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H0273...............................................by AGRICULTURAL AFFAIRS
BONDED WAREHOUSES - Amends existing law relating to bonded warehouses to
revise terms; to provide penalties for operating a public warehouse
production facility or as a dealer without a license; to provide for
license application; to provide for investigations of certain facilities;
to provide a determination of suitability of certain storage facilities for
seed crops; to require inspections; to provide duties in regard to seed
crops for warehousemen; to require approval of the Department of
Agriculture of drawings depicting warehouse storage facilities; to increase
the penalty fee for expired licenses; to require bonds; to revise a fee
schedule; to provide for examination of seed crops; to provide an exception
to the requirement of a weighmaster license; to provide for delivery of
commodities and seed crops to a warehouse for storage; to provide for
inspection and grading of diseased or insect-infested seed crops; to
provide for issuance of receipts and scale weight tickets; to provide for
negotiable warehouse receipts; to provide standards for seed crops; to
provide remedies in situations where a warehouseman does not have
sufficient seed crops in his possession to cover outstanding receipts; to
provide for audits; to provide for liability; to provide for purchase of
seed crops by contract; to provide for disbursements from the Production
Commodity Indemnity Fund; to provide for claims of producers; to provide
for appeals; and to provide a limitation on the payment of certain claims.
02/15 House intro - 1st rdg - to printing
02/16 Rpt prt - to Agric Aff
03/02 Rpt out - to Gen Ord
03/20 Ret'd to Agric Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 273
BY AGRICULTURAL AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE BONDED WAREHOUSE LAW; AMENDING SECTION 69-202, IDAHO CODE, TO
3 REVISE DEFINITIONS; AMENDING SECTION 69-204, IDAHO CODE, TO PROVIDE PENAL-
4 TIES FOR PERSONS OPERATING A PUBLIC WAREHOUSE, PRODUCTION FACILITY OR AS A
5 DEALER WITHOUT A LICENSE OR MISREPRESENTING VALID LICENSURE AND TO MAKE A
6 TECHNICAL CORRECTION; AMENDING SECTION 69-205, IDAHO CODE, TO PROVIDE FOR
7 LICENSE APPLICATION FOR PRODUCTION FACILITIES AND FOR DEALERS, TO PROVIDE
8 FOR INVESTIGATION OF CERTAIN FACILITIES, TO PROVIDE FOR A DETERMINATION OF
9 SUITABILITY OF CERTAIN STORAGE FACILITIES FOR SEED CROPS, TO PROVIDE FOR
10 THE INSPECTION OF PRODUCTION FACILITIES, TO REQUIRE ANNUAL INSPECTIONS BY
11 THE DEPARTMENT OF AGRICULTURE OF ALL LICENSED WAREHOUSES AND PRODUCTION
12 FACILITIES, TO PROVIDE FOR THE CLASSIFICATION OF PRODUCTION FACILITIES AND
13 DEALERS, TO PROVIDE FOR CERTAIN DUTIES IN REGARD TO SEED CROPS FOR CERTAIN
14 WAREHOUSEMEN AND TO PROVIDE CORRECT TERMINOLOGY; AMENDING SECTION 69-206,
15 IDAHO CODE, TO PROVIDE FOR PRODUCTION FACILITY AND DEALER LICENSES, TO
16 PROVIDE FOR CERTAIN INSURANCE, TO PROVIDE FOR PROPER STORAGE OF SEED
17 CROPS, TO REQUIRE APPROVAL BY THE DEPARTMENT OF AGRICULTURE OF DRAWINGS
18 DEPICTING WAREHOUSE STORAGE FACILITIES AND CAPACITY, TO STRIKE A REFERENCE
19 TO REVIEWED FINANCIAL STATEMENTS, TO STRIKE A REFERENCE TO LICENSED PUBLIC
20 ACCOUNTANTS, TO PROVIDE A FINANCIAL REQUIREMENT, TO PROVIDE CORRECT TERMI-
21 NOLOGY, TO STRIKE REFERENCE TO REGULATIONS AND TO INCREASE THE AMOUNT OF
22 PENALTY FEE FOR CERTAIN EXPIRED LICENSES; AMENDING SECTION 69-207, IDAHO
23 CODE, TO STRIKE REFERENCE TO REGULATIONS, TO PROVIDE CORRECT TERMINOLOGY
24 AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 69-208, IDAHO CODE, TO
25 STRIKE REFERENCE TO CERTIFICATES OF DEPOSITS AND ANNUITIES, TO REQUIRE AS
26 A CONDITION TO LICENSURE THAT WAREHOUSEMEN HOLDING SEED CROP DEPOSITS POST
27 A CERTAIN BOND, TO PROVIDE THAT THE DEPARTMENT SHALL REQUIRE ADDITIONAL
28 BOND IN CERTAIN SITUATIONS, TO REQUIRE THE DEPARTMENT SUSPEND OR REVOKE
29 LICENSES OF WAREHOUSEMEN IN CERTAIN SITUATIONS, TO STRIKE REFERENCE TO
30 ACCRUED INTEREST UPON CERTIFICATES OF DEPOSITS OR ANNUITIES, TO PROVIDE
31 FOR LETTERS OF CREDIT, TO STRIKE REFERENCE TO CERTAIN REQUIREMENTS FOR
32 ANNUITIES AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 69-208A,
33 IDAHO CODE, TO PROVIDE FOR BOND FOR SEED CROPS, TO PROVIDE FOR BOND WHERE
34 A VARIETY OF COMMODITIES ARE STORED AND TO MAKE TECHNICAL CORRECTIONS;
35 AMENDING SECTION 69-210, IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY;
36 AMENDING SECTION 69-211, IDAHO CODE, TO REVISE THE FEE SCHEDULE, TO
37 REQUIRE A CERTAIN FEE BE ASSESSED BY THE DEPARTMENT FOR MAINTAINING AN
38 EMPLOYEE AT A WAREHOUSE TO OVERSEE A CORRECTION OF CERTAIN VIOLATIONS, TO
39 CORRECT A CODIFIER'S ERROR AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
40 SECTION 69-212, IDAHO CODE, TO PROVIDE FOR POSTING OF CONDITIONING
41 CHARGES, TO PROVIDE FOR POSTING OF DISCOUNTS, TO PROVIDE FOR CHARGES FOR
42 THE HANDLING AND STORAGE OF SEED CROPS, TO PROVIDE FOR CERTAIN ACTION BY
43 THE DIRECTOR OF THE DEPARTMENT OF AGRICULTURE REGARDING CHARGES FOR HANDL-
44 ING AND STORAGE OF SEED CROPS AND TO PROVIDE CORRECT TERMINOLOGY; AMENDING
45 SECTION 69-213, IDAHO CODE, TO PROVIDE FOR THE EXAMINATION OF SEED CROPS
46 STORED, TO PROVIDE CERTAIN CONDITIONS FOR THE EXAMINATION OF SEED CROPS
2
1 AND TO PROVIDE FOR EMPLOYEES OF A WAREHOUSEMAN; AMENDING SECTION 69-214,
2 IDAHO CODE, TO PROVIDE FOR EMPLOYMENT OF PERSONNEL, TO PROVIDE CORRECT
3 TERMINOLOGY AND TO PROVIDE FOR EMPLOYMENT OF INVESTIGATORS; AMENDING SEC-
4 TION 69-215, IDAHO CODE, TO PROVIDE AN EXCEPTION TO THE REQUIREMENT OF A
5 WEIGHMASTER LICENSE FOR CERTAIN SEED CROPS AND TO MAKE TECHNICAL CORREC-
6 TIONS; AMENDING SECTION 69-218, IDAHO CODE, TO PROVIDE FOR RECEIPT BY A
7 WAREHOUSEMAN OF SEED CROPS FOR STORAGE; AMENDING SECTION 69-219, IDAHO
8 CODE, TO PROVIDE FOR DELIVERY OF COMMODITIES AND SEED CROPS TO A WAREHOUSE
9 FOR STORAGE, TO PROVIDE FOR COMMODITIES AND SEED CROPS DELIVERED TO A
10 WAREHOUSE UNDER THE TERMS OF A CONTRACT, TO PROVIDE FOR DELIVERY, TO
11 STRIKE REFERENCE TO STORAGE, TO PROVIDE FOR DELIVERY OF SEED CROPS AND TO
12 STRIKE REFERENCE TO REGULATIONS; AMENDING SECTION 69-220, IDAHO CODE, TO
13 PROVIDE FOR THE INSPECTION AND GRADING OF DISEASED OR INSECT INFESTED SEED
14 CROPS, TO PROVIDE CERTAIN REQUIREMENTS FOR DISEASED OR INSECT INFESTED
15 SEED CROPS AND TO STRIKE REFERENCE TO REGULATIONS; AMENDING SECTION
16 69-222, IDAHO CODE, TO STRIKE REFERENCE TO STORAGE, TO PROVIDE FOR SEED
17 CROPS DELIVERED TO A LICENSED WAREHOUSE, TO PROVIDE FOR ISSUANCE OF
18 RECEIPTS AND SCALE WEIGHT TICKETS FOR CERTAIN SEED CROPS AND TO PROVIDE
19 THAT A PRODUCER MAY REQUEST A NEGOTIABLE RECEIPT; AMENDING SECTION 69-223,
20 IDAHO CODE, TO PROVIDE FOR NEGOTIABLE WAREHOUSE RECEIPTS FOR SEED CROPS,
21 TO STRIKE REFERENCE TO REGULATIONS, TO PROVIDE CORRECT TERMINOLOGY AND TO
