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Regular Session, 2010 ENROLLED
SENATE BILL NO. 147
BY SENATORS THOMPSON, LONG, NEVERS, RI SER AND WALSWORTH
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
3407(A), 3410(D), 3410.2(D)(4), the introductory paragraph of 3410.2(F), 3411(B),18
3414.3(L), 3414.4(B), 3419(D) and 3422(D) are hereby amended and reenacted to read as19
follows:20
§3402. Definitions21
As used in this Chapter, the following terms shall have the meanings ascribed22
below:23
* * *24
ACT No. 767 SB NO. 147 ENROLLED
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(4) "Commissioner" means the Louisiana commissioner of agriculture and1
forestry.2
* * *3
§3403. Louisiana Agricultural Commodities Commission; creation; membership;4
terms; panels of nominees; filling of vacancies; oaths of office; per5
diem; quorum; domicile; meetings; successor to State Warehouse6
Commission7
* * *8
C. The tenth member shall be the commissioner of agriculture and forestry,9
who shall serve ex officio, but with all of the powers, rights, duties, and privileges10
as appointed members, including the right to vote on all matters before the11
commission.12
* * *13
§3405. Powers and duties of the commission14
* * *15
B. The commission may:16
* * *17
(2) Establish reasonable guidelines for and require the submission of18
inventory reports and position papers.19
* * *20
§3407. Seizure by commission21
A. The commissioner, with the prior approval of the commission, shall may22
institute legal proceedings by petition in the district court for the district in which the23
licensee is located for an order authorizing the commissioner to effect a seizure of24
the facilities of the licensee and to act as receiver thereof whenever any of the25
following conditions occur:26
* * *27
§3410. Bond required as a condition of warehouse license, time of filing; amount28
of bond, minimum and maximum; approval; notice of cancellation;29
changes in licensed capacity; insurance; alternate security; failure to30 SB NO. 147 ENROLLED
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maintain bond and insurance in full force and effect1
* * *2
D. In any case, the net amount of the bond shall not be not less than3
twenty-five thousand dollars and not more than five hundred thousand dollars.4
* * *5
§3410.2. Grain and Cotton Indemnity Fund; creation; assessment; rules and6
regulations; suspension of assessment; eligibility for reimbursement;7
availability of money; prorated claims; reimbursement for8
administrative expenses; failure to pay; subrogation9
* * *10
D. The commission shall adopt rules and regulations, in accordance with the11
Administrative Procedure Act, necessary for the efficient administration of the Grain12
and Cotton Indemnity Fund. Such rules shall include:13
* * *14
(4) Establish The establishment of civil penalties for violations of this15
Section.16
* * *17
F. A person producer shall be eligible to receive indemnity payments from18
the Grain and Cotton Indemnity Fund if:19
* * *20
§3411. License to buy or sell agricultural commodities; posting requirements for21
grain dealers; duration of license; bond required as a condition of a22
grain dealer license, time of filing, amount of bond, notice of23
cancellation, alternate security; failure to maintain bond and stock24
insurance25
* * *26
B. Each applicant for a grain dealer license shall file the application27
described in R.S. 3:3408 and either demonstrate its competency to engage in the28
business of buying and/or or selling agricultural commodities or satisfactorily29
complete any examination that may be required by the commission prior to licensure.30 SB NO. 147 ENROLLED
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* * *1
§3414.3. Grain sampling and grading2
* * *3
L. No grain dealer shall sell grain in bulk within this state for livestock and4
poultry feed without a statement of the specified grade. The grades shall be5
determined as provided in this Section. The department shall inspect, classify, and6
grade all grain subject to this Subsection. The department may charge a fee for7
inspecting, classifying, and grading grain. The fee shall be fixed by the commission8
by rule and shall be based on the actual cost of providing the service. The provisions9
of this Subsection shall not apply to grain sold for export nor to inbound grain10
intended for export shipment.11
§3414.4. Prompt payment for cotton; suit on bond; private action; attorney fees12
* * *13
B. Any producer from whom cotton was purchased or contracted to be14
purchased and to whom money is due for cotton sold for future delivery as a result15
of the nonperformance of the cotton merchant or cotton agent shall have recourse on16
the bond or alternate security required to be furnished by this Chapter to the extent17
of the loss suffered by the farmer producer, but such recovery against the bonding18
company or alternate security shall not exceed the amount of the bond or the19
alternate security. Limitation of liability as to the bonding company or alternate20
security shall not restrict suits against the cotton merchant or cotton agent for losses21
incurred in excess of the amount of the bond or alternate security. Suit may be22
brought in any parish where the crop or any part thereof was grown or any other23
venue authorized by law. One or more recoveries upon such bond or alternate24
security shall not vitiate same, but no recovery nor the aggregate of multiple25
recoveries upon such bond or alternate security shall ever exceed the full amount26
thereof. Upon suits being filed in excess of the amount of the bond or alternate27
security, the commission may require a new bond or other security in an amount28
sufficient to secure the aggregate amount of such suits, and if such additional29
security is not given within thirty days of demand therefor, the commission may30 SB NO. 147 ENROLLED
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cancel the license of the cotton merchant. In the case of the insolvency of a cotton1
merchant, any cotton producer or cotton landowner having contracts for future2
delivery shall be entitled to participate in the bond or alternate security funds to the3
extent of his pro rata losses under his contract.4
* * *5
§3419. Records required6
* * *7
D. Each warehouse, cotton merchant, and grain dealer shall permit any8
officer or authorized representative of the commission to enter all locations listed on9
the application of such warehouse, cotton merchant, or grain dealer and inspect,10
examine, and/or audit all contents, facilities, equipment, records, books, and accounts11
relating thereto. Such inspection, examination, and/or audit may be made on any12
business day, during normal working hours. The warehouse, cotton merchant, or13
grain dealer shall provide the necessary assistance required for any inspection,14
examination, and/or audit made in accordance with this Chapter or the rules and15
regulations adopted pursuant hereto.16
* * *17
§3422. Commission authorized to charge regulatory fees18
* * *19
D. Every moisture measuring device used or held for use at any20
commercial facility which receives, holds, dries, stores, mills, processes or21
otherwise deals in agricultural commodities in this state, when such use or22
intended use is for the purpose of determining discounts or other price23
variances in connection with the purchase or sale of such commodity, shall be24
registered with the Louisiana Department of Agriculture and Forestry. The25
commission shall register and inspect all moisture meters or other devices used to26
measure moisture in agricultural commodities on an annual basis. The commission27
may establish by rule and regulation a fee for the registration and inspection of28
moisture meters or other such devices not to exceed twenty dollars for registration29
and forty dollars for inspection.30 SB NO. 147 ENROLLED
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Section 2. Subpart B of Part V of Chapter 6 of Title 3 of the Louisiana Revised1
Statutes of 1950, comprised of R.S. 3:691 through 695, Subpart C of Part V of Chapter 6 of2
Title 3 of the Louisiana Revised Statutes of 1950, comprised of R.S. 3:697 through 699,3
3405(B)(1), 3409(I), 3414.3(E) and 3415(B) are hereby repealed in their entirety. 4
Section 3. This Act shall become effective upon signature by the governor or, if not5
signed by the governor, upon expiration of the time for bills to become law without signature6
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If7
vetoed by the governor and subsequently approved by the legislature, this Act shall become8
effective on the day following such approval.9
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: