2002 Legislation
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HOUSE BILL NO. 644 – Commodity dealers, license/fees

HOUSE BILL NO. 644

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H0644...............................................by AGRICULTURAL AFFAIRS
COMMODITY DEALERS - Amends existing law relating to commodity dealers to
provide for a licensure reinstatement period; to provide for denial of
commodity dealer's licenses to certain limited liability companies or
associations; to revise provisions relating to bonds of applicants for
licensure; to revise license fee provisions; to revise criteria and
procedures for the Department of Agriculture's inspection of a commodity
dealer's premises, books and records; to clarify record disclosure
provisions; to provide that licensed public accountants may prepare
required financial statements; and to revise provisions relating to bonds.
                                                                        
02/13    House intro - 1st rdg - to printing
02/14    Rpt prt - to Agric Aff
02/21    Rpt out - rec d/p - to 2nd rdg
02/22    2nd rdg - to 3rd rdg
02/27    3rd rdg - PASSED - 67-0-3
      AYES -- Aikele, Barraclough, Barrett, Bell, Bieter, Black, Block,
      Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Clark, Collins,
      Crow, Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
      Field(20), Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins,
      Hornbeck, Jaquet, Jones, Kellogg(Duncan), Kendell, Kunz, Lake,
      Langford, Loertscher, Mader, Martinez, McKague, Meyer, Montgomery,
      Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger, Roberts,
      Robison, Sali, Schaefer, Shepherd, Smith(33), Smith(23), Smylie,
      Stevenson, Stone, Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker
      NAYS -- None
      Absent and excused -- Bedke, Mortensen, Sellman
    Floor Sponsor - Jones
    Title apvd - to Senate
02/28    Senate intro - 1st rdg - to Agric Aff
03/06    Rpt out - rec d/p - to 2nd rdg
03/07    2nd rdg - to 3rd rdg
03/13    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Darrington, Davis, Deide, Dunklin, Frasure,
      Geddes, Goedde, Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia,
      Little, Lodge, Marley, Noh, Richardson, Risch, Sandy, Schroeder,
      Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Burtenshaw
    Title apvd - to House
03/14    To enrol
03/15    Rpt enrol - Sp signed
    Pres signed
03/15    To Governor
03/25    Governor signed
         Session Law Chapter 258
         Effective: 07/01/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 644
                                                                        