22 MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 69-224, IDAHO CODE, TO PRO-
23 VIDE FOR STANDARDS FOR SEED CROPS AND TO PROVIDE CORRECT TERMINOLOGY;
24 AMENDING SECTION 69-225, IDAHO CODE, TO PROVIDE FOR OUTSTANDING WAREHOUSE
25 RECEIPTS FOR SEED CROPS AND TO PROVIDE FOR LOSS OF WAREHOUSE RECEIPTS FOR
26 SEED CROPS; AMENDING SECTION 69-226, IDAHO CODE, TO STRIKE A REFERENCE TO
27 REGULATIONS AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 69-227,
28 IDAHO CODE, TO PROVIDE FOR EXAMINATION OF SEED CROPS, TO PROVIDE FOR COM-
29 MODITIES RECEIVED IN LICENSED WAREHOUSES, TO PROVIDE CORRECT TERMINOLOGY,
30 TO STRIKE A REFERENCE TO REGULATIONS AND TO MAKE A TECHNICAL CORRECTION;
31 AMENDING SECTION 69-228, IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY AND TO
32 STRIKE REFERENCE TO REGULATIONS; AMENDING SECTION 69-229, IDAHO CODE, TO
33 PROVIDE CORRECT TERMINOLOGY; AMENDING SECTION 69-230, IDAHO CODE, TO PRO-
34 VIDE CORRECT TERMINOLOGY; AMENDING SECTION 69-231, IDAHO CODE, TO STRIKE
35 REFERENCE TO REGULATIONS AND TO PROVIDE CORRECT TERMINOLOGY; AMENDING SEC-
36 TION 69-232, IDAHO CODE, TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION
37 69-233, IDAHO CODE, TO STRIKE A REFERENCE TO REGULATIONS AND TO MAKE A
38 TECHNICAL CORRECTION; AMENDING SECTION 69-236, IDAHO CODE, TO PROVIDE FOR
39 CERTAIN REMEDIES IN SITUATIONS WHERE A WAREHOUSEMAN DOES NOT HAVE SUFFI-
40 CIENT SEED CROPS IN HIS POSSESSION TO COVER OUTSTANDING RECEIPTS, TO PRO-
41 VIDE FOR CERTAIN REMEDIES WHERE A WAREHOUSEMAN DOES NOT HAVE THE ABILITY
42 TO PAY PRODUCERS FOR CONTRACT OBLIGATIONS, TO REQUIRE THE DEPARTMENT TO
43 NOTIFY THE WAREHOUSEMEN TO COMPLY WITH DESIGNATED REQUIREMENTS IN CERTAIN
44 SITUATIONS, TO RESTRICT THE AMOUNT OF TIME A WAREHOUSEMAN HAS TO COMPLY
45 WITH THE TERMS OF A NOTICE OF REQUIRED ACTION, TO PROVIDE THAT THE DEPART-
46 MENT OF AGRICULTURE SHALL PETITION CERTAIN DISTRICT COURTS FOR AUTHORITY
47 TO SEIZE CERTAIN SEED CROPS, TO PROVIDE THAT THE DEPARTMENT SHALL NOTIFY
48 CERTAIN HOLDERS AND PRODUCERS OF RECORD, TO PROVIDE THAT THE DEPARTMENT
49 SHALL HAVE CERTAIN HOLDERS AND PRODUCERS OF RECORD PRESENT EVIDENCE OF
50 OBLIGATIONS, TO PROVIDE THAT THE DEPARTMENT SHALL AUDIT THE AFFAIRS OF
51 CERTAIN WAREHOUSES IN REGARD TO SEED CROPS IN WHICH THERE IS AN APPARENT
52 SHORTAGE, TO REQUIRE THE DEPARTMENT TO RETAIN POSSESSION OF SEED CROPS
53 PENDING SATISFACTION OF CERTAIN CLAIMS, TO PROVIDE FOR THOSE SITUATIONS IN
54 WHICH THE OBLIGATIONS EXCEED THE AMOUNT OF BOND, TO PROVIDE FOR HOLDERS OF
55 EVIDENCE OF OBLIGATIONS WHERE WAREHOUSEMEN ARE INSOLVENT, TO PROVIDE FOR
3
1 ORDERS TO SHOW CAUSE BY A WAREHOUSE WHERE THE DEPARTMENT HAS TAKEN POSSES-
2 SION OF CERTAIN SEED CROPS AND TO PROVIDE CORRECT TERMINOLOGY; AMENDING
3 SECTION 69-237, IDAHO CODE, TO PROVIDE FOR PARTIAL WITHDRAWAL OF SEED
4 CROPS BY A DEPOSITOR, TO PROVIDE FOR CERTAIN MODIFICATION OF NEGOTIABLE
5 RECEIPTS AND TO PROVIDE LIABILITY FOR A WAREHOUSE THAT FAILS TO DELIVER
6 CERTAIN SEED CROPS SPECIFIED IN A RECEIPT; AMENDING SECTION 69-238, IDAHO
7 CODE, TO PROVIDE DUTY FOR WAREHOUSES TO DELIVER STORED SEED CROPS AND TO
8 PROVIDE FOR DAMAGES WHEN A WAREHOUSE FAILS TO DELIVER STORED SEED CROPS;
9 AMENDING SECTION 69-239, IDAHO CODE, TO PROVIDE FOR WAREHOUSE RECORDS OF
10 CERTAIN SEED CROPS; AMENDING SECTION 69-242, IDAHO CODE, TO STRIKE A REF-
11 ERENCE TO REGULATIONS; AMENDING SECTION 69-245, IDAHO CODE, TO PROVIDE FOR
12 SERVICE ON LICENSE HOLDER BY FACSIMILE; AMENDING SECTION 69-248, IDAHO
13 CODE, TO PROVIDE A VIOLATION FOR CERTAIN PAYMENTS BY WAREHOUSES TO PRO-
14 DUCERS OF SEED CROPS MADE UPON AN ACCOUNT WITH INSUFFICIENT FUNDS; AMEND-
15 ING SECTION 69-249, IDAHO CODE, TO PROVIDE FOR THE PURCHASE OF SEED CROPS
16 BY CONTRACT, TO PROVIDE A CODE REFERENCE, TO PROVIDE FOR CERTAIN CONTRAC-
17 TUAL TERMS, TO PROVIDE FOR TITLE TO SEED CROPS SOLD BY CONTRACT, TO STRIKE
18 A REFERENCE TO CREDIT SALE AND TO PROVIDE FOR A DETERMINATION OF CERTAIN
19 SEED CROP PRICES; AMENDING SECTION 69-250, IDAHO CODE, TO PROVIDE FOR DIS-
20 CLOSURE OF CERTAIN PRODUCTION RECORDS; AMENDING SECTION 69-251, IDAHO
21 CODE, TO PROVIDE FOR THE PAYMENT OF PURCHASE PRICE FOR SEED CROPS BY WARE-
22 HOUSES AND TO PROVIDE AN EXCEPTION FOR WRITTEN AGREEMENTS ALTERING TIME
23 FOR PAYMENT; AMENDING SECTION 69-256, IDAHO CODE, TO PROVIDE FOR DISBURSE-
24 MENTS FROM THE PRODUCTION COMMODITY INDEMNITY FUND AS AUTHORIZED BY THE
25 DIRECTOR AND DETERMINED BY THE ADVISORY COMMITTEE, TO PROVIDE CORRECT TER-
26 MINOLOGY AND TO PROVIDE FOR USE OF CERTAIN INTEREST AND PRINCIPAL FROM THE
27 COMMODITY INDEMNITY FUND FOR COSTS OF REINSURANCE FOR THE FUND; AMENDING
28 SECTION 69-257, IDAHO CODE, TO STRIKE A REFERENCE TO REGULATIONS, TO PRO-
29 VIDE A REFERENCE TO SEED CROPS, TO PROVIDE CORRECT TERMINOLOGY AND TO MAKE
30 TECHNICAL CORRECTIONS; AMENDING SECTION 69-259, IDAHO CODE, TO INCREASE
31 THE MAXIMUM FUND BALANCE, TO PROVIDE CORRECT CODE REFERENCES, TO STRIKE
32 OUTDATED LANGUAGE, TO PROVIDE CORRECT TERMINOLOGY AND TO MAKE TECHNICAL
33 CORRECTIONS; AMENDING SECTION 69-261, IDAHO CODE, TO REQUIRE THAT THE
34 ADVISORY COMMITTEE MEET AT LEAST TWICE A YEAR AND TO MAKE TECHNICAL COR-
35 RECTIONS; AMENDING SECTION 69-262, IDAHO CODE, TO CORRECT A CODE REFERENCE
36 AND TO PROVIDE A CODE REFERENCE, TO STRIKE REFERENCE TO WRITTEN EVIDENCE
37 OF A SALE, TO PROVIDE FOR THE PROCESSING OF CERTAIN CLAIMS OF PRODUCERS,
38 TO SET FORTH COMMODITIES COVERED BY THE INDEMNITY FUND PROGRAM, TO STRIKE
39 UNNECESSARY TERMINOLOGY, TO PROVIDE FOR NOTICE BY THE DEPARTMENT OF AGRI-
40 CULTURE TO CERTAIN PRODUCERS, TO PROVIDE FOR INVESTIGATION BY THE DEPART-
41 MENT OF AGRICULTURE AND DETERMINATION OF THE NATURE OF CLAIMANTS' COMMODI-
42 TIES, TO PROVIDE FOR REFERENCE TO THE CONTRACT PRICE IN DETERMINATION OF
43 VALUE OF A PRODUCER'S CLAIM, TO PROVIDE FOR THE EXAMINATION OR AUDIT OF
44 FAILED DEALERS, TO PROHIBIT THE DIRECTOR OF THE DEPARTMENT OF AGRICULTURE
45 FROM APPROVING OR PAYING CERTAIN CLAIMS ON THE PRODUCTION CONTRACT INDEM-
46 NITY FUND, TO PROVIDE FOR APPEALS OF FINAL DECISIONS OF THE DEPARTMENT OF
47 AGRICULTURE, TO PROVIDE CORRECT TERMINOLOGY AND TO MAKE A TECHNICAL COR-
48 RECTION; AND AMENDING SECTION 69-264, IDAHO CODE, TO INCREASE THE MINIMUM
49 BALANCE OF THE FUND, TO PROVIDE A LIMITATION ON PAYMENT OF CERTAIN CLAIMS
50 AND TO MAKE TECHNICAL CORRECTIONS.
51 Be It Enacted by the Legislature of the State of Idaho:
52 SECTION 1. That Section 69-202, Idaho Code, be, and the same is hereby
53 amended to read as follows:
4
1 69-202. DEFINITIONS. As used in this chapter:
2 (1) "Agricultural commodity" means any grain, dry peas wheat, barley,
3 oats, corn, rye, oilseeds, dry edible beans, peas, lentils and other
4 leguminous or other small seeds, and feeds (not including minerals) (except
5 true seed crops) or any other commodity as determined by the director.
