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H0090aa.............................................by AGRICULTURAL AFFAIRS
BONDED WAREHOUSES - Amends existing law relating to bonded warehouses to
clarify the definition of "failure"; and to clarify the use of the term
"failure."
01/21 House intro - 1st rdg - to printing
01/22 Rpt prt - to Agric Aff
02/08 Rpt out - to Gen Ord
02/10 Rpt out amen - to engros
02/11 Rpt engros - 1st rdg - to 2nd rdg as amen
02/12 2nd rdg - to 3rd rdg as amen
02/17 3rd rdg as amen - PASSED - 65-0-4
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Hadley,
Hammond, Hansen(23), Hansen(29), Henbest, Jaquet, Jones, Judd,
Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh, Loertscher, Mader,
Marley, McKague, Meyer, Mortensen, Moyle, Pischner, Pomeroy,
Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Smith,
Stevenson, Stoicheff, Stone, Taylor(Taylor), Tilman, Tippets, Trail,
Watson, Wheeler, Williams, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Gould, Hornbeck, Linford, Montgomery,
Dist. 15, Seat A, Vacant
Floor Sponsor - Field(20)
Title apvd - to Senate
02/18 Senate intro - 1st rdg as amen - to Agric Aff
03/03 Rpt out - rec d/p - to 2nd rdg as amen
03/04 2nd rdg - to 3rd rdg as amen
03/12 3rd rdg as amen - PASSED - 27-0-8
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Crow, Danielson,
Darrington, Davis, Deide, Frasure, Geddes, Hawkins, Ingram, Ipsen,
King, Lee, McLaughlin, Noh, Richardson, Riggs, Sandy, Schroeder,
Sorensen, Stegner, Thorne, Wheeler, Whitworth
NAYS--None
Absent and excused--Branch, Cameron, Dunklin, Keough, Parry, Risch,
Stennett, Twiggs
Floor Sponsor - Sandy
Title apvd - to House
03/15 To enrol
03/16 Rpt enrol - Sp signed - Pres signed
03/17 To Governor
03/23 Governor signed
Session Law Chapter 203
Effective: 07/01/99
H0090|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 90, As Amended BY AGRICULTURAL AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO BONDED WAREHOUSES; AMENDING SECTION 69-202, IDAHO CODE, TO CLARIFY 3 THE DEFINITION OF FAILURE; AND AMENDING SECTION 69-262, IDAHO CODE, TO 4 CLARIFY USE OF THE TERM FAILURE AND TO MAKE TECHNICAL CORRECTIONS. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 69-202, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 69-202. DEFINITIONS. As used in this chapter: 9 (1) "Agricultural commodity" means any grain, dry peas, dry beans, 10 leguminous or other small seeds and feeds (not including minerals). 11 (2) "Commodity dealer or dealer" means any person who solicits, contracts 12 for, negotiates the consignment or purchase, or obtains from an Idaho producer 13 or producers, title, possession or control of any agricultural commodity 14 through his place of business located in the state of Idaho or through his 15 place of business located outside the state of Idaho for the purposes of sale 16 or resale or who buys, during a calendar year, at least ten thousand dollars 17 ($10,000) worth of agricultural commodities from an Idaho producer or pro- 18 ducers of the commodities. Commodity dealer or dealer shall not mean any per- 19 son who purchases agricultural commodities for his own use as seed or feed. 20 (3) "Contract" means a written agreement between two (2) or more parties 21 for the sale of an agricultural commodity stipulating the terms and conditions 22 of performance of the parties and includes but is not limited to, those con- 23 tracts commonly referred to as credit sales, deferred payment, deferred or 24 price later contracts. 25 (4) "Department" means the Idaho department of agriculture. 26 (5) "Depositor" means any person who deposits an agricultural commodity 27 in an Idaho state licensed warehouse for storage, handling, processing, recon- 28 ditioning or shipment, or who is the owner or legal holder of a negotiable 29 warehouse receipt, outstanding scale weight ticket, nonnegotiable warehouse 30 receipt or other evidence of such deposit, or any person whose agricultural 31 commodity has been sold to or is under control of a warehouseman for selling, 32 processing, reconditioning or handling whether or not such agricultural com- 33 modity is within the warehouse. 34 (6) "Director" means the director of the department of agriculture. 35 (7) "Failure" means: 36 (a) An inability to financially satisfy claimants in accordance with this 37 chapter and the time limits provided for in it; 38 (b) A public declaration of insolvency; 39 (c) A revocation of license and the leaving of an outstanding indebted- 40 ness to a depositor; 41 (d) A failure to redeliver any commodity to a depositor or to pay 42 depositors for commodities purchased by a licensee in the ordinary course 43 of business ;and where a bona fide dispute does not2 1exist between the licensee and the depositor;2 (e) A failure to make application for license renewal within sixty (60) 3 days after the annual license renewal date; or 4 (f) A denial of the application for a license renewal. 5 (8) "Historical depositor" means any person who, in the normal course of 6 business operation has consistently made deposits in the same warehouse of 7 commodities produced on the same land. In addition, anyone purchasing or leas- 8 ing that particular land directly from the original depositor or receiving 9 that particular land by devise, descent, bequest or gift directly from the 10 historical depositor shall also be considered an historical depositor with 11 regard to the commodities produced on that land. 12 (9) "Person" means any individual, firm, association, corporation or 13 partnership. 14 (10) "Producer" means the owner, tenant or operator of land in this state 15 who has an interest in and receives all or part of the proceeds from the sale 16 of agricultural commodities produced on that land. 17 (11) "Public warehouse" or "warehouse" means any elevator, mill, ware- 18 house, subterminal commodity warehouse, public warehouse or other structure or 19 facility in which agricultural commodities are received for storage, shipment, 20 processing, reconditioning or handling. 21 (12) "Receipt" means a warehouse receipt. 22 (13) "Revocation" means the permanent removal of a warehouse license fol- 23 lowing a hearing on violations of this chapter by the hearing officer or 24 director. 