Indiana House Bill HB1419 Introduced / Bill

                     
Introduced Version
HOUSE BILL No. 1419
_____
DIGEST OF INTRODUCED BILL
Citations Affected:  IC 15-11-8; IC 26-3; IC 26-4; IC 35-52.
Synopsis:  Grain indemnity. Defines "revocation of a license". Creates
a process in which the director of the Indiana grain buyers and
warehouse licensing agency (agency) determines whether a building or
other protected enclosure constitutes a single warehouse that requires
one or more licenses. Specifies the documents a person who desires to
conduct business as a grain buyer, warehouse operator, or
buyer-warehouse (licensee) must submit to the agency to renew a
license to operate. Specifies how a business as a licensee may renew its
license. Specifies the types of licenses the agency shall issue and how
a license may be relinquished. Establishes what information must be
included in a financial statement submitted by a licensee to the agency.
Removes the ability of the agency to temporarily suspend a licensee's
license. Specifies various matters related to on-premises inspections.
Permits the director of the agency (director) to call an informal meeting
with a licensee. Provides how the director may begin an enforcement
action and what information the director must send to the licensee.
Provides when the director may revoke a licensee's license and what
information the director must share with the licensee. Establishes
various notice requirements. Permits the agency to adopt rules.
Requires the director to inspect and test all equipment used to test the
moisture content of grain purchased from producers once per year.
Requires the Indiana grain indemnity corporation board to elect a
chairperson and vice chairperson and take on various new
responsibilities. Addresses various issues with producer premiums.
Provides that a grain buyer shall keep accurate and correct records of
grain purchased from producers documenting the producer premiums
paid by producers. Establishes storage fees to determine storage loss.
Effective:  Upon passage; July 1, 2025.
Baird, Prescott
January 13, 2025, read first time and referred to Committee on Agriculture and Rural
Development.
2025	IN 1419—LS 7600/DI 150 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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provision adopted), the text of the new provision will appear in  this  style  type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1419
A BILL FOR AN ACT to amend the Indiana Code concerning
commercial law.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 15-11-8 IS REPEALED [EFFECTIVE JULY 1,
2 2025]. (Inspection of Grain Moisture Testing Equipment).
3 SECTION 2. IC 26-3-7-2, AS AMENDED BY P.L.208-2021,
4 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 2. The following definitions apply throughout this
6 chapter:
7 (1) "Agency" refers to the Indiana grain buyers and warehouse
8 licensing agency established under section 1 of this chapter.
9 (2) "Anniversary date" means the date that is ninety (90) calendar
10 days after the fiscal year end of a business licensed under this
11 chapter.
12 (3) "Bin" means a bin, tank, interstice, or other container in a
13 warehouse in which bulk grain may be stored.
14 (4) "Board" means the governing body of the Indiana grain
15 indemnity corporation created by IC 26-4-3-2.
16 (5) "Buyer-warehouse" means a person that operates both as a
17 warehouse licensed under this chapter and as a grain buyer.
2025	IN 1419—LS 7600/DI 150 2
1 (6) "Claimant" means a person to whom a licensee owes a storage
2 or financial obligation under this chapter for grain that has been
3 delivered to the licensee for sale or for storage under a bailment.
4 (7) "Crop year" means the period from one (1) year's harvest to
5 the next year for a specified field crop as follows:
6 (A) Barley and barley seed from June 1 to May 31.
7 (B) Canola and canola seed from July 1 to June 30.
8 (C) Corn and corn seed from September 1 to August 31.
9 (D) Lentils and lentil seed from July 1 to June 30.
10 (E) Oats and oat seed from June 1 to May 31.
11 (F) Popcorn and popcorn seed from September 1 to August 31.
12 (G) Rye and rye seed from June 1 to May 31.
13 (H) Sorghum and sorghum seed from September 1 to August
14 31.
15 (I) Soybeans and soybean seed from September 1 to August
16 31.
17 (J) Sunflower and sunflower seed from September 1 to August
18 31.
19 (K) Wheat and wheat seed from June 1 to May 31.
20 (L) All other field crops and other field crop seed from
21 September 1 to August 31.
22 (8) "Daily position record" means a written or electronic
23 document that is maintained on a daily basis for each grain
24 commodity, contains a record of the total amount of grain in
25 inventory for that business day, and complies with any
26 requirements established by the director.
27 (9) "Deferred pricing" or "price later" means a purchase by a
28 buyer in which title to the grain passes to the buyer and the price
29 to be paid to the seller is not determined:
30 (A) at the time the grain is received by the buyer; or
31 (B) less than twenty-one (21) days after delivery.
32 (10) "Delayed payment" means:
33 (A) a purchase by a buyer in which title to the grain passes to
34 the buyer at a determined price; and
35 (B) payment to the seller is not made in less than twenty-one
36 (21) days after delivery.
37 (11) "Depositor" means any of the following:
38 (A) A person that delivers grain to a licensee under this
39 chapter for storage or sale.
40 (B) A person that:
41 (i) owns or is the legal holder of a ticket or receipt issued by
42 a licensee for grain received by the licensee; and
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1 (ii) is the creditor of the issuing licensee for the value of the
2 grain received in return for the ticket or receipt.
3 (C) A licensee that stores grain that the licensee owns solely,
4 jointly, or in common with others in a warehouse owned or
5 controlled by the licensee or another licensee.
6 (12) "Designated representative" means the person or persons
7 designated by the director to act instead of the director in assisting
8 in the administration of this chapter.
9 (13) "Director" means the director of the Indiana grain buyers and
10 warehouse licensing agency appointed under section 1 of this
11 chapter.
12 (14) "Facility" means a permanent business location or one (1) of
13 several permanent business locations in Indiana that are operated
14 as a warehouse or by a grain buyer.
15 (15) "Failed" or "failure" means any of the following:
16 (A) The inability of a licensee to financially satisfy fully all
17 obligations due to claimants.
18 (B) Public declaration of a licensee's insolvency.
19 (C) Revocation of a licensee's license, if the licensee has
20 outstanding indebtedness owed to claimants.
21 (D) Nonpayment of a licensee's debts in the ordinary course of
22 business, if there is not a good faith dispute.
23 (E) Voluntary surrender of a licensee's license, if the licensee
24 has outstanding indebtedness to claimants.
25 (F) Involuntary or voluntary bankruptcy of a licensee.
26 (15) "Flat price contract" means a contract that sets a fixed
27 price for a specific delivery requirement, where the price is
28 determined by adding the basis to the futures price of the
29 same commodity, which is set before the futures contract
30 expires.
31 (16) "Fund" means the Indiana grain indemnity fund established
32 under IC 26-4-4-1.
33 (17) "Grain" means corn for all uses, popcorn, wheat, oats, barley,
34 rye, sorghum, soybeans, oil seeds, other agricultural commodities
35 as approved by the agency, and seed as defined in this section.
36 The term does not include canning crops for processing or sweet
37 corn.
38 (18) "Grain assets" means any of the following:
39 (A) All grain and grain coproducts owned or stored by a
40 licensee, including the following:
41 (i) Grain that is in transit following shipment by a licensee.
42 (ii) Grain that has not been paid for.
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1 (iii) Grain that is stored in unlicensed facilities that are
2 leased, owned, or occupied by the licensee.
3 (B) All proceeds, due or to become due, from the sale of a
4 licensee's grain.
5 (C) Equity, less any secured financing directly associated with
6 the equity, in hedging or speculative margin accounts of a
7 licensee held by a commodity or security exchange, or a dealer
8 representing a commodity or security exchange, and any
9 money due the licensee from transactions on the exchange,
10 less any secured financing directly associated with the money
11 due the licensee from the transactions on the exchange.
12 (D) Any other unencumbered funds, property, or equity in
13 funds or property, wherever located, that can be directly traced
14 to the sale of grain by a licensee. However, funds, property, or
15 equity in funds or property may not be considered encumbered
16 unless:
17 (i) the encumbrance results from valuable consideration paid
18 to the licensee in good faith by a secured party; and
19 (ii) the encumbrance did not result from the licensee posting
20 the funds, property, or equity in funds or property as
21 additional collateral for an antecedent debt.
22 (E) Any other unencumbered funds, property, or equity in
23 assets of the licensee.
24 (19) "Grain bank grain" means grain owned by a depositor for use
25 in the formulation of feed and stored by the warehouse to be
26 returned to the depositor on demand.
27 (20) "Grain buyer" means a person who is engaged in the business
28 of buying grain from producers.
29 (21) "Grain coproducts" means any milled or processed grain,
30 including the grain byproduct of ethanol production.
31 (22) "Grain standards act" means the United States Grain
32 Standards Act, approved August 11, 1916 (39 Stat. 482; 7 U.S.C.
33 71-87 as amended).
34 (23) "License" means a license issued under this chapter.
35 (24) "Licensee" means a person who operates a facility that is
36 licensed under this chapter.
37 (25) "Official grain standards of the United States" means the
38 standards of quality or condition for grain, fixed and established
39 by the secretary of agriculture under the grain standards act.
40 (26) "Parent entity" means an entity that owns at least twenty
41 percent (20%) or the equivalent of another entity, including
42 through shares, membership interests, or other securities, or
2025	IN 1419—LS 7600/DI 150 5
1 as a partner in a general partnership or joint venture.
2 (26) (27) "Person" means an individual, partnership, corporation,
3 association, or other form of business enterprise.
4 (27) (28) "Receipt" means a warehouse receipt issued by a
5 warehouse licensed under this chapter.
6 (29) "Revocation of a license" means any of the following:
7 (A) The inability of a licensee to financially satisfy fully all
8 obligations due to claimants.
9 (B) Public declaration of a licensee's insolvency.
10 (C) Revocation of a licensee's license, if the licensee has
11 outstanding indebtedness owed to claimants.
12 (D) Nonpayment of a licensee's debts in the ordinary
13 course of business, if there is not a good faith dispute.
14 (E) Involuntary or voluntary bankruptcy of a licensee.
15 (28) (30) "Seed", notwithstanding IC 15-15-1, means grain set
16 apart to be used primarily for the purpose of producing new
17 plants.
18 (29) (31) "Seed inventory" means seed for commercial sale.
19 (32) "Storage" means a facility or system that is designed,
20 structured, and equipped to receive, clean, dry, store, and
21 dispense grains or seeds. The term includes a facility where
22 the producer has maintained:
23 (A) title to the grain until selling or moving the grain to a
24 facility other than the facility where the grain was
25 delivered; and
26 (B) a record or proof of storage at the facility where the
27 grain was delivered.
28 (33) "Storage loss" means a loss to a storage depositor
29 resulting from a warehouse operator:
30 (A) whose license has been revoked; and
31 (B) who has not fully satisfied the warehouse operator's
32 storage obligation to the depositor, after any outstanding
33 charges against the grain.
34 (34) "Subsidiary" means an entity, including a general
35 partnership or joint venture, that is owned in whole or part by
36 one (1) or more other entities, including at least one (1) entity
37 that constitutes a parent entity.
38 (30) "Suspension" means a temporary halt to the purchase of grain
39 under section 18(b) of this chapter.
40 (31) (35) "Ticket" means a scale weight ticket, a load slip, or
41 other evidence, other than a receipt, given to a depositor upon
42 initial delivery of grain to a facility.
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1 (32) (36) "Warehouse act" means the United States Warehouse
2 Act, approved August 11, 1916 (39 Stat. 486; 7 U.S.C. 241-273
3 as amended).
4 (33) (37) "Warehouse" means any building or other protected
5 enclosure in one (1) general location licensed or required to be
6 licensed under this chapter, which building or other protected
7 enclosure is operated under one (1) ownership and run from
8 a single office, and in which grain is or may be:
9 (A) stored for hire;
10 (B) used for grain bank storage; or
11 (C) used to store company owned grain.
12 and the building or other protected enclosure is operated under
13 one (1) ownership and run from a single office.
14 (34) (38) "Warehouse operator" means a person that operates a
15 facility or group of facilities in which grain is or may be stored for
16 hire or which is used for grain bank storage and which is operated
17 under one (1) ownership and run from a single office.
18 SECTION 3. IC 26-3-7-3, AS AMENDED BY P.L.208-2021,
19 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2025]: Sec. 3. (a) The director may do the following:
21 (1) Require any reports that are necessary to administer this
22 chapter.
23 (2) Administer oaths, issue subpoenas, compel the attendance and
24 testimony of witnesses, and compel the production of records in
25 connection with any investigation or hearing under this chapter.
26 (3) Prescribe all forms within the provisions of this chapter.
27 (4) Establish grain standards in accordance with the grain
28 standards act and federal regulations promulgated under that act
29 that must be used by warehouses.
30 (5) Investigate the activities required by this chapter including the
31 storage, shipping, marketing, and handling of grain and
32 complaints with respect to the storage, shipping, marketing, and
33 handling of grain.
34 (6) Inspect a facility, the grain stored in a facility, and all property
35 and records pertaining to a facility. All inspections of an applicant
36 or licensee under this chapter must take into consideration the
37 proprietary nature of an applicant's or licensee's commercial
38 information. The director may adopt rules under IC 4-22-2
39 regarding inspections permitted under this chapter, and the rules
40 must take into consideration the proprietary nature of an
41 applicant's or a licensee's commercial information. This chapter
42 does not authorize the inspection of an applicant's or licensee's
2025	IN 1419—LS 7600/DI 150 7
1 trade secret or intellectual property information.
2 (7) Determine whether a facility for which a license has been
3 applied for or has been issued is suitable for the proper storage,
4 shipping, and handling of the grain that is stored, shipped, or
5 handled, or is expected to be stored, shipped, or handled.
6 (8) Require a licensee to terminate storage, shipping, marketing,
7 and handling agreements upon revocation of the person's a
8 license.
9 (9) Attend and preside over any investigation or hearing allowed
10 or required under this chapter.
11 (10) Impose sanctions for violations of this article.
12 (11) Require a grain buyer and all persons purchasing grain to
13 show evidence of training or licensing on the risks associated with
14 grain marketing practices only if a grain buyer engages in a risk
15 factor higher than a standard defined by the director. This training
16 or licensing may include requiring the grain buyer or person
17 purchasing grain to do any of the following:
18 (A) Provide the agency with proof of registry with the
19 commodity futures trading commission (CFTC) as a
20 commodity trading adviser, a futures commission merchant, an
21 introducing broker, or an associated person.
22 (B) Demonstrate passage of the series 3 examination
23 administered by the National Futures Association.
24 (C) Annually attend six (6) hours of continuing education,
25 approved by the director, focusing on the risks to a grain buyer
26 and seller that are associated with grain marketing practices
27 and the communication of risks to the producer. Additionally,
28 as part of continuing education, require a grain buyer, and all
29 persons purchasing grain for a grain buyer, to pass a test,
30 approved and administered by the director, that reasonably
31 measures the grain buyer's understanding of the risks to grain
32 buyers and sellers associated with producer marketing
33 strategies.
34 (12) (11) Require all contracts executed after August 31, 2017,
35 for the purchase of grain from producers, except a flat price
36 contract or a contract for the production of seed, to include the
37 following notice immediately above the place on the contract
38 where the seller of the grain must sign:
39 "NOTICE - SELLER IS CAUTIONED THAT
40 CONTRACTING FOR THE SALE AND DELIVERY OF
41 GRAIN INVOLVES RISKS. THESE RISKS MAY INCLUDE
42 FUTURE PAYMENTS BY YOU TO MAINTAIN THIS
2025	IN 1419—LS 7600/DI 150 8
1 CONTRACT, A LOWER SALES PRICE, AND OTHER
2 RISKS NOT SPECIFIED.
3 INDIANA STATE LAW REQUIRES THAT AFTER JULY 1,
4 2022, ALL DEFERRED PRICED GRAIN MUST BE PRICED
5 WITHIN THE CROP YEAR AS DEFINED BY
6 IC 26-3-7-2(7). THIS CONTRACT MUST BE PRICED BY
7 _(Insert Date)_.
8 COVERAGE UNDER THE INDIANA GRAIN INDEMNITY
9 PROGRAM IS FOR GRAIN THAT HAS BEEN DELIVERED
10 TO A FIRST PURCHASER LICENSEE WITHIN THE 15
11 MONTHS BEFORE THE DATE OF FAILURE THE
12 REVOCATION OF A LICENSE AND IS LIMITED TO
13 100% OF A LOSS FOR STORED GRAIN AND 80% OF A
14 LOSS FOR OTHER COVERED CONTRACTS.
15 BE SURE YOU UNDERSTAND THE NATURE OF THIS
16 CONTRACT AND THE ASSOCIATED RISKS.".
17 (13) (12) Require all contracts executed after January 1, 2000, for
18 the production of seed to include the following notice, in
19 conspicuous letters, immediately above the place on the contract
20 or an addendum where the seller of the seed must sign:
21 "NOTICE - IF THE TERMS OF THIS CONTRACT STATE
22 THAT THE CONTRACTOR RETAINS OWNERSHIP OF
23 THE SEED AND ITS PRODUCTS, YOU MAY NOT BE
24 ELIGIBLE FOR PARTICIPATION IN THE INDIANA
25 GRAIN INDEMNITY PROGRAM. TO BE ELIGIBLE TO
26 PARTICIPATE IN THE INDIANA GRAIN INDEMNITY
27 PROGRAM, FARMERS MUST OWN AND SELL GRAIN
28 OR SEED. BE SURE YOU UNDERSTAND THE NATURE
29 OF THIS CONTRACT AND THE ASSOCIATED RISKS.".
30 (14) (13) At any time, order an unannounced audit for compliance
31 with this article.
32 (15) Adopt rules under IC 4-22-2 to carry out the purposes and
33 intent of this chapter.
34 (16) (14) Require all grain buyers offering deferred pricing,
35 delayed payments, or contracts linked to the commodity futures
36 or commodity options market in connection with a grain purchase
37 to document the agreement in writing not more than twenty-one
38 (21) days after delivery.
39 (17) (15) Receive and consider financial audits of a licensee
40 conducted by an independent audit or accounting firm.
41 (18) (16) Share information with board members regarding the
42 financial status of a licensee, while the board is in executive
2025	IN 1419—LS 7600/DI 150 9
1 session and without disclosing the name or any other identifying
2 information of the licensee, including the following:
3 (A) Whether there is a risk that a licensee may fail. be
4 revoked.
5 (B) The financial impact to the fund if a licensee identified in
6 clause (A) were to fail. have the licensee's license revoked.
7 (C) The estimated number of potential claimants that could
8 result from the failure revocation of a licensee identified in
9 clause (A).
10 (D) Any other information the director determines is necessary
11 to solicit the advice of the board regarding the financial status
12 of a licensee.
13 However, the director may not share information under this
14 subdivision with a board member who has not executed a
15 confidentiality agreement.
16 (19) Adopt rules under IC 4-22-2 regarding fines for violations of
17 this chapter.
18 (b) The director shall do the following:
19 (1) Establish standards to ensure that a grain buyer has a suitable
20 financial position to conduct a business as a grain buyer.
21 (2) Require a person who conducts business as a grain buyer to
22 first be licensed by the agency.
23 (3) Require any person engaged in the business of advising
24 producers on grain marketing for hire to:
25 (A) register with the agency; and
26 (B) provide the agency with proof of registry with the
27 commodity futures trading commission (CFTC) as a
28 commodity trading advisor, a futures commission merchant, an
29 introducing broker, or an associated person.