6 (2) "Bailee" means a person who receives personal property from another
7 as a bailment.
8 (3) "Bailment" means a delivery of personal property by one (1) person
9 (the bailor) to another (the bailee) who holds the property for a certain pur-
10 pose under an express or implied-in-fact contract. Unlike a sale or gift of
11 personal property, a bailment involves a change in possession but not in
12 title.
13 (4) "Bailment contract" means a contract between two (2) or more parties
14 that creates a "bailor" and "bailee" relationship wherein the bailor transfers
15 property (seed) to the bailee, but does not transfer title along with the
16 property. For the purposes of this chapter, the term "bailment contract" is
17 interchangeable with the term "production contract."
18 (5) "Bailor" means a person who delivers personal property to another as
19 a bailment.
20 (6) "Commodity dealer" or "dealer" means any person who solicits, con-
21 tracts for, negotiates the consignment or purchase, or obtains from an Idaho
22 producer or producers, title, possession or control of any agricultural com-
23 modity or seed crop through his place of business located in the state of
24 Idaho or through his place of business located outside the state of Idaho for
25 the purposes of sale or resale or who buys, during a calendar year, at least
26 ten thousand dollars ($10,000) worth of agricultural commodities or seed crops
27 from an Idaho producer or producers of the commodities or seed crops. Commod-
28 ity dealer or dealer shall not mean any person who purchases agricultural com-
29 modities or seed crops for his own use as seed or feed within his own opera-
30 tion.
31 (37) "Contract" means an written agreement between two (2) or more par-
32 ties for the sale of an agricultural commodity stipulating the terms and con-
33 ditions of performance of the parties and agricultural contract as defined in
34 chapter 50, title 22, Idaho Code, which may includes, but is not limited to,
35 those contracts commonly referred to as credit sales, bailment, deferred pay-
36 ment, deferred delayed or price later contracts.
37 (8) "Deliver" or "delivery" means the physical transfer of agricultural
38 commodity or seed crop from one (1) party to another.
39 (49) "Department" means the Idaho state department of agriculture.
40 (510) "Depositor" means any person who deposits an agricultural commodity
41 or seed crop in an Idaho state licensed warehouse for storage, handling, proc-
42 essing, reconditioning or shipment, or who is the owner or legal holder of a
43 negotiable warehouse receipt, outstanding scale weight ticket, nonnegotiable
44 warehouse receipt or other evidence of such deposit, or any person whose agri-
45 cultural commodity or seed crop has been sold to or is under control of a
46 warehouseman for selling, processing, reconditioning or handling whether or
47 not such agricultural commodity or seed crop is within the warehouse.
48 (611) "Director" means the director of the Idaho state department of agri-
49 culture.
50 (712) "Failure" means:
51 (a) An inability to financially satisfy claimants in accordance with this
52 chapter and the time limits provided for in it;
53 (b) A public declaration of insolvency;
54 (c) A revocation of license and the leaving of an outstanding indebted-
55 ness to a depositor, producer or bailee;
5
1 (d) A failure to redeliver any commodity to a depositor or to pay
2 depositors or producers for commodities purchased by a licensee or to pay
3 a bailee for commodity delivered under the provisions of the contract in
4 the ordinary course of business;
5 (e) A failure to make application for license renewal within sixty (60)
6 days after the annual license renewal date; or
7 (f) A denial of the application for a license renewal.
8 (813) "Historical depositor" means any person who, in the normal course of
9 business operation has consistently made deposits in the same warehouse of
10 commodities produced on the same land. In addition, anyone purchasing or
11 leasing that particular land directly from the original depositor or receiving
12 that particular land by devise, descent, bequest or gift directly from the
13 historical depositor shall also be considered an historical depositor with
14 regard to the commodities produced on that land.
15 (914) "Person" means any individual, firm, association, corporation, or
16 partnership or limited liability company.
17 (105) "Producer" means the owner, tenant or operator of land in this state
18 who has an interest in and receives all or part of the proceeds from the sale
19 his assignment, sale, transfer, exchange or obligation created under a produc-
20 tion contract of agricultural commodities or seed crops produced on that land.
21 (16) "Production facility" means any elevator, mill, warehouse,
22 subterminal commodity warehouse, public warehouse or other structure or facil-
23 ity in which agricultural commodities or seed crops are received, partially or
24 wholly, through the use of production contracts or bailment contracts.
25 (117) "Public warehouse" or "warehouse" means any elevator, mill, ware-
26 house, subterminal commodity warehouse, public warehouse or other structure or
27 facility in which agricultural commodities or seed crops are received for
28 storage, shipment, processing, reconditioning, or handling, or that may con-
29 duct at least a portion of business through the use of production contracts or
30 bailment contracts.
31 (128) "Receipt" means a warehouse receipt.
32 (139) "Revocation" means the permanent removal of a warehouse license fol-
33 lowing a hearing on violations of this chapter by the hearing officer or
34 director.
35 (1420) "Scale weight ticket" means a load slip or other evidence, other
36 than a receipt, given to a depositor by a warehouseman licensed under the pro-
37 visions of this chapter, upon initial delivery of the commodity to the ware-
38 house.
39 (21) "Seed crops" means any true seed crop that may include, but not be
40 limited to, dry edible bean seed, dry garden bean seed, alfalfa seed, clover
41 seed, forage grass seed, ornamental grass seed, vegetable seed, flower seed,
42 peas, lentils and other leguminous seeds or any other seed crop as determined
43 by the advisory committee.
44 (1522) "Subterminal warehouse" means any warehouse at which an intermedi-
45 ate function is performed in which agricultural commodities or seed crops are
46 customarily received from dealers rather than producers and where the commodi-
47 ties are accumulated prior to shipment.
48 (1623) "Suspension" means the temporary removal of a warehouse license by
49 the department pending a hearing for violations of this chapter. Correction of
50 the violations prior to a hearing may result in the reinstatement of a license
51 without a hearing.
52 (1724) "Termination" means the expiration of a warehouse license due to
53 failure to meet minimum licensing requirements, failure to renew a warehouse
54 license or as requested by the licensee, unless a complaint has been filed
55 against the licensee alleging a violation of any provision of this chapter.
6
1 (1825) "Warehouse receipt" means every receipt, whether negotiable or non-
2 negotiable, issued by a warehouseman, except scale weight tickets.
3 (1926) "Warehouseman" means a person operating or controlling a public
4 warehouse or production facility.
5 SECTION 2. That Section 69-204, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 69-204. PENALTY FOR OPERATING WITHOUT A LICENSE -- MISREPRESENTATION. (1)
8 Any person operating a public warehouse, production facility or as a dealer
9 without a license or in any way representing, by actions or words, that the
10 warehouse, production facility or dealer is so licensed when such warehouse,
11 production facility or dealer is not so licensed or any person who shall mis-
12 represent, forge, alter, counterfeit or falsely represent a license as
13 required by the provisions of this chapter shall be guilty of a felony and
14 punished by imprisonment in the state prison for not more than ten (10) years,
15 or by a fine of not more than ten thousand dollars ($10,000), or by both.
16 (2) Any person who shall issue, utter, or aid in the issuance or utter-
17 ance or attempt to issue or utter a false or fraudulent receipt for any com-
18 modity shall be guilty of a felony and punished by imprisonment in the state
19 prison for not more than ten (10) years, or by a fine of not more more than
20 ten thousand dollars ($10,000), or by both.
21 SECTION 3. That Section 69-205, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 69-205. INSPECTION AND CLASSIFICATION OF WAREHOUSES, STORAGE, WAREHOUS-
24 ING, WEIGHING AND CERTIFICATION OF COMMODITIES -- DUTIES OF WAREHOUSEMEN. Upon
25 application by any person for license to conduct a warehouse, production
26 facility or act as a dealer under this chapter, the Idaho state department of
27 agriculture is authorized to investigate and determine whether the warehouse,
28 production facility or dealer storage facility, if any, for which licenses are
29 applied, or have been previously issued, under this chapter, are is suitable
30 for the proper storage of agricultural commodities or seed crops and the Idaho
31 state department of agriculture is authorized with or without application, to
32 wit:
33 To inspect any warehouse or production facility licensed under this chap-
34 ter. The Idaho state department of agriculture shall inspect every warehouse
35 or production facility licensed under this chapter at least once every calen-
36 dar year; to investigate the storage, warehousing, classifying according to
37 grade, and otherwise weighing and certification of agricultural commodities or
38 seed crops therein conducted; to classify warehouses, production facilities
39 and dealers, licensed or applying for license, in accordance with their capac-
40 ity and to prescribe, within the limitations of this chapter, the duties of
41 the warehousemen conducting warehouses licensed under this chapter with
42 respect to their care of and responsibility for agricultural commodities or
43 seed crops.
