increases financial requirements for licensees engaging in credit sales contracts to the greater of $50,000 or 2 percent of annual grain purchases. Currently, the greater of 15 cents per bushel or 1 percent of annual grain purchases is required.

(3) Record keeping requirements for all classes of dealers are unified and all classes of dealers will be audited by the Department of Agriculture. Currently, only class I dealers are required to keep certain records and be audited by the Department.

(4) Fees have been raised to $50. Currently, filing fees are $15 and license fees are $25.

(5) Clarifications are made to definitions in both laws to ensure consistency. Grain dealer licenses are required for all businesses purchasing grain from producers on a regular basis. Licenses will no longer be required if grain is only purchased from licensed dealers.

(6) A new section is added to the warehouse law to create a statutory lien on grain and grain related assets of a failed warehouseman for the benefit of grain storage depositors.

This act has an emergency clause.