2000 Legislation
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HOUSE BILL NO. 434 – Farm produce, dealers, bond rqmts


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Daily Data Tracking History

H0434...............................................by AGRICULTURAL AFFAIRS
FARM PRODUCE - BONDING - Amends existing law to increase the bonding
requirement for persons licensed as a broker, dealer, or commission
merchant dealing in farm produce.
01/25    House intro - 1st rdg - to printing
01/26    Rpt prt - to Agric Aff
02/15    Rpt out - rec d/p - to 2nd rdg
02/16    2nd rdg - to 3rd rdg
02/21    3rd rdg - PASSED - 57-12-1
      AYES -- Barraclough, Bell, Bieter, Black, Boe, Bruneel, Campbell,
      Chase, Cheirrett, Clark, Crow, Cuddy, Deal, Ellsworth, Field(13),
      Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23),
      Hansen(29), Henbest, Hornbeck, Jones, Judd, Kellogg, Kempton,
      Kendell, Kunz, Lake, Linford, Loertscher, Mader, Marley, Montgomery,
      Mortensen, Moss, Moyle, Pomeroy, Reynolds, Robison, Sali, Schaefer,
      Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Taylor, Tilman,
      Trail(Miller), Wheeler, Wood, Zimmermann
      NAYS -- Alltus, Barrett, Callister, Denney, Jaquet, McKague, Meyer,
      Pearce, Pischner, Ridinger, Ringo, Stoicheff
      Absent and excused -- Mr Speaker
    Floor Sponsor - Kendell
    Title apvd - to Senate
02/22    Senate intro - 1st rdg - to Agric Aff
02/28    Rpt out - rec d/p - to 2nd rdg
02/29    2nd rdg - to 3rd rdg
03/27    3rd rdg - PASSED - 35-0-0
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
      Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Wheeler, Whitworth, Williams
      Absent and excused--None
    Floor Sponsor - Burtenshaw
    Title apvd - to House
03/28    To enrol
03/29    Rpt enrol - Sp signed
03/30    Pres signed
03/31    To Governor
04/03    Governor signed
         Session Law Chapter 143
         Effective: 07/01/00

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 434
                             BY AGRICULTURAL AFFAIRS COMMITTEE
  1                                        AN ACT
  5        DATE.
  6    Be It Enacted by the Legislature of the State of Idaho:
  7        SECTION 1.  That Section 22-1304, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:
  9        22-1304.  BOND -- CERTIFICATE OF DEPOSIT IN LIEU OF BOND. All applications
 10    for  licenses  to act as broker, dealer or commission merchant dealing in farm
 11    produce as each of said terms are defined  in  section  22-1301,  Idaho  Code,
 12    shall  be  accompanied  by  a good and sufficient bond in the penal sum of not
 13    less than ten fifty thousand  dollars  ($150,000),  and  upon  a  form  to  be
 14    approved  by  the  attorney general of the state of Idaho, and executed by the
 15    applicant as principal and by a surety company authorized to  do  business  in
 16    the  state  of  Idaho as surety. Said bond shall be for the benefit of any and
 17    all consignors or sellers having any  cause  of  action  against  the  broker,
 18    dealer  and/or  commission  merchant  giving  such  bond, and arising out of a
 19    breach of contract either express or implied of such broker, dealer or commis-
 20    sion merchant with a consignor or seller or with consignors as broker,  dealer
 21    or  commission merchant and consignor or consignors or for any fraud practiced
 22    by such broker, dealer or commission merchant for the violation of the  rights
 23    of  any  person  whether  a  consignor,  seller, or otherwise. The bond herein
 24    required to be given shall be conditioned upon the  applicant  conducting  and
 25    transacting  his business honestly and without fraud of any kind or nature and
 26    will comply with the provisions of this act and of the laws of  the  state  of
 27    Idaho. Any person injured by dishonesty, fraud and violation of the provisions
 28    of  this  act  or  for  violation of his contract as such commission merchant,
 29    dealer or broker to any person and while engaged in such business shall have a
 30    right of action on said bond for his damages not exceeding the amount of  said
 31    bond.
 32        Any  person required to submit a bond to the department in accordance with
 33    this chapter, may at his option  give  to  the  department  a  certificate  of
 34    deposit  payable  to  the  director  as  trustee  in lieu of the bond required
 35    herein. The principal amount of the certificate shall  be  the  same  as  that
 36    required for a surety bond pursuant to this chapter. Accrued interest upon the
 37    certificate  of  deposit shall be payable to the purchaser of the certificate.
 38    The certificate shall remain on file with the department until it is released,
 39    cancelled or discharged by the director. The provisions of this  chapter  that
 40    apply to a bond required pursuant to this chapter apply to each certificate of
 41    deposit given in lieu of such bond.
 42        SECTION  2.  This  act shall be in full force and effect on and after July
  1    1, 2000.

Statement of Purpose / Fiscal Impact

                      STATEMENT OF PURPOSE

Amend Title 22 Chapter 13, Idaho Code, to increase the bonding 
requirements for all those licensed as Dealers, Brokers, and 
Commission Merchants under the Dealers in Farm Produce Act. 
Current bonding requirements are too low to provide a viable 
protection program for producers.  Increasing the bond amount 
will help address this problem.

                          FISCAL NOT

EAs a general rule, bonding fees are approximately 1% to 2% of 
the bond amount. Current bonding requirements are $10,000 per 
licensee or $100 for a $10,000 bond.  The proposed amendment 
would increase the bond amount to $50,000.

Name: Lane Jolliffe
Agency: Department of Agriculture
Phone: 332-8660

Statement of Purpose/Fiscal Impact                       H 434