                             BY AGRICULTURAL AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO COMMODITY DEALER LAW; AMENDING  SECTION  69-502,  IDAHO  CODE,  TO
  3        REVISE  DEFINITIONS  AND  TO PROVIDE DEFINITIONS; AMENDING SECTION 69-504,
  4        IDAHO CODE, TO STRIKE REFERENCE TO PENALTY FEES, TO PROVIDE FOR REINSTATE-
  5        MENT FEES, TO STRIKE REFERENCE TO A PENALTY PERIOD, TO PROVIDE FOR A REIN-
  6        STATEMENT PERIOD, TO PROVIDE FOR REMITTANCE OF THE  REINSTATEMENT  FEE  TO
  7        THE  DEPARTMENT,  TO  PROVIDE FOR DENIAL OF COMMODITY DEALER'S LICENSES TO
  8        CERTAIN LIMITED LIABILITY COMPANIES OR ASSOCIATIONS, TO  STRIKE  REFERENCE
  9        TO REGULATIONS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 69-506,
 10        IDAHO  CODE,  TO  STRIKE REFERENCE TO ANNUITIES IN LIEU OF BOND, TO STRIKE
 11        REFERENCE TO BONDS BEING MADE PAYABLE TO THE STATE OF  IDAHO,  TO  PROVIDE
 12        THAT  BONDS  SHALL  BE  MADE  PAYABLE  TO THE COMMODITY INDEMNITY FUND, TO
 13        REVISE PROVISIONS RELATING TO BONDS OF APPLICANTS FOR LICENSURE, TO STRIKE
 14        REFERENCE TO THE REQUIREMENT TO MAKE CERTIFICATES OF  DEPOSIT  PAYABLE  TO
 15        THE  DIRECTOR AS TRUSTEE, TO PROVIDE THAT CERTIFICATES OF DEPOSIT SHALL BE
 16        MADE PAYABLE TO THE COMMODITY INDEMNITY FUND, TO REVISE PROVISIONS  RELAT-
 17        ING  TO CERTIFICATES OF DEPOSIT IN LIEU OF BOND AND TO MAKE TECHNICAL COR-
 18        RECTIONS; AMENDING SECTION 69-508, IDAHO CODE, TO REVISE LICENSE FEE  PRO-
 19        VISIONS,  TO  CLARIFY  THAT  MONEYS  ARE  TO BE DEPOSITED IN THE COMMODITY
 20        INDEMNITY FUND AND USED FOR CERTAIN PURPOSES AS SET FORTH IN A  DESIGNATED
 21        CODE  SECTION  AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 69-510,
 22        IDAHO CODE, TO REQUIRE CERTAIN AGREEMENTS BE IN WRITING; AMENDING  SECTION
 23        69-511, IDAHO CODE, TO REVISE CRITERIA AND PROCEDURES FOR THE DEPARTMENT'S
 24        INSPECTION  OF  A  COMMODITY  DEALER'S BOOKS AND RECORDS; AMENDING SECTION
 25        69-515, IDAHO CODE, TO CLARIFY RECORD DISCLOSURE PROVISIONS; AMENDING SEC-
 26        TION 69-516, IDAHO CODE, TO STRIKE REFERENCE TO REGULATIONS; AMENDING SEC-
 27        TION 69-517, IDAHO CODE, TO STRIKE REFERENCE TO TELEGRAMS, TO PROVIDE  FOR
 28        CERTAIN  NOTICE  BY FACSIMILE, TO PROVIDE FOR OTHER ADMINISTRATIVE ACTION,
 29        TO PROVIDE FOR CERTAIN RECORDS AND TO MAKE A TECHNICAL CORRECTION;  AMEND-
 30        ING  SECTION  69-521,  IDAHO CODE, TO PROVIDE THAT LICENSED PUBLIC ACCOUN-
 31        TANTS MAY PREPARE REQUIRED REVIEWED FINANCIAL STATEMENTS; AMENDING SECTION
 32        69-522, IDAHO CODE, TO PROVIDE FOR ACTION ON A BOND BY CERTAIN  PRODUCERS,
 33        TO REVISE PROVISIONS RELATED TO ACTIONS ON A BOND IN THE EVENT OF A BREACH
 34        OF AN OBLIGATION AND TO PROVIDE FOR THE RECOVERY OF ATTORNEY'S FEES BY THE
 35        DIRECTOR; AMENDING SECTION 69-524, IDAHO CODE, TO STRIKE REFERENCE TO REG-
 36        ULATIONS;  AND  AMENDING SECTION 69-525, IDAHO CODE, TO CLARIFY PROVISIONS
 37        RELATING TO DUTIES OF PROSECUTION.
                                                                        
 38    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 39        SECTION 1.  That Section 69-502, Idaho Code, be, and the  same  is  hereby
 40    amended to read as follows:
                                                                        
 41        69-502.  DEFINITIONS.  As used in this chapter, except as otherwise speci-
 42    fied:
 43        (1)  "Agricultural commodity" means any grain,  dry  peas  wheat,  barley,
                                                                        