44 SECTION 4. That Section 69-206, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 69-206. LICENSES TO WAREHOUSEMEN, PRODUCTION FACILITIES OR DEALERS --
47 ISSUE -- RENEWAL -- CONDITIONS PRECEDENT. The Idaho state department of agri-
48 culture is authorized, upon application to it, to issue or renew to any ware-
7
1 houseman a license for the conduct of a warehouse or warehouses in accordance
2 with this chapter and such rules and regulations as may be made hereunder,
3 providing the following conditions are met:
4 (1) Each person, as a condition precedent to operating a warehouse in
5 this state, shall file and maintain satisfactory evidence with the director of
6 the Idaho state department of agriculture of the existence of an effective
7 policy of insurance issued by an insurance company authorized to do business
8 in this state, insuring all agricultural commodities or seed crops that may be
9 stored or accepted for storage on the premises, including commodities owned by
10 the warehouseman, for which such license is sought for the full market value
11 of such agricultural commodities or seed crops against loss by fire, internal
12 explosion, lightning, or tornado or other casualty;
13 (2) That each warehouse be found suitable for the proper storage of the
14 particular agricultural commodity or commodities or seed crop(s) for which a
15 license is requested;
16 (3) A license fee is submitted to the department as prescribed by section
17 69-211, Idaho Code;
18 (4) A current drawing of the warehouse which shows storage facilities and
19 the capacity of the warehouse is submitted to and must be approved by the
20 department;
21 (5) A sufficient and valid bond is filed and maintained as required by
22 section 69-208, Idaho Code;
23 (6) The applicant shall submit to the department an audited or reviewed
24 financial statement prepared by an independent certified public accountant or
25 licensed public accountant showing that the licensee has and does maintain
26 current assets equal to or greater than current liabilities, a statement of
27 current assets and current liabilities, and a statement of net worth, all of
28 which shall be prepared in accordance with generally accepted accounting prin-
29 ciples;
30 (7) For a warehouseman license an applicant shall have and maintain a net
31 worth of at least fifty thousand dollars ($50,000) or maintain a bond in the
32 amount of two thousand dollars ($2,000) for each one thousand dollars ($1,000)
33 or fraction thereof of net worth deficiency financial requirement; however, a
34 person shall not be licensed as a warehouseman if the person has a net worth
35 of less than twenty-five thousand dollars ($25,000). A bond submitted for pur-
36 poses of this subsection shall be in addition to any bond otherwise required
37 under the provisions of this chapter;
38 (8) The applicant has complied with and abided by all the terms of this
39 chapter and the rules and regulations prescribed hereunder;
40 (9) That all materials required for renewal of a license shall be
41 received by the department prior to the expiration date of the warehouse
42 license. A warehouse license which has expired may be reinstated by the
43 department upon receipt of all necessary licensing materials required by the
44 provisions of this chapter and a penalty fee in the amount of fifty five hun-
45 dred dollars ($50.00), providing that this material is filed within thirty
46 (30) days from the date of expiration of the warehouse license. At the end of
47 the thirty (30) day penalty period, a warehouse license shall be terminated by
48 the department. All license applications completed and received after the
49 thirty (30) day penalty period shall be considered original applications and
50 license fees shall be assessed according to section 69-211, Idaho Code.
51 SECTION 5. That Section 69-207, Idaho Code, be, and the same is hereby
52 amended to read as follows:
53 69-207. TERM OF LICENSE -- RENEWAL. Each license issued under sections
8
1 69-206 and section 69-215, Idaho Code, shall be issued for a period to be pre-
2 scribed by regulation rule by the Idaho state department of agriculture.
3 SECTION 6. That Section 69-208, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 69-208. BOND OF APPLICANT FOR LICENSE -- ADDITIONAL BOND -- ADDITIONAL
6 OBLIGATIONS -- CERTIFICATE OF DEPOSIT, ANNUITY OR IRREVOCABLE LETTER OF CREDIT
7 IN LIEU OF BOND. Each warehouseman applying for a license to conduct a ware-
8 house in accordance with this chapter shall, as a condition to the granting
9 thereof, execute and file with the department a good and sufficient bond other
10 than personal security to the state to secure the faithful performance of his
11 obligations as a warehouseman under all the laws of the state, including obli-
12 gations arising by operation of the commodity indemnity account fund program,
13 and the rules prescribed hereunder, and of such additional obligations as a
14 warehouseman as may be assumed by him under contracts with the respective
15 depositors of agricultural commodities or seed crops in such warehouse. Said
16 bond shall be in such form and amount, shall have such surety or sureties, and
17 shall contain such terms and conditions as the department may prescribe to
18 carry out the purposes of this chapter. Whenever the department shall deter-
19 mine that a bond approved by it is, or for any cause has become, insufficient,
20 it may shall require an additional bond or bonds to be given by the warehouse-
21 man concerned, conforming with the requirements of this section, and unless
22 the same be given within the time fixed by a written demand therefor the
23 license of such warehouseman may shall be suspended or revoked.
24 The bond shall be approved by the department and shall be conditioned upon
25 the faithful performance by the warehouseman of the duty to keep in the ware-
26 house for the depositor the agricultural commodity or seed crop delivered and
27 to deliver the agricultural commodity or seed crop to or for such depositors.
28 The bond shall also be conditioned upon the faithful performance by the ware-
29 houseman of any additional obligations involving marketing transactions with a
30 depositor.
31 The warehouseman may give a single bond meeting the requirements as pro-
32 vided in this chapter and all warehouses operated by the warehouseman shall be
33 as one (1) warehouse for the purpose of compliance with the provisions of this
34 section. Any changes in the capacity of a warehouse or installation of any new
35 warehouses involving a change in the bond liability under the provisions of
36 this chapter shall be reported to the department prior to the operation
37 thereof.
38 At the discretion of the director, any person required to submit a bond to
39 the department in accordance with this chapter, may at his option give to the
40 department a certificate of deposit, an annuity or an irrevocable letter of
41 credit payable to the director as trustee in lieu of the bond required herein.
42 The principal amount of the certificate, annuity or letter of credit shall be
43 the same as that required for a surety bond pursuant to this chapter. Accrued
44 interest upon the certificate of deposit or annuity shall be payable to the
45 purchaser of the certificate or annuity. The certificate, annuity or letter of
46 credit shall remain on file with the department until it is released, can-
47 celled canceled or discharged by the director. The letter of credit shall
48 remain in force so long as the director of the Idaho state department of agri-
49 culture is notified thirty (30) days in advance of such time the aforemen-
50 tioned document is renewed, altered or amended. Failure to comply with such
51 requirement to notify may result in the suspension of a warehouseman or dealer
52 license. The provisions of this chapter that apply to a bond required pursuant
53 to this chapter apply to each certificate of deposit, annuity or letter of
9
1 credit given in lieu of such bond.
2 Under provisions of this chapter, an irrevocable letter of credit shall
3 not be acceptable unless it is issued by a national bank in Idaho or by an
4 Idaho state-chartered bank insured by the federal deposit insurance corpora-
5 tion. Under the provisions of this chapter, an annuity shall not be accepted
6 by the department unless it is issued by an insurance company, bank or other
7 financial institution found acceptable by the director and shall have a cash
8 value equal to the bond requirement less any penalty for early withdrawal.
9 SECTION 7. That Section 69-208A, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 69-208A. AMOUNT OF BOND -- CANCELLATION. The amount of bond to be fur-
12 nished for each warehouse shall be fixed at a rate of twenty cents (20) per
13 bushel of licensed capacity or six percent (6%) of the total value of the
14 agricultural commodities or seed crops stored, whichever is greater. In the
15 event a variety of commodities are stored, the bond rate may be calculated
16 using either factor, or a combination thereof. In any case, the amount of the
17 bond shall not be less than twenty-five thousand dollars ($25,000) and shall
18 not be more than five hundred thousand dollars ($500,000). This bond shall run
19 continuously with the warehouse license until suspended, revoked or cancelled
20 canceled by the bonding company. A ninety (90) day written notice shall be
21 given to the department by the bonding company before any bond is suspended,
22 revoked or cancelled canceled. The director reserves the right to waive the
23 ninety (90) day cancellation period.
24 SECTION 8. That Section 69-210, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 69-210. DESIGNATION OF WAREHOUSE AS BONDED WAREHOUSE. Upon the filing
27 with and approval by the Idaho state department of agriculture of a bond, in
28 compliance with this chapter, for the conduct of a warehouse, such warehouse
29 shall be designated as bonded hereunder; but no warehouse shall be designated
30 as bonded under this chapter, and no name or description conveying the impres-
31 sion that it is so bonded, shall be used, until a bond, such as provided for
32 in section 69-208, Idaho Code, has been filed with and approved by the depart-
33 ment of agriculture, nor unless the license issued under this chapter for the
34 conduct of such warehouse remains unsuspended and unrevoked.
35 SECTION 9. That Section 69-211, Idaho Code, be, and the same is hereby
36 amended to read as follows:
37 69-211. FEES OF DEPARTMENT. (1) The department shall charge, assess, and
38 cause to be collected an annual fee for each warehouse license or renewal
39 thereof, according to the following schedule:
40 (1)For each original application --
41 Capacity in Hundredweight Rate
42 0 to 50,000 $1080.00
43 50,001 to 100,000 20360.00
44 100,001 to 250,000 30540.00
45 250,001 to 500,000 400715.00
46 500,001 to 750,000 50890.00
47 Over 750,0001 601,070.00
10
1 For each renewal application --
2 Capacity in Hundredweight Rate
3 0 to 50,000 $350.00
4 50,001 to 100,000 6100.00
5 100,001 to 250,000 90145.00
6 250,001 to 500,000 1290.00
7 500,001 to 750,000 15240.00
8 Over 750,0001 18290.00
9 (2) The department shall assess and collect a fee of fifty dollars
10 ($50.00) for each inspection of a warehouse or station which is done for the
11 purpose of amending a warehouse license.
