HB 1393 Summary

• Creates four new chapters (4.1-58, 4.1-59, 4.1-61, 4.1-62) consolidating grain warehouse and grain buyer regulations from Title 60, establishing licensing requirements, bonding thresholds ($100,000 minimum), and operational standards for public warehousemen and grain buyers.

• Establishes procedures for resolving grain quality disputes through federal licensed inspectors or mutually agreed-upon third parties, with binding determinations on grade, dockage, moisture content, and protein levels.

• Creates a credit-sale contract indemnity fund financed by a 0.2% assessment on credit-sale grain contracts, with reimbursement capped at 80% of losses or $280,000 per claimant per insolvency to protect sellers when warehouses or grain buyers become insolvent.

• Requires trust funds to be established upon warehouseman or grain buyer insolvency, with the agriculture commissioner acting as trustee to marshal assets (grain, insurance proceeds, bonds) and distribute proceeds pro-rata to affected receiptholders.

• Repeals former Title 60 chapters (60-02, 60-02.1, 60-04, 60-05, 60-10) and updates cross-references in related statutes.