30 (c) The director may designate an employee to act for the director
31 in the administration of this chapter. An employee designee may not:
32 (1) act in matters that require a public hearing or the temporary
33 suspension of a license;
34 (2) (1) adopt rules; or
35 (3) (2) act as the ultimate authority in the administration of this
36 chapter.
37 (d) The director may designate an administrative law judge to act for
38 the director in the administration of this chapter.
39 (e) The director may determine whether geographically separate
40 facilities constitute a single warehouse or grain buyer and in making
41 the determination may consider the following:
42 (1) The number of facilities involved.
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1 (2) Whether full weighing equipment is present at the
2 geographically separate facilities.
3 (3) The method of bookkeeping employed by the separate
4 facilities.
5 (4) The hours of operation of the separate facilities.
6 (5) The personnel employed at the separate facilities.
7 (6) Other factors the director deems relevant.
8 (f) For purposes of determining whether a building or other
9 protected enclosure constitutes a single warehouse that requires a
10 single license under this chapter, the director may consider the
11 following:
12 (1) The presence of a full weighing facility at geographically
13 diverse warehouse facilities.
14 (2) The traditional method of record keeping with respect to
15 the separate facilities.
16 (3) The hours, number of personnel, and activities of the
17 separate facilities.
18 (4) Any other factor considered relevant.
19 In the absence of contradictory information, any warehouses
20 owned and operated by the same person that are located within
21 close proximity of each other are presumed to constitute a single
22 warehouse.
23 (f) (g) The director and the director's designees designated
24 representative shall become members of the national grain regulatory
25 organization and shall:
26 (1) work in partnership with other state grain regulatory officials;
27 (2) participate in national grain regulatory meetings; and
28 (3) provide expertise and education at national meetings.
29 (g) (h) The director shall engage an independent third party firm to
30 conduct a performance review of the agency's auditing practices and
31 procedures at least once every five (5) years. The agency shall make
32 reasonable efforts to implement any corrective measures identified in
33 the performance review to enhance and improve the agency's auditing
34 practices and procedures. The agency shall make the findings of the
35 performance review available to the board.
36 (h) (i) The director may subpoena or require that certain records
37 located outside Indiana, if any, be brought to a specified location in
38 Indiana for review by the agency.
39 SECTION 4. IC 26-3-7-3.5 IS ADDED TO THE INDIANA CODE
40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
41 1, 2025]: Sec. 3.5. When computing any period of time under this
42 chapter, including the time of service of a notice, the computation
2025	IN 1419—LS 7600/DI 150 11
1 must comply with IC 4-21.5-3-2.
2 SECTION 5. IC 26-3-7-4, AS AMENDED BY P.L.60-2015,
3 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2025]: Sec. 4. (a) A person may not operate a warehouse or
5 conduct business as a grain buyer or buyer-warehouse without first
6 having obtained the appropriate license from the agency. nor may a
7 person or entity associated with the person continue to operate a
8 warehouse or conduct business as a grain buyer or buyer-warehouse
9 after the person's license has been revoked or suspended, except as
10 provided in section 18 of this chapter.
11 (b) All facilities in Indiana that an applicant for a license uses to
12 store or handle grain must qualify for and obtain a license and be
13 licensed under this chapter before the applicant may operate a
14 warehouse or conduct business as a grain buyer in Indiana. An
15 applicant may not be licensed unless all of the applicant's facilities
16 qualify for a license under this chapter. An applicant for a license must
17 apply to the agency for a license that covers all facilities operated by
18 the applicant for the storage or handling of grain in Indiana.
19 (b) A person may not be licensed to operate a particular facility
20 unless all facilities operated by the person in Indiana also qualify
21 to be and are licensed under this chapter. A person that operates
22 multiple facilities for the storage or handling of grain in Indiana
23 must obtain a license that covers all facilities operated by the
24 person.
25 (c) A person may not represent that the person is licensed under
26 this chapter, and may not use a name or description that conveys
27 an impression that the person is licensed under this chapter, unless
28 the person holds a valid license issued under this chapter that has
29 not been terminated.
30 (c) (d) If a licensee acquires an additional grain storage or handling
31 facility in Indiana, the licensee shall promptly submit to the agency an
32 amended application for licensure. A licensee shall promptly notify the
33 agency of a material change to the licensee's operations, such as
34 expansion of the amount of storage being used in the licensee's existing
35 facilities or change of ownership of a facility, and shall provide the
36 director with additional information the director may require. A
37 licensee shall obtain the approval of the director before making use of
38 increased storage or handling capacity.
39 (d) (e) A licensee that acquires an additional grain storage or
40 handling facility that is required to be licensed shall may not use the
41 facility for the storage or handling of grain until it qualifies for and is
42 issued a license and is licensed as provided in this chapter. If a licensed
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1 grain storage or handling facility that a licensee operates in Indiana
2 becomes ineligible for a license at any time for any reason, it shall the
3 facility may not be used for the storage or handling of grain until the
4 condition making it ineligible is removed.
5 (e) A licensee shall maintain at least eighty percent (80%) of the
6 unpaid balance of grain payables in unencumbered assets represented
7 by the aggregate of the following:
8 (1) Company owned grain.
9 (2) Cash on hand.
10 (3) Cash held on account in federally or state licensed financial
11 institutions or lending institutions of the Federal Farm Credit
12 Administration.
13 (4) Investments held in time accounts with federally or state
14 licensed financial institutions.
15 (5) Direct obligations of the United States government.
16 (6) Balances in grain margin accounts determined by marking to
17 market.
18 (7) Balances due or to become due to the licensee on deferred
19 pricing contracts.
20 (8) Marketable securities, including mutual funds.
21 (9) Irrevocable letters of credit that are:
22 (A) in favor of the agency;
23 (B) acceptable to the agency; and
24 (C) in addition to any letter of credit deposited with the
25 director to satisfy the bonding requirement of this chapter.
26 (10) Deferred pricing contract service charges due or to become
27 due to the licensee.
28 (11) Other evidence of proceeds from or of grain that is
29 acceptable to the agency.
30 (12) Seed inventory.
31 (13) Other assets approved by the director.
32 (f) A licensee must have the minimum positive net worth specified
33 in section 16 of this chapter to hold any license or do business.
34 SECTION 6. IC 26-3-7-4.1, AS AMENDED BY P.L.145-2017,
35 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2025]: Sec. 4.1. (a) The agency shall mail by first class mail
37 or send electronically a renewal application, which must include a
38 listing of all the licensee's facilities, to each licensee before the end of
39 the licensee's fiscal year. The renewal application form must be
40 completed and returned to the agency not later than ninety (90) days
41 after the end of the licensee's fiscal year. The licensee must forward,
42 with the renewal application, the following:
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1 (1) Current reviewed review level or audit level financial
2 statement that:
3 (A) is prepared by an independent accountant certified
4 under IC 25-2.1; and
5 (B) complies with generally accepted accounting principles.
6 (2) Updated financial profile form supplied by the agency.
7 (3) Appropriate license fee.
8 (b) A renewal application must contain the information as required
9 under rules adopted by the agency. The licensee shall receive an annual
10 renewal license application form appropriate to the license issued to the
11 licensee. The annual renewal license application forms are for a:
12 (1) grain bank;
13 (2) warehouse;
14 (3) grain buyer; or
15 (4) buyer-warehouse.
16 SECTION 7. IC 26-3-7-4.2, AS ADDED BY P.L.145-2017,
17 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2025]: Sec. 4.2. (a) If an applicant for a license or a renewal
19 of a license issued under this chapter does not regularly conduct
20 business at an a street address at which the applicant usually can be
21 contacted in Indiana, the applicant shall include with the applicant's
22 application a written appointment of a registered agent for service of
23 process, notice, or demand.
24 (b) The appointment in subsection (a) must be accompanied by a
25 written acceptance of the appointment by the registered agent. The
26 designation of a registered agent and requirements for a registered
27 agent must comply with the requirements under IC 23-0.5-4.
28 (c) The registered agent must be an individual who is a resident of
29 Indiana or a corporation whose principal place of business is located in
30 Indiana.
31 (d) The appointment must be made in the form and manner
32 prescribed by the director.
33 (e) If a registered agent resigns or relocates from Indiana or the
34 applicant revokes the registered agent's appointment, the applicant
35 shall:
36 (1) immediately notify the director in writing not later than thirty
37 (30) days before the resignation, relocation, or revocation; and
38 (2) file with the director a written appointment of another
39 registered agent, along with a written acceptance of the
40 appointment signed by the registered agent.
41 (f) If a registered agent dies or is incapacitated, the applicant shall:
42 (1) immediately notify the director in writing of the death or
2025	IN 1419—LS 7600/DI 150 14
1 incapacity;
2 (2) not later than thirty (30) days after the death or incapacity,
3 appoint another registered agent; and
4 (3) file with the director a written appointment of the other
5 registered agent, along with a written acceptance of the
6 appointment signed by the registered agent.
7 (g) Failure to comply with this section is grounds for denial,
8 suspension, or revocation of a license.
9 SECTION 8. IC 26-3-7-4.4 IS ADDED TO THE INDIANA CODE
10 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
11 1, 2025]: Sec. 4.4. The agency shall issue the following types of
12 licenses:
13 (1) A grain bank license may be issued to a person that:
14 (A) stores only grain bank grain;
15 (B) has a storage capacity of not more than fifty thousand
16 (50,000) bushels of grain; and
17 (C) purchases less than fifty thousand (50,000) bushels of
18 grain per year.
19 (2) A warehouse license may be issued to a person that:
20 (A) stores grain for hire; and
21 (B) purchases less than fifty thousand (50,000) bushels of
22 grain per year.
23 (3) A grain buyer license may be issued to a person that:
24 (A) purchases annually at least fifty thousand (50,000)
25 bushels of grain that are not for the sole purpose of feeding
26 the person's own livestock or poultry;
27 (B) chooses to obtain a grain buyer's license; or
28 (C) offers deferred pricing, delayed payments, or contracts
29 linked to the commodity futures or commodity options
30 market in connection with grain purchases.
31 (4) A buyer-warehouse license may be issued to a person that
32 operates both as a warehouse and as a grain buyer.
33 SECTION 9. IC 26-3-7-4.7 IS ADDED TO THE INDIANA CODE
34 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
35 1, 2025]: Sec. 4.7. (a) If a licensee desires to relinquish its license
36 issued under this chapter, the licensee shall submit a written
37 request to the director to relinquish the license. The relinquishment
38 request must include a certification from the licensee that the
39 licensee:
40 (1) has fully satisfied all payment obligations to all producers
41 for any grain purchased by the licensee including any
42 payment obligations under any contract, deferred pricing
2025	IN 1419—LS 7600/DI 150 15
1 agreement, deferred payment agreement, or other similar
2 legal instrument;
3 (2) has no outstanding storage obligations to any licensee or
4 person;
5 (3) is not party to any contract, deferred pricing agreement,
6 basis contract, hold-pay agreement, or other similar legal
7 instrument under which grain will be delivered to the
8 licensee; and
9 (4) either does not have receipts in its possession or, if the
10 licensee has receipts in its possession, the receipts are enclosed
11 or will be provided to the director or the director's designated
12 representative to facilitate the recovery of unused receipts
13 under section 30 of this chapter.
14 (b) The relinquishment request must include a list of all known
15 customers of the licensee in the preceding eighteen (18) months and
16 the last known telephone numbers and mailing addresses of each
17 person identified.
18 (c) The agency shall send a notice to each known customer of the
19 licensee from the list provided in subsection (b) for the preceding
20 eighteen (18) months.
21 (d) Before the director may grant the licensee's relinquishment
22 request the agency shall perform a closeout audit of the licensee.
23 SECTION 10. IC 26-3-7-6 IS REPEALED [EFFECTIVE JULY 1,
24 2025]. Sec. 6. (a) The agency shall issue the following licenses:
25 (1) A grain bank license may be issued to a person that:
26 (A) stores only grain bank grain;
27 (B) has a storage capacity of not more than fifty thousand
28 (50,000) bushels of grain; and
29 (C) purchases less than fifty thousand (50,000) bushels of
30 grain per year.
31 (2) A warehouse license may be issued to a person that:
32 (A) stores grain for hire; and
33 (B) purchases less than fifty thousand (50,000) bushels of
34 grain per year.
35 (3) A grain buyer license may be issued to a person that:
36 (A) purchases annually at least fifty thousand (50,000) bushels
37 of grain that are not for the sole purpose of feeding the
38 person's own livestock or poultry;
39 (B) chooses to obtain a grain buyer's license; or
40 (C) offers deferred pricing, delayed payments, or contracts
41 linked to the commodity futures or commodity options market
42 in connection with grain purchases.
2025	IN 1419—LS 7600/DI 150 16
1 (4) A buyer-warehouse license may be issued to a person that
2 operates both as a warehouse and as a grain buyer.
3 (b) An applicant shall file with the director a separate application
4 for each license or amendment of a license at the times, on the forms,
5 and containing the information that the director prescribes.
6 (c) An initial application for a license must be accompanied by a
7 license fee as follows:
8 (1) For a grain bank or for a warehouse or buyer-warehouse with
9 a storage capacity of less than two hundred fifty thousand
10 (250,000) bushels, one thousand dollars ($1,000) for the first
11 facility and two hundred fifty dollars ($250) for each additional
12 facility.
13 (2) For a warehouse or a buyer-warehouse with a storage capacity
14 of at least two hundred fifty thousand (250,000) bushels but less
15 than one million (1,000,000) bushels, one thousand five hundred
16 dollars ($1,500) for the first facility and two hundred fifty dollars
17 ($250) for each additional facility.
18 (3) For a warehouse or a buyer-warehouse with a storage capacity
19 of at least one million (1,000,000) bushels but less than ten
20 million (10,000,000) bushels, two thousand dollars ($2,000) for
21 the first facility and two hundred fifty dollars ($250) for each
22 additional facility.
23 (4) For a warehouse or buyer-warehouse with a storage capacity
24 greater than ten million (10,000,000) bushels, two thousand five
25 hundred dollars ($2,500) for the first facility and two hundred
26 fifty dollars ($250) for each additional facility.
27 (5) For a grain buyer, including a grain buyer that is also licensed
28 as a warehouse under the warehouse act, one thousand five
29 hundred dollars ($1,500) for the first facility and two hundred
30 fifty dollars ($250) for each additional facility.
31 The director may prorate the initial application fee for a license that is
32 issued at least thirty (30) days after the anniversary date of the
33 licensee's business.
34 (d) Before the anniversary date of the license, the licensee shall pay
35 an annual fee in an amount equal to the amount required under
36 subsection (c). The director may prorate the annual application fee for
37 a license that is modified at least thirty (30) days after the anniversary
38 date of the licensee's license.
39 (e) A licensee or an applicant for an initial license must have a
40 minimum current asset to current liability ratio of one to one (1:1) or
41 better.
42 (f) An applicant for an initial license shall submit with the person's
2025	IN 1419—LS 7600/DI 150 17
1 application a review level financial statement or better financial
2 statement that reflects the applicant's financial situation on a date not
3 more than fifteen (15) months before the date on which the application
4 is submitted. A financial statement submitted under this section must:
5 (1) be prepared by an independent accountant certified under
6 IC 25-2.1;
7 (2) comply with generally accepted accounting principles; and
8 (3) contain:
9 (A) an income statement;
10 (B) a balance sheet;
11 (C) a statement of cash flow;
12 (D) a statement of retained earnings;
13 (E) an aged accounts receivable listing detailing accounts that
14 are ninety (90) days due, one hundred twenty (120) days due,
15 and more than one hundred twenty (120) days due;
16 (F) a copy of the daily position record for the end of the
17 licensee's fiscal year;
18 (G) the preparer's notes; and
19 (H) other information the agency may require.
20 The director may adopt rules under IC 4-22-2 to allow the agency to
21 accept other substantial supporting documents instead of those listed
22 to determine the financial solvency of the applicant if the director
23 determines that providing the listed documents creates a financial or
24 other hardship on the applicant or licensee.
25 (g) If a licensee's storage capacity changes between license
26 renewals, the agency shall charge the licensee a fee of two hundred
27 fifty dollars ($250).
28 (h) An application for a license implies a consent to be inspected.
29 (i) Fees collected under this section shall be deposited in the grain
30 buyers and warehouse licensing agency license fee fund established by
31 section 6.3 of this chapter.
32 SECTION 11. IC 26-3-7-6.1, AS AMENDED BY P.L.134-2015,
33 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 6.1. (a) Not more than ninety (90) days after the
35 end of a licensee's fiscal year, the licensee shall file with the agency a
36 current review level financial statement or better financial statement
37 that reflects the licensee's financial situation for the previous fiscal
38 year. The financial statement must be submitted with the licensee's
39 renewal forms and fees.
40 (b) (a) A financial statement submitted under this section chapter
41 must comply with the following:
42 (1) Be prepared by an independent accountant certified under
2025	IN 1419—LS 7600/DI 150 18
1 IC 25-2.1.
2 (2) Comply with generally accepted United States accounting
3 principles. and
4 (3) Be at a review level or audit level.
5 (3) (4) Contain:
6 (A) an income statement;
7 (B) a balance sheet;
8 (C) a statement of cash flow;
9 (D) a statement of retained earnings;
10 (E) an aged accounts receivable listing detailing accounts that
11 are ninety (90) days due, one hundred twenty (120) days due,
12 and more than one hundred twenty (120) days due;
13 (F) a copy of the daily position record for the end of the
14 licensee's fiscal year;
15 (G) (E) the preparer's notes; and
16 (H) (F) other information the agency requires.
17 (5) An aged accounts receivable listing detailing accounts that
18 are ninety (90) days due, one hundred twenty (120) days due,
19 and more than one hundred twenty (120) days due.
20 (6) A copy of the daily position record for the end of the
21 licensee's fiscal year.
22 The director may adopt rules under IC 4-22-2 to allow the agency to
23 accept other substantial supporting documents instead of those listed
24 to determine the financial solvency of the applicant if the director
25 determines that providing the listed documents creates a financial or
26 other hardship on the applicant or licensee.
27 (c) If the licensee has failed to timely file the financial statement,
28 renewal form, or renewal fee as required in subsection (a), the agency
29 may assess a fine as follows:
30 (1) Fifty percent (50%) of the licensee's renewal fee for a
31 financial statement, renewal form, or renewal fee that is at least
32 one (1) day and not more than sixty (60) days late.
33 (2) One hundred percent (100%) of the licensee's renewal fee for
34 a financial statement, renewal form, or renewal fee that is more
35 than sixty (60) days late.
36 (d) The agency may file a notice of hearing for any fines assessed
37 under subsection (c).
38 (b) If a person, an applicant, or a licensee is the subsidiary of a
39 parent entity, and financial statements are not prepared by or for
40 the person, applicant, or licensee in the ordinary course of
41 business, the director may consider the following to be the
42 equivalent of a review level or audit level financial statement, for
2025	IN 1419—LS 7600/DI 150 19
1 purposes of this section:
2 (1) Either:
3 (A) a compilation level financial statement prepared in
4 accordance with generally accepted accounting principles
5 by an independent accountant certified under IC 25-2.1; or
6 (B) an audited or review level financial statement of the
7 parent entity, current as of its most recent fiscal year end,
8 that is in full compliance with the requirements of this
9 section.