12 (3) The department may shall assess and collect a fee of one hundred and
13 fifty dollars ($150) per day or fraction thereof for maintaining an employee
14 of the department at a warehouse to oversee the correction of a violation of
15 this chapter.
16 (4) Upon approval by the department, a warehouseman may operate two (2)
17 or more warehouses under a single warehouse license.
18 (5) All fees shall be deposited into the state treasury and credited to
19 the general account fund.
20 SECTION 10. That Section 69-212, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 69-212. SCHEDULE OF CHARGES -- POSTING. Every licensed warehouseman shall
23 annually, during the first week of July, publish by posting in a conspicuous
24 place in his warehouse, a schedule of storage, and handling, conditioning or
25 any other charges or discounts for the ensuing year, which schedule shall be
26 kept posted in a conspicuous place in said warehouse. Further, the warehouse-
27 man shall annually, during the first week in July, mail to the Idaho state
28 department of agriculture, a copy of such charges. All charges made by any
29 public warehouseman hereunder for the handling and storage of agricultural
30 commodities or seed crops shall be just, fair and reasonable; and the director
31 of the Idaho state department of agriculture of the state of Idaho is hereby
32 vested with the power and authority upon the complaint of any person inter-
33 ested or upon his own motion, after a full hearing, to declare any existing
34 charge for the handling or storage of any agricultural commodity or seed crop
35 to be unreasonable or unjust and to determine and order what shall be a just
36 and reasonable charge to be imposed or enforced in place of that found to be
37 unreasonable or unjust. Failure to file and post scheduled charges for the
38 current year will keep in full force and effect the latest previously posted
39 and filed schedule of rates.
40 SECTION 11. That Section 69-213, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 69-213. PRIVILEGE OF EXAMINING COMMODITIES AND SEED CROPS STORED. Every
43 depositor having an interest in any agricultural commodity or seed crop stored
44 in any such warehouse, and every state inspector authorized by the director,
45 shall have the right to examine at any reasonable time during ordinary busi-
46 ness hours any commodity or seed crop so stored, and all parts of such ware-
47 houses, provided the warehouse or the agricultural commodities or seed crops
48 stored therein is not endangered by such inspection; and every warehouseman,
49 his agents and servants employees shall furnish safe and reasonable access and
50 facilities for such examination.
11
1 SECTION 12. That Section 69-214, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 69-214. EMPLOYMENT OF INSPECTORS PERSONNEL. The Idaho state department of
4 agriculture may employ such inspectors, investigators, samplers and weighers
5 as it may deem necessary.
6 SECTION 13. That Section 69-215, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 69-215. LICENSES TO WEIGH COMMODITIES FOR STORAGE. Every warehouse
9 licensed under this chapter shall have a weighmaster licensed pursuant to the
10 provisions of the Wweighmaster's Llicensing Aact; provided, however, that if
11 agricultural commodities or seed crops are not received or delivered by a
12 warehouse over scales, a weighmaster's license shall not be required.
13 SECTION 14. That Section 69-218, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 69-218. WAREHOUSEMEN TO RECEIVE COMMODITIES OR SEED CROPS ACCORDING TO
16 CAPACITY. Every warehouseman conducting a warehouse licensed under this chap-
17 ter shall receive for storage therein, so far as its capacity permits, any
18 agricultural commodity or seed crop of the kind customarily stored therein by
19 him which may be tendered to him by historical depositors, bearing certifi-
20 cate, when required, of an official inspector showing suitable condition, for
21 warehousing, in the usual manner in the ordinary and usual course of business.
22 A warehouseman may accept agricultural commodities or seed crops from new
23 depositors who qualify to the extent of the capacity of the warehouse.
24 SECTION 15. That Section 69-219, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 69-219. COMMODITIES AND SEED CROPS DELIVERED TO A WAREHOUSE FOR STORAGE
27 OR UNDER THE TERMS OF A CONTRACT ARE DEEMED DEPOSITED DELIVERED SUBJECT TO
28 LAW. Any person who deposits delivers agricultural commodities for storage in
29 or seed crops to a warehouse licensed under this chapter shall be deemed to
30 have deposited delivered the same subject to the terms of this chapter and the
31 rules and regulations prescribed hereunder.
32 SECTION 16. That Section 69-220, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 69-220. INSPECTION AND GRADING OF DISEASED OR INSECT INFESTED COMMODITIES
35 AND SEED CROPS. Any diseased or insect infected infested agricultural commod-
36 ity or seed crop complained of by the department or any person having interest
37 in the warehouse or agricultural commodities or seed crops stored in a ware-
38 house licensed under this chapter shall be inspected and graded by a represen-
39 tative of the department of agriculture or a person duly licensed to grade the
40 same under this chapter, and if such inspection or grading shows such agricul-
41 tural commodity or seed crop to be in such condition that its continued stor-
42 ing or retention would injure or damage the warehouse or other commodities
43 stored therein the owner shall, by order of the director, forthwith remove and
44 dispose of such agricultural commodity as directed. If the owner of such com-
45 modity is unknown to the inspector or warehouseman, the warehouseman shall
46 proceed to remove or make disposition of such commodity in a manner that will
12
1 tend to save and realize the values contained in such commodity by the owner,
2 under such rules and regulations as may be promulgated under this chapter or
3 the uniform commercial code.
4 SECTION 17. That Section 69-222, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 69-222. RECEIPTS -- SCALE WEIGHT TICKETS. For all agricultural commodi-
7 ties stored in or seed crops delivered to a warehouse licensed under this
8 chapter original negotiable or nonnegotiable warehouse receipts, or scale
9 weight tickets, shall be issued by the warehouseman conducting the same, but
10 no receipts, or scale weight tickets, shall be issued except for agricultural
11 commodities or seed crops actually stored in delivered to the warehouse at the
12 time of the issuance thereof; provided, however, that no negotiable receipt
13 need be issued except when requested by the depositor or producer.
14 SECTION 18. That Section 69-223, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 69-223. NEGOTIABLE WAREHOUSE RECEIPTS FOR COMMODITIES OR SEED CROPS
17 STORED -- CONTENTS -- CONDITIONS -- PENALTIES. Every negotiable warehouse
18 receipt issued for agricultural commodities or seed crops stored in a ware-
19 house licensed under the provisions of this chapter shall be issued in accor-
20 dance with, but not limited to, the following:
21 (1) Every negotiable warehouse receipt issued for agricultural commodi-
22 ties or seed crops stored in delivered to a warehouse licensed under the pro-
23 visions of this chapter shall embody within its written or printed terms:
24 (a) All the requirements of a negotiable warehouse receipt under the
25 Uuniform Ccommercial Ccode -- Ddocuments of Ttitle.
26 (b) A description of the agricultural commodities or seed crops received,
27 showing the quantity thereof, or, in case of agricultural commodities or
28 seed crops customarily put up in bales or packages, a description of such
29 bales or packages by marks, numbers, or other means of identification and
30 the weight of such bales or packages.
31 (c) The grade or other class of the agricultural commodities or seed
32 crops received and the standard or description in accordance with which
33 such classification has been made:; provided, that such grade or other
34 class shall be stated according to the official standards of the state
35 applicable to such agricultural commodities or seed crops as the same may
36 be fixed and promulgated under authority of law:; provided further that
37 until such official standards of the state for any agricultural commodity
38 or commodities or seed crop(s) have been fixed and promulgated, the grade
39 or other class thereof may be stated in accordance with any recognized
40 standard; provided, that unless otherwise required by law, when requested
41 by the depositor of other than fungible agricultural commodities or seed
42 crops, a receipt omitting compliance with this subdivision may be issued
43 if it has plainly and conspicuously embodied in its written or printed
44 terms a provision that such negotiable warehouse receipt is not graded.
45 (d) A statement that the negotiable warehouse receipt is issued subject
46 to the provisions of this chapter and the rules and regulations prescribed
47 hereunder.
48 (e) Such other terms and conditions within the limitations of this chap-
49 ter as may be required by the Idaho state department of agriculture.
50 (f) All negotiable warehouse receipts issued under the provisions of this
51 chapter, shall be upon forms prepared and supplied by the department of
13
1 agriculture and issued upon requisition of the warehouseman at a reason-
2 able cost.
3 (2) Any warehouseman, agent, employee or manager of a public warehouse
4 licensed under the provisions of this chapter who shall remove or allow to be
5 removed any commodities or seed crops from the facility on which the negotia-
6 ble warehouse receipt was issued, except to preserve the same from fire or
7 other damage, or except when an emergency storage situation exists as deter-
8 mined by the director, without the return and cancellation of any and all out-
9 standing negotiable warehouse receipts that may have been issued to represent
10 such commodities or seed crops shall be guilty of a felony and be punished by
11 imprisonment in the state prison not to exceed ten (10) years, or by a fine of
12 not more than ten thousand dollars ($10,000), or by both.
13 SECTION 19. That Section 69-224, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 69-224. STANDARDS FOR AGRICULTURAL COMMODITIES AND SEED CROPS. The Idaho
16 state department of agriculture is authorized, from time to time, to establish
17 and promulgate standards for agricultural commodities and seed crops by which
18 their quality or value may be judged or determined.
19 So far as practicable such standards shall conform to the official stan-
20 dards of the United States or the state of Idaho applicable to such agricul-
21 tural commodities and seed crops as the same may from time to time be fixed
22 and promulgated.
23 No warehouseman in this state shall insert in any receipt issued by him
24 any language in anywise limiting or modifying his liabilities, or responsibil-
25 ities, as imposed by the laws of this state.
