HB 13-1034 Summary

• Reduces the payment timeline for credit sale contracts from 60 days to 30 days after delivery of farm products or commodities.

• Authorizes electronic warehouse receipts as an alternative to paper receipts, allowing licensees to issue receipts through electronic systems approved by the U.S. Department of Agriculture.

• Eliminates the requirement for surety bonds on credit sale contracts while maintaining bonds for other dealer transactions.

• Shortens the statute of limitations for claims against bonds or irrevocable letters of credit from 24 months to 180 days after the transaction date or date of loss, whichever is later.

• Modifies credit sale contract requirements to include commissioner-approved warning statements that inform producers credit sale contracts are not protected by surety bonds or letters of credit.