25 (14) "Scale weight ticket" means a load slip or other evidence, other than 26 a receipt, given to a depositor by a warehouseman licensed under the provi- 27 sions of this chapter, upon initial delivery of the commodity to the ware- 28 house. 29 (15) "Subterminal warehouse" means any warehouse at which an intermediate 30 function is performed in which agricultural commodities are customarily 31 received from dealers rather than producers and where the commodities are 32 accumulated prior to shipment. 33 (16) "Suspension" means the temporary removal of a warehouse license by 34 the department pending a hearing for violations of this chapter. Correction of 35 the violations prior to a hearing may result in the reinstatement of a license 36 without a hearing. 37 (17) "Termination" means the expiration of a warehouse license due to 38 failure to meet minimum licensing requirements, failure to renew a warehouse 39 license or as requested by the licensee, unless a complaint has been filed 40 against the licensee alleging a violation of any provision of this chapter. 41 (18) "Warehouse receipt" means every receipt, whether negotiable or non- 42 negotiable, issued by a warehouseman, except scale weight tickets. 43 (19) "Warehouseman" means a person operating or controlling a public ware- 44 house. 45 SECTION 2. That Section 69-262, Idaho Code, be, and the same is hereby 46 amended to read as follows: 47 69-262. PROOF OF CLAIMS -- PROCEDURE -- HEARING -- INSPECTION OF WARE- 48 HOUSE. In the event a warehouse or dealer fails, as defined in section 49 69-202(7), Idaho Code,or otherwise fails to comply with the provisions50of this chapter or rules promulgated hereunder,the department shall 51 process the claims of producers producing written evidence of ownership dis- 52 closing a storage obligation or written evidence of a sale of commodities for 53 damages caused by the failure, in the following manner: 3 1 (1) The department shall give notice and provide a reasonable time of not 2 less than thirty (30) days and not more than sixty (60) days to producers pos- 3 sessing written evidence of ownership disclosing a storage obligation or writ- 4 ten evidence of sale of commodities to file their written verified claims with 5 the department. 6 (2) The department may investigate each claim and determine whether the 7 claimant's commodities are under a storage obligation or whether a sale of 8 commodities has occurred. The department shall notify each claimant, the com- 9 modity warehouseman or dealer, and the committee of the department's determi- 10 nation as to the validity and amount of each claimant's claim. A claimant or 11 warehouseman or dealer may request a hearing on the department's determination 12 within twenty (20) days of receipt of written notification and a hearing shall 13 be held by the department pursuant to title 67, chapter 52, Idaho Code. Upon 14 determining the amount and validity of the claim, the director shall pay to 15 the claimant an amount equal to ninetyper centpercent 16 (90%) of the approved claim from the commodity indemnity account. Prior 17 to any payment from the account to a claimant, the claimant shall be required 18 to subrogate and assign his right to recover from any other source. The 19 department may then pay up to ninetyper centpercent 20 (90%) of the approved claim to the claimant. The department shall have 21 a priority claim for that amount. The claimant shall be entitled to seek 22 recovery of the remaining tenper centpercent (10%) 23 which was not originally assigned to the department. For the purpose of deter- 24 mining the amount of the producer's claim, the value of a producer's commodity 25 shall be the value of the commodity on the date the director declared the 26 warehouse or dealer to have failed or to have failed to comply with the provi- 27 sions of this chapter or rules promulgated thereunder. 28 (3) The department may inspect and audit a failed warehouseman to deter- 29 mine whether the warehouseman has in his possession sufficient quantities of 30 commodities to cover his storage obligations. In the event of a shortage, the 31 department shall determine each producer's pro rata share of available commod- 32 ities and the deficiency shall be considered as a claim of the producer. Each 33 type of commodity shall be treated separately for the purpose of determining 34 shortages. 35 (4) The director shall not approve or pay any claim made on the commodity 36 indemnity account if the claim is based on losses resulting from the deposit, 37 sale or storage of commodities in an unlicensed warehouse or dealer.
AH0090|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999Moved by Field (20) Seconded by Jones IN THE HOUSE OF REPRESENTATIVES HOUSE AMENDMENT TO H.B. NO. 90 1 AMENDMENTS TO BILL 2 On page 2 of the printed bill, delete lines 47 through 53; on page 3, 3 delete lines 1 through 6, and renumber the subsequent section. 4 CORRECTIONS TO TITLE 5 On page 1, in line 3, delete "AMENDING SECTION 69-208A, IDAHO CODE, TO 6 CLAR-"; and in line 4, delete "IFY THE DETERMINATION OF BOND AMOUNTS;".
STATENENT OF PURPOSE
RS08391
Amend section 69-202(7)(d), Idaho Code, by striking the
reference to "bona fide dispute." The term "bona fide dispute"
is ambiguous and causes confusion in making the determination
as to whether or not a failure has occurred.
Amend section 69-208 A, Idaho Code, by striking the reference
to 6% of the total value of agricultural commodities stored.
Currently, this section provides two options on which to base
bond amounts. Fluctuating bond amounts make the 6% option
unworkable. The 20 cents per bushel figure option will remain
constant.
Amend section 69-262, Idaho Code, by striking the reference to
"otherwise fails to comply with the provision of this chapter
or rules promulgated hereunder." This language is overly broad
and causes confusion with the definition of failure in section
69202(7), Idaho Code.
FISCAL IMPACT
None.
CONTACT
Name: Lane Jolliffe, Administrator
Agency: Department of Agriculture
Phone: 332-8660
Statement of Purpose/Fiscal Impact H 90