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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
NAYS--None
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
H0434
|||| 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
2 RELATING TO DEALERS IN FARM PRODUCE; AMENDING SECTION 22-1304, IDAHO CODE, TO
3 INCREASE THE BONDING REQUIREMENT FOR PERSONS LICENSED AS A BROKER, DEALER
4 OR COMMISSION MERCHANT DEALING IN FARM PRODUCE; AND PROVIDING AN EFFECTIVE
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
2
1 1, 2000.
STATEMENT OF PURPOSE
RS09365
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.
CONTACT
Name: Lane Jolliffe
Agency: Department of Agriculture
Phone: 332-8660
Statement of Purpose/Fiscal Impact H 434