IA
Iowa Senate Bill SSB3174

Iowa 2023-2024 Regular Session

Iowa Senate Bill SSB3174

Introduced
2/12/24  
Introduced
2/12/24  

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.(See SF 2393, SF 2401.)

Impact

One of the significant changes brought by SSB3174 is the inclusion of grain purchased under a credit-sale contract into the definition of purchased grain. This alteration means that grain dealers who enter into such contracts must pay indemnity fees, which were previously excluded. Furthermore, a seller experiencing a loss from these contracts will now have the opportunity to claim reimbursement from the indemnity fund, broadening the scope of protections afforded to those selling grain in Iowa.

Summary

Senate Study Bill 3174 aims to reform the regulation of grain marketing in Iowa, specifically addressing the fees imposed on grain dealers and warehouse operators, who are required to contribute to the grain depositors and sellers indemnity fund. This bill proposes an increase in the balance required to trigger a waiver for participation and per-bushel fees from $8 million to $16 million, and the reinstatement threshold rises from $3 million to $8 million. The amendments reflect ongoing adjustments to ensure the fund's sustainability and adaptability in the face of fluctuating grain market conditions.

Contention

Debates surrounding SSB3174 focus on the fine balance between protecting grain sellers, who can incur substantial losses, and ensuring that the indemnity fund remains solvent. Opponents highlight concerns that these changes may impose an additional financial burden on dealers and operators, potentially leading to fewer market participants. Advocates argue that the reforms will enhance market stability and seller trust by ensuring access to reimbursement for losses, potentially fostering a more robust grain market environment.

Further_context

The bill mandates the establishment of emergency rules by the Department of Agriculture and Land Stewardship (DALS) to implement its provisions. SSB3174 is set to take effect on July 1, 2024, with its immediate provisions for emergency rulemaking effective upon enactment. This structured timeline aims to prepare all stakeholders for the upcoming changes in statute and practice within the grain industry.

Latest SSB3174 Activity

Companion Bills

IA SF2393

Replaced by 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.)

IA SF2401

Replaced by 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 SF2393

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.)

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.