                                           2
                                                                        
  1    oats,  corn,  rye,  oilseeds,  dry  edible  beans,  peas,  lentils  and  other
  2    leguminous  or  other  small  seeds  and feeds (not including minerals or seed
  3    crops) or any other commodity as determined by the director.
  4        (2)  "Commodity dealer" or "dealer" means any person  who  solicits,  con-
  5    tracts  for,  or  negotiates  the  consignment or purchase, or obtains from an
  6    Idaho producer or producers, title, possession, or control of any agricultural
  7    commodity through his place of business located  in  the  state  of  Idaho  or
  8    through  his place of business located outside the state of Idaho for the pur-
  9    pose of sale or resale or who buys, during any calendar  year,  at  least  ten
 10    thousand  dollars  ($10,000)  worth  of agricultural commodities from an Idaho
 11    producer or producers of the commodities. Commodity dealer or dealer shall not
 12    mean any person who purchases agricultural commodities for his own use as seed
 13    or feed within his own operation.
 14        (3)  "Credit-sale contract" means a contract for the sale of  an  agricul-
 15    tural  commodity pursuant to which the sale price is to be paid at a date sub-
 16    sequent to the delivery  of  the  agricultural  commodity  to  the  buyer  and
 17    includes,  but  is  not  limited  to,  those contracts commonly referred to as
 18    deferred payment contracts, deferred pricing contracts  and  price-later  con-
 19    tracts.
 20        (4)  "Department"  means  the  department  of  agriculture of the state of
 21    Idaho.
 22        (5)  "Director" means the director of the department of agriculture.
 23        (6)  "Person" means any individual,  firm,  association,  partnership,  or
 24    corporation, or limited liability company.
 25        (7)  "Producer"  means the owner, tenant or operator of land in this state
 26    who has an interest in and receives all or part of the proceeds from the  sale
 27    of  agricultural  commodities produced on that land. Producer does not include
 28    growers who sell their commodity to a facility in which they have a  financial
 29    or  management  interest except members of a cooperative marketing association
 30    qualified under chapter 26, title 22, Idaho Code.
 31        (8)  "Public warehouse" or "warehouse" or "warehouseman" means any  eleva-
 32    tor,  mill,  warehouse,  subterminal  commodity warehouse, public warehouse or
 33    other structure or facility in which agricultural commodities are received for
 34    storage, shipment, processing, reconditioning or handling.
 35        (9)  "Suspension" means  the  temporary  removal  of  a  commodity  dealer
 36    license  by  the department pending a hearing for violations of the provisions
 37    of this chapter. Correction of the violations prior to a hearing may result in
 38    the reinstatement of a license without a hearing.
 39        (10)  "Revocation" means the  permanent  removal  of  a  commodity  dealer
 40    license following a hearing on violations of the provisions of this chapter by
 41    the hearing officer or director.
 42        (10) "Suspension"  means  the  temporary  removal  of  a  commodity dealer
 43    license by the department pending a hearing for violations of  the  provisions
 44    of this chapter. Correction of the violations prior to a hearing may result in
 45    the reinstatement of a license without a hearing.
 46        (11) "Termination"  means the expiration of a commodity dealer license due
 47    to failure to meet minimum licensing requirements, failure to renew a  commod-
 48    ity  dealer license or as requested by the licensee, according to the terms of
 49    section 69-504 (4), Idaho Code unless a complaint has been filed  against  the
 50    licensee alleging a violation of any provision of this chapter.
                                                                        
 51        SECTION  2.  That  Section  69-504, Idaho Code, be, and the same is hereby
 52    amended to read as follows:
                                                                        
 53        69-504.  LICENSE ISSUANCE -- RENEWAL --  EXPIRATION.  (1)  The  department
                                                                        
