203D.3 - GRAIN DEPOSITORS AND SELLERS INDEMNITY FUND.
203D.3 GRAIN DEPOSITORS AND SELLERS INDEMNITY FUND.
1. The grain depositors and sellers indemnity fund is created in
the state treasury as a separate account. The general fund of the
state is not liable for claims presented against the grain depositors
and sellers indemnity fund under section 203D.6. The fund consists
of a per-bushel fee on purchased grain remitted by licensed grain
dealers and licensed warehouse operators; an annual fee charged to
and remitted by licensed grain dealers and licensed warehouse
operators; delinquency penalties; sums collected by the department by
legal action on behalf of the fund; and interest, property, or
securities acquired through the use of moneys in the fund. The
fiscal year of the fund begins July 1. Fiscal quarters of the fund
begin July 1, October 1, January 1, and April 1. The finances of the
fund shall be calculated on an accrual basis in accordance with
generally accepted accounting principles. The moneys collected under
this section and deposited in the fund shall be used exclusively to
indemnify depositors and sellers as provided in section 203D.6 and to
pay the administrative costs of this chapter.
2. a. A per-bushel fee shall be assessed on all purchased
grain. However, if the grain dealer provides documentation regarding
the transaction satisfactory to the department, the following
transactions shall be excluded from the fee:
(1) Grain purchased from the United States government or any of
its subdivisions or agencies.
(2) Grain purchased from a person licensed as a grain dealer in
any jurisdiction.
(3) Grain purchased under a credit-sale contract entered into on
or before the date of delivery.
b. The grain dealer shall forward the per-bushel fee to the
department on a quarterly basis in the manner and using the forms
prescribed by the department. A licensee is delinquent if the
licensee fails to submit the full fee or quarterly forms when due, or
if upon examination, an underpayment of the fee is found by the
department. The grain dealer is subject to a penalty of ten dollars
for each day the grain dealer is delinquent or an amount equal to the
amount of the deficiency, whichever is less. However, a licensee who
fails to submit the full fee or quarterly forms when due, is subject
to a minimum payment of ten dollars. The department may establish
and apply a margin of error in determining whether a grain dealer is
delinquent. If the per- bushel fee and any penalty due have not been
received by the department within thirty days after notice by the
department, the grain dealer's license shall be suspended. The
per-bushel fee shall be collected only once on each bushel of grain.
3. a. All licensed grain dealers and licensed warehouse
operators shall annually remit a fee to be deposited into the fund
which is determined as follows:
(1) For class 1 grain dealers, five hundred dollars.
(2) For class 2 grain dealers, two hundred fifty dollars.
(3) For licensed warehouse operators, the following:
(a) For intended storage of bulk grain in any quantity less than
twenty thousand bushels, forty-two dollars plus seven dollars for
each two thousand bushels or fraction thereof in excess of twelve
thousand bushels.
(b) For intended storage of bulk grain in any quantity not less
than twenty thousand bushels and not more than fifty thousand
bushels, seventy dollars plus four and a half dollars for each three
thousand bushels or fraction thereof in excess of twenty thousand
bushels.
(c) For intended storage of bulk grain in any quantity not less
than fifty thousand bushels and not more than seventy thousand
bushels, one hundred fifteen dollars plus four and a half dollars for
each four thousand bushels or fraction thereof in excess of fifty
thousand bushels.
(d) For intended storage of bulk grain in any quantity not less
than seventy thousand bushels, one hundred thirty-seven and a half
dollars plus two and three-quarters dollars for each five thousand
bushels or fraction thereof in excess of seventy thousand bushels.
b. Payment of the required amount shall be made before the
grain dealer's or warehouse operator's license is renewed.
4. Payment of the full annual fee shall be made before a grain
dealer's or warehouse operator's license is issued or renewed. If a
licensee amends its license during the fiscal year for which an
annual fee was paid, and the licensing entity remains the same, the
licensee is required to pay a further fee only if the amendment
changes the licensee's class from class 2 to class 1.
5. All disbursements from the fund shall be paid by the treasurer
of state pursuant to vouchers authorized by the department.
6. The administrative costs of this chapter shall be paid from
the fund after approval of the costs by the board.
7. A grain dealer may choose to pass on the cost of a per-bushel
fee to the sellers by an itemized discount noted on the settlement
sheet. However, if the per-bushel fee is not in effect, no grain
dealer shall make such a discount on the purchase of grain. A
discount made nominally for the per-bushel fee while the fee is not
in effect is grounds for license suspension and revocation under
chapter 203. Section History: Recent Form
86 Acts, ch 1152, § 33
C87, § 543A.3
87 Acts, ch 147, §12--15; 88 Acts, ch 1148, §3; 89 Acts, ch 143,
§903--905
C93, § 203D.3
2008 Acts, ch 1083, §15; 2009 Acts, ch 133, §79
Referred to in § 203.2A, 203D.1, 203D.5
See 86 Acts, ch 1246, § 501(3) for permitted uses of interest