10 (2) An unconditional guaranty of the parent entity in the form
11 required by the agency, with a term of at least one (1) year,
12 under which the parent entity agrees without condition to
13 satisfy in full any and all existing and future monetary
14 obligations of the person, applicant, or licensee covered by all
15 applicable licenses covered under this chapter.
16 (c) For any particular person, applicant, or licensee, the director
17 may consider the following documents and materials, taken
18 together, to be the equivalent of a compilation level, review level,
19 or audit level financial statement for purposes of this section after
20 making the determination required under subsection (b):
21 (1) Copies of state and federal tax returns for the person,
22 applicant, or licensee, for the two (2) years before the most
23 recent fiscal year of the person, applicant, or licensee.
24 (2) Copies of state and federal tax returns for the principals,
25 members, shareholders, or other owners of or stakeholders in
26 the person, applicant, or licensee.
27 (3) Current reports or similar accounting documents showing
28 all outstanding payables and receivables, with each due date
29 and party, including contact information.
30 (4) A business plan covering the next five (5) fiscal years of the
31 person, applicant, or licensee and signed by a principal,
32 member, shareholder, owner, or executive or other officer of
33 the person, applicant, or licensee.
34 (5) A proposed agreement between the person, applicant, or
35 licensee and the agency, in the form required by the agency,
36 where the person, applicant, or licensee agrees to use certain
37 risk management practices, which the director determines are
38 necessary or appropriate under the circumstances, to mitigate
39 the risk of loss by the person, applicant, or licensee in the
40 futures or options market.
41 (6) Other documents or materials as the director may by rule
42 identify.
2025	IN 1419—LS 7600/DI 150 20
1 (d) If a financial statement is required under this chapter, a
2 person, applicant, or licensee may submit the equivalent of a
3 review level or audit level financial statement under subsection (b)
4 or (c) if the person, applicant, or licensee obtains preapproval from
5 the director before the financial statement is or would be required
6 to be submitted under this chapter and complies with the
7 following:
8 (1) At least forty-five (45) days before the financial statement
9 is or would be required to be submitted under this chapter,
10 the person, applicant, or licensee submits to the director a
11 letter regarding the financial statement requirement that
12 includes the following:
13 (A) Identifies the person, applicant, or licensee submitting
14 the letter and each section of this chapter that the person,
15 applicant, or licensee is or will be required to submit a
16 financial statement.
17 (B) Encloses all the documents and materials required
18 under subsection (b) or (c).
19 (C) A detailed explanation regarding why, under the
20 particular circumstances, the director should consider all
21 the documents and materials required under subsection (b)
22 or (c), as submitted, to be the equivalent of a review level
23 or audit level financial statement.
24 (D) States whether the person, applicant, or licensee is
25 seeking to submit the documents and materials required
26 under subsection (b) or (c) only once, in perpetuity, or for
27 some other set period.
28 (E) Sets forth contact information for the person,
29 applicant, or licensee.
30 (2) Upon receipt by the director of a letter under subdivision
31 (1), the director shall do the following:
32 (A) Conduct a review of the letter and its enclosures,
33 including contacting the person, applicant, or licensee if
34 necessary and reviewing any other documents,
35 information, or other materials already available to the
36 director.
37 (B) Determine whether the enclosures should be considered
38 to be the equivalent of a review level or audit level
39 financial statement under the circumstances and for the
40 reasons set forth in the letter.
41 (C) Issue a notice of financial statement determination to
42 the person, applicant, or licensee that sets forth the
2025	IN 1419—LS 7600/DI 150 21
1 director's determination under clause (B), that includes the
2 reasons under subdivision (3), and whether the
3 determination will apply only once, in perpetuity, or for
4 another set period, as determined by the director.
5 (3) In reviewing the letter and its enclosures to make the
6 determination under subdivision (2)(A) and (2)(B), the
7 director shall consider the following:
8 (A) Whether the documents and materials required under
9 subsection (b) or (c), as submitted by the particular person,
10 applicant, or licensee, adequately supply the director and
11 the agency with sufficient information regarding the
12 person, applicant, or licensee for the agency to perform its
13 statutory functions under this chapter with respect to the
14 person, applicant, or licensee.
15 (B) Whether it would be reasonable and appropriate for
16 the director to continue to accept the documents and
17 materials required under subsection (b) or (c) from the
18 person, applicant, or licensee, in perpetuity or for some
19 other set period, including, the length of the guaranty
20 required under subsection (b)(2).
21 (4) Any letter under subdivision (1) and any response under
22 subdivisions (2) and (3), including the director's
23 determination under subdivisions (2)(B) and (3), applies only
24 to the person, applicant, or licensee who submitted the letter
25 under subdivision (1).
26 SECTION 12. IC 26-3-7-6.3, AS AMENDED BY P.L.208-2021,
27 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2025]: Sec. 6.3. (a) The grain buyers and warehouse licensing
29 agency license fee fund is established to provide funds for the
30 administration of this chapter and IC 26-3-7.5. The fund shall be
31 administered by the agency. The fund consists of:
32 (1) the moisture testing device inspection fees collected under
33 IC 15-11-8-3; IC 26-3-7.5-6;
34 (2) the licensing fees collected under section 6 section 4.4 of this
35 chapter;
36 (3) the fines collected under this chapter;
37 (4) gifts and bequests; and
38 (5) appropriations made by the general assembly.
39 (b) Expenses of administering the fund shall be paid from money in
40 the fund.
41 (c) The treasurer of state shall invest the money in the fund not
42 currently needed to meet the obligations of the fund in the same
2025	IN 1419—LS 7600/DI 150 22
1 manner as other public money may be invested. Interest that accrues
2 from these investments shall be deposited in the fund.
3 (d) Money in the fund at the end of a state fiscal year does not revert
4 to the state general fund.
5 SECTION 13. IC 26-3-7-6.5, AS AMENDED BY P.L.208-2021,
6 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2025]: Sec. 6.5. (a) The names, locations, respective counties,
8 and license status of licensees may be disclosed.
9 (b) Unless in accordance with a judicial order, the director, the
10 agency, its counsel, auditors, or its other employees or agents shall not
11 divulge any other information disclosed by the applications or reports
12 filed or inspections performed under the provisions of this chapter.
13 However, information may be divulged to agents and employees of the
14 agency, the board, as required by subsection (d), the state board of
15 accounts or another entity retained under subsection (f), or to any other
16 legal representative of the state or federal government otherwise
17 empowered to see or review the information.
18 (c) Except as provided in subsection (d), the director may disclose
19 the information described in subsection (b) only in the form of an
20 information summary or profile, or statistical study based upon data
21 provided with respect to more than one (1) warehouse, grain buyer, or
22 buyer-warehouse that does not identify the warehouse, grain buyer, or
23 buyer-warehouse to which the information applies.
24 (d) The director shall disclose to the board, while the board is in
25 executive session, the status and inspection results of any licensee who
26 poses a significant risk of failure the director revoking the licensee's
27 license or who has failed to meet the minimum requirements in section
28 4(e) or 16 14.4 of this chapter. The director may not include any
29 identifying information regarding the licensee. The director may not
30 disclose the information to a board member who has not executed a
31 confidentiality agreement presented by the agency.
32 (e) The director shall provide the board with records of previous
33 failures license revocations to analyze the factors that have led to
34 previous failures. licenses being revoked.
35 (f) The director may use the services of the state board of accounts
36 or retain another entity to assist the agency in investigating any audit
37 results or other factors which indicate the potential for a licensee
38 failure. the revocation of a licensee's license. The director may seek
39 the advice and guidance of the board on selecting an entity or on any
40 other matter.
41 SECTION 14. IC 26-3-7-6.8 IS ADDED TO THE INDIANA CODE
42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2025	IN 1419—LS 7600/DI 150 23
1 1, 2025]: Sec. 6.8. (a) A person that desires to conduct business as
2 a grain buyer, warehouse operator, or buyer-warehouse in Indiana
3 shall submit to the director the following:
4 (1) A completed license application in the form required by
5 the agency.
6 (2) A financial statement that complies with the requirements
7 of this chapter and that reflects the applicant's financial
8 situation on a date not more than fifteen (15) months before
9 the date the applicant first submits any of the license
10 application materials required under this subsection.
11 (3) A completed certificate of deposit, a bond, or other
12 security, in the form required by the agency, and proof of the
13 deposit, bond, or other security sufficient to demonstrate
14 compliance with the requirements of this section, including, as
15 applicable, complete and accurate copies of all instruments,
16 documents, or materials related to the deposit, bond, or other
17 security.
18 (4) A completed certificate of insurance, in the form required
19 by the agency, and proof of insurance sufficient to
20 demonstrate compliance with the requirements of this section.
21 (5) Proof of compliance with the scale certification
22 requirements.
23 (6) A certificate of good standing or other documentation
24 sufficient to demonstrate that the applicant is licensed to do
25 business in Indiana, including a current copy of the
26 applicant's business information that is maintained by the
27 secretary of state.
28 (7) Examples of grain delivery tickets, settlement sheets,
29 purchase agreements, storage agreements, and other similar
30 agreements that comply with the requirements of this chapter,
31 that are to be used by the applicant in conducting business as
32 a licensee in Indiana.
33 (8) Any other documentation that the director determines is
34 necessary to demonstrate that the applicant is in compliance
35 with the requirements for a license under this chapter.
36 (b) Within ninety (90) days of the receipt of all license
37 application materials required under subsection (a), the director
38 or director's designated representative shall review the license
39 application and determine whether the applicant has demonstrated
40 compliance with the requirements for a license under this chapter.
41 (c) An on-premises inspection of each applicable facility located
42 within Indiana is required.
2025	IN 1419—LS 7600/DI 150 24
1 (d) The application must be denied if the applicant is not in full
2 compliance with this chapter before issuing a license.
3 (e) If a license application is denied for any reason under this
4 section, the notice of denial must set forth each reason for the
5 denial, including any failure by the applicant to comply with the
6 requirements of this chapter.
7 (f) An applicant may appeal a decision of the director to deny a
8 license under IC 4-21.5-3.
9 SECTION 15. IC 26-3-7-7 IS AMENDED TO READ AS
10 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) The director may
11 issue or amend a license after the director has:
12 (1) received and approved the required information and
13 documentation; and
14 (2) determined that:
15 (A) the facility or facilities covered by the application are
16 suitable for the proper storage or handling of the grain
17 intended to be stored or handled in the facility or facilities; and
18 (B) the applicant has complied with this chapter and the rules
19 adopted under this chapter.
20 (b) A person may not represent that the person is licensed under this
21 chapter, and may not use a name or description that conveys the
22 impression that the person is licensed, in a receipt or otherwise, unless
23 the person holds an unsuspended and unrevoked license to conduct the
24 business indicated by the license.
25 (c) (a) An applicant for a license under this chapter must show that
26 the applicant:
27 (1) has a good business reputation;
28 (2) has not been involved in improper manipulation of books and
29 records or other improper business practice;
30 (3) (1) has the qualifications and background essential for the
31 conduct of the business to be licensed;
32 (4) employs management and principal officers that have suitable
33 business reputations, background, and qualifications to perform
34 their duties;
35 (5) (2) has not been found guilty of a crime that would affect the
36 licensee's ability to conduct business with integrity; involving
37 illegal activities that involve money, assets, or financial tools
38 for personal gain; and
39 (6) (3) does not employ an officer, director, partner, or manager
40 that has been found guilty of a crime that would affect the
41 licensee's ability to conduct business with integrity. involving
42 illegal activities that involve money, assets, or financial tools
2025	IN 1419—LS 7600/DI 150 25
1 for personal gain.
2 (b) The agency may deny a license to an applicant that has been
3 involved in improper business practices.
4 SECTION 16. IC 26-3-7-8 IS REPEALED [EFFECTIVE JULY 1,
5 2025]. Sec. 8. Upon receipt of an application for a permanent license,
6 the director may issue a temporary license to the applicant for a
7 reasonable time, not to exceed ninety (90) days, as the director deems
8 necessary or advisable to enable the applicant to comply with the
9 further requirements for obtaining a license under this chapter. A
10 temporary license entitles the temporary licensee to the same rights and
11 subjects the temporary licensee to the same duties as if the temporary
12 licensee had a permanent license.
13 SECTION 17. IC 26-3-7-8.5 IS AMENDED TO READ AS
14 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 8.5. (a) If the
15 ownership of a facility or business licensed under this chapter passes
16 to a successor owner, the obligations under this chapter of the original
17 licensee do not cease until the successor owner is properly licensed and
18 has executed a successor's agreement with the agency.
19 (b) A license issued under this chapter is not transferable or
20 assignable to any person, including successors in interest to the
21 licensee.
22 SECTION 18. IC 26-3-7-9 IS AMENDED TO READ AS
23 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 9. (a) Each applicant
24 for a license under this chapter shall, as a condition of licensure, file or
25 have on file with the director:
26 (1) a cash deposit;
27 (2) an irrevocable letter of credit;
28 (3) a bond; or
29 (4) any combination of the above;
30 as provided in section 10 of this chapter.
31 (b) A bond filed under this chapter shall:
32 (1) be conditioned upon the faithful performance of all obligations
33 of the licensee under this chapter and the rules adopted under this
34 chapter from the effective date of the bond until the earlier of the
35 date the license is revoked or the bond is canceled as provided in
36 this chapter; and
37 (2) be further conditioned upon the faithful performance of all
38 obligations from the effective date of the bond and thereafter,
39 regardless of whether the licensee's facility or facilities exist on
40 the effective date of the bond or are thereafter assumed prior to
41 the date the licensee's license is revoked or the bond is canceled
42 as provided in this chapter.
2025	IN 1419—LS 7600/DI 150 26
1 (c) The bond must remain in effect during a violation a temporary
2 suspension of the licensee's license, or a period during which the
3 licensee is subject to a cease and desist order.
4 SECTION 19. IC 26-3-7-10, AS AMENDED BY P.L.208-2021,
5 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 10. (a) The minimum amount of bond, letter of
7 credit, or cash deposit required from a licensee is as follows:
8 (1) For a grain bank license or a warehouse license:
9 (A) fifty thousand dollars ($50,000); and
10 (B) ten cents ($0.10) multiplied by the licensed bushel storage
11 capacity of the grain bank or warehouse.
12 (2) For a grain buyer, including a grain buyer that is also a
13 licensee under the warehouse act:
14 (A) fifty thousand dollars ($50,000); or
15 (B) five-tenths percent (0.5%) of the total amount the grain
16 buyer paid for grain purchased from producers during the
17 grain buyer's most recent fiscal year;
18 whichever is greater.
19 (3) For a buyer-warehouse:
20 (A) an amount equal to the sum of:
21 (i) fifty thousand dollars ($50,000); and
22 (ii) ten cents ($0.10) multiplied by the licensed bushel
23 storage capacity of the buyer-warehouse's facility; or
24 (B) five-tenths percent (0.5%) of the total amount the
25 buyer-warehouse paid for grain purchased from producers
26 during the buyer-warehouse's most recent fiscal year;
27 whichever is greater.
28 (b) Except as provided in subsections (g) and (h), the amount of
29 bond, letter of credit, or cash deposit required by this chapter may not
30 exceed three hundred twenty-five thousand dollars ($325,000) per
31 license and may not exceed a total of one million two hundred fifty
32 thousand dollars ($1,250,000) per person.
33 (c) The licensed bushel storage capacity is the maximum number of
34 bushels of grain that the licensee's facility could accommodate as
35 determined by the director or the director's designated representative
36 and shall be increased or reduced in accordance with the amount of
37 space being used for storage from time to time.
38 (d) Instead of a bond or cash deposit, an irrevocable letter of credit
39 in the prescribed amount may be provided with the director as the
40 beneficiary. The director shall adopt rules under IC 4-22-2 to establish
41 acceptable form, substance, terms, and conditions for letters of credit.
42 The director may not release a party from the obligations of the letter
2025	IN 1419—LS 7600/DI 150 27
1 of credit within eighteen (18) fifteen (15) months of the termination of
2 the licensee's license.
3 (e) The director shall adopt rules under IC 4-22-2 to provide for the
4 receipt and retention of cash deposits. However, The director shall may
5 not return a cash deposit to a licensee until the director has taken
6 reasonable precautions to assure that the licensee's obligations and
7 liabilities have been or will be met.
8 (f) If a person is licensed or is applying for licenses to operate two
9 (2) or more facilities in Indiana, the person may give a single bond,
10 letter of credit, or cash deposit to satisfy the requirements of this
11 chapter and the rules adopted under this chapter to cover all the
12 person's facilities in Indiana.
13 (g) If a licensee has a deficiency in the minimum positive tangible
14 net worth required under section 16(a)(2)(B), 16(a)(3)(B), 16(a)(4)(B),
15 or 16(a)(5)(B) 14.4 of this chapter, the licensee shall add to the amount
16 of bond, letter of credit, or cash deposit determined under subsection
17 (a) an amount equal to the deficiency or provide another form of surety
18 as permitted under the rules of the agency.
19 (h) Except as provided in subsections (i) and (j), a licensee may not
20 correct a deficiency in the minimum positive tangible net worth
21 required by section 16(a)(1), 16(a)(2)(A), 16(a)(3)(A), 16(a)(4)(A), or
22 16(a)(5)(A) 14.4 of this chapter by adding to the amount of bond, letter
23 of credit, or cash deposit required by subsection (a).
24 (i) A buyer-warehouse that has a bushel storage capacity of less than
25 one million (1,000,000) bushels or purchases less than one million
26 (1,000,000) bushels of grain per year may correct a deficiency in
27 minimum positive tangible net worth by adding to the amount of bond,
28 letter of credit, or cash deposit determined under subsection (a) if the
29 buyer-warehouse has a minimum positive tangible net worth of at least
30 fifty thousand dollars ($50,000), not including the amount added to the
31 bond, letter of credit, or cash deposit.
32 (j) A buyer-warehouse that has a bushel storage capacity of at least
33 one million (1,000,000) bushels, or purchases at least one million
34 (1,000,000) bushels of grain per year, may correct a deficiency in
35 minimum positive tangible net worth by adding to the amount of bond,
36 letter of credit, or cash deposit determined under subsection (a) if the
37 buyer-warehouse has a minimum positive tangible net worth of at least
38 one hundred thousand dollars ($100,000), not including the amount
39 added to the bond, letter of credit, or cash deposit.
40 (k) If the director or the director's designated representative finds
41 that conditions exist that warrant requiring additional bond or cash
42 deposit, there shall be added to the amount of bond or cash deposit as
2025	IN 1419—LS 7600/DI 150 28
1 determined under the other provisions of this section, a further amount
2 to meet the conditions.
3 (l) If the director or the director's designated representative finds a
4 deficiency in minimum positive tangible net worth before the
5 licensee's next audit by the agency, the director shall issue a notice of
6 deficiency to the licensee stating that the licensee has thirty (30) days
7 to correct the deficiency. If a licensee fails to correct a deficiency in
8 minimum positive tangible net worth within the thirty (30) day period,
9 the director may issue a fine of not more than one thousand dollars
10 ($1,000).