                                           3
                                                                        
  1    shall  issue  a  license when the applicant has filed the application and com-
  2    plied with the terms and conditions of the provisions of this chapter and  the
  3    rules  and regulations of the department. The license shall expire on December
  4    31 of each year.
  5        (2)  A commodity dealer's license may be renewed  annually  by  submitting
  6    all  necessary licensing materials required by the provisions of this chapter.
  7    This material shall be received by the department before December 31  of  each
  8    year.
  9        (3)  A  commodity  dealer's license which has expired may be reinstated by
 10    the department upon receipt of all necessary licensing materials  required  by
 11    the  provisions  of this chapter and a penalty reinstatement fee in the amount
 12    of fifty five  hundred dollars ($500.00); providing,  that  this  material  is
 13    filed  within  thirty  (30)  days from the date of expiration of the commodity
 14    dealer's license. At the end of the  thirty  (30)  day  penalty  reinstatement
 15    period, a commodity dealer's license shall terminate. All license applications
 16    received  after the thirty (30) day penalty reinstatement period shall be con-
 17    sidered original applications and,  after the five hundred dollar ($500) rein-
 18    statement fee has been remitted to  the  department,  license  fees  shall  be
 19    assessed according to section 69-508(1), Idaho Code.
 20        (4)  A  license  may  terminate upon request of the licensee unless a com-
 21    plaint has been filed against the licensee alleging a violation of any  provi-
 22    sion of this chapter. A commodity dealer's license is not transferable between
 23    legal entities.
 24        (5)  If  an  applicant  has  had a license revoked under the provisions of
 25    chapters 2 or 5, title 69, Idaho Code, or  the  United  States  warehouse  act
 26    within the past three (3) years or been convicted of a violation of the provi-
 27    sions of chapters 2 or 5, title 69, Idaho Code, or the United States warehouse
 28    act  within  the  past  three  (3)  years, the department may deny a commodity
 29    dealer's license to the applicant.
 30        (6)  Any partnership with a partner or any corporation, limited  liability
 31    company  or  any association which has an officer, director or majority stock-
 32    holder owning at least ten per cent percent (10%) of issued stock who has  had
 33    a  license  revoked  under  the provisions of chapters 2 or 5, title 69, Idaho
 34    Code, or the United States warehouse act within the previous three  (3)  years
 35    or  has  been  convicted of a felony involving violations of the provisions of
 36    chapters 2 or 5, title 69, Idaho Code, or the United States warehouse act, may
 37    be denied a commodity dealer's license by the department.
                                                                        
 38        SECTION 3.  That Section 69-506, Idaho Code, be, and the  same  is  hereby
 39    amended to read as follows:
                                                                        
 40        69-506.  BONDING REQUIREMENTS -- CANCELLATION -- CERTIFICATE OF DEPOSIT OR
 41    ANNUITY  IN  LIEU  OF  BOND.  Except as provided in chapter 2, title 69, Idaho
 42    Code, an applicant for a license to  operate  as  a  commodity  dealer  shall,
 43    before  a  license  will be issued, file with the department a bond payable to
 44    the state of Idaho in favor of the commodity indemnity fund with  a  corporate
 45    surety  approved  by the department with the condition that the applicant will
 46    pay the purchase price of any agricultural commodity to the seller. The aggre-
 47    gate annual liability of the surety shall in no event exceed the  sum  of  the
 48    bond.
 49        The bond for each class 1 license shall be in the sum of twenty-five thou-
 50    sand  dollars ($25,000). The bond for each class 2 license shall be in the sum
 51    of fifteen thousand dollars ($15,000). A surety  shall  notify  the  commodity
 52    dealer  and  the department by certified mail at least sixty ninety (690) days
 53    prior to the cancellation of a bond issued under the provisions of this  chap-
                                                                        
                                           4
                                                                        
  1    ter.  The  liability of the surety shall cover purchases made by the commodity
  2    dealer during the time the bond is in force. A commodity dealer's  bond  filed
  3    with  this  department  shall  be  continuous  until cancelled canceled by the
  4    surety upon sixty ninety (690) days' notice. The director reserves  the  right
  5    to waive the sixty ninety (690) day cancellation period.
  6        Any  person required to submit a bond to the department in accordance with
  7    this chapter, may at his option  give  to  the  department  a  certificate  of
  8    deposit or annuity payable to the director as trustee commodity indemnity fund
  9    in  lieu  of the bond required herein. The principal amount of the certificate
 10    or annuity shall be the same as that required for a surety  bond  pursuant  to
 11    this  chapter.    Accrued  interest upon the certificate of deposit or annuity
 12    shall be payable to the purchaser of the certificate. or annuity. The certifi-
 13    cate or annuity shall remain on file with the department until it is released,
 14    cancelled canceled or discharged by the director. The provisions of this chap-
 15    ter that apply to a bond required pursuant to this chapter apply to each  cer-
 16    tificate  of  deposit  or annuity given in lieu of such bond. Under the provi-
 17    sions of this chapter, an annuity shall not be accepted by The certificate  of
 18    deposit  shall  remain  on  file with the department unless it is issued by an
 19    insurance company, bank or other financial  institution  found  acceptable  by
 20    until  it is released, canceled, or discharged by the director, and shall have
 21    a cash value equal to the bond requirement less any penalty  for  early  with-
 22    drawal  or until the director is notified ninety (90) days in advance, by reg-
 23    istered or certified mail, return receipt requested, that the  certificate  of
 24    deposit  is  renewed,  canceled or amended. Failure to notify the director may
 25    result in the suspension or revocation of the commodity dealer's license.
                                                                        