26 SECTION 20. That Section 69-225, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 69-225. LOSS OF RECEIPTS -- CONDITIONS OF REISSUE. While an original
29 receipt issued under this chapter is outstanding and uncanceled by the ware-
30 houseman issuing the same no other or further receipt shall be issued for the
31 agricultural commodity or seed crop covered thereby or for any part thereof.
32 In order to issue a new warehouse receipt supplementing one that has been lost
33 or destroyed or to cancel an outstanding warehouse receipt that has been lost
34 or destroyed, the licensed warehouseman shall require the depositor or other
35 applicant to submit to the warehouseman: (1) an affidavit stating that he is
36 lawfully entitled to possession of the original receipt, that he has not nego-
37 tiated or assigned it and how the original receipt was lost or destroyed,; and
38 (2) a bond in an amount double the market value of the agricultural commodity
39 or seed crop represented by the lost or destroyed receipt. The market value
40 shall be determined at the time this bond is submitted for the lost receipt. A
41 warehouse receipt issued in lieu of a lost or destroyed receipt shall dupli-
42 cate the original and bear a statement that it is issued in lieu of the lost
43 or destroyed receipt. A duplicate receipt must clearly state on its face that
44 it is a duplicate receipt, the number of the receipt it is replacing and the
45 license number under which the original receipt was issued.
46 SECTION 21. That Section 69-226, Idaho Code, be, and the same is hereby
47 amended to read as follows:
48 69-226. RECORDS OF WAREHOUSES -- CONDUCT OF WAREHOUSES. Every warehouse-
49 man conducting a warehouse licensed under the provisions of this chapter shall
14
1 keep in a place of safety complete and correct records and shall conduct said
2 warehouse in all other respects in compliance with this chapter and the rules
3 and regulations made promulgated hereunder.
4 SECTION 22. That Section 69-227, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 69-227. EXAMINATION OF COMMODITIES AND SEED CROPS -- RECORDS -- PUBLICA-
7 TION OF FINDINGS. The Idaho state department of agriculture is authorized to
8 cause examination to be made of any agricultural commodity stored or seed crop
9 received, or any record pertaining to commodities stored received therein, in
10 any warehouse licensed under the provisions of this chapter. Whenever, after
11 opportunity for hearing is given to the warehouseman conducting such ware-
12 house, it is determined that he is not performing fully the duties imposed on
13 him by this chapter and the rules and regulations made promulgated hereunder,
14 the department may publish its findings in a local daily or weekly newspaper
15 in the area where the warehouse is located.
16 SECTION 23. That Section 69-228, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 69-228. SUSPENSION OR REVOCATION OF LICENSE. The Idaho state department
19 of agriculture may, after opportunity for hearing has been afforded to the
20 licensee concerned, suspend or revoke any license issued to any person under
21 the provisions of this chapter, for any violation of or failure to comply with
22 any provision of this chapter, chapter 7 of the uniform commercial code or the
23 rules and regulations made promulgated hereunder or upon the ground that the
24 licensee has used his license or allowed it to be used for any improper pur-
25 pose. Pending investigation, the Idaho state department of agriculture, when-
26 ever it deems necessary, may suspend a license temporarily without hearing.
27 SECTION 24. That Section 69-229, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 69-229. PUBLICATION OF REPORTS. The Idaho state department of agriculture
30 from time to time may publish the results of any investigations made under the
31 provisions of this chapter; and it may publish the names and addresses of per-
32 sons licensed under this chapter and a list of all licenses terminated under
33 this chapter and the causes therefore.
34 SECTION 25. That Section 69-230, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 69-230. EXAMINATION OF BOOKS. The Idaho state department of agriculture
37 is authorized through officials, employees, or agents of the department desig-
38 nated by it, to examine all books, records, papers, and accounts of warehouses
39 relating thereto.
40 SECTION 26. That Section 69-231, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 69-231. RULES AND REGULATIONS. The Idaho state department of agriculture
43 shall from time to time make such rules and regulations as it may deem neces-
44 sary for the efficient execution of the provisions of this chapter.
15
1 SECTION 27. That Section 69-232, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 69-232. COOPERATION WITH GOVERNMENTAL AGENCIES AND PRIVATE ASSOCIATIONS.
4 The director may cooperate with and enter into agreements with governmental
5 agencies of this state, other states, agencies of the federal government, and
6 private associations in order to carry out the purpose and provisions of this
7 chapter and the United States warehouse act (7 U.S.C.A. section 241, et seq.).
8 Notwithstanding any other provisions of this chapter, such agreements may also
9 relate to a joint program for licensing, bonding and inspecting stations. Such
10 a program should be designed to avoid duplication of effort on the part of the
11 licensing authority and requirements for operation, and promote more efficient
12 enforcement of the provisions of this chapter and comparable provisions of the
13 laws of the states of Oregon, Washington, Montana, Wyoming, Utah, and Nevada
14 and the province of British Columbia, Canada.
15 SECTION 28. That Section 69-233, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 69-233. VIOLATION OF LAW -- PENALTY. Any person who violates any provi-
18 sion of this chapter or the rules and regulations promulgated hereunder, or
19 who shall impede, obstruct, hinder or otherwise prevent or attempt to prevent
20 the director or his duly authorized representative in the performance of his
21 duty in connection with the provisions of this chapter, except as provided in
22 sections 69-204, 69-212, 69-223 and 69-248, Idaho Code, shall be guilty of a
23 misdemeanor and be punished by imprisonment in a county jail not to exceed six
24 (6) months, or by a fine or of not more than one thousand dollars ($1,000), or
25 by both.
26 SECTION 29. That Section 69-236, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 69-236. NONCOMPLIANCE -- FAILURE -- REMEDIES OF DEPARTMENT. (1) Whenever
29 it appears, after any investigation, that a warehouseman does not have in his
30 possession sufficient agricultural commodities or seed crops to cover the out-
31 standing warehouse receipts, scale weight tickets, or other evidence of stor-
32 age liability issued or assumed by him, or the ability to pay producers for
33 contract obligations, or when the warehouseman refuses to submit his books,
34 papers, or property to lawful inspection, the Idaho state department of agri-
35 culture may shall give notice to the warehouseman to comply with all or any of
36 the following requirements:
37 (a) Cover such shortage;
38 (b) Give an additional bond as requested by the department; or
39 (c) Submit to such inspection as the department may deem necessary.
40 (2) If the warehouseman fails to comply with the terms of such notice
41 within twenty-four (24) hours from the date of issuance of the notice, or
42 within such further time as the department may allow not to exceed ten (10)
43 working days, the department may shall petition the district court in the
44 county where the licensee's principal place of business is located (as shown
45 by the license application) for an order:
46 (a) Authorizing the department to seize and take possession of any or all
47 agricultural commodities or seed crops in the warehouse or warehouses
48 owned, operated, or controlled by the warehouseman, and of all books,
49 papers and property of all kinds used in connection with the conduct or
50 the operation of the warehouse business, and any materials which pertain
16
1 in any way to that business; and
2 (b) Enjoining the warehouseman from interfering with the department in
3 the discharge of its duties as required by the provisions of this section.
4 (3) Upon taking possession, the department shall give written notice of
5 its action to the surety on the bond of the warehouseman and may shall notify
6 the holders or producers of record, as shown by the warehouseman's records, of
7 all negotiable or nonnegotiable warehouse receipts, or scale weight tickets or
8 production contracts issued for agricultural commodities or seed crops, to
9 present their warehouse receipt or other evidence of deposits or obligation
10 for inspection or to account for the same. The department may shall thereupon
11 cause an audit to be made of the affairs of such warehouse including, but not
12 limited to, the agricultural commodities or seed crops in which there is an
13 apparent shortage, to determine the amount of such shortage and compute the
14 shortage as to each depositor as shown by the warehouseman's records, if pos-
15 sible. The department shall notify the warehouseman and the surety on his bond
16 of the approximate amount of such shortage and notify each depositor thereby
17 affected by sending notices to the depositor's last known address as shown by
18 the records of the warehouseman.
19 (4) The department shall retain possession of the agricultural commodi-
20 ties or seed crops in the warehouse or warehouses, and the books, papers, and
21 property of the warehouseman, until such time as the warehouseman or the
22 surety on the bond shall have satisfied the claims of all holders of warehouse
23 receipts or other evidence of deposits or obligations, in case the shortage
24 obligations exceeds the amount of the bond, the surety on the bond shall have
25 satisfied such claims pro rata, or until such time as the department is
26 ordered by the court to surrender possession.
27 (5) If during or after the audit provided for in this section, or at any
28 other time the department has evidence that the warehouseman is insolvent or
29 is unable to satisfy the claims of all holders of warehouse receipts or other
30 evidence of deposits obligation, the department may shall petition the dis-
31 trict court for the appointment of a receiver to operate or liquidate the
32 business of the warehouseman in accordance with the law.
33 (6) At any time within ten (10) days after the department takes posses-
34 sion of any agricultural commodities or seed crops, or the books, papers, or
35 property of any warehouse, the warehouseman may serve notice on the depart-
36 ment to appear in the district court of the county in which the warehouse is
37 located, at a time to be fixed by the court, and show cause why the agricul-
38 tural commodities or seed crops, books, papers and other property should not
39 be restored to his possession.
40 (7) All necessary expenses incurred by the department in carrying out the
41 provisions of this section may be recovered in a separate civil action brought
42 by the department in district court or recovered at the same time and as part
43 of the receivership or seizure action filed under the provisions of this chap-
44 ter.
45 (8) As a part of the expenses so incurred, the department or the receiver
46 is authorized to include the cost of adequate liability insurance necessary to
47 protect the department, its officers, and others engaged in carrying out the
48 provisions of this section.
49 (9) The provisions and remedies of this section are not limited to a
50 warehouse shortage.
