1999 Legislation
Print Friendly

HOUSE BILL NO. 90, As Amended – Warehouses bonded/failure, define

HOUSE BILL NO. 90, As Amended

View Daily Data Tracking History

View Bill Text

View Amendment

View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History

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

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
      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

Bill Text


 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999

                             IN THE HOUSE OF REPRESENTATIVES

                              HOUSE BILL NO. 90, As Amended

                            BY AGRICULTURAL AFFAIRS COMMITTEE

 1                                        AN ACT

 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 not


 1        exist 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:

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 provisions
50    of 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:


 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 ninety  per  cent      percent
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  ninety  per cent   percent
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 ten  per cent   percent  (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.



 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999

                                       Moved 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;".

Statement of Purpose / Fiscal Impact

                        STATENENT OF PURPOSE
 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
 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
 Name: Lane Jolliffe, Administrator
 Agency: Department of Agriculture
 Phone: 332-8660
 Statement of Purpose/Fiscal Impact                         H 90