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Regular Session, 2010
SENATE BILL NO. 147
BY SENATOR THOMPSON
AGRICULTURAL COMMODITIES. Provides relative to changes in the Agricultural
Commodity Dealer and Warehouse Law. (gov sig)
AN ACT1
To amend and reenact R.S. 3:3402(4), 3403(C), 3405(B)(2), the introductory paragraph of2
3407(A), 3410(D), 3410.2(D)(4), the introductory paragraph of 3410.2(F), 3411(B),3
3414.3(L), 3414.4(B), 3419(D) and 3422(D) and to repeal Subpart B of Part V of4
Chapter 6 of Title 3 of the Louisiana Revised Statutes of 1950, comprised of R.S.5
3:691 through 695, Subpart C of Part V of Chapter 6 of Title 3 of the Louisiana6
Revised Statutes of 1950, comprised of R.S. 3:697 through 699, 3405(B)(1), 3409(I),7
3414.3(E) and 3415(B), relative to agricultural commodities; to provide for changes8
in the Agricultural Commodity Dealer and Warehouse Law; to provide relative to9
seizure of facilities; to repeal grain dealer license exams; to provide relative to10
moisture measuring devices and to repeal obsolete provisions related thereto; to11
repeal certain certification requirements related to grain sampling; to repeal certain12
licensure requirements concerning weighmasters; to repeal certain policies for13
sampling and grading grain; to repeal provision requiring design approval for scale14
tickets; to provide for technical corrections; and to provide for related matters.15
Be it enacted by the Legislature of Louisiana:16
Section 1. R.S. 3:3402(4), 3403(C), 3405(B)(2), the introductory paragraph of17 SB NO. 147
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3407(A), 3410(D), 3410.2(D)(4), the introductory paragraph of 3410.2(F), 3411(B),1
3414.3(L), 3414.4(B), 3419(D) and 3422(D) are hereby amended and reenacted to read as2
follows:3
§3402. Definitions4
As used in this Chapter, the following terms shall have the meanings ascribed5
below:6
* * *7
(4) "Commissioner" means the Louisiana commissioner of agriculture and8
forestry.9
* * *10
§3403. Louisiana Agricultural Commodities Commission; creation; membership;11
terms; panels of nominees; filling of vacancies; oaths of office; per12
diem; quorum; domicile; meetings; successor to State Warehouse13
Commission14
* * *15
C. The tenth member shall be the commissioner of agriculture and forestry,16
who shall serve ex officio, but with all of the powers, rights, duties, and privileges17
as appointed members, including the right to vote on all matters before the18
commission.19
* * *20
§3405. Powers and duties of the commission21
* * *22
B. The commission may:23
* * *24
(2) Establish reasonable guidelines for and require the submission of25
inventory reports and position papers.26
* * *27
§3407. Seizure by commission28
A. The commissioner, with the prior approval of the commission, shall may29 SB NO. 147
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institute legal proceedings by petition in the district court for the district in which the1
licensee is located for an order authorizing the commissioner to effect a seizure of2
the facilities of the licensee and to act as receiver thereof whenever any of the3
following conditions occur:4
* * *5
§3410. Bond required as a condition of warehouse license, time of filing; amount6
of bond, minimum and maximum; approval; notice of cancellation;7
changes in licensed capacity; insurance; alternate security; failure to8
maintain bond and insurance in full force and effect9
* * *10
D. In any case, the net amount of the bond shall not be not less than11
twenty-five thousand dollars and not more than five hundred thousand dollars.12
* * *13
§3410.2. Grain and Cotton Indemnity Fund; creation; assessment; rules and14
regulations; suspension of assessment; eligibility for reimbursement;15
availability of money; prorated claims; reimbursement for16
administrative expenses; failure to pay; subrogation17
* * *18
D. The commission shall adopt rules and regulations, in accordance with the19
Administrative Procedure Act, necessary for the efficient administration of the Grain20
and Cotton Indemnity Fund. Such rules shall include:21
* * *22
(4) Establish The establishment of civil penalties for violations of this23
Section.24
* * *25
F. A person producer shall be eligible to receive indemnity payments from26
the Grain and Cotton Indemnity Fund if:27
* * *28
§3411. License to buy or sell agricultural commodities; posting requirements for29 SB NO. 147
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grain dealers; duration of license; bond required as a condition of a1
grain dealer license, time of filing, amount of bond, notice of2
cancellation, alternate security; failure to maintain bond and stock3
insurance4
* * *5
B. Each applicant for a grain dealer license shall file the application6
described in R.S. 3:3408 and either demonstrate its competency to engage in the7
business of buying and/or or selling agricultural commodities or satisfactorily8
complete any examination that may be required by the commission prior to licensure.9
* * *10
§3414.3. Grain sampling and grading11
* * *12
L. No grain dealer shall sell grain in bulk within this state for livestock and13
poultry feed without a statement of the specified grade. The grades shall be14
determined as provided in this Section. The department shall inspect, classify, and15
grade all grain subject to this Subsection. The department may charge a fee for16
inspecting, classifying, and grading grain. The fee shall be fixed by the commission17
by rule and shall be based on the actual cost of providing the service. The provisions18
of this Subsection shall not apply to grain sold for export nor to inbound grain19