 26        SECTION 4.  That Section 69-508, Idaho Code, be, and the  same  is  hereby
 27    amended to read as follows:
                                                                        
 28        69-508.  LICENSE  FEES.  (1)  The  department  shall assess and collect an
 29    annual fee for each commodity dealer's  license  on  an  original  application
 30    according to the following schedule:
 31        (a)  For  a  class 1 license the fee shall be two three hundred sixty dol-
 32        lars ($20360).
 33        (b)  For a class 2 license the fee shall be  one  hundred  eighty  dollars
 34        ($1080).
 35        (2)  The department shall assess and collect an annual fee for the renewal
 36    of each commodity dealer's license according to the following schedule:
 37        (a)  For  a class 1 license the renewal fee shall be forty sixty-five dol-
 38        lars ($4065.00).
 39        (b)  For a class 2 license the renewal fee  shall  be  twenty  thirty-five
 40        dollars ($2035.00).
 41        (3)  All  license  fees,  assessments and moneys collected by the director
 42    under the provisions of this chapter shall be placed in a separate fund in the
 43    state treasury to be used by the  director  for  the  purpose  of  inspection,
 44    administration  and  enforcement  of  the provisions of this chapter deposited
 45    into the commodity indemnity fund to be used for the  purposes  set  forth  in
 46    section 69-256, Idaho Code.
                                                                        
 47        SECTION  5.  That  Section  69-510, Idaho Code, be, and the same is hereby
 48    amended to read as follows:
                                                                        
 49        69-510.  PAYMENT OF PURCHASE PRICE. A person required to be licensed as  a
 50    commodity  dealer  under the provisions of this chapter shall pay the purchase
 51    price to the owner or his agent for agricultural commodities upon delivery  or
                                                                        
                                           5
                                                                        
  1    demand by the owner or agent, but not later than thirty (30) days after deliv-
  2    ery  by the owner or agent, unless otherwise agreed to by the parties in writ-
  3    ing. As used in this section, "delivery" means the transfer of  title  to  and
  4    possession  of agricultural commodities by the owner or agent to the commodity
  5    dealer or to another person in accordance with the agreement of the  owner  or
  6    agent  and  the commodity dealer. As used in this section, "payment" means the
  7    actual payment or tender of payment by the commodity dealer to  the  owner  or
  8    agent of the agreed purchase price.
                                                                        
  9        SECTION  6.  That  Section  69-511, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        69-511.  INSPECTION OF PREMISES, BOOKS AND  RECORDS.  The  department  may
 12    inspect  the premises used by any commodity dealer in the conduct of his busi-
 13    ness at any reasonable time. The department is authorized  through  officials,
 14    employees, or agents of the department designated by it, to examine all books,
 15    accounts, records and papers of  every such pertaining to any commodity dealer
 16    which  pertain  to  agricultural or seed crop purchased, contracted for, or in
 17    the possession of, any commodity purchases shall have bills of lading or other
 18    documents covering the agricultural commodities in his possession,  and  shall
 19    present them to any law enforcement officer or to a person designated as a law
 20    enforcement  officer  dealer  licensed under the provisions of this chapter. A
 21    commodity dealer licensed in this state who does not have a place of  business
 22    within  the  state shall, upon the request of the director, make available and
 23    furnish to the department at any reasonable time and place the department  may
 24    set,  all books, accounts, records and papers relating to agricultural commod-
 25    ity transactions within the state of Idaho.  Where  there  is  good  cause  to
 26    believe  that a person is doing business as a commodity dealer in the state of
 27    Idaho without a license, the department may  inspect  the  books,  papers  and
 28    records of the person which pertain to agricultural commodity purchases.
                                                                        
