CHAPTER 4. INDIANA GRAIN INDEMNITY FUND
IC 26-4-4
Chapter 4. Indiana Grain Indemnity Fund
IC 26-4-4-1
Establishment of fund; fiscal year
Sec. 1. (a) The Indiana grain indemnity fund is established for the
purpose of providing money to pay producers for losses incurred due
to the failure of a grain buyer or warehouse operator licensed under
IC 26-3-7. The fund shall be administered by the board of the
corporation.
(b) The fund shall operate on a fiscal year of July 1 to June 30.
As added by P.L.250-1995, SEC.1. Amended by P.L.173-1999,
SEC.18; P.L.75-2010, SEC.24.
IC 26-4-4-2
Contents of fund; fees and expenses
Sec. 2. (a) The fund consists of money paid into the fund from the
producers of grain under section 4 of this chapter.
(b) The expenses of administering the fund must be paid from
money in the fund. After the fund reaches an amount in excess of ten
million dollars ($10,000,000), the board may annually take not more
than two hundred fifty thousand dollars ($250,000) and allocate it to
a separate administrative expenses account to pay administrative
expenses. Administrative expenses under this section may include:
(1) processing refunds;
(2) enforcement of the fund;
(3) record keeping in relation to the fund; and
(4) the ordinary management and investment fees connected
with the operation of the fund.
(c) Board approved legal fees and legal expenses in actions
brought against the corporation, board, or fund must be paid from
money in the fund. These fees and expenses are not administrative
costs and may not be paid from the administrative expense account.
As added by P.L.250-1995, SEC.1. Amended by P.L.5-2009, SEC.2.
IC 26-4-4-3
Premiums held in trust; investment of fund; interest; reversion
Sec. 3. (a) All producer premiums submitted to the board by a
grain buyer under section 6(b) of this chapter shall be held by the
corporation in trust in the fund for carrying out the purposes of this
article. The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested. Interest earned from
these investments shall be credited to the fund.
(b) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
As added by P.L.250-1995, SEC.1.
IC 26-4-4-4
Producer premiums
Sec. 4. (a) Except as provided in section 8 of this chapter,
beginning on July 1, 1996, the producers of grain shall be charged a
producer premium equal to two-tenths percent (0.2%) of the price on
all marketed grain that is sold in Indiana.
(b) The producer premiums required under this section are in
addition to any other fees or assessments required by law.
As added by P.L.250-1995, SEC.1.
IC 26-4-4-5
Notice of producer premium deductions
Sec. 5. The agency shall notify each grain buyer licensed under
IC 26-3-7 that producer premiums described in section 4 of this
chapter shall be deducted from the purchase price of the grain on and
after the date specified in the notice. The notice must be sent by first
class mail.
As added by P.L.250-1995, SEC.1. Amended by P.L.75-2010,
SEC.25.
IC 26-4-4-6
Submission of producer premiums to finance fund
Sec. 6. (a) When purchasing grain, a grain buyer, a grain buyer's
agent, or a grain buyer's representative shall:
(1) deduct the producer premium described in section 4 of this
chapter from the producer's payment; and
(2) document the producer premium paid by the producer.
(b) A grain buyer shall submit producer premiums collected under
subsection (a) to the board for the purpose of financing or
contributing to the financing of the fund by:
(1) October 31 for producer premiums collected during the
months of July, August, and September;
(2) January 31 for producer premiums collected during the
months of October, November, and December;
(3) April 30 for producer premiums collected during the months
of January, February, and March; and
(4) July 31 for producer premiums collected during the months
of April, May, and June.
As added by P.L.250-1995, SEC.1.
IC 26-4-4-7
Inspection of books and records; verification; confidentiality
Sec. 7. (a) The:
(1) books and records of each grain buyer must clearly indicate
the producer premiums collected by the grain buyer; and
(2) portion of the books and records reflecting the premiums
collected must be open for inspection by the corporation, board,
board's authorized agents, director, or the director's designee
during regular business hours.
(b) The corporation, board, board's authorized agent, director, or
the director's designee may take steps reasonably necessary to verify
the accuracy of the portion of a grain buyer's books and records that
reflect the premiums collected. The information obtained under this
section is confidential for purposes of IC 5-14-3-4(a)(1). Unless
otherwise required by judicial order, the information obtained under
this section may be disclosed only to parties empowered to see or
review the information. The corporation, board, or director may
respond to inquiries or disclose information obtained under this
section only in accordance with guidelines set forth in IC 26-3-7-6.5.
(c) Notwithstanding subsections (a) and (b), the verification
permitted under subsection (b) must be completed by the agency
unless two-thirds (2/3) of the board vote to have the verification
completed by an independent auditor.
As added by P.L.250-1995, SEC.1.
IC 26-4-4-8
Amount of fund; basis for suspension and reinstatement of
producer premium collection
Sec. 8. (a) The producer premiums required under section 4 of this
chapter must be collected until the fund contains more than fifteen
million dollars ($15,000,000) as of June 30 of any given year.
(b) Except as provided in subsection (c), after the fund reaches
fifteen million dollars ($15,000,000), the board may not require the
collection of additional producer premiums until the amount in the
fund drops below ten million dollars ($10,000,000), as determined
under section 9 of this chapter. In a year when the board determines
that the fund is at or below ten million dollars ($10,000,000), the
board shall reinstate the collection described in this chapter.
(c) The board shall reinstate the collection described in this
chapter if as of May 1:
(1) the fund contains at least ten million dollars ($10,000,000);
(2) the board is aware of a failure of a grain buyer; and
(3) the amount of compensation from the fund to cover
producers' claims, as determined by the board, is equal to or
greater than the amount of money in the fund.
As added by P.L.250-1995, SEC.1. Amended by P.L.5-2009, SEC.3.
IC 26-4-4-9
Certification of fund balance; discretion of board to suspend
collection
Sec. 9. (a) At the July meeting required under IC 26-4-3-5, the
board shall certify the amount of money in the fund on June 30.
(b) Except as provided in section 8(c) of this chapter, the board
may not require the collection of a producer premium during a fiscal
year when the board certifies under subsection (a) that the fund has
money in excess of ten million dollars ($10,000,000). If the fund is
at or below ten million dollars ($10,000,000), the board shall
reinstate the collection.
As added by P.L.250-1995, SEC.1. Amended by P.L.5-2009, SEC.4;
P.L.75-2010, SEC.26.
IC 26-4-4-10
Repealed
(Repealed by P.L.268-2001, SEC.2.)