51 SECTION 30. That Section 69-237, Idaho Code, be, and the same is hereby
52 amended to read as follows:
53 69-237. PARTIAL WITHDRAWAL OF COMMODITIES OR SEED CROPS -- ADJUSTMENT OR
17
1 SUBSTITUTION OF RECEIPT -- DUTIES OF WAREHOUSEMAN. When partial withdrawal of
2 an agricultural commodity or seed crop is made by a depositor, the warehouse-
3 man shall make appropriate notation thereof on the depositor's nonnegotiable
4 receipt or on other records. If the warehouseman has issued a negotiable
5 receipt to the depositor he shall claim, cancel, and replace it with a nego-
6 tiable receipt showing the amount of the depositor's agricultural commodity or
7 seed crop remaining in the warehouse. For failure to claim and cancel a nego-
8 tiable receipt which has been issued by him, a warehouseman shall be liable to
9 anyone who purchases such receipt for value and in good faith, for failure to
10 deliver all the agricultural commodity or seed crop specified in the receipt,
11 whether such purchaser acquired title to the negotiable receipt before or
12 after delivery of any part of the agricultural commodity or seed crop by the
13 warehouseman.
14 SECTION 31. That Section 69-238, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 69-238. WAREHOUSEMAN'S OBLIGATIONS -- DUTY TO DELIVER STORED COMMODITIES
17 OR SEED CROPS -- DAMAGES. (1) The duty of the warehouseman to deliver agricul-
18 tural commodities or seed crops stored shall be governed by the provisions of
19 this chapter and the requirements of the uniform commercial code. Upon the
20 return of a properly endorsed negotiable warehouse receipt to the warehouse-
21 man, and upon payment or tender of all advances and legal charges, agricul-
22 tural commodities or seed crops of the grade and quantity named therein shall
23 be delivered to the holder of the negotiable warehouse receipt, except as pro-
24 vided by the uniform commercial code.
25 (2) A warehouseman's duty to deliver any agricultural commodity or seed
26 crop is fulfilled if delivery is made pursuant to the contract with the depos-
27 itor, or if no contract exists, then to the several owners in the order of
28 demand as rapidly as it can be done by ordinary diligence. When delivery is
29 made within thirty (30) days from date of demand, or as agreed upon in writing
30 by all parties concerned, such delivery is deemed to comply with the provi-
31 sions of this section. An extension of the delivery period may be granted by
32 the department upon written request.
33 (3) A warehouseman shall not fail to deliver an agricultural commodity or
34 seed crop as provided in this section, and delivery shall be made at the ware-
35 house or station where the agricultural commodity or seed crop was received,
36 unless otherwise agreed.
37 (4) In addition to being subject to penalties provided in this chapter
38 for a violation of the provisions of this section, any warehouseman failing to
39 deliver agricultural commodities or seed crops within the time provided in
40 this section is subject to suit by the person entitled to delivery of the
41 agricultural commodities or seed crops and may be ordered by a court of compe-
42 tent jurisdiction to pay actual damage or liquidated damages of one-half (1/2)
43 of one percent (1.5%) of the value for each day's delay.
44 SECTION 32. That Section 69-239, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 69-239. DUTIES OF WAREHOUSEMAN -- CONTENTS OF RECORDS. (1) The warehouse-
47 man shall maintain current and complete records at all times with respect to
48 all agricultural commodities or seed crops handled, stored, shipped or
49 merchandised by him, including agricultural commodities or seed crops owned by
50 him. Such records shall include, but are not limited to, a daily position
51 record showing the total quantity of each kind and class of agricultural com-
18
1 modity or seed crop received and loaded out and the amount remaining in stor-
2 age at the close of each business day, and the warehouseman's total storage
3 obligation for each kind and class of agricultural commodity or seed crop at
4 the close of each business day.
5 (2) Every warehouseman purchasing any agricultural commodity or seed crop
6 from a depositor thereof shall promptly make and keep for five (5) years a
7 correct record showing in detail the following information:
8 (a) The name and address of the depositor;
9 (b) The date purchased;
10 (c) The terms of the sale; and
11 (d) The quality and quantity purchased by the warehouseman and, where
12 applicable, the dockage, tare, grade, size and net weight.
13 SECTION 33. That Section 69-242, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 69-242. INJUNCTION. Any violation of the provisions of this chapter or
16 the rules and regulations promulgated hereunder may be enjoined upon complaint
17 by the director.
18 SECTION 34. That Section 69-245, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 69-245. DIRECTOR'S AUTHORITY. The director may, upon his own motion,
21 whenever he has reason to believe the provisions of this chapter have been
22 violated, or upon verified complaint of any person in writing, investigate the
23 actions of any warehouseman licensed under the provisions of this chapter, and
24 if he finds probable cause to do so, shall file a complaint against the ware-
25 houseman which shall be set down for hearing before the director upon thirty
26 (30) days' notice served upon such license holder by personal service, regis-
27 tered mail or telegram facsimile.
28 The director shall have the power to administer oaths, certify to all
29 official acts and shall have the power to subpoena any person in this state as
30 a witness; to compel through subpoena the production of books, papers, and
31 records; and to take the testimony of any person on deposition in the same
32 manner as prescribed by law in the procedure before the courts of this state.
33 A subpoena issued by the director shall extend to all parts of the state and
34 may be served by any person authorized to do so.
35 All powers of the director herein enumerated in respect to administering
36 oaths, power of subpoena, and other powers in hearings on complaints shall
37 likewise be applicable to hearings held on applications for the issuance or
38 renewal of a warehouse license.
39 SECTION 35. That Section 69-248, Idaho Code, be, and the same is hereby
40 amended to read as follows:
41 69-248. DRAWING CHECKS INSUFFICIENTLY COVERED A VIOLATION. Any person
42 engaged in business as a bonded warehouseman or agent, as defined in this
43 chapter, who shall make, draw, utter or deliver any check, draft or order for
44 the payment of money upon any bank or other depository, in payment to the
45 seller producer of the purchase or contract price of any agricultural commod-
46 ity or seed crop or any part thereof upon obtaining possession or control
47 thereof, or in compliance with a contract, when at the time of such making,
48 drawing, uttering or delivery the maker or drawer does not have sufficient
49 funds in or credit with such bank or other depository for the payment of such
19
1 check, draft or order in full upon its presentation, shall violate the provi-
2 sions of this chapter. The word "credit" as used herein shall mean an arrange-
3 ment or understanding with the bank or depository for the payment of such
4 check, draft or order.
5 SECTION 36. That Section 69-249, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 69-249. CREDIT-SALE CONTRACTS. (1) A warehouseman who purchases agricul-
8 tural commodities or seed crops by credit-sale contracts shall maintain books,
9 records and other documents as required by the department to establish compli-
10 ance with the provisions of this section.
11 (2) In addition to other information as may be required, a credit-sale
12 the requirement of chapter 50, title 22, Idaho Code, a contract shall contain
13 or provide, for all of but not be limited to, the following:
14 (a) The seller's name and address;
15 (b) The conditions of delivery;
16 (c) The amount and kind of agricultural commodities or seed crops deliv-
17 ered;
18 (d) The price per unit or basis of value; and
19 (e) The date payment is to be made.
20 (3) Title to all agricultural commodities or seed crops sold by credit-
21 sale contract is in the purchaser as of the time the contract is executed,
22 unless the contract provides otherwise. The contract must be signed by both
23 parties and executed in duplicate. One (1) copy shall be retained by the ware-
24 houseman and one (1) copy shall be delivered to the seller. Upon revocation or
25 termination of a warehouseman's license, the payment date for all credit-sale
26 contracts shall be advanced to a date not later than thirty (30) days follow-
27 ing the effective date of the revocation or termination and the purchase price
28 for all agricultural commodities or seed crops without a price shall be deter-
29 mined as of the effective date of revocation or termination in accordance with
30 all other provisions of the contract. However, if the business of the ware-
31 houseman is sold to another licensed warehouseman, credit-sale contracts may
32 be assigned to the purchaser of the business.
33 SECTION 37. That Section 69-250, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 69-250. RECORDS. All financial statements and production records of ware-
36 housemen required under the provisions of this chapter shall be subject to
37 disclosure according to chapter 3, title 9, Idaho Code, except as follows:
38 (1) Upon written permission by the licensee;
39 (2) In actions or administrative proceedings commenced under the provi-
40 sions of this chapter or chapter 5, title 69, Idaho Code;
41 (3) When required by subpoena or court order; or
42 (4) Disclosure to law enforcement agencies in connection with the inves-
43 tigation or prosecution of criminal offenses.
44 SECTION 38. That Section 69-251, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 69-251. PAYMENT OF PURCHASE PRICE. A person required to be licensed to do
47 business as a warehouseman under the provisions of this chapter shall pay the
48 purchase price to the owner or his agent for agricultural commodities or seed
49 crops upon delivery or demand by the owner or agent, but not later than thirty
20
1 (30) days after delivery by the owner or agent unless otherwise agreed to by
2 the parties, in writing. As used in this section, "delivery" means the trans-
3 fer of title to and possession of agricultural commodities or seed crops by
4 the owner or agent to the warehouseman or to another person in accordance with
5 the agreement of the owner or agent and the warehouseman. As used in this sec-
6 tion, "payment" means the actual payment or tender of payment by the ware-
7 houseman to the owner or agent of the agreed purchase price.
8 SECTION 39. That Section 69-256, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 69-256. CREATION OF INDEMNITY ACCOUNT FUND -- USES. (1) There is hereby
11 established within the dedicated fund an account fund to be known as the com-
12 modity indemnity account fund. The commodity indemnity account fund shall con-
13 sist of assessments remitted by producers pursuant to the provisions of this
14 chapter and pursuant to the provisions of chapter 5, title 69, Idaho Code, and
15 any interest or earnings on the account fund balance.