 29        SECTION  7.  That  Section  69-515, Idaho Code, be, and the same is hereby
 30    amended to read as follows:
                                                                        
 31        69-515.  RECORDS. All financial statements of commodity  dealers  required
 32    under  the provisions of this chapter shall be subject to disclosure according
 33    to chapter 3, title 9, Idaho Code., except as follows: Provided however,  that
 34    a commodity dealer may provide written permission for disclosure of any of the
 35    commodity dealer's financial statements.
 36        (a)  Upon written permission by the licensee;
 37        (b)  In  actions  or administrative proceedings commenced under the provi-
 38        sions of this chapter or chapter 2, title 69, Idaho Code;
 39        (c)  When required by subpoena or court order; or
 40        (d)  Disclosure to law enforcement agencies in connection with the  inves-
 41        tigation or prosecution of criminal offenses.
                                                                        
 42        SECTION  8.  That  Section  69-516, Idaho Code, be, and the same is hereby
 43    amended to read as follows:
                                                                        
 44        69-516.  STANDARDIZATION OF RECORDS  AND  DOCUMENTS.  The  department  may
 45    adopt  rules  and regulations specifying the form and content of scale tickets
 46    and credit-sale contracts.
                                                                        
 47        SECTION 9.  That Section 69-517, Idaho Code, be, and the  same  is  hereby
 48    amended to read as follows:
                                                                        
                                           6
                                                                        
  1        69-517.  DIRECTOR'S  AUTHORITY.  The  director  may,  upon his own motion,
  2    whenever he has reason to believe the provisions of  this  chapter  have  been
  3    violated, or upon verified complaint of any person in writing, investigate the
  4    actions of any commodity dealer licensed under the provisions of this chapter,
  5    and  if  he finds probable cause to do so, shall file a complaint against said
  6    commodity dealer which shall be set down for hearing before the director  upon
  7    thirty  (30)  days'  notice served upon such license holder either by personal
  8    service, registered mail or telegram facsimile prior to such hearing.
  9        The director shall have the power to  administer  oaths,  certify  to  all
 10    official    acts and shall have the power to subpoena any person in this state
 11    as a witness, to compel through subpoena the production of books,  papers  and
 12    records,  and  to  take  the testimony of any person on deposition in the same
 13    manner as is prescribed by law in the procedure  before  the  courts  of  this
 14    state.  A  subpoena  issued  by  the director shall extend to all parts of the
 15    state and may be served by any person authorized to do so.
 16        All powers of the director herein enumerated in respect  to  administering
 17    oaths,  power  of  subpoena,  and  other enumerated powers in hearings on com-
 18    plaints shall likewise be applicable to hearings held on applications for  the
 19    issuance or renewal of a commodity dealer's license.
 20        Nothing  in this chapter shall be construed to require the director or his
 21    authorized representative to report for prosecution  or  to  institute  civil,
 22    criminal  or  administrative action against a commodity dealer for a violation
 23    of the provisions of this chapter when he believes that public  interest  will
 24    best  be  served  by  a  suitable  warning or other administrative action. The
 25    director shall maintain a record of any administrative action involving a com-
 26    modity dealer with that commodity dealer's license file.
                                                                        
 27        SECTION 10.  That Section 69-521, Idaho Code, be, and the same  is  hereby
 28    amended to read as follows:
                                                                        
 29        69-521.  FINANCIAL  STATEMENTS.  In  order  to obtain a commodity dealer's
 30    license, the applicant shall submit an audited or reviewed financial statement
 31    prepared by an independent certified  public  accountant  or  licensed  public
 32    accountant, a statement of current assets and current liabilities and a state