11 (m) If a licensee fails to correct a deficiency in minimum net worth
12 within sixty (60) days of receiving a fine under subsection (l), the
13 director may issue a temporary suspension of not more than thirty (30)
14 days. The director or the director's designated representative shall grant
15 an opportunity for a hearing as soon as possible following a temporary
16 suspension under this subsection.
17 (n) (m) The director may accept, instead of a single cash deposit,
18 letter of credit, or bond, a deposit consisting of any combination of cash
19 deposits, letters of credit, or bonds in an amount equal to the licensee's
20 obligation under this chapter. The director shall adopt rules under
21 IC 4-22-2 to establish standards for determining the order in which the
22 forms of security on deposit must be used to pay proven claims if the
23 licensee defaults.
24 (o) (n) The director may require additional bonding that the director
25 considers necessary.
26 SECTION 20. IC 26-3-7-14 IS AMENDED TO READ AS
27 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 14. (a) A licensee may
28 not cancel an approved bond or approved insurance unless the director
29 has given prior written approval for the cancellation and has received
30 a substitute cash deposit or has approved a substitute bond or
31 insurance. The surety on a bond may cancel a bond required by this
32 chapter only after the expiration of ninety (90) days from the date the
33 surety mailed a notice of intent to cancel, by registered or certified
34 mail, to the director. An insurance company may cancel insurance
35 required by this chapter only after the expiration of a thirty (30) day
36 period from the mailing, by certified mail, of notice of intent to cancel,
37 to the director. The surety and the insurance company shall, at the time
38 of giving notice to the director, send a copy of the notice to the
39 licensee.
40 (b) Notwithstanding any other provision of this chapter, the license
41 of a licensee shall automatically be suspended fined one thousand
42 dollars ($1,000) for failure to:
2025	IN 1419—LS 7600/DI 150 29
1 (1) file a new bond, letter of credit, or cash deposit within the
2 ninety (90) day period as provided in this section;
3 (2) file new evidence of insurance within the thirty (30) day
4 period as provided in this section; or
5 (3) maintain at all times a bond or cash deposit and insurance as
6 provided in this chapter.
7 The suspension shall continue until the licensee complies with the
8 bonding and insurance requirements of this chapter. If a licensee fails
9 to pay the fine and meet the requirements set forth in this
10 subsection within ninety (90) days, the agency shall revoke the
11 license of the licensee.
12 SECTION 21. IC 26-3-7-14.2 IS ADDED TO THE INDIANA
13 CODE AS A NEW SECTION TO READ AS FOLLOWS
14 [EFFECTIVE JULY 1, 2025]: Sec. 14.2. (a) A licensee under this
15 chapter shall maintain a minimum current ratio of one to one (1:1)
16 or better. The current ratio is determined by dividing a licensee's
17 current assets by the licensee's current liabilities, as demonstrated
18 by the licensee's financial statement submitted to the agency, the
19 quotient of which is rounded to the nearest ten-thousandth (0.0001)
20 decimal place.
21 (b) For purposes of subsection (a), a better ratio includes the
22 absence of a current ratio where the value of a licensee's current
23 liabilities, as demonstrated by the licensee's financial statement
24 submitted to the agency, is zero (0).
25 (c) The addition by the licensee of an amount required under
26 this section does not itself constitute or effect a cure of a current
27 ratio deficiency.
28 (d) If the licensee's demonstrated current ratio is less than the
29 required amount but greater than eighty-five percent (85%) of the
30 required amount, then:
31 (1) the director or the director's designated representative
32 shall issue a notice of deficiency to the licensee; and
33 (2) the licensee shall cure the current ratio deficiency within
34 ninety (90) days from the receipt of the deficiency notice.
35 (e) If the licensee's demonstrated current ratio is less than or
36 equal to eighty-five percent (85%) of the required amount or has
37 not cured the ratio deficiency as required in subsection (d)(2), then
38 the director shall hold a private hearing in accordance with this
39 chapter and issue an order within thirty (30) days of the conclusion
40 of the hearing that:
41 (1) requires the licensee to take certain actions within a set
42 period, not to exceed fifteen (15) months, to remedy the
2025	IN 1419—LS 7600/DI 150 30
1 current ratio deficiency, as the director deems necessary and
2 appropriate; or
3 (2) revokes the license or licenses of the licensee effective
4 immediately.
5 (f) If a licensee, after a hearing in subsection (e):
6 (1) does not meet the requirements in subsection (e)(1); or
7 (2) has an asset to liability ratio that has continued to decline;
8 the director may revoke the license or licenses of the licensee
9 immediately without an additional hearing.
10 (g) Subject to section 31.8 of this chapter, the director shall
11 assess a fine of one thousand dollars ($1,000) against a licensee who
12 does not maintain the minimum ratio requirement under
13 subsection (a).
14 SECTION 22. IC 26-3-7-14.4 IS ADDED TO THE INDIANA
15 CODE AS A NEW SECTION TO READ AS FOLLOWS
16 [EFFECTIVE JULY 1, 2025]: Sec. 14.4. (a) As demonstrated by the
17 licensee's financial statement submitted to the agency, a licensee
18 under this chapter shall maintain a minimum positive tangible net
19 worth, as required under this section.
20 (b) A licensee shall maintain a minimum positive tangible net
21 worth as follows:
22 (1) For a grain bank license, at least one hundred thousand
23 dollars ($100,000).
24 (2) For a warehouse license, an amount at least equal to the
25 sum of:
26 (A) one hundred thousand dollars ($100,000); and
27 (B) ten cents ($0.10) multiplied by the total bushel storage
28 capacity of the facility or facilities covered by the
29 warehouse license.
30 (3) For a grain buyer license, an amount at least equal to the
31 greater of:
32 (A) one hundred thousand dollars ($100,000); or
33 (B) five cents ($0.05) multiplied by the total number of
34 bushels of grain purchased under the grain buyer license
35 during the grain buyer's most recent fiscal year.
36 (4) For a buyer-warehouse license, where the
37 buyer-warehouse license has one (1) or more facilities with a
38 total bushel storage capacity of less than one million
39 (1,000,000) bushels or at which the buyer-warehouse's total
40 annual purchases are less than one million (1,000,000) bushels
41 of grain, an amount at least equal to the greater of:
42 (A) the sum of:
2025	IN 1419—LS 7600/DI 150 31
1 (i) one hundred fifty thousand dollars ($150,000); and
2 (ii) ten cents ($0.10) multiplied by the total bushel
3 storage capacity of the facility or facilities covered by the
4 buyer-warehouse license; or
5 (B) five cents ($0.05) multiplied by the total number of
6 bushels of grain purchased under the buyer-warehouse
7 license during the buyer-warehouse's most recent fiscal
8 year.
9 (5) For a buyer-warehouse license, where the
10 buyer-warehouse license has one (1) or more facilities with a
11 total bushel storage capacity of at least one million (1,000,000)
12 bushels or at which the buyer-warehouse's annual purchases
13 are at least one million (1,000,000) bushels of grain, an
14 amount at least equal to the greater of:
15 (A) the sum of:
16 (i) two hundred thousand dollars ($200,000); and
17 (ii) ten cents ($0.10) multiplied by the total bushel
18 storage capacity of the facility or facilities covered by the
19 buyer-warehouse license; or
20 (B) five cents ($0.05) multiplied by the total number of
21 bushels of grain purchased under the buyer-warehouse
22 license during the buyer-warehouse's most recent fiscal
23 year.
24 (c) If a licensee has more than one (1) license, the licensee shall
25 maintain a minimum positive tangible net worth that is at least
26 equal to the sum of the minimum positive net worth amounts
27 required under subsection (b) for each individual license held by
28 the licensee.
29 (d) A licensee that fails to be above eighty-five percent (85%) of
30 the minimum positive tangible net worth required under this
31 section, as demonstrated by the licensee's financial statement
32 submitted to the agency, may cure the minimum positive tangible
33 net worth deficiency by adding to the amount of the deposit, bond,
34 or other security required under this chapter an amount equal to
35 the difference between the required minimum positive tangible net
36 worth and the licensee's demonstrated net worth.
37 (e) A licensee may cure the minimum positive tangible net worth
38 deficiency by submitting to the agency:
39 (1) a financial statement, in compliance with the requirements
40 of this chapter, and current as of a date within the time
41 specified to cure the deficiency under this section,
42 demonstrating that the licensee meets the required minimum
2025	IN 1419—LS 7600/DI 150 32
1 positive tangible net worth; or
2 (2) a new financial statement, in compliance with the
3 requirements of this chapter, and current as of a date within
4 the time specified to cure the deficiency under this section,
5 demonstrating that the licensee's demonstrated net worth is
6 at least equal to the amount or amounts specified in
7 subsection (b), and by adding to the amount of the deposit,
8 bond, or other security required under this chapter an
9 amount equal to the difference between the required
10 minimum positive tangible net worth and the licensee's
11 demonstrated net worth.
12 (f) The director may, in accordance with this section, require a
13 licensee that has failed to meet the minimum positive tangible net
14 worth requirement to add to the amount of the deposit, bond, or
15 other security required under this section an amount the director
16 deems necessary and appropriate to respond to the minimum
17 positive tangible net worth deficiency. The addition by the licensee
18 of an amount required under this subsection does not itself
19 constitute or effect a cure of a minimum positive tangible net worth
20 deficiency.
21 (g) If the licensee's demonstrated current net worth is less than
22 the required amount but greater than eighty-five percent (85%) of
23 the required amount, then:
24 (1) the director or the director's designated representative
25 shall issue a notice of deficiency to the licensee; and
26 (2) the licensee shall cure the current net worth deficiency
27 within ninety (90) days from the receipt of the deficiency
28 notice.
29 (h) If the licensee's demonstrated current net worth is less than
30 or equal to eighty-five percent (85%) of the required amount or
31 has not cured the ratio deficiency as required in subsection (d),
32 then the director shall hold a private hearing in accordance with
33 this chapter and issue an order within thirty (30) days of the
34 conclusion of the hearing that:
35 (1) requires the licensee to take certain actions within a set
36 period, not to exceed fifteen (15) months, to remedy the
37 current net worth deficiency, as the director deems necessary
38 and appropriate; or
39 (2) revokes the license or licenses of the licensee effective
40 immediately.
41 (i) If a licensee, after a hearing in subsection (h):
42 (1) does not meet the requirements in subsection (h)(1); or
2025	IN 1419—LS 7600/DI 150 33
1 (2) has a net worth that has continued to decline;
2 the director may revoke the license or licenses of the licensee
3 immediately without an additional hearing.
4 (j) Subject to section 31.8 of this chapter, the director shall
5 assess a fine of one thousand dollars ($1,000) on a licensee who
6 does not maintain the net worth requirement under subsection (b).
7 SECTION 23. IC 26-3-7-16 IS REPEALED [EFFECTIVE JULY 1,
8 2025]. Sec. 16. (a) A licensee shall have and maintain a current asset
9 to current liability ratio of one to one (1:1) and shall maintain, as
10 evidenced by the financial statement required by section 6 of this
11 chapter, the following minimum positive net worth:
12 (1) For a grain bank, minimum positive net worth is at least one
13 hundred thousand dollars ($100,000).
14 (2) For a warehouse, minimum positive net worth is at least equal
15 to the sum of:
16 (A) one hundred thousand dollars ($100,000); and
17 (B) ten cents ($0.10) multiplied by the bushel storage capacity
18 of the warehouse.
19 (3) For a grain buyer, minimum positive net worth is:
20 (A) one hundred thousand dollars ($100,000); or
21 (B) five cents ($0.05) multiplied by the total number of
22 bushels of grain purchased by the grain buyer during the grain
23 buyer's most recent fiscal year;
24 whichever is greater.
25 (4) For a buyer-warehouse that has a bushel storage capacity of
26 less than one million (1,000,000) bushels or purchases less than
27 one million (1,000,000) bushels of grain per year, minimum
28 positive net worth is:
29 (A) the sum of:
30 (i) one hundred fifty thousand dollars ($150,000); and
31 (ii) ten cents ($0.10) multiplied by the bushel storage
32 capacity of the buyer-warehouse; or
33 (B) five cents ($0.05) multiplied by the total number of
34 bushels of grain purchased by the buyer-warehouse during the
35 buyer-warehouse's most recent fiscal year;
36 whichever is greater.
37 (5) For a buyer-warehouse that has a bushel storage capacity of at
38 least one million (1,000,000) bushels or purchases at least one
39 million (1,000,000) bushels of grain per year, minimum positive
40 net worth is:
41 (A) the sum of:
42 (i) two hundred thousand dollars ($200,000); and
2025	IN 1419—LS 7600/DI 150 34
1 (ii) ten cents ($0.10) multiplied by the bushel storage
2 capacity of the buyer-warehouse; or
3 (B) five cents ($0.05) multiplied by the total number of
4 bushels of grain purchased by the buyer-warehouse during the
5 buyer-warehouse's most recent fiscal year;
6 whichever is greater.
7 (b) Except as provided in section 10 of this chapter, if a licensee is
8 required to show additional net worth to comply with this section, the
9 licensee may satisfy the requirement by adding to the amount of the
10 bond, letter of credit, or cash deposit required under section 10 of this
11 chapter an amount equal to the additional net worth required or provide
12 another form of surety as permitted under the rules of the agency.
13 (c) The director may adopt rules under IC 4-22-2 to provide that a
14 narrative market appraisal that demonstrates assets sufficient to comply
15 with this section may satisfy the minimum positive net worth
16 requirement.
17 SECTION 24. IC 26-3-7-16.3 IS ADDED TO THE INDIANA
18 CODE AS A NEW SECTION TO READ AS FOLLOWS
19 [EFFECTIVE JULY 1, 2025]: Sec. 16.3. (a) A licensee shall, as a
20 condition of licensure, submit to the agency on an annual basis, and
21 not later than ninety (90) days after the end of the licensee's fiscal
22 year, the following:
23 (1) A completed annual report in the form and as otherwise
24 required in this chapter.
25 (2) A financial statement for the licensee's most recent fiscal
26 year that complies with the requirements of this chapter.
27 (3) The applicable license fee, in a form and manner of
28 payment acceptable to the agency.
29 (b) Before the anniversary date of the license, the licensee shall
30 pay an annual fee in an amount equal to the amount required
31 under section 6 of this chapter. The director may prorate the
32 annual application fee for a license that is modified at least thirty
33 (30) days after the anniversary date of the licensee's license.
34 (c) If a licensee's storage capacity changes between license
35 renewals, the agency shall charge the licensee a fee of two hundred
36 fifty dollars ($250).
37 SECTION 25. IC 26-3-7-16.5, AS AMENDED BY P.L.145-2017,
38 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2025]: Sec. 16.5. (a) Upon learning of the possibility that a
40 shortage exists, either as a result of an inspection or a report or
41 complaint from a depositor, the agency, based on an on-premises
42 inspection, shall make a preliminary determination as to whether a
2025	IN 1419—LS 7600/DI 150 35
1 shortage exists. If a shortage is not discovered, the agency shall treat
2 the audit as it would any other audit.
3 (b) If it is determined that a shortage may exist, the director or the
4 director's designated representative shall hold a hearing as soon as
5 possible to confirm the existence of a shortage as indicated by the
6 licensee's books and records and the grain on hand. Only the licensee,
7 the surety company named on the licensee's bond, the issuer of the
8 irrevocable letter of credit, and any grain depositor who has made a
9 claim or complaint to the agency in conjunction with the shortage shall
10 be considered as interested parties for the purposes of that hearing, and
11 each shall be given notice of the hearing. At the hearing, the director
12 or the director's designated representative shall determine whether
13 there appears to be a reasonable probability that a shortage exists. If it
14 is determined that a reasonable probability exists and that the bond or
15 letter of credit proceeds or the cash deposit should be distributed, a
16 preliminary determination shall be entered to the effect that the
17 licensee has failed to meet its obligations under this chapter or the rules
18 adopted under this chapter. At the hearing, the director or the director's
19 designated representative may order that all proceeds from grain sales
20 are to be held in the form in which they are received and to be kept
21 separate from all other funds held by the licensee. The order may also
22 provide for informal conferences between agency representatives and
23 persons who have or who appear to have grain deposited with the
24 licensee. The surety company shall be permitted to participate in those
25 conferences.
26 (c) In the event that the director determines that the bond or letter
27 of credit proceeds or cash deposit is to be distributed, the agency shall
28 hold a hearing on claims. Notice shall be given to the surety company
29 named on the licensee's bond, the issuer of the irrevocable letter of
30 credit, and to all persons shown by the licensee's books and records to
31 have interests in grain deposited with the licensee. If the agency has
32 actual knowledge of any other depositor or person claiming rights in
33 the grain deposited with the licensee, the bond, the irrevocable letter of
34 credit, or the cash deposit, notice shall also be provided to that person.
35 In addition, public notice shall be provided in newspapers of general
36 circulation that serve the counties in which licensed facilities are
37 located, and notices shall be posted on the licensed premises. At the
38 hearing on claims, the director or the director's designated
39 representative may accept as evidence of claims the report of agency
40 representatives who in informal conferences with depositors have
41 concluded that a claim is directly and precisely supported by the
42 licensee's books and records. When there is disagreement between the
2025	IN 1419—LS 7600/DI 150 36
1 claims of a depositor and the licensee's books and records, the director
2 or the director's designated representative shall hear oral claims and
3 receive written evidence of claims in order to determine the validity of
4 the claim.
5 (d) Any depositor who does not present a claim at the hearing may
6 bring the claim to the agency within fifteen (15) days after the
7 conclusion of the hearing. However, a depositor who has a claim that
8 was involved in the probate of an estate at the time of the claims
9 hearing has one (1) year from the conclusion of the claims hearing to
10 present the claim to the agency.
11 (e) Only grain that has been delivered to a first purchaser licensee
12 for sale or storage under a bailment not more than fifteen (15) months
13 before the date of failure of the licensee revocation of the licensee's
14 license may be considered by the director or the director's designated
15 representative in determining the total proven storage and financial
16 obligations due to depositors and the loss sustained by each depositor
17 who has proven a claim.
18 (f) Following the hearing on claims, the director or the director's
19 designated representative shall make a determination as to the total
20 proven storage and financial obligations due to depositors and the loss
21 sustained by each depositor who has proven a claim. Depositors found
22 to have proven their claims for storage or financial loss shall be proven
23 claimants. In arriving at that loss, in accordance with section 19 of this
24 chapter, the director shall apply all grain on hand or its identifiable
25 proceeds to meet the licensee's obligations to grain depositors of grain
26 of that type. Initial determinations of loss shall be made on the amount
27 of grain on hand, or identifiable proceeds, and shall reduce the amount
28 to which a depositor may have a proven claim. With respect to the
29 remaining unfulfilled obligations, the director shall, for the sole
30 purpose of establishing each depositor's claim under this chapter,
31 establish a date upon which the loss is discovered, shall price the grain
32 as of that date, shall treat all outstanding grain storage obligations not
33 covered by grain on hand or identifiable proceeds as being sold as of
34 that date, and shall determine the extent of each depositor's loss as
35 being the actual loss sustained as of that date. Grain of a specific type
36 on the premises of a licensee must first be applied to meet the licensee's
37 storage obligations with respect to that type of grain. If there is
38 insufficient grain of a specific type on hand to meet all storage
39 obligations with respect to that type of grain, the grain that is present
40 shall be prorated in accordance with the procedures described in this
41 section and section 16.8 of this chapter. The agency shall refer the
42 licensee to the county prosecuting attorney if the licensee does not
2025	IN 1419—LS 7600/DI 150 37
1 have the amount of grain in storage, at the time of the revocation
2 of the license, that the records indicate should be in storage.
