Mississippi Senate Bill SB2516

Mississippi 2022 Regular Session

• Introduced: 1/17/22
• Refer: 1/17/22
• Failed: 2/1/22

Caption

Grain producer compensation for financial loss in 2021; authorize Commissioner of Agriculture to pay.

Impact

The bill introduces a structured approach for compensating grain producers who face losses due to the insolvency or default of grain warehousemen or dealers. It impacts state laws concerning the licensing and financial responsibilities of grain dealers, mandating they maintain a surety bond or another form of financial assurance to protect producers. This regulation enhances the financial accountability of grain dealers and provides a pathway for producers to recover losses where applicable.

Summary

Senate Bill 2516 amends sections of the Mississippi Code to provide a mechanism for grain producers or individuals possessing warehouse receipts to claim compensation for financial losses incurred due to the failure of grain warehousemen or grain dealers during the calendar year 2021. The bill empowers the Mississippi Commissioner of Agriculture and Commerce to process these claims, which are contingent upon available funds appropriated by the state legislature. It aims to offer a safety net for grain producers by ensuring they can receive financial redress when licensed grain handlers fail to meet their obligations.

Contention

While the bill serves to protect grain producers from financial losses, some stakeholders may raise concerns over the reliance on state appropriations for compensation, risking delays or insufficient responses in case of widespread defaults in the grain industry. Furthermore, the requirement for grain dealers to maintain a surety bond or equivalent may be seen as a regulatory burden by smaller operators within the industry. Balancing protection for producers while ensuring the feasibility for dealers to operate sustainably could become a point of ongoing debate as the bill is implemented.