IA
Iowa Senate Bill SF2393

Iowa 2023-2024 Regular Session

Iowa Senate Bill SF2393

Introduced
2/19/24  
Refer
2/21/24  
Introduced
2/19/24  

Caption

A bill for an act regulating the marketing of grain, by providing for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund, and the payment of claims to reimburse sellers and depositors for losses covered by the fund, and including effective date provisions.(Formerly SSB 3174; See SF 2401.)

Impact

This legislation is designed to enhance the financial stability of the indemnity fund, which serves to compensate sellers or depositors who incur losses due to failures of licensed grain dealers or warehouse operators. By broadening the definition of covered transactions to include grain purchased under credit-sale contracts, the bill allows more transactions to be eligible for reimbursement, thereby protecting farmers and enhancing their confidence in the market. The adjustments in fee structure reflect a significant shift in how the grain industry manages financial risks associated with grain sales.

Summary

Senate File 2393 is geared towards the regulation of grain marketing in Iowa and involves adjustments to the structure of fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund. The bill proposes to modify the fund's operational parameters by increasing the balances required to waive or reinstate indemnity fees, ensuring that the fund remains solvent and adequately funded to cover potential claims. Specifically, it raises the threshold for waiving fees from $8 million to $16 million and for reinstating fees from $3 million to $8 million.

Contention

While supporters argue that these changes are necessary for the sustainability and integrity of the grain market, there are potential concerns regarding the increased costs imposed on grain dealers and warehouse operators. Critics may view the new fee structures as burdensome, particularly for smaller operators, which could lead to a reduction in their competitiveness in the market. These discussions surrounding the bill highlight the tension between providing robust protections for grain sellers and ensuring that regulatory costs do not stifle growth within the industry.

Latest SF2393 Activity

Companion Bills

IA SSB3174

Related A bill for an act regulating the marketing of grain, by providing for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund, and the payment of claims to reimburse sellers and depositors for losses covered by the fund, and including effective date provisions.(See SF 2393, SF 2401.)

IA SF2401

Similar To A bill for an act regulating the marketing of grain, by providing for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund, and the payment of claims to reimburse sellers and depositors for losses covered by the fund, and including effective date provisions. (Formerly SF 2393, SSB 3174.)

Similar Bills

IA SSB3174

A bill for an act regulating the marketing of grain, by providing for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund, and the payment of claims to reimburse sellers and depositors for losses covered by the fund, and including effective date provisions.(See SF 2393, SF 2401.)

IA SF2401

A bill for an act regulating the marketing of grain, by providing for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund, and the payment of claims to reimburse sellers and depositors for losses covered by the fund, and including effective date provisions. (Formerly SF 2393, SSB 3174.)

IA HSB131

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.)

IA HF508

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.(Formerly HSB 131; See HF 999.)

IA HF999

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, and including effective date provisions.(Formerly HF 508, HSB 131.)

IA SSB1131

A bill for an act regulating the marketing of grain, by providing for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund, and the payment of claims to reimburse sellers and depositors for losses covered by the fund, and including effective date provisions.(See SF 608.)

IA SF608

A bill for an act regulating the marketing of grain, by providing for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund, and the payment of claims to reimburse sellers and depositors for losses covered by the fund, and including effective date and applicability provisions. (Formerly SSB 1131.) Effective date: 05/27/2025, 07/01/2025. Applicability date: 10/24/2022.

IA HF666

A bill for an act providing for programs and regulations administered and enforced by the department of agriculture and land stewardship, providing fees, providing for the allocation of moneys, making penalties applicable, and including effective date provisions. (Formerly HF 277, HSB 113.) Effective date: 06/01/2023, 07/01/2023.