Iowa 2023-2024 Regular Session

Iowa House Bill HSB572

Introduced
1/17/24  
Introduced
1/17/24  

Caption

A bill for an act providing for certain fees deposited in the grain depositors and sellers indemnity fund, making penalties applicable, and including effective date provisions.

Impact

A key provision of the bill is the amendment of two triggers: the amount required to waive the participation and per-bushel fees is increased from $8 million to $16 million, while the threshold for reinstating these fees is raised from $3 million to $8 million. This legislative change is significant as it alters the financial landscape for operators in the grain marketing sector, which may impact their cost structure and the financial viability of doing business in the state.

Overall

The effective date of HSB572 is immediate upon enactment, signaling the urgency and importance of these adjustments to stakeholders in the agriculture sector. By addressing these financial mechanisms, HSB572 aims to enhance the operating environment for grain dealers and warehouse operators while also ensuring that the indemnity fund remains robust enough to meet potential future claims.

Summary

House Study Bill 572 (HSB572) focuses on the grain marketing industry in Iowa, specifically addressing the fees associated with the Grain Depositors and Sellers Indemnity Fund. The bill proposes changes to the existing indemnity fees that warehouse operators and grain dealers are required to pay. The measures outlined in HSB572 include adjustments to the financial triggers that dictate when these fees can be waived or reinstated based on the balance of the indemnity fund.

Contention

One point of contention generally surrounding such legislative adjustments is how they might affect both the licensees who are responsible for fee payments and the depositors who rely on the indemnity fund for reimbursement in cases of financial failure by licensees. Supporters of the bill argue that raising the thresholds may contribute to a more stable fund management by preventing unnecessary financial burden on operators, whereas critics may raise concerns that higher thresholds could limit the fund's availability to those who truly need it during economic downturns.

Companion Bills

No companion bills found.

Previously Filed As

IA SF608

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

IA SF2401

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

IA SSB3174

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

IA HF999

A bill for an act providing for the marketing of grain by licensed warehouse operators and grain dealers, including by providing for indemnity fees and the indemnification of grain depositors and sellers for losses following the cessation of a license or bankruptcy, and including effective date provisions.(Formerly HF 508, HSB 131.)

IA SF2393

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

IA SSB1131

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

IA HF508

A bill for an act providing for the marketing of grain by licensed warehouse operators and grain dealers, including by providing for indemnity fees and the indemnification of grain depositors and sellers for losses following the cessation of a license or bankruptcy.(Formerly HSB 131; See HF 999.)

IA HSB131

A bill for an act providing for the marketing of grain by licensed warehouse operators and grain dealers, including by providing for indemnity fees and the indemnification of grain depositors and sellers for losses following the cessation of a license or bankruptcy.(See HF 508, HF 999.)

IA SSB1205

A bill for an act providing for financing of certain agricultural commodity programs, by reducing and eliminating fees imposed on licensed grain dealers and warehouse operators, replacing those moneys with moneys collected from a percentage of state assessments imposed on the sale of corn and soybeans, increasing moneys deposited into the grain depositors and sellers indemnity fund, increasing indemnification amounts, and making appropriations.(See SF 556.)

IA SF556

A bill for an act providing for financing of certain agricultural commodity programs, by reducing and eliminating fees imposed on licensed grain dealers and warehouse operators, replacing those moneys with moneys collected from a percentage of state assessments imposed on the sale of corn, increasing moneys deposited into the grain depositors and sellers indemnity fund, increasing indemnification amounts, and making appropriations.(Formerly SSB 1205.)

Similar Bills

No similar bills found.