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IA HSB131

SB

Status

Introduced

2/5/2025

Primary Sponsor

Agriculture

Click for details

Origin

House of Representatives

91st General Assembly

AI Summary

  • Requires grain dealers purchasing grain by credit-sale contract to submit financial statements with unqualified audit opinions from certified public accountants, eliminating the option for qualified opinions or reviews
  • Doubles the grain depositors and sellers indemnity fund trigger thresholds: waiver threshold increases from $8 million to $16 million, and reinstatement threshold increases from $3 million to $8 million
  • Distinguishes between deferred-pricing contracts and deferred-payment contracts for indemnification purposes; grain sold under deferred-pricing contracts becomes eligible for fund coverage while deferred-payment contracts remain ineligible
  • Establishes a payment priority system: depositors and sellers (except credit-sale contract sellers) receive first priority at 90% of loss up to $300,000; deferred-pricing contract sellers receive second priority at 70% of loss up to $210,000
  • Sets quarterly fee payment dates (December 15, March 15, June 15, September 15) for participation fees and per-bushel fees, and caps loss valuations for corn and soybeans at U.S. No. 2 yellow grain standard prices

Legislative Description

A bill for an act providing for the marketing of grain by licensed warehouse operators and grain dealers, including by providing for indemnity fees and the indemnification of grain depositors and sellers for losses following the cessation of a license or bankruptcy.(See HF 508, HF 999.)

Last Action

Committee report approving bill, renumbered as HF 508.

2/20/2025

Committee Referrals

Agriculture2/5/2025

Full Bill Text

No bill text available