16 (2) All assessments shall be paid to the department and shall be depos-
17 ited in the commodity indemnity account fund. The state treasurer shall be the
18 custodian of the commodity indemnity account fund. Disbursements shall be on
19 authorization of authorized by the director as determined by the advisory com-
20 mittee. No appropriation is required for disbursements from this account fund.
21 (3) The commodity indemnity account fund shall be used exclusively for
22 purposes of paying claimants pursuant to this chapter and pursuant to the pro-
23 visions of chapter 5, title 69, Idaho Code, and paying necessary expenses of
24 administering the commodity indemnity account fund, provided however, that up
25 to one-half (1/2) of the interest accumulated by the account fund may be paid
26 to the department and to the state treasurer to defray costs of administering
27 the bonded warehouse and commodity dealer indemnity program and the commodity
28 indemnity account fund. Up to one-half (1/2) of the interest accumulated by
29 the fund and, if necessary, a portion of the fund may be used to defray the
30 cost of reinsuring the fund at the discretion of the advisory committee. The
31 state of Idaho shall not be liable for any claims presented against the
32 account fund.
33 SECTION 40. That Section 69-257, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 69-257. ASSESSMENT -- RATE -- MINIMUM AND MAXIMUM ASSESSMENT. (1) Every
36 producer shall pay an assessment to the Idaho state department of agriculture
37 for deposit in the commodity indemnity account fund according to the provi-
38 sions of this chapter and rules and regulations promulgated by the department
39 to implement the provisions of this chapter.
40 (2) Except as provided in this subsection, the rate of the assessment
41 shall be established by rules promulgated by the department. The producer's
42 annual assessment shall not exceed two-tenths of one per cent percent (.2%) of
43 the total value, as determined at the time of first sale, of the commodities
44 or seed crops.
45 SECTION 41. That Section 69-259, Idaho Code, be, and the same is hereby
46 amended to read as follows:
47 69-259. MAXIMUM ACCOUNT FUND BALANCE -- CESSATION OF ASSESSMENTS. The
48 assessments imposed pursuant to section 69-257, Idaho Code, shall be imposed
49 under rules promulgated by the Idaho state department of agriculture, until
21
1 such time as the commodity indemnity account fund balance, less any outstand-
2 ing claims, reaches a combined total of five ten million dollars
3 ($510,000,000) for the purposes of both chapters 2 and 5, title 69, Idaho
4 Code. If the commodity indemnity account fund balance, less any outstanding
5 claims, exceeds five ten million dollars ($510,000,000) on an assessment date,
6 no assessment shall be imposed by the department, except as provided in sec-
7 tion 69-258, Idaho Code. For the two (2) fiscal years immediately following
8 the effective date of the program, an amount not exceeding one hundred thou-
9 sand dollars ($100,000) per year may be paid to the department to defray costs
10 of administering the warehouse audit program.
11 SECTION 42. That Section 69-261, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 69-261. ADVISORY COMMITTEE -- TERMS -- COMPENSATION. (1) There is hereby
14 created a commodity indemnity account fund advisory committee for the purposes
15 of both chapters 2 and 5, title 69, Idaho Code, consisting of nine (9) members
16 to be appointed by the director. Appointments shall be for three (3) year
17 terms, each term ending on the same day of the same month as did the term pre-
18 ceding it. Any member appointed to fill a vacancy occurring prior to the expi-
19 ration of the term for which the member's predecessor was appointed shall hold
20 office for the remainder of the predecessor's term.
21 (2) The committee shall be composed of six (6) producers primarily
22 engaged in the production of commodities, and three (3) licensed bonded ware-
23 housemen or licensed commodity dealers.
24 (3) The committee shall meet at such places and times as it shall deter-
25 mine and as often as necessary to discharge the duties imposed upon it, pro-
26 vided, it shall meet not less than once twice per year. Each committee member
27 shall be compensated in accordance with section 59-509(g), Idaho Code, for
28 travel and subsistence expense. The expenses of the committee and its opera-
29 tion shall be paid from the commodity indemnity account fund.
30 (4) The committee shall have the power and duty to advise the director
31 concerning assessments, administration of the commodity indemnity account
32 fund, and payment of claims from the account fund.
33 SECTION 43. That Section 69-262, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 69-262. PROOF OF CLAIMS -- PROCEDURE -- HEARING -- INSPECTION OF WARE-
36 HOUSE. In the event a warehouse or dealer fails, as defined in section
37 69-202(712), Idaho Code, or section 69-602(12), Idaho Code, the Idaho state
38 department of agriculture shall process the claims of producers producing
39 written evidence of ownership disclosing a storage obligations, or written
40 evidence of a sale of commodities, transfer or exchange of commodities or
41 financial obligation created by a production contract for the commodities
42 listed in subsection (1) of this section, for damages caused by the failure,
43 in the following manner:
44 (1) Commodities that are covered by this commodity indemnity fund program
45 are as follows: any grain; wheat; barley; oats; corn, except sweet corn or
46 sweet corn seed; rye; oilseeds; dry edible beans; peas; lentils and other
47 leguminous seeds, except true seed crops; or any other commodity as determined
48 by the advisory committee.
49 (2) The department shall give notice and provide a reasonable time of not
50 less than thirty (30) days and not more than sixty (60) days to producers pos-
51 sessing written evidence of ownership disclosing a storage obligation, or
22
1 written evidence of sale of commodities, transfer or exchange of commodities
2 or financial obligation created by a production contract for the commodities,
3 to file their written verified claims with the department.
4 (23) The department may investigate each claim and determine whether the
5 claimant's commodities are under a storage obligation or whether a sale of
6 commodities or financial obligation has occurred, and they are one of the com-
7 modities listed in subsection (1) of this section. The department shall notify
8 each claimant, the commodity warehouseman or dealer, and the committee of the
9 department's determination as to the validity and amount of each claimant's
10 claim. A claimant or warehouseman or dealer may request a hearing on the
11 department's determination within twenty (20) days of receipt of written noti-
12 fication and a hearing shall be held by the department pursuant to title 67,
13 chapter 52, Idaho Code. Upon determining the amount and validity of the claim,
14 the director shall pay to the claimant an amount equal to ninety percent (90%)
15 of the approved claim from the commodity indemnity account fund. Prior to any
16 payment from the account fund to a claimant, the claimant shall be required to
17 subrogate and assign his right to recover from any other source. The depart-
18 ment may then pay up to ninety percent (90%) of the approved claim to the
19 claimant. The department shall have a priority claim for that amount. The
20 claimant shall be entitled to seek recovery of the remaining ten percent (10%)
21 which was not originally assigned to the department. For the purpose of deter-
22 mining the amount of the producer's claim, the value of a producer's commodity
23 shall be the value of the commodity on the date the director declared the
24 warehouse or dealer to have failed or to have failed to comply with the provi-
25 sions of this chapter or rules promulgated thereunder or the contract price if
26 commodities were held pursuant to a contractual obligation.
27 (34) The department may inspect, and conduct an examination or audit a
28 failed warehouseman or dealer to determine whether the warehouseman or dealer
29 has in his possession sufficient quantities of commodities to cover his stor-
30 age obligations. In the event of a shortage, the department shall determine
31 each producer's pro rata share of available commodities and the deficiency
32 shall be considered as a claim of the producer. Each type of commodity shall
33 be treated separately for the purpose of determining shortages.
34 (45) The director shall not approve or pay any claim made on the commod-
35 ity indemnity account fund if the claim is based on losses resulting from the
36 deposit, sale or storage of commodities in an unlicensed warehouse or dealer.
37 The director shall not approve or pay any claim made on the commodity indem-
38 nity fund if the claim is for the payment of interest, attorneys' fees, ancil-
39 lary costs or punitive damages.
40 (6) Any appeal of the final decision of the department made pursuant to
41 chapter 52, title 67, Idaho Code, made against the commodity indemnity fund
42 program by any producer, depositor or claimant, will fall under the jurisdic-
43 tion of Idaho courts applying Idaho law.
44 SECTION 44. That Section 69-264, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 69-264. MINIMUM BALANCE -- SUBSEQUENT PAYMENTS. The combined minimum bal-
47 ance in the commodity indemnity account fund for purposes of both chapters 2
48 and 5, title 69, Idaho Code, shall be five hundred thousand one million dol-
49 lars ($51,000,000). At no time shall the balance be allowed to fall below the
50 minimum balance. The director may pay claims, on a pro rata basis if neces-
51 sary, until the minimum balance is reached. If the director cannot fully pay a
52 claim before the minimum balance is reached, he shall, when the commodity
53 indemnity account fund contains sufficient funds, pay off the claim. Provided
23
1 however, that in no event shall the fund be liable for those claims not fully
2 paid within the subsequent three (3) year period of time, whether the claims
3 are fully paid or not.
STATEMENT OF PURPOSE
RS 11117
This bill is a product of the Governor's Task Force on Family
Farm Security. This bill updates, clarifies and strengthens the bonded
warehouse law. The changes were recommended by the task force based
on experience from two recent warehouse failures that have had a
severe impact on producers. The bill also raises the license fee
schedule in order to assist the Department of Agriculture in doing
a more thorough job of licensing and inspecting these facilities.
These fees have not been raised in several years.
The bill also makes changes in the Indemnity Fund Law to clarify
questions that have been raised by these recent warehouse
failures.
FISCAL IMPACT
The fiscal impact to the Bonded Warehouse program will be $4,365,
increase due to a renewal fee increase. At this time the Department
does not project any additional workload from this increase, but this
will more nearly cover the cost of operating this program. Additional
revenue will be generated using up to one-half of the interest accrued
from the CIAP fund.
Contact
Name: Rep. Jones,
Phone: 332 2237
Dennis Doshier, Department of Agriculture
STATEMENT OF PURPOSE/FISCAL NOTE H 273