3 (g) Upon the failure of the agency to begin an audit, which would
4 serve as the basis for a preliminary administrative determination,
5 within forty-five (45) days of the agency's receipt of a written claim by
6 a depositor, a depositor shall have a right of action upon the bond,
7 letter of credit, or cash deposit. A depositor bringing a civil action need
8 not join other depositors. If the agency has undertaken an audit within
9 the forty-five (45) day period, the exclusive remedy for recovery
10 against the bond, letter of credit, or cash deposit shall be through the
11 recovery procedure prescribed by this section.
12 (h) When the proven claims exceed the amount of the bond, letter
13 of credit, or cash deposit, recoveries of proven claimants shall be
14 prorated in the same manner as priorities are prorated under section
15 16.8 of this chapter.
16 (i) The proceedings and hearings under this section may be
17 undertaken without regard to, in combination with, or in addition to
18 those undertaken in accordance with section 17.1 of this chapter.
19 (j) The findings of the director shall be final, conclusive, and
20 binding on all parties.
21 (k) The director may adopt rules under IC 4-22-2 to determine how
22 the agency may distribute the interest that may accrue from funds held
23 by the agency for the payment of claims.
24 (l) (k) A claim of a licensee for stored grain may not be honored
25 until the proven claims of all other claimants arising from the purchase,
26 storage, and handling of the grain have been paid in full.
27 (m) (l) A claim is considered to be adjudicated if the claimant has:
28 (1) agreed with the director's determination on the claim and not
29 filed an appeal under IC 4-21.5-3; or
30 (2) exhausted the claimant's administrative appeal and judicial
31 review remedies.
32 (n) (m) Subject to the requirements under this chapter, if one (1) or
33 more claimants are not paid in full for the claimants' proven claims, the
34 director shall forward to the Indiana grain indemnity fund board of
35 directors a list of the claimants who are owed money and the balance
36 difference between the amount that the claimant was paid and the
37 amount that the claimant claims to be due each claimant along with
38 a copy of the final order.
39 SECTION 26. IC 26-3-7-16.8, AS AMENDED BY P.L.145-2017,
40 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2025]: Sec. 16.8. (a) A lien against all grain assets of a
42 licensee or a person who is required to be licensed under this chapter
2025	IN 1419—LS 7600/DI 150 38
1 attaches in favor of the following:
2 (1) A lender or other claimant that has a receipt for grain owned
3 or stored by the licensee.
4 (2) A claimant that has a ticket or written evidence, other than a
5 receipt, of a storage obligation of the licensee.
6 (3) A claimant that surrendered a receipt as part of a grain sales
7 transaction if:
8 (A) the claimant was not fully paid for the grain sold; and
9 (B) the licensee failed has had the licensee's license revoked
10 less than twenty-one (21) days after the surrender of the
11 receipt.
12 (4) A claimant that has other written evidence of a sale to the
13 licensee of grain for which the claimant has not been fully paid.
14 (b) A lien under this section attaches and is effective at the earliest
15 of the following:
16 (1) the delivery of the grain for sale, storage, or under a bailment;
17 (2) the commencement of the storage obligation; or
18 (3) the advancement of funds by a lender.
19 (c) A lien under this section terminates when the licensee discharges
20 the claim.
21 (d) If a licensee has failed, had the licensee's license revoked, the
22 lien that attaches under this section is assigned to the agency by
23 operation of this section. If a failed licensee whose license has been
24 revoked is liquidated, a lien under this section continues to attach as
25 a claim against the assets or proceeds of the assets of the licensee that
26 are received or liquidated by the agency.
27 (e) Except as provided in subsection (h), if a licensee has failed, has
28 had the licensee's license revoked, the power to enforce the lien on
29 the licensee's grain assets transfers by operation of this section to the
30 director and rests exclusively with the director who shall allocate and
31 prorate the proceeds of the grain assets as provided in subsections (g)
32 and (i).
33 (f) The lien established under this section has priority over all
34 competing lien claims asserted against the licensee's grain assets.
35 (g) The priority of a lien that attaches under this section is not
36 determined by the date on which the claim arose. If a licensee has
37 failed, licensee's license has been revoked, the director shall enforce
38 lien claims and allocate grain assets and the proceeds of grain assets of
39 the licensee in the following order of priority:
40 (1) First priority is assigned to the following:
41 (A) A lender or other claimant that has a receipt for grain
42 owned or stored by the licensee.
2025	IN 1419—LS 7600/DI 150 39
1 (B) A claimant that has a ticket or written evidence, other than
2 a receipt, of a storage obligation of the licensee.
3 (C) A claimant that surrendered a receipt as part of a grain
4 sales transaction if:
5 (i) the claimant was not fully paid for the grain sold; and
6 (ii) the licensee failed has had the licensee's license
7 revoked less than twenty-one (21) days after the surrender
8 of the receipt.
9 If there are insufficient grain assets to satisfy all first priority
10 claims, first priority claimants shall share pro rata in the assets.
11 (2) Second priority is assigned to all claimants who have written
12 evidence of the sale of grain, such as a ticket, a deferred pricing
13 agreement, or similar grain delivery contract, and who completed
14 delivery less than thirty (30) days before the licensee's failure.
15 revocation of the licensee's license. Claimants under this
16 subdivision share pro rata in the remaining assets if all claimants
17 under subdivision (1) have been paid but insufficient assets
18 remain to fully satisfy all claimants under this subdivision.
19 (3) Third priority is assigned to all other claimants that have
20 written evidence of the sale of grain to the failed revoked license
21 of the licensee. Claimants under this subdivision share pro rata in
22 the distribution of the remaining grain assets.
23 (h) If a claimant under this section brings an action to recover grain
24 assets that are subject to a lien under this section and the agency does
25 not join the action, the director shall, upon request of the claimant,
26 assign the lien to the claimant in order to allow the claimant to pursue
27 the claim to the extent that the action does not delay the resolution of
28 the matter by the agency, the prompt liquidation of the assets, or the
29 ultimate distribution of assets to all claimants.
30 (i) If:
31 (1) a claimant engaged in farming operations granted to one (1)
32 or more secured parties one (1) or more security interests in the
33 grain related to the claimant's claim under this section; and
34 (2) one (1) or more secured parties described in subdivision (1)
35 have given to:
36 (A) the licensee prior written notice of the security interest
37 under IC 26-1-9.1-320(a)(1) or IC 26-1-9-307(1)(a) before its
38 repeal; and
39 (B) the director prior written notice of the security interest
40 with respect to the grain described in subdivision (1) sufficient
41 to give the director a reasonable opportunity to cause the
42 issuance of a joint check under this subsection;
2025	IN 1419—LS 7600/DI 150 40
1 the director shall pay the claimant described in subdivision (1) the
2 portion of the proceeds of grain assets under subsection (e) to which
3 the claimant is entitled under this section by issuance of a check
4 payable jointly to the order of the claimant and any secured party
5 described in subdivision (1) who has given the notices described in
6 subdivision (2). If only one (1) secured party described in subdivision
7 (1) is a payee, the rights of the secured party in the check shall be to the
8 extent of the indebtedness of the claimant to the secured party. If two
9 (2) or more secured parties described in subdivision (1) are payees, the
10 nature, extent, and priority of their respective rights in the check are
11 determined in the same manner as the nature, extent, and priority of
12 their respective security interest under IC 26-1-9.1.
13 SECTION 27. IC 26-3-7-17.1, AS AMENDED BY P.L.145-2017,
14 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 17.1. (a) Whenever the director, as a result of an
16 inspection or otherwise, has reasonable cause to believe that a person
17 to which this chapter is or may be applicable:
18 (1) is conducting business contrary to this chapter or in an
19 unauthorized manner; or
20 (2) has failed, neglected, or refused to observe or comply with any
21 order, rule, or published policy statement of the agency;
22 then the director may undertake any one (1) of the actions prescribed
23 by this section.
24 (b) Upon learning of the possibility that a licensee is acting as
25 described in subsection (a), the director or the director's designated
26 representative may seek an informal meeting with the licensee. At that
27 meeting, which shall must be held at a time and place agreed to by the
28 licensee and the director, the director or the director's designated
29 representative shall discuss the possible violations and may enter into
30 a consent agreement with the licensee under which the licensee agrees
31 to undertake, or to cease, the activities that were the subject of the
32 meeting. The consent agreement may must:
33 (1) provide for a time frame within which the licensee must be in
34 compliance; and
35 (2) state in detail the requirements that must be met to be in
36 compliance, including the requirements under section 31.2(b)
37 of this chapter.
38 (c) Upon learning of the possibility that a person is acting as
39 described in subsection (a), the director or the director's designated
40 representative, except as otherwise provided in this subsection, shall
41 hold a hearing to determine whether a cease and desist order should
42 issue against a licensee or an unlicensed person undertaking activities
2025	IN 1419—LS 7600/DI 150 41
1 covered by this chapter. If the director or the director's designated
2 representative determines that the violation or the prohibited practice
3 is likely to cause immediate insolvency or irreparable harm to
4 depositors, the director or the director's designated representative,
5 without notice, may shall issue a temporary cease and desist order
6 requiring the person to cease and desist from that violation or practice.
7 The order shall become effective upon service on the person and shall
8 remain effective and enforceable pending the completion of all
9 administrative proceedings.
10 (d) Upon a determination, after a hearing held by the director or the
11 director's designated representative, that a person is acting as described
12 in subsection (a), the director may suspend, shall revoke or deny a
13 license. If the director suspends, revokes or denies a license, the
14 director shall publish notice of the suspension, revocation or denial as
15 provided in section 17.5 of this chapter.
16 (e) If the director has reasonable cause to believe that a licensee is
17 acting as described in subsection (a) and determines that immediate
18 action without an opportunity for a hearing is necessary in order to
19 safeguard depositors, the director may suspend a license temporarily
20 without a hearing for a period not to exceed twenty (20) days. When a
21 license is suspended without a hearing, the director or the director's
22 designated representative shall grant an opportunity for a hearing as
23 soon as possible.
24 SECTION 28. IC 26-3-7-17.5, AS AMENDED BY P.L.60-2015,
25 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2025]: Sec. 17.5. (a) Whenever the license of a licensee is
27 suspended or revoked, the director shall:
28 (1) for each facility operated by the licensee, publish a public
29 notice in a newspaper of general circulation that serves the county
30 in which the facility is located; and
31 (2) cause notice of the suspension or revocation to be posted at
32 the facilities covered by the license.
33 (b) Whenever an application for licensure under this chapter is
34 denied, the director may:
35 (1) for each facility operated by the applicant, publish a public
36 notice in a newspaper of general circulation that serves the county
37 in which the facility is located; and
38 (2) cause notice of the denial to be posted at the applicant's
39 facilities.
40 (c) A notice posted under this section may not be removed without
41 the written permission of the director.
42 (d) The director shall adopt rules under IC 4-22-2 to determine the
2025	IN 1419—LS 7600/DI 150 42
1 content of the notices required by this section.
2 SECTION 29. IC 26-3-7-18 IS AMENDED TO READ AS
3 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 18. (a) When a license
4 is revoked, the licensee shall terminate in the manner prescribed by the
5 director all arrangements covering the grain in the facility covered by
6 the license, but shall be permitted, under the direction and supervision
7 of the director or the director's designated representative, to deliver
8 grain previously received.
9 (b) During any suspension of a license, the licensee may, under the
10 direction and supervision of the director or the director's designated
11 representative, operate the facility, but shall not incur any additional
12 obligations to producers.
13 SECTION 30. IC 26-3-7-26 IS AMENDED TO READ AS
14 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 26. Every ticket issued
15 shall embody within its terms:
16 (1) the name of the licensee to whom the grain was delivered;
17 (2) the date the grain was delivered;
18 (3) exact information concerning the type, net weight, and grade
19 factors of the grain received;
20 (4) a statement that the grain described in the ticket is to be taken
21 into storage, is being delivered on contract, or is to be sold under
22 other arrangements;
23 (5) the name of the owner of the grain; and
24 (6) other provisions prescribed by the director.
25 The director may adopt rules under IC 4-22-2 to exempt certain types
26 of grain from these requirements.
27 SECTION 31. IC 26-3-7-26.5, AS ADDED BY P.L.208-2021,
28 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2025]: Sec. 26.5. (a) Beginning after July 1, 2022, A licensee
30 may not:
31 (1) enter into a deferred pricing agreement in connection with
32 grain purchases that extends beyond the crop year for the
33 delivered grain; or
34 (2) transfer the deferred pricing agreement to a new contract
35 beyond the crop year for the delivered grain.
36 (b) If the deferred pricing agreement in connection with a grain
37 purchase was entered into before July 1, 2021, the licensee shall
38 complete the licensee's payment obligations to the seller under the
39 agreement before January 1, 2024. The determined price date of a
40 deferred pricing agreement shall be:
41 (1) the determined price date set forth in the deferred pricing
42 agreement, if that date occurs before January 1, 2024;
2025	IN 1419—LS 7600/DI 150 43
1 (2) if subdivision (1) does not apply, a determined price date that
2 is mutually agreed to by the licensee and the seller; or
3 (3) if subdivisions (1) and (2) do not apply, the date on which the
4 licensee completes the licensee's payment obligations to the
5 seller.
6 (c) If the director or director's designated representative determines
7 that the licensee has not complied with this section, the director shall
8 issue a notice stating that the licensee has thirty (30) days to price grain
9 for the initial deferred pricing agreement.
10 (d) If a licensee fails to price grain within thirty (30) days of the
11 notice in subsection (c), the director may impose a fine on the licensee
12 of not more than one thousand dollars ($1,000). Fines collected under
13 this section must be deposited in the grain buyers and warehouse
14 licensing agency license fee fund established by section 6.3 of this
15 chapter.
16 (e) Notwithstanding section 17.1 of this chapter, if a licensee fails
17 to price grain within sixty (60) days of the date of the notice in
18 subsection (c), the director may impose a fine on the licensee of not
19 more than two thousand five hundred dollars ($2,500) per month until
20 the licensee is in compliance with this section.
21 SECTION 32. IC 26-3-7-27.5 IS ADDED TO THE INDIANA
22 CODE AS A NEW SECTION TO READ AS FOLLOWS
23 [EFFECTIVE JULY 1, 2025]: Sec. 27.5. (a) For purposes of this
24 section, the following apply:
25 (1) "Unencumbered assets" means a licensee's unencumbered
26 assets as demonstrated by the agency's inspection of the
27 licensee's books and records.
28 (2) "Unpaid balance of grain payables" means a licensee's
29 unpaid balance of grain payables demonstrated by the
30 agency's inspection of the licensee's books and records.
31 (b) If an on-premises inspection of a licensee's books and
32 records demonstrates that the licensee, as of the time of the
33 inspection, did not have unencumbered assets with a value at least
34 equal to eighty-five percent (85%) of the unpaid balance of grain
35 payables covered by each license held by the licensee, then:
36 (1) the director or the director's designated representative
37 shall issue a notice of deficiency to the licensee; and
38 (2) the licensee shall cure the unencumbered asset deficiency
39 within ninety (90) days from the receipt of the notice.
40 (c) Unencumbered assets may consist of the aggregate of any of
41 the following:
42 (1) Company owned grain.
2025	IN 1419—LS 7600/DI 150 44
1 (2) Cash on hand.
2 (3) Cash held on account in federally or state licensed
3 financial institutions or in lending institutions of the Federal
4 Farm Credit Administration.
5 (4) Investments held in time accounts with federally or state
6 licensed financial institutions.
7 (5) Direct obligations of the United States government.
8 (6) Balances in grain margin accounts determined by marking
9 to market.
10 (7) Balances due or to become due to the licensee on deferred
11 pricing contracts.
12 (8) Marketable securities, including mutual funds.
13 (9) Irrevocable letters of credit that:
14 (A) comply with the requirements of this chapter; and
15 (B) are in addition to any letter of credit filed with the
16 director to satisfy the deposit, bond, or other security
17 requirements of this chapter.
18 (10) Deferred pricing contract service charges due or to
19 become due to the licensee.
20 (11) Other evidence of proceeds from or of grain that is
21 acceptable to the agency.
22 (12) Seed inventory.
23 (13) Other assets that the agency may include in rules adopted
24 under section 38 of this chapter.
25 (d) If a licensee has more than one (1) license, the
26 unencumbered assets at the time of the inspections under
27 subsection (b) must have a value at least equal to the sum of the
28 amounts required under subsection (b) for each individual license
29 held by the licensee.
30 (e) If the licensee's demonstrated current unencumbered assets
31 is less than or equal to eighty-five percent (85%) of the required
32 amount or the licensee has not cured the unencumbered assets
33 deficiency as required in subsection (b)(2), then the director shall
34 hold a private hearing in accordance with this chapter and issue an
35 order within thirty (30) days of the conclusion of the hearing that:
36 (1) requires the licensee to take certain actions within a set
37 period, not to exceed fifteen (15) months, to remedy the
38 current unencumbered assets deficiency, as the director
39 deems necessary and appropriate; or
40 (2) revokes the license or licenses of the licensee effective
41 immediately.
42 (f) If a licensee, after a hearing in subsection (e):
2025	IN 1419—LS 7600/DI 150 45
1 (1) does not meet the requirements in subsection (e)(1); or
2 (2) has an unencumbered asset deficiency that has continued
3 to decline;
4 the director may revoke the license or licenses of the licensee
5 immediately without an additional hearing.
6 (g) Subject to section 31.8 of this chapter, the director shall
7 assess a fine of one thousand dollars ($1,000) on a licensee who
8 does not maintain the unencumbered asset requirement under
9 subsection (b).
10 (h) Nothing in this section precludes the agency from conducting
11 an on-premises inspection of a licensee at any time the director
12 may consider an inspection to be necessary or appropriate.
13 SECTION 33. IC 26-3-7-28 IS AMENDED TO READ AS
14 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 28. A licensee shall
15 keep in a place of safety complete and correct records and accounts
16 pertaining to the licensee's grain business. The licensee shall retain
17 records and accounts for not less than six (6) five (5) years from the
18 date of the final settlement of the transaction.
19 SECTION 34. IC 26-3-7-30, AS AMENDED BY P.L.64-2009,
20 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2025]: Sec. 30. All receipt forms shall be supplied by the
22 director except where the director, in writing, approves the form and
23 gives permission to a warehouse operator to have receipts printed.
24 Requests for receipts shall be on forms furnished by the director and
25 shall be accompanied by payment to cover the estimated cost of
26 printing, packaging, and shipping, as determined by the director.
27 Where privately printed, the printer shall furnish the director an
28 affidavit showing the amount of the receipts printed, and the serial
29 numbers thereof. All receipts remaining unused shall be recovered by
30 the director or the director's designated representative if the license
31 required by this chapter is terminated or suspended. revoked.
32 SECTION 35. IC 26-3-7-31, AS AMENDED BY P.L.145-2017,
33 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 31. (a) Whenever it appears to the satisfaction of
35 the director that a licensee cannot meet the licensee's outstanding grain
36 obligations owed to depositors, or when a licensee refuses to submit the
37 licensee's records or property to lawful inspection, the director may
38 shall give notice to the licensee to do any one (1) or more of the
39 following:
40 (1) Cover the shortage with grain that is fully paid for.
41 (2) Give additional bond, letter of credit, or cash deposit as
42 required by the director.
2025	IN 1419—LS 7600/DI 150 46
1 (3) Submit to inspection as the director may deem necessary.
2 (b) If the licensee fails to comply with the terms of the notice within
3 five (5) business days from the date of its issuance, or within an
4 extension of time that the director may allow, the director may petition
5 the circuit court, superior court, or probate court of the Indiana county
6 where the licensee's principal place of business is located seeking the
7 appointment of a receiver. If the court determines in accordance with
8 IC 32-30-5 that a receiver should be appointed, upon the request of the
9 licensee the court may appoint the agency or its representative to act as
10 receiver. The agency or its representative shall may not be appointed
11 as receiver except upon the request of the licensee. If the agency or its
12 representative is appointed, any person interested in an action as
13 described in IC 32-30-5-2 may after twenty (20) days request that the
14 agency or its representative be removed as receiver. If the agency or its
15 representative is not serving as receiver, the receiver appointed shall
16 meet and confer with representatives of the agency regarding the
17 licensee's grain related obligations and, before taking any actions
18 regarding those obligations, the receiver and the court shall consider
19 the agency's views and comments.
20 (c) The director shall inform the corporation of any:
21 (1) notice or order issued; or
22 (2) action taken;
23 under this section.
24 SECTION 36. IC 26-3-7-31.2 IS ADDED TO THE INDIANA
25 CODE AS A NEW SECTION TO READ AS FOLLOWS
26 [EFFECTIVE JULY 1, 2025]: Sec. 31.2. (a) If the director
27 determines that an informal meeting under this section is necessary
28 or appropriate, the following procedures apply:
29 (1) The director shall send a notice of an informal meeting to
30 the licensee. The notice shall set forth:
31 (A) Each reason underlying the director's determination
32 that an informal meeting is necessary.
33 (B) The subject matter to be discussed at the informal
34 meeting.
35 (C) A place and time mutually agreed upon, within thirty
36 (30) days of the date of the notice.
37 (D) If appropriate, any documents, information, or other
38 materials to be produced in a manner and at a time and
39 place designated in the notice.
40 (2) The director and the recipient may, at any time before an
41 informal meeting, hold a telephone conference or other
42 informal discussion as necessary to determine the location,
2025	IN 1419—LS 7600/DI 150 47
1 date, and time of the informal meeting.
2 (3) An informal meeting under this section must be conducted
3 in person or via a virtual conference with audio, video, and
4 the ability to share, review, and edit documents or other
5 materials in real time.
6 (4) Minutes summarizing the topics and points discussed,
7 including proposed agreements or remedial actions raised or
8 discussed by the informal meeting participants, must be taken
9 by the agency. A copy of the minutes and any other materials
10 from the informal meeting must be distributed to all
11 participants within five (5) days of the informal meeting.
12 (b) A consent agreement may be entered into by the agency and
13 the licensee in which the licensee agrees to take or refrain from
14 certain actions in relation to the subject matter of the informal
15 meeting. Any consent agreement at a minimum must contain the
16 following:
17 (1) Specific description of the underlying facts giving rise to
18 the consent agreement.
19 (2) Specific steps to be taken by the licensee to rectify or
20 address the subject matter of the informal meeting.
21 (3) Specific deadlines or periods by or within which the
22 licensee is to act, refrain from acting, or perform under the
23 consent agreement.
24 (4) Specific deadlines by which the licensee is to notify the
25 agency that the licensee has performed, in whole or in part,
26 under the consent agreement and, as applicable, that the
27 licensee believes it has addressed the subject matter of the
28 informal meeting.
29 (5) Specific acts or omissions that will constitute a breach of
30 the agreement and specific remedies available to the agency
31 and the licensee to address a breach of the agreement.
32 (c) The existence and content of an informal meeting under
33 subsection (a), along with the minutes of the meeting and any other
34 related documents, information, or material, and a consent
35 agreement under subsection (b) is confidential.
36 SECTION 37. IC 26-3-7-31.4 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2025]: Sec. 31.4. (a) If the director
39 determines that an enforcement action under this chapter is
40 necessary or appropriate, the director may initiate an enforcement
41 action by complying with the following concerning a licensee or
42 other person to which this chapter is or may be applicable:
2025	IN 1419—LS 7600/DI 150 48
1 (1) Providing a notice that must include the following:
2 (A) Each reason underlying the director's determination
3 that a hearing is necessary.
4 (B) The subject matter of the hearing.
5 (C) The location, date, and time of the hearing, which must
6 be at least twenty-one (21) days from receipt of the notice
7 of hearing by the respondent.
8 (2) Providing a corrective plan that complies with the
9 following requirements:
10 (A) Specific description of the underlying facts giving rise
11 to the corrective plan and any relevant procedural history
12 leading to the notice of hearing.
13 (B) Specific steps to be taken by the licensee or person to
14 rectify or otherwise address the subject matter of the
15 notice of hearing.
16 (C) Specific deadlines or periods by or within which the
17 licensee or person is to act, refrain from acting, or perform
18 under the corrective plan.
19 (D) Specific deadlines by which the licensee or person is to
20 notify the agency that the licensee or person has performed
21 under the corrective plan and, as applicable, that the
22 licensee or person believes it has addressed the subject
23 matters of the notice of hearing.
24 (E) Specific acts or omissions that will constitute a breach
25 of the corrective plan and specific remedies available to the
26 agency to address a breach of the corrective plan.
27 (3) The date when the executed corrective plan must be
28 returned to receive the benefit from this section.
29 (4) If appropriate, any documents, information, or other
30 materials to be produced by the respondent in a manner and
31 at a time and place designated in the notice.
32 If the respondent accepts and agrees to timely and fully perform
33 the corrective plan under subdivision (2), the director shall cancel
34 the hearing and send a notice of hearing cancellation to the
35 respondent.
36 (b) If the director determines the licensee has not complied
37 completely with the corrective action plan then the director shall
38 set a hearing as set forth in subsection (a).
39 (c) At the hearing under this section the respondent or the
40 respondent's authorized representative or agent shall appear in
41 person at the location designated in the notice.
42 (d) The director shall personally preside over the hearing and
2025	IN 1419—LS 7600/DI 150 49
1 may examine and take testimony from the respondent, the
2 respondent's authorized representative, or witnesses the
3 respondent or the agency may call.
4 (e) If the respondent fails to appear at the hearing, the director
5 may enter a finding of default against the respondent and issue an
6 order granting the agency any relief authorized under this chapter,
7 including revocation of the respondent's licenses.
8 (f) If the agency issues an order after a hearing, the order must,
9 at a minimum, contain the following:
10 (1) A specific description of the underlying facts giving rise to
11 the hearing, and the evidence adduced at the hearing or
12 considered by the director.
13 (2) A recitation of the procedural history before the hearing.
14 (3) Specific findings of fact on the subject matters of the
15 hearing.
16 (4) Specific conclusions or rulings on the subject matters of
17 the hearing, including whether or how the respondent failed
18 to comply with the requirements of this chapter.
19 (5) Specific consequences imposed on or actions required of
20 the respondent by the order, including the revocation of one
21 (1) or more licenses.
22 (6) Specific steps to be taken by the respondent to rectify or
23 address the subject matter of the hearing or to implement the
24 terms of the order.
25 (7) Specific deadlines or periods by or within which the
26 respondent is to implement and otherwise comply with the
27 order.
28 (8) Specific deadlines by which the respondent is to notify the
29 agency that the respondent has complied with the order.
30 (9) Specific consequences for a failure by the respondent to
31 comply with the order, including future hearings or any other
32 relief against the respondent authorized under this chapter.
33 (g) Notice and a copy of an order issued under this section must
34 be issued to the respondent within five (5) days of the date the
35 order.
36 (h) Failure to comply with an order issued under this section
37 may result in the immediate revocation of the respondent's license
38 without any further notice or hearing. However, the order may
39 provide for further hearings or any other relief or actions
40 authorized under this chapter so that the director may ensure the
41 order is implemented and enforced.
42 SECTION 38. IC 26-3-7-31.6 IS ADDED TO THE INDIANA
2025	IN 1419—LS 7600/DI 150 50
1 CODE AS A NEW SECTION TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2025]: Sec. 31.6. (a) The director may revoke
3 a license by issuing a revocation order upon notice and a hearing
4 held in compliance with the requirements of this chapter.
5 (b) If a license is revoked under this chapter, the licensee shall:
6 (1) Immediately cease all activities covered by the revoked
7 license.
8 (2) Immediately remove all public indications regarding the
9 existence or effectiveness of the revoked license, including the
10 copy of the license physically on display at a facility.
11 (3) Promptly turn over and deliver to the director or the
12 director's designated representative all books, records, and
13 other property related to or containing information on the
14 activities and any obligations covered by the revoked license.
15 (4) Comply with any additional terms and conditions
16 determined by the director that the revocation order imposes
17 on the licensee.
18 (5) Comply with the orders from the director respecting the
19 revoked license, any obligations or activities covered by the
20 revoked license, or the claims administration process.
21 (c) Notwithstanding anything to the contrary in this chapter, a
22 license shall be revoked automatically, without notice and a
23 hearing, if the licensee has done any of, and as of the respective
24 dates or times of, the following:
25 (1) Has filed a voluntary bankruptcy petition under Chapter
26 7 of the federal Bankruptcy Code, as of the date the licensee
27 filed the petition.
28 (2) Has filed:
29 (A) a voluntary bankruptcy petition under Chapter 11, 12,
30 or 13 of the federal Bankruptcy Code; and
31 (B) within seven (7) days of the filing of the petition, either:
32 (i) a liquidating plan not predicated or premised on a
33 prior sale process under Chapter 3 of the federal
34 Bankruptcy Code; or
35 (ii) an affidavit of an owner, member, director, officer,
36 or executive of the licensee stating that the licensee
37 intends to propose a liquidating plan without first
38 conducting a sale process under Chapter 3 of the federal
39 Bankruptcy Code;
40 as of the date the licensee filed the liquidating plan or
41 affidavit.
42 (3) Is the subject of an involuntary bankruptcy petition if the
2025	IN 1419—LS 7600/DI 150 51
1 bankruptcy court has entered an order for relief against the
2 licensee, as of the date and time of the order for relief.
3 (4) Is the subject of a receivership order in any state court, as
4 of the date and time of the receivership order.
5 (5) Is the assignor in an assignment for the benefit of creditors
6 in any state court, as of the date and time of the filing of
7 pleading initiating the proceeding.
8 (6) Is declared by any court of competent jurisdiction to be
9 insolvent, as of the date and time of the order so declaring.
10 (7) Has entered into an agreement obligating the licensee to
11 discontinue and liquidate its business, or the portion of its
12 business covered by the license, without legal or equitable
13 proceedings, as of the effective date of the agreement.
14 (8) Has stated publicly and in writing that it is in the process
15 of discontinuing its business, or the portion of its business
16 covered by the license, or will be liquidating immediately, as
17 of the date and time the writing is published or made widely
18 available.
19 SECTION 39. IC 26-3-7-31.8 IS ADDED TO THE INDIANA
20 CODE AS A NEW SECTION TO READ AS FOLLOWS
21 [EFFECTIVE JULY 1, 2025]: Sec. 31.8. (a) If a fine is assessed under
22 this chapter, the director shall issue a notice to the person or
23 licensee containing the following:
24 (1) The reasons the director assessed the fine, including
25 citations to the applicable provisions of this chapter under
26 which the fine has been assessed.
27 (2) The amount of the assessed fine.
28 (3) The requirement that assessed fine must be fully paid
29 within thirty (30) days of the notice being sent.
30 (4) The manners of payment acceptable to the agency and any
31 other necessary payment instructions.
32 (5) A full copy of this section.
33 (b) If a person or licensee fails to pay the assessed fine under
34 this section, the director may apply any penalty authorized in this
35 chapter, including revocation of a license.
36 SECTION 40. IC 26-3-7-32.5 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2025]: Sec. 32.5. If the director or the
39 director's designated representative is required or permitted to
40 give notice under this chapter, the notice must contain, in addition
41 to information or content required to be included in the notice
42 under this chapter requiring or establishing the notice:
2025	IN 1419—LS 7600/DI 150 52
1 (1) The date on which the notice is issued.
2 (2) The full name and contact information, including
3 telephone number and electronic mail address, for the
4 director, the director's designated representative, or the other
5 employee or agent of the agency responsible for the notice.
6 (3) The full name and contact information, as available to the
7 agency, for the recipient of the notice.
8 (4) The reasons for the notice, including the applicable
9 sections of this chapter under which the fine has been
10 assessed.
11 (5) Any deadlines or other times within which the recipient of
12 the notice may or must act under this chapter.
13 (6) A list of each person to whom the notice is being sent.
14 (7) A list of any enclosures included with the notice.
15 (8) The signature of the director, the director's designated
16 representative, or the other employee or agent of the agency
17 responsible for the notice.
18 SECTION 41. IC 26-3-7-34, AS AMENDED BY P.L.158-2013,
19 SECTION 295, IS AMENDED TO READ AS FOLLOWS
20 [EFFECTIVE JULY 1, 2025]: Sec. 34. (a) A person who knowingly or
21 intentionally violates or fails to comply with this chapter commits a
22 Class A misdemeanor. Each day a person violates this chapter
23 constitutes a separate violation.
24 (b) A person who knowingly or intentionally issues a receipt or
25 ticket, knowing that the grain for which the receipt or ticket is issued
26 has not been actually received at the licensed warehouse, commits a
27 Class A misdemeanor. A person who issues a duplicate, or additional
28 negotiable receipt for grain, knowing that a former negotiable receipt
29 for the same grain or any part of the grain is outstanding and
30 uncancelled, except in the case of a lost, stolen, or destroyed receipt, as
31 provided in section 24 of this chapter, commits a Class A
32 misdemeanor. A person who fraudulently represents, alters, or
33 counterfeits any license provided for in this chapter commits a Level
34 6 felony.
35 (c) Except in case of sale or other disposition of the grain in lawful
36 enforcement of the lien on grain that attaches under this chapter or on
37 a licensee's lawful termination of storage, shipping, or handling
38 agreements, or except as permitted by the rules adopted by the director
39 under IC 4-22-2 section 38 of this chapter to effectuate the purposes
40 of this chapter:
41 (1) a person who knowingly or intentionally delivers grain out of
42 a licensed facility, knowing that a negotiable receipt, the
2025	IN 1419—LS 7600/DI 150 53
1 negotiation of which would transfer the right of possession of the
2 grain is outstanding and uncancelled, without obtaining the
3 possession of the receipt at or before the time of delivery,
4 commits a Level 6 felony; and
5 (2) a person who knowingly or intentionally delivers grain out of
6 a licensed facility, knowing that a non-negotiable receipt or ticket
7 is outstanding and uncancelled, without the prior written approval
8 of the person lawfully entitled to delivery under the
9 non-negotiable receipt or ticket and without delivery being shown
10 on the appropriate records of the licensee, commits a Level 6
11 felony.
12 (d) A person who fraudulently issues a receipt, a ticket, or a weight
13 or grade certificate, knowing that it contains a false statement, or who
14 issues a receipt for grain owned solely or jointly by the person and does
15 not state the fact of the person's ownership in the receipt, commits a
16 Class A misdemeanor.
17 (e) A person who recklessly changes a receipt or ticket subsequent
18 to issuance, except for notation by the licensee of partial delivery,
19 commits a Class B misdemeanor.
20 (f) A person who knowingly or intentionally deposits grain to which
21 the person does not have title or upon which there is a lien or mortgage
22 and who accepts for the grain a receipt or ticket, without disclosing the
23 lack of title or the existence of the lien or mortgage, commits a Level
24 6 felony.
25 (g) A person commits a Class A misdemeanor who knowingly or
26 intentionally:
27 (1) engages in the business of being a grain buyer or operates a
28 warehouse without a valid license issued by the director;
29 (2) engages in the business of being a grain buyer or operates a
30 warehouse without a sufficient cash deposit, letter of credit, or
31 surety bond on file with and in a form approved by the director;
32 or
33 (3) engages in the business of being a grain buyer or operates a
34 warehouse while in violation of the rules adopted by the director.
35 (h) A person commits a Class A misdemeanor who willfully makes
36 or causes to be made a false entry or statement of fact in an application
37 or report filed with the director.
38 (i) A person who is not in compliance with section 3(a)(11) of this
39 chapter may be subject to a fine imposed by the agency of not more
40 than twenty thousand dollars ($20,000), or the suspension of the grain
41 buyer's license for not more than five (5) years, or both.
42 (j) (i) The director may suspend or revoke the license of a licensee
2025	IN 1419—LS 7600/DI 150 54
1 that uses an unlicensed facility to store or handle grain or commits
2 another violation of this chapter.
3 (j) The agency shall report a licensee that is suspected of a
4 criminal violation under this chapter to the county prosecuting
5 attorney or the attorney general.
6 SECTION 42. IC 26-3-7-38 IS ADDED TO THE INDIANA CODE
7 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
8 1, 2025]: Sec. 38. The director or agency may adopt rules under
9 IC 4-22-2 to carry out the purposes and intent of this chapter,
10 including the following:
11 (1) Inspections permitted under this chapter.
12 (2) The receipt and retention of cash deposits.
13 (3) The distribution of interest that may accrue from funds
14 held by the agency for the payment of claims.
15 (4) Acceptable terms for letters of credit.
16 (5) Fines for violations of this chapter.
17 SECTION 43. IC 26-3-7.5 IS ADDED TO THE INDIANA CODE
18 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]:
20 Chapter 7.5. Inspection of Grain Moisture Testing Equipment
21 Sec. 1. As used in this chapter, "agency" refers to the Indiana
22 grain buyers and warehouse licensing agency.
23 Sec. 2. As used in this chapter, "director" means the director of
24 the Indiana grain buyers and warehouse licensing agency.
25 Sec. 3. The director or the director's designated representative
26 shall, at least one (1) time each year, inspect and test all equipment
27 used to test the moisture content of grain purchased from
28 producers.
29 Sec. 4. Each piece of equipment that is tested under this chapter
30 and found to be accurate according to rules or standards
31 prescribed by the United States Department of Agriculture and the
32 agency must bear a seal issued by the office of the director that
33 contains the following information:
34 (1) A statement that the equipment has been tested for
35 accuracy.
36 (2) The date of inspection.
37 (3) The expiration date of the seal.
38 Sec. 5. If an inspection facilitated by the agency results in a
39 failure in a moisture meter, the inspected entity must take the
40 following actions:
41 (1) Have the failed meter calibrated by an entity accepted by
42 the agency.
2025	IN 1419—LS 7600/DI 150 55
1 (2) File a receipt with the agency showing the inspected entity
2 has corrected the failed moisture meter.
3 (3) Receive approval from agency.