intended for export shipment.20
§3414.4. Prompt payment for cotton; suit on bond; private action; attorney fees21
* * *22
B. Any producer from whom cotton was purchased or contracted to be23
purchased and to whom money is due for cotton sold for future delivery as a result24
of the nonperformance of the cotton merchant or cotton agent shall have recourse on25
the bond or alternate security required to be furnished by this Chapter to the extent26
of the loss suffered by the farmer producer, but such recovery against the bonding27
company or alternate security shall not exceed the amount of the bond or the28
alternate security. Limitation of liability as to the bonding company or alternate29 SB NO. 147
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security shall not restrict suits against the cotton merchant or cotton agent for losses1
incurred in excess of the amount of the bond or alternate security. Suit may be2
brought in any parish where the crop or any part thereof was grown or any other3
venue authorized by law. One or more recoveries upon such bond or alternate4
security shall not vitiate same, but no recovery nor the aggregate of multiple5
recoveries upon such bond or alternate security shall ever exceed the full amount6
thereof. Upon suits being filed in excess of the amount of the bond or alternate7
security, the commission may require a new bond or other security in an amount8
sufficient to secure the aggregate amount of such suits, and if such additional9
security is not given within thirty days of demand therefor, the commission may10
cancel the license of the cotton merchant. In the case of the insolvency of a cotton11
merchant, any cotton producer or cotton landowner having contracts for future12
delivery shall be entitled to participate in the bond or alternate security funds to the13
extent of his pro rata losses under his contract.14
* * *15
§3419. Records required16
* * *17
D. Each warehouse, cotton merchant, and grain dealer shall permit any18
officer or authorized representative of the commission to enter all locations listed on19
the application of such warehouse, cotton merchant, or grain dealer and inspect,20
examine, and/or audit all contents, facilities, equipment, records, books, and accounts21
relating thereto. Such inspection, examination, and/or audit may be made on any22
business day, during normal working hours. The warehouse, cotton merchant, or23
grain dealer shall provide the necessary assistance required for any inspection,24
examination, and/or audit made in accordance with this Chapter or the rules and25
regulations adopted pursuant hereto.26
* * *27
§3422. Commission authorized to charge regulatory fees28
* * *29 SB NO. 147
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D. Every moisture measuring device used or held for use at any1
commercial facility which receives, holds, dries, stores, mills, processes or2
otherwise deals in agricultural commodities in this state, when such use or3
intended use is for the purpose of determining discounts or other price4
variances in connection with the purchase or sale of such commodity, shall be5
registered with the Louisiana Department of Agriculture and Forestry. The6
commission shall register and inspect all moisture meters or other devices used to7
measure moisture in agricultural commodities on an annual basis. The commission8
may establish by rule and regulation a fee for the registration and inspection of9
moisture meters or other such devices not to exceed twenty dollars for registration10
and forty dollars for inspection.11
Section 2. Subpart B of Part V of Chapter 6 of Title 3 of the Louisiana Revised12
Statutes of 1950, comprised of R.S. 3:691 through 695, Subpart C of Part V of Chapter 6 of13
Title 3 of the Louisiana Revised Statutes of 1950, comprised of R.S. 3:697 through 699,14
3405(B)(1), 3409(I), 3414.3(E) and 3415(B) are hereby repealed in their entirety. 15
Section 3. This Act shall become effective upon signature by the governor or, if not16
signed by the governor, upon expiration of the time for bills to become law without signature17
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If18
vetoed by the governor and subsequently approved by the legislature, this Act shall become19
effective on the day following such approval.20
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Curry Johnson.
DIGEST
Thompson (SB 147)
Present law (R.S. 3:3407) requires the commissioner, with the prior approval of the
commission, to institute legal proceedings for an order authorizing the commissioner to
effect a seizure of the facilities of a licensee in certain circumstances.
Proposed law retains present law but makes this seizure permissive.
Proposed law deletes provision prohibiting grain dealers from selling grain in bulk within
this state for livestock and poultry feed without a statement of the specified grade.
Present law (R.S. 3:692(A)) requires that every moisture measuring device used or held for
use at any commercial facility which receives, holds, dries, stores, mills, processes or SB NO. 147
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otherwise deals in agricultural commodities in this state, when such use or intended use is
for the purpose of determining discounts or other price variances in connection with the
purchase or sale of such commodity, be registered with the department.
Proposed law (R.S. 3:3422(D)) retains present law but moves the provision.
Present law (R.S. 3:692) requires inspections to be made at least twice annually of all
moisture measuring devices registered with the department.
Proposed law repeals present law.