4 Sec. 6. (a) The director or the director's designated
5 representative shall charge each inspection site a two hundred
6 dollar ($200) fee for each moisture testing device inspected at the
7 inspection site under this chapter.
8 (b) All fees collected under this section must be deposited in the
9 grain buyers and warehouse licensing agency license fee fund
10 established by IC 26-3-7-6.3.
11 Sec. 7. The agency may:
12 (1) employ persons;
13 (2) make expenditures;
14 (3) require reports and records;
15 (4) make investigations; and
16 (5) take other action;
17 that the agency considers necessary or suitable for the proper
18 administration of this chapter.
19 Sec. 8. (a) The agency may adopt rules under IC 4-22-2 to
20 administer this chapter.
21 (b) A copy of this chapter and the rules adopted under this
22 chapter must be posted in a conspicuous manner at every
23 commercial grain buying site.
24 Sec. 9. A person who recklessly uses equipment:
25 (1) to ascertain the moisture of grain in the process of
26 commercial buying or selling of grain; and
27 (2) that does not bear the seal required by section 4 of this
28 chapter;
29 commits a Class B misdemeanor.
30 SECTION 44. IC 26-4-1-3.5 IS ADDED TO THE INDIANA CODE
31 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
32 1, 2025]: Sec. 3.5. "Basis" means the difference between the flat
33 price contract and a specified futures price of the same or a related
34 commodity.
35 SECTION 45. IC 26-4-1-3.7 IS ADDED TO THE INDIANA CODE
36 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
37 1, 2025]: Sec. 3.7. "Basis contract" means an agreement that
38 establishes the difference between the flat price contract and a
39 specified futures price of the same or a related commodity.
40 SECTION 46. IC 26-4-1-4.5 IS ADDED TO THE INDIANA CODE
41 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
42 1, 2025]: Sec. 4.5. "Claim" means a claim that has been vetted
2025	IN 1419—LS 7600/DI 150 56
1 through the agency process under IC 26-3-7-16.5 where the
2 claimant has provided the agency with documentation of the
3 financial loss the claimant has experienced minus any payments
4 made to the claimant regarding said loss.
5 SECTION 47. IC 26-4-1-5, AS AMENDED BY P.L.75-2010,
6 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2025]: Sec. 5. "Claimant" means a producer that:
8 (1) is a participant in the grain indemnity program;
9 (2) possesses a claim resulting from a failure the revocation of
10 a license of a licensed grain buyer or warehouse; and
11 (3) has a claim that has been adjudicated by the agency under
12 IC 26-3-7-16.5. can provide written documented proof of the
13 type of loss and price at which the financial loss was
14 calculated.
15 SECTION 48. IC 26-4-1-8.1 IS ADDED TO THE INDIANA CODE
16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
17 1, 2025]: Sec. 8.1. "Deferred pricing" means a purchase by a buyer
18 where title to the grain passes to the buyer, in which the actual
19 dollar price to be paid to the seller is not to be determined at the
20 time the grain is received by the buyer or less than twenty-one (21)
21 days of that receipt.
22 SECTION 49. IC 26-4-1-10 IS REPEALED [EFFECTIVE JULY 1,
23 2025]. Sec. 10. "Failed" or "failure" means any of the following:
24 (1) An inability of a licensee to financially satisfy fully all
25 obligations due a claimant.
26 (2) A public declaration of a licensee's insolvency.
27 (3) The nonpayment of a licensee's debts in the ordinary course of
28 business if there is not a good faith dispute.
29 (4) Revocation or suspension of a licensee's license, if the
30 licensee has outstanding indebtedness owed to claimants.
31 (5) Voluntary surrender of a licensee's license, if the licensee has
32 outstanding indebtedness to claimants.
33 (6) Involuntary or voluntary bankruptcy of a licensee.
34 SECTION 50. IC 26-4-1-11 IS AMENDED TO READ AS
35 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 11. "Financial loss"
36 means a loss resulting from the following:
37 (1) A producer not being fully paid for grain that has been
38 delivered and sold to a grain buyer, net of any outstanding charges
39 against the grain.
40 (2) Storage loss.
41 SECTION 51. IC 26-4-1-11.5 IS ADDED TO THE INDIANA
42 CODE AS A NEW SECTION TO READ AS FOLLOWS
2025	IN 1419—LS 7600/DI 150 57
1 [EFFECTIVE JULY 1, 2025]: Sec. 11.5. "Flat price contract" means
2 a contract that sets a fixed price for a specific delivery
3 requirement, where the price is determined by adding the basis to
4 the futures price of the same commodity, which is set before the
5 futures contract expires.
6 SECTION 52. IC 26-4-1-13, AS AMENDED BY P.L.208-2021,
7 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 13. "Grain" means corn for all uses, popcorn,
9 wheat, oats, rye, soybeans, barley, sorghum, oil seeds, other agricultural
10 commodities as approved by the agency, and seed (as defined in
11 IC 26-3-7-2(28)). IC 26-3-7-2(30)). The term does not include canning
12 crops for processing or sweet corn.
13 SECTION 53. IC 26-4-1-15 IS AMENDED TO READ AS
14 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 15. "Grain indemnity
15 program" means the system created by this article to have in which the
16 board pay pays money out of the fund to producers having financial
17 losses due to a failure. license revocation.
18 SECTION 54. IC 26-4-1-15.7 IS ADDED TO THE INDIANA
19 CODE AS A NEW SECTION TO READ AS FOLLOWS
20 [EFFECTIVE JULY 1, 2025]: Sec. 15.7. "Outstanding charges" and
21 "credits and offsets" include the following:
22 (1) Moisture discounts and drying charges.
23 (2) Foreign material discounts and quality discounts.
24 (3) Storage charges.
25 (4) Deferred pricing charges.
26 (5) Marketing checkoffs.
27 (6) All other deductions from the gross amount due to the
28 producer on the sale of grain.
29 SECTION 55. IC 26-4-1-19.3 IS ADDED TO THE INDIANA
30 CODE AS A NEW SECTION TO READ AS FOLLOWS
31 [EFFECTIVE JULY 1, 2025]: Sec. 19.3. "Revocation of a license"
32 has the meaning set forth in IC 26-3-7-2.
33 SECTION 56. IC 26-4-1-19.7 IS ADDED TO THE INDIANA
34 CODE AS A NEW SECTION TO READ AS FOLLOWS
35 [EFFECTIVE JULY 1, 2025]: Sec. 19.7. "Storage" has the meaning
36 set forth in IC 26-3-7-2.
37 SECTION 57. IC 26-4-1-20, AS AMENDED BY P.L.75-2010,
38 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2025]: Sec. 20. "Storage loss" means a loss to a storage
40 depositor resulting from a failed warehouse operator:
41 (1) whose license has been revoked; and
42 (2) who has not fully satisfying satisfied the warehouse operator's
2025	IN 1419—LS 7600/DI 150 58
1 storage obligation to the depositor, net of any outstanding charges
2 against the grain.
3 SECTION 58. IC 26-4-1-23, AS AMENDED BY P.L.75-2010,
4 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 23. "Warehouse" means any building or other
6 protected enclosure in one (1) general location that is licensed or
7 required to be licensed under IC 26-3-7, which building or other
8 protected enclosure is operated under one (1) ownership and run
9 from a single office, and in which grain is or may be:
10 (1) stored for hire;
11 (2) used for grain bank storage; or
12 (3) used to store company owned grain.
13 and the building or other protected enclosure is operated under one (1)
14 ownership and run from a single office.
15 SECTION 59. IC 26-4-3-2, AS AMENDED BY P.L.208-2021,
16 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2025]: Sec. 2. (a) The corporation's board is created. The
18 governing powers of the corporation are vested in the board, which is
19 composed of thirteen (13) members as described in subsections (b) and
20 (c).
21 (b) The board consists of the following ten (10) voting members:
22 (1) Two (2) members appointed by the largest Indiana
23 organization representing the interests of grain and feed dealers
24 in Indiana.
25 (2) Two (2) members appointed by the largest Indiana
26 organization representing general farm interests in Indiana.
27 (3) One (1) member appointed by the second largest Indiana
28 organization representing general farm interests in Indiana.
29 (4) One (1) member appointed by the largest Indiana organization
30 exclusively representing the interests of corn producers.
31 (5) One (1) member appointed by the largest Indiana organization
32 exclusively representing the interests of soybean producers in
33 Indiana.
34 (6) Two (2) members appointed by the largest Indiana
35 organization representing the interests of bankers in Indiana.
36 (7) One (1) member appointed by the largest Indiana organization
37 representing the interests of the seed trade in Indiana.
38 The members appointed under subdivisions (2) through (5) must be
39 producers.
40 (c) The board consists of the following three (3) nonvoting
41 members:
42 (1) The attorney general.
2025	IN 1419—LS 7600/DI 150 59
1 (2) The treasurer of state.
2 (3) The director of the agency. who shall serve as the chairperson.
3 (d) The:
4 (1) attorney general may designate a licensed attorney
5 representative; and
6 (2) treasurer of state may designate a representative;
7 to serve on the board.
8 (e) At an annual meeting of the board, to be held in July, the
9 members of the board shall elect a chairperson and vice
10 chairperson. The chairperson and vice chairperson must be voting
11 members and serve for a one (1) year term. The chairperson and
12 vice chairperson may be reelected for subsequent one (1) year
13 terms for a maximum of two (2) years in an eight (8) year period.
14 (f) The chairperson shall lead the meetings of the board. When
15 the chairperson is not available the vice chairperson shall lead the
16 meetings of the board. If neither the chairperson or vice
17 chairperson is present, the chairperson may designate a voting
18 member of the board to lead the meeting.
19 SECTION 60. IC 26-4-3-4 IS AMENDED TO READ AS
20 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 4. (a) Except as
21 provided in subsection (b), six (6) voting members constitute a quorum.
22 The affirmative votes of at least six (6) voting members who are
23 present in person are necessary for any action to be taken by the
24 board.
25 (b) A meeting may be adjourned by less than six (6) members.
26 SECTION 61. IC 26-4-3-7, AS AMENDED BY P.L.208-2021,
27 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2025]: Sec. 7. (a) The board shall do the following:
29 (1) Adopt rules, create forms, and establish guidelines to
30 implement this article.
31 (2) Collect and deposit all producer premiums authorized under
32 IC 26-4-4-4 into the fund for investment by the board.
33 (3) Require reports from the agency regarding the financial status
34 of a licensee, while the board is in executive session and without
35 disclosing the name or any other identifying information of the
36 licensee, including the following:
37 (A) Whether there is a risk that a licensee may fail. have the
38 licensee's license revoked.
39 (B) The financial impact to the fund if a licensee identified in
40 clause (A) were to fail. have the licensee's license revoked.
41 (C) The estimated number of potential claimants that could
42 result from the failure revocation of a license of a licensee
2025	IN 1419—LS 7600/DI 150 60
1 identified in clause (A).
2 (D) Any other information the director determines is necessary
3 to solicit the advice of the board regarding the financial status
4 of a licensee.
5 However, the director may not share information under this
6 subdivision with a board member who has not executed a
7 confidentiality agreement.
8 (4) Initiate any action it may consider necessary to compel the
9 grain buyer against whom an awarded claim arose to repay to the
10 fund the sums that are disbursed from the fund in relation to each
11 claim.
12 (5) Initiate any action it may consider necessary to compel the
13 claimant whose claim arose due to a failure the revocation of a
14 license to participate in any legal proceeding, investigation, or
15 questioning by the board in relation to the claim.
16 (6) Within five (5) business days of receiving notice of failure the
17 revocation of a license of a grain buyer, publish notice of the
18 failure revocation in a manner described in IC 5-3.
19 (7) When a claim is made against the fund, hire a manager or
20 management firm, that is not associated with or related to any
21 member of the board, to assist board members in developing
22 agendas, assisting in determining claims made against the
23 fund, presenting the evidence of claims made by the agency,
24 presenting claim information to the board, and other duties
25 determined by the board.
26 (8) Seek independent legal advice when negotiating settlement
27 of claims made against the fund when a claimant does not
28 agree with the amount decided by the board as a fair amount
29 for claims made.
30 (9) Determine whether claims made by producers are
31 legitimate and backed by credible supporting documentation.
32 (10) Deny payments to claimants refusing to produce
33 requested documentation or participate in investigations by
34 the board.
35 (11) With the approval of the majority of the board, make
36 payment from the fund when the payment is necessary for the
37 purpose of compensating claimants under IC 26-4-6.
38 (12) Have subpoena power for credible documentation of
39 losses requested to be paid to claimants by the fund.
40 (b) At the request of the chairperson, the agency shall provide
41 administrative support to the board.
42 SECTION 62. IC 26-4-3-8.5, AS ADDED BY P.L.208-2021,
2025	IN 1419—LS 7600/DI 150 61
1 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2025]: Sec. 8.5. (a) A board member may not discuss any
3 pending claim or potential claim except with another board
4 member, at a board meeting, including at an executive session of
5 the board.
6 (b) If a board member reasonably believes that a conflict of interest
7 exists with respect to the exercise of the board member's official duties
8 in a particular case, the board member:
9 (1) shall disclose that a conflict of interest exists to the board and
10 the agency; and
11 (2) is recused from the proceeding.
12 SECTION 63. IC 26-4-3-9, AS AMENDED BY P.L.208-2021,
13 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2025]: Sec. 9. (a) The corporation may do or shall have any
15 of the following:
16 (1) Perpetual succession by its corporate name as a corporate
17 body.
18 (2) Adopt and make use of an official seal and alter the same at
19 pleasure.
20 (3) Adopt, amend, and repeal bylaws consistent with the
21 provisions of this article for the regulation and conduct of the
22 corporation's affairs and prescribe rules and policies in connection
23 with the performance of the corporation's functions and duties.
24 (4) Use the services of the agency, the Indiana state department
25 of agriculture, and the attorney general when considered
26 necessary in the execution of the duties of the board.
27 (5) Accept gifts, devises, bequests, grants, loans, appropriations,
28 revenue sharing, other financing and assistance, and any other aid
29 from any source and agree to and comply with any attached
30 conditions.
31 (6) Procure insurance against any loss in connection with its
32 operations in the amounts and from the insurers as it considers
33 necessary or desirable.
34 (7) Borrow money from a bank, an insurance company, an
35 investment company, or any other person. The corporation may
36 negotiate the terms of a loan contract. The contract must provide
37 for repayment of the money in not more than forty (40) years and
38 that the loan may be prepaid. The loan contract must plainly state
39 that it is not an indebtedness of the state but constitutes a
40 corporate obligation solely of the corporation and is payable
41 solely from revenues of the corporation or any appropriations
42 from the state that might be made to the corporation for that
2025	IN 1419—LS 7600/DI 150 62
1 purpose.
2 (8) Include in any borrowing amounts considered necessary by the
3 corporation to pay financing charges, interest on the obligations,
4 consultant, advisory, and legal fees, and other expenses necessary
5 or incident to such borrowing.
6 (9) Employ personnel as may be required in the judgment of the
7 corporation, and fix and pay compensation from money available
8 to the corporation from the administrative expenses account.
9 (10) Make, execute, and carry out any and all contracts,
10 agreements, or other documents with any governmental agency or
11 any person, corporation, limited liability company, association,
12 partnership, or other organization or entity necessary or
13 convenient to accomplish the purposes of this article.
14 (11) Upon the request of the director of the agency and the
15 approval of the board, make payment from the fund when the
16 payment is necessary for the purpose of compensating claimants
17 in accordance with the provisions of IC 26-4-6.
18 (12) (11) Have powers necessary or appropriate for the exercise
19 of the powers specifically conferred upon the corporation and all
20 incidental powers customary in corporations.
21 (13) (12) May require a study of fund solvency, practices, and
22 procedures from a third party of the fund as needed.
23 (14) (13) Pay legal fees and legal expenses in actions brought
24 against the corporation or board.
25 (b) The corporation or the board may use the services of a person
26 other than the attorney general to collect money owed to the fund or to
27 litigate claims concerning money owed to the fund.
28 SECTION 64. IC 26-4-4-1, AS AMENDED BY P.L.60-2015,
29 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2025]: Sec. 1. (a) The Indiana grain indemnity fund is
31 established for the purpose of providing money to pay producers for
32 losses incurred due to the failure revocation of a license of a grain
33 buyer or warehouse operator licensed under IC 26-3-7. The fund shall
34 be administered by the board of the corporation.
35 (b) The fund consists of money collected under this chapter.
36 (c) The fund shall operate on a fiscal year of July 1 to June 30.
37 SECTION 65. IC 26-4-4-2, AS AMENDED BY P.L.208-2021,
38 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2025]: Sec. 2. (a) The administrative expense account is
40 created within the fund.
41 (b) The expenses of administering the fund and paying
42 administrative expenses must be paid from money in the administrative
2025	IN 1419—LS 7600/DI 150 63
1 expense account.
2 (c) The board may transfer annually not more than three hundred
3 fifty thousand dollars ($350,000) from the fund to the administrative
4 expense account.
5 (d) Administrative expenses under this section may include:
6 (1) processing refunds;
7 (2) enforcement of the fund;
8 (3) record keeping in relation to the fund;
9 (4) the ordinary management and investment fees connected with
10 the operation of the fund;
11 (5) a study of fund solvency, practices, and procedures;
12 (6) a performance review of the agency's auditing practices and
13 procedures;
14 (7) professional development and training programs for agency
15 staff that are closely relevant to the auditing, licensing, and other
16 regulatory functions of the agency;
17 (8) technology software updates and technology support services
18 that are closely relevant to the auditing, licensing, and other
19 regulatory functions of the agency;
20 (9) professional training for board members on the board
21 members' duties and responsibilities; and
22 (10) the use of supplemental consulting services;
23 (11) hiring a manager or a management firm;
24 (12) hiring legal advice or consultation; and
25 (13) legal fees and legal expenses in actions brought against,
26 or by, the corporation or board and that have been approved
27 by the board.
28 (e) The agency may not use money in the administrative expense
29 account for expenses other than the expenses described in subsection
30 (d).
31 SECTION 66. IC 26-4-4-4, AS AMENDED BY P.L.145-2017,
32 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33 JULY 1, 2025]: Sec. 4. (a) Except as provided in section 8 of this
34 chapter, beginning on July 1, 2015, the producers of grain shall be
35 charged a producer premium equal to two-tenths percent (0.2%) of the
36 price on all marketed grain that is sold to a first purchaser licensee.
37 (b) The producer premiums required under this section are in
38 addition to any other fees or assessments required by law.
39 (c) The amount of the producer premium must be calculated
40 using the gross sales price of the grain, including all premiums and
41 discounts for moisture, quality, variety, or any other characteristic
42 of the grain. The producer premium must be calculated before the
2025	IN 1419—LS 7600/DI 150 64
1 deduction of marketing assessments, storage, drying, cleaning, or
2 any other service charge.
3 SECTION 67. IC 26-4-4-6 IS AMENDED TO READ AS
4 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 6. (a) When purchasing
5 grain, a grain buyer, a grain buyer's agent, or a grain buyer's
6 representative shall:
7 (1) deduct the producer premium described in section 4 of this
8 chapter from the producer's payment; and
9 (2) document the producer premium paid by the producer.