Present law (R.S. 3:693) provides that a moisture measuring device shall be deemed
defective whenever an inspector determines after inspection and testing that:
(1) The moisture measuring device varies in tolerance in excess of ½ of 1 % with the
testing device used by the inspector; or
(2) The commercial facility does not have available the latest charts for the type of
moisture measuring device being used; or
(3)The facility does not have available accurate and proper scales and thermometers for
use in conjunction with the type of moisture measuring device being used.
Requires that a defective measuring device which cannot be immediately corrected be sealed
and tagged. Requires an owner or user who continues to use a defective device to keep a
record of every commercial sample for which a moisture reading is taken with the defective
device. Further requires an adjustment in figuring any discount or price variance for the
commodity affected. Prohibits use for more than 30 days from the date it is determined to
be defective. Requires notice to be posted that the device has been determined to be out of
tolerance. Further requires moisture measuring devices which have been registered and
inspected and have not been found defective to bear an official tag or sticker from the
department, placed on the devices by the inspector that is readily visible, bearing the date
of inspection and the name of the inspector.
Proposed law repeals present law.
Present law (R.S. 3:694) provides that when any commodity is purchased for which moisture
measurement is customary or required and the seller is subject to discount according to the
moisture content, this moisture content shall be determined only by a moisture measuring
device which has been registered with the department. Provides that any person or facility
which uses or authorizes the use of any moisture measuring device which has not been
registered with the department, except as otherwise may be excluded herein, shall be guilty
of a misdemeanor.
Proposed law repeals present law.
Present law (R.S. 3:695) provides for the following penalties:
(1)Any person who shall hinder or obstruct any inspector in testing, inspecting, tagging
or sealing any moisture measuring device shall be guilty of a misdemeanor and shall
be fined not less than $100 nor more than $500, or confined in the parish jail for not
more than 90 days, or both.
(2)Failure to register a moisture measuring device, use of an unregistered device or use
of a defective device shall subject the owner or user thereof to a fine of $200 a day
for each day of violation.
(3)Falsification, transference or alteration in any manner of an official tag or sticker on SB NO. 147
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a moisture measuring device by any person other than an inspector of the department
shall be a misdemeanor and shall carry a penalty of not less than $100 nor more than
$500, or confinement in the parish jail for not more than 90 days, or both.
Proposed law repeals present law.
Present law (R.S. 3:698) provides that under any contract for the purchase or sale of rice in
Louisiana wherein the price established for such rice is based upon U.S.D.A. grades, and
samples are drawn by qualified personnel of the department submitted to the U.S.D.A. for
grading, the same shall be deemed official samples and the grade applying thereto shall be
recognized as an official grade to the same extent as grades applying to samples drawn and
submitted by personnel of the U.S.D.A.
Proposed law repeals present law.
Present law (R.S. 3:699) requires all personnel within the department authorized to draw
samples of rice to be trained and certified as qualified to draw such samples. Requires the
commissioner to establish procedures for annual certification thereof, and no one will be
allowed to draw rice samples unless he has received the necessary certification. Authorizes
the commissioner to establish by regulation uniform procedures for sampling rice and
identifying the lots from which samples are drawn. Such procedures shall be in substantial
conformance with the procedures used by the U.S.D.A. Allows the commissioner to set
reasonable fees to cover administration cost.
Proposed law repeals present law.
Present law (R.S. 3:3405(1)) allows the La. Agricultural Commodities Commission to
establish minimum scores necessary to satisfactorily pass any examination required by the
commission and administer such examinations at times and places to be determined by the
commission.
Proposed law repeals present law.
Present law (R.S. 3:3409(I)) prohibits issuance of warehouse licenses unless the warehouse
staff includes a weighmaster licensed by the weights and measures division of the
department, provided that the commission may waive the requirement for a licensed
weighmaster for any warehouse which does not normally weigh or certify agricultural
commodities or other farm products stored therein. Authorizes the commission to waive the
requirement for licensure of the weighmaster by the weights and measures division of the
department for any warehouse which employs a weighmaster licensed by the U.S.D.A.
Proposed law repeals present law.
Present law (R.S. 3:3414.3(E)) requires each grain dealer who issues grades for grain to
adopt a policy for sampling and grading grain. Further requires each grain dealer to post the
policy in a prominent place in the area in which grain is delivered.
Proposed law repeals present law.
Present law (R.S. 3:3415(B)) requires the design of each scale ticket to be approved by the
La. Agricultural Commodities Commission.
Proposed law repeals present law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 3:3402(4), 3403(C), 3405((B)(2), 3407(A)(intro para), 3410(D) 3410.2(D)(4),
3410.2(F)(intro para), 3411(B), 3413.3(L), 3414.4(B), 3419(D) and 3422(D); Repeals R.S. SB NO. 147
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3:691-695, 697-699, 3405(B)(1), 3409(I), 3414.3(E), and 3415(B))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Agriculture, Forestry,
Aquaculture, and Rural Development to the original bill.
1. Removes changes to the definition of grain.
2. Removes the repeal of the Louisiana Commodities Marketing Law.
3. Provides for technical corrections.