10 (b) A grain buyer shall submit producer premiums collected under
11 subsection (a) to the board for the purpose of financing or contributing
12 to the financing of the fund by:
13 (1) October 31 for producer premiums collected during the
14 months of July, August, and September;
15 (2) January 31 for producer premiums collected during the
16 months of October, November, and December;
17 (3) April 30 for producer premiums collected during the months
18 of January, February, and March; and
19 (4) July 31 for producer premiums collected during the months of
20 April, May, and June.
21 Each grain buyer shall, in accordance with the time frame set forth
22 in this subsection, remit to the corporation the producer premium
23 along with the remittance form provided by the corporation and
24 completed by the grain buyer.
25 SECTION 68. IC 26-4-4-7 IS AMENDED TO READ AS
26 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) The:
27 (1) books and records of each grain buyer must clearly indicate
28 the producer premiums collected by the grain buyer; and
29 (2) portion of the books and records reflecting the premiums
30 collected must be open for inspection by the corporation, board,
31 board's authorized agents, director, or the director's designee
32 designated representative during regular business hours.
33 (b) Each grain buyer shall keep accurate and correct records of
34 grain purchased from producers documenting the producer
35 premiums paid by producers. The records must be maintained by
36 the grain buyer for a period of five (5) years from the date of
37 remittance of the producer premiums to the corporation. The
38 records must be available to authorized agents of the corporation
39 during normal business hours.
40 (b) (c) The corporation, board, board's authorized agent, director, or
41 the director's designee designated representative may take steps
42 reasonably necessary to verify the accuracy of the portion of a grain
2025	IN 1419—LS 7600/DI 150 65
1 buyer's books and records that reflect the premiums collected. The
2 information obtained under this section is confidential for purposes of
3 IC 5-14-3-4(a)(1). Unless otherwise required by judicial order, the
4 information obtained under this section may be disclosed only to
5 parties empowered to see or review the information. The corporation,
6 board, or director may respond to inquiries or disclose information
7 obtained under this section only in accordance with guidelines set forth
8 in IC 26-3-7-6.5.
9 (c) (d) Notwithstanding subsections (a) and (b), (c), the verification
10 permitted under subsection (b) (c) must be completed by the agency
11 unless two-thirds (2/3) of the board vote to have the verification
12 completed by an independent auditor.
13 SECTION 69. IC 26-4-4-8, AS AMENDED BY P.L.60-2015,
14 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 8. (a) The producer premiums required under
16 section 4 of this chapter must be collected until the fund contains more
17 than twenty-five million dollars ($25,000,000), as of June 30 of any
18 given year.
19 (b) Except as provided in subsection (c), after the fund reaches
20 twenty-five million dollars ($25,000,000), the board may not require
21 the collection of additional producer premiums until the amount in the
22 fund drops below twenty million dollars ($20,000,000), as determined
23 under section 9 of this chapter. In a year when the board determines
24 that the fund is at or below twenty million dollars ($20,000,000), the
25 board shall reinstate the collection described in this chapter.
26 (c) The board shall reinstate the collection described in this chapter
27 if as of May 1:
28 (1) the fund contains at least twenty million dollars
29 ($20,000,000);
30 (2) the board is aware of a failure the revocation of a license of
31 a grain buyer; licensee; and
32 (3) the amount of compensation from the fund to cover producers'
33 claims, as determined by the board, is equal to or greater than the
34 amount of money in the fund.
35 (d) Collections must occur from September 1 through August 30
36 any year collections are made.
37 SECTION 70. IC 26-4-5-1, AS AMENDED BY P.L.145-2017,
38 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2025]: Sec. 1. (a) A producer upon and against whom a
40 producer premium is charged and collected under the provisions of this
41 chapter may demand of and by complying with this chapter receive
42 from the fund through the board a refund of the producer premiums
2025	IN 1419—LS 7600/DI 150 66
1 collected from the producer.
2 (b) The board shall develop the form on which a demand for a
3 refund must be filed. The board shall make the form available to grain
4 buyers, producers, and the public upon request.
5 (c) Except as provided in subsection (d), a demand for a refund
6 under this section is only valid if:
7 (1) made in writing and:
8 (A) hand delivered; or
9 (B) sent by first class mail;
10 to the board; and
11 (2) delivered or sent to the board not more than twelve (12)
12 months after the premium was collected.
13 (d) The board may for good cause grant an extension for filing a
14 demand for a refund under this chapter.
15 (e) A producer that requests and receives a refund under this section
16 after June 30, 2015, is not protected and will not be compensated by
17 the grain indemnity program. The board may not consider any refunds
18 claimed before July 1, 2015, in determining whether a producer is
19 covered by the fund.
20 (f) A producer who requests a refund of producer premiums
21 paid is not eligible to be a claimant as of the date the refund check
22 is issued to the producer by the board.
23 (f) (g) Before January 1 of each year in which producer premiums
24 were collected during the immediately preceding calendar year, the
25 board shall send a notice to each producer who requested a refund of
26 producer premiums in any previous year. The notice must inform the
27 producer of the time frame in which a request for a refund must be
28 made and the method of filing for a refund.
29 SECTION 71. IC 26-4-5-2, AS AMENDED BY P.L.145-2017,
30 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2025]: Sec. 2. (a) A producer who has received a refund of a
32 producer premium under section 1 of this chapter after June 30, 2015,
33 and has made a request for reentry may reenter the grain indemnity
34 program if the following conditions are satisfied:
35 (1) The producer petitions the board for approval of reentry into
36 the grain indemnity program by hand delivering or sending by
37 certified mail, return receipt requested, a written request in a form
38 required by the board.
39 (2) The board reviews the producer's petition for reentry and
40 approves the petition.
41 (3) The producer pays into the fund:
42 (A) all previous producer premium refunds; and
2025	IN 1419—LS 7600/DI 150 67
1 (B) interest on the refunds;
2 as determined by the board.
3 (b) A producer that reenters the grain indemnity program under
4 subsection (a)(3) is protected by the program from the time all previous
5 producer premium refunds that were claimed after June 30, 2015, and
6 interest on the refunds, are paid to the fund.
7 (c) A producer who reenters the grain indemnity program may not
8 make a claim on the fund that arises from a failure the revocation of
9 a license that occurs before until six (6) months after the producer
10 meets the requirements for reentry described in subsection (a).
11 SECTION 72. IC 26-4-5-4, AS ADDED BY P.L.145-2017,
12 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2025]: Sec. 4. The board, in coordination with the agency,
14 shall develop educational information to be made available
15 electronically to producers, grain buyers, and warehouse operators,
16 explaining the following:
17 (1) The purpose of the fund.
18 (2) How the fund is operated.
19 (3) An explanation of coverage under the program, including the
20 duration of coverage and limits on losses.
21 (4) The process for claiming a refund.
22 (5) The process for reentering the program.
23 (6) Where a producer may locate information about the producer's
24 status in the program.
25 (7) Materials explaining normal industry marketing terms
26 and the terms meanings.
27 SECTION 73. IC 26-4-6-3, AS AMENDED BY P.L.75-2010,
28 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (b), within
30 ninety (90) days of the board's approval of a claim, the board shall
31 compensate from the fund, in an amount described in section 4 of this
32 chapter and in the manner described in subsection (c), a claimant who
33 has incurred a financial loss or storage loss due to a failure the
34 revocation of a license of a grain buyer or warehouse operator licensed
35 under IC 26-3-7.
36 (b) The time for payment may be extended if the board and claimant
37 mutually agree and put the terms of the payment in writing.
38 (c) If:
39 (1) a claimant engaged in farming operations granted to one (1)
40 or more secured parties one (1) or more security interests in the
41 grain related to the claimant's claim under this section; and
42 (2) one (1) or more secured parties described in subdivision (1)
2025	IN 1419—LS 7600/DI 150 68
1 have given to:
2 (A) the licensee prior written notice of the security interest
3 under IC 26-1-9.1-320(a)(1) or IC 26-1-9-307(1)(a) before its
4 repeal; and
5 (B) the board prior written notice of the security interest with
6 respect to the grain described in subdivision (1) sufficient to
7 give the board a reasonable opportunity to cause the issuance
8 of a joint check under this subsection;
9 the board may compensate the claimant described in subdivision (1) in
10 the amount to which the claimant is entitled under section 4 of this
11 chapter by causing the issuance of a check payable jointly to the order
12 of the claimant and any secured party described in subdivision (1) who
13 has given the notices described in subdivision (2). If only one (1)
14 secured party described in subdivision (1) is a payee, the rights of the
15 secured party in the check shall be to the extent of the indebtedness of
16 the claimant to the secured party. If two (2) or more secured parties
17 described in subdivision (1) are payees, the nature, extent, and priority
18 of their respective rights in the check are determined in the same
19 manner as the nature, extent, and priority of their respective security
20 interest under IC 26-1-9.1.
21 SECTION 74. IC 26-4-6-4, AS AMENDED BY P.L.145-2017,
22 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2025]: Sec. 4. (a) A claimant who has incurred a storage loss
24 due to the failure revocation of a warehouse operator licensed license
25 under IC 26-3-7 is entitled to be compensated by the board from the
26 fund for one hundred percent (100%) of the storage loss incurred less
27 all credits and offsets and any producer premium that would have been
28 due on the sale of the grain. The gross amount of the storage loss shall
29 be as determined by the agency for warehouses licensed under
30 IC 26-3-7 or by the United States Department of Agriculture for
31 warehouses licensed under the United States Warehouse Act. The
32 warehouse operator, agency, and claimants may submit to the agency
33 board evidence related to outstanding charges against stored grain. If
34 the evidence is submitted, the agency shall determine the storage loss
35 payable by the board. However, the outstanding charges may not
36 include uncollected storage charges.
37 (b) Before a storage loss may be paid, the producer must
38 provide to the board evidence that storage fees were paid to the
39 facility for the time in which the grain was stored. The board shall
40 use the following minimum storage fees to determine the storage
41 loss:
42 (1) Barley and barley seed: Five cents ($0.05) per month, per
2025	IN 1419—LS 7600/DI 150 69
1 bushel.
2 (2) Canola and canola seed: Five cents ($0.05) per month, per
3 bushel.
4 (3) Corn and corn seed: Five cents ($0.05) per month, per
5 bushel.
6 (4) Lentils and lentil seed: Five cents ($0.05) per month, per
7 bushel.
8 (5) Oats and oat seed: Five cents ($0.05) per month, per
9 bushel.
10 (6) Popcorn and popcorn seed: Ten cents ($0.10) per month,
11 per bushel.
12 (7) Rye and rye seed: Five cents ($0.05) per month, per bushel,
13 per bushel.
14 (8) Sorghum and sorghum seed: Five cents ($0.05) per month,
15 per bushel.
16 (9) Soybeans and soybean seed: Fifteen cents ($0.15) per
17 month, per bushel.
18 (10) Sunflower and sunflower seed: Five cents ($0.05) per
19 month, per bushel.
20 (11) Wheat and wheat seed: Five cents ($0.05) per month, per
21 bushel.
22 (12) All other field crops and other field crop seed: Five cents
23 ($0.05) per month, per bushel.
24 (b) (c) A claimant who has incurred a financial loss due to the
25 failure revocation of a license of a grain buyer is entitled to be
26 compensated by the board from the fund for eighty percent (80%) of
27 the loss incurred less all credits and offsets and any producer premium
28 that should have been due on the sale of the grain. The agency board
29 shall determine the loss incurred in the following manner:
30 (1) For grain that has been priced, the loss shall be the value of
31 the priced grain less any outstanding charges against the grain.
32 (2) For grain sold to a grain buyer, where the title to the grain
33 has passed to the grain buyer, who is also a warehouse operator
34 and that has not been priced, the loss shall be established using
35 the price determined for the storage obligations.
36 (3) For grain sold to a grain buyer who is not a warehouse
37 operator and that has not been priced, the loss shall be established
38 using a price determined by the agency using the same procedures
39 used by the agency to determine the price at the warehouse.
40 (c) (d) If a producer appeals under IC 4-21.5-3 an order issued by
41 the director under IC 26-3-7-16.5 that postpones the agency from
42 notifying the board of the amount of loss for proven claimants under
2025	IN 1419—LS 7600/DI 150 70
1 IC 26-3-7-16.5(n), IC 26-3-7-16.5(m), the board may issue partial
2 payments to any claimants who have not appealed their claims.
3 SECTION 75. IC 26-4-6-6, AS AMENDED BY P.L.145-2017,
4 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 6. A claimant compensated under this chapter is
6 required to subrogate to the board or corporation all the claimant's
7 rights to collect on a bond issued under IC 26-3-7 or the United States
8 Warehouse Act and all the claimant's rights to any other compensation
9 arising from the failure revocation of a license of the grain buyer or
10 warehouse operator. The claimant shall assign all the claimant's rights,
11 title, and interest in any judgment concerning the failure revocation of
12 a license to the board or corporation.
13 SECTION 76. IC 26-4-6-7 IS AMENDED TO READ AS
14 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. The board shall deny
15 the payment of compensation under this chapter to a claimant who has
16 incurred a financial loss or storage loss due to the failure revocation
17 of a license of a warehouse or grain buyer when the board determines
18 the existence of any of the following:
19 (1) The claimant as payee has failed to present for payment a
20 negotiable instrument issued as payment for grain within ninety
21 (90) days from the date the negotiable instrument is tendered to
22 the claimant in satisfaction of obligations for grain purchased by
23 the licensed grain establishment.
24 (2) The claimant has engaged in conduct or practices that differ
25 from generally accepted marketing practices within the grain
26 industry, as determined by a majority of the board, to an extent
27 that the claimant's actions have substantially contributed to the
28 claimant's loss. The Indiana grain indemnity board may consider
29 whether contracts not excluded under IC 26-3-7-4 IC 26-3-7 are
30 to be generally accepted marketing practices within the grain
31 industry.
32 SECTION 77. IC 26-4-6-8, AS AMENDED BY P.L.75-2010,
33 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 8. After the agency has determined that a grain
35 buyer or warehouse has defaulted payment or failed, had its license
36 revoked, the board shall have the following duties:
37 (1) Determine the valid claims and the amount of such claims to
38 be paid to claimants for financial losses that were incurred due to
39 the failure revocation of a license of a grain buyer or warehouse
40 operator.
41 (2) Investigate and question claimants as to their marketing
42 methods and the losses claimed by the claimants.
2025	IN 1419—LS 7600/DI 150 71
1 (3) Obtain credible documentation of any and all losses
2 claimed by the claimants.
3 (4) Document, in writing, each claim by having the following
4 information presented and approved by the board:
5 (A) Name of the claimant.
6 (B) How long the grain had been stored or sold.
7 (C) If title passed, at what price the financial loss was
8 determined.
9 (D) If stored, at what price the financial loss was
10 determined.
11 (E) Whether the financial loss was a result of normal
12 marketing practices.
13 Any information submitted under this subdivision by the
14 claimant must be signed and affirmed under the penalties for
15 perjury.
16 (2) (5) Authorize payment of money from the fund when
17 necessary for the purpose of compensating claimants in
18 accordance with the provisions of this chapter.
19 (3) (6) Collect money through subrogated claims against bonds
20 filed under IC 26-3-7 in the place of claimants who collected for
21 a loss incurred due to a the revocation of a license of a
22 warehouse or grain buyer. failure.
23 (4) (7) Borrow money as authorized under IC 26-4-3-9 if the fund
24 has insufficient money to cover approved claims.
25 (5) (8) Deposit into the fund any remaining grain assets of a failed
26 grain buyer or warehouse operator whose license has been
27 revoked for the purpose of repayment to the fund the money used
28 to pay claimants, subject to any priority lien right a holder of a
29 mortgage, security interest, or other encumbrance may possess
30 under any other applicable law. Any repayment into the fund may
31 not exceed the principal amount paid to claimants plus interest at
32 the rate paid on ninety (90) day United States Treasury bills.
33 (6) (9) If the amount in the fund is insufficient to pay all approved
34 claims in accordance with this chapter and the board is unable to
35 borrow funds for whatever reason, authorize payment of all the
36 approved claims on a pro rata basis.
37 SECTION 78. IC 26-4-8-4 IS ADDED TO THE INDIANA CODE
38 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
39 1, 2025]: Sec. 4. (a) A member of the board who knowingly violates
40 the terms of a confidentiality agreement executed under this article
41 commits a Class A misdemeanor.
42 (b) A person convicted of violating this section is ineligible to
2025	IN 1419—LS 7600/DI 150 72
1 serve on the board.
2 SECTION 79. IC 35-52-15-1 IS REPEALED [EFFECTIVE JULY
3 1, 2025]. Sec. 1. IC 15-11-8-8 defines a crime concerning the Indiana
4 department of agriculture.
5 SECTION 80. IC 35-52-26-8.5 IS ADDED TO THE INDIANA
6 CODE AS A NEW SECTION TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2025]: Sec. 8.5. IC 26-3-7.5-9 defines a crime
8 concerning grain moisture testing equipment inspections.
9 SECTION 81. IC 35-52-26-12 IS ADDED TO THE INDIANA
10 CODE AS A NEW SECTION TO READ AS FOLLOWS
11 [EFFECTIVE JULY 1, 2025]: Sec. 12. IC 26-4-8-4 defines a crime
12 concerning members of the Indiana grain indemnity corporation
13 board.
14 SECTION 82. [EFFECTIVE JULY 1, 2025] (a) The following are
15 void:
16 (1) 824 IAC 1 (dealers and warehouse licensing and bonding).
17 (2) 824 IAC 2-2-1 (responsibility for compliance).
18 (3) 824 IAC 2-3-2 (expedited hearings).
19 (4) 824 IAC 2-4-2 (transferability).
20 (5) 824 IAC 2-4-3 (fees).
21 (6) 824 IAC 2-4-6(c) (insurance).
22 (7) 824 IAC 2-4-8 (net worth and market appraisals).
23 (8) 824 IAC 2-4-13 (inspection of scales).
24 (9) 824 IAC 2-4-14 (annual license renewal application).
25 (10) 824 IAC 2-5-1 (requirements for auditors).
26 (11) 824 IAC 2-8-2 (stored grain).
27 (12) 824 IAC 2-10-1 (stored grain).
28 (13) 824 IAC 2-11-1 (delivery back to the depositor).
29 (14) 824 IAC 2-13-1 (contracts requirements).
30 (15) 824 IAC 2-16-1 (contents of agency notices when a license
31 is suspended, revoked, or denied).
32 (16) 824 IAC 2-17 (hearing proceedings).
33 (17) 825 IAC 1 (grain indemnity corporation).
34 The publisher of the Indiana Administrative Code and Indiana
35 Register shall remove these provisions from the Indiana
36 Administrative Code.
37 (b) This SECTION expires July 1, 2026.
38 SECTION 83. [EFFECTIVE UPON PASSAGE] (a) Any rules
39 adopted by the Indiana state department of agriculture under
40 IC 15-11-8 in effect on June 30, 2025, are considered rules of the
41 Indiana grain buyers and warehouse licensing agency under
42 IC 26-3-7.5, as added by this act, on July 1, 2025.
2025	IN 1419—LS 7600/DI 150 73
1 (b) This SECTION expires July 1, 2030.
2 SECTION 84. An emergency is declared for this act.
2025	IN 1419—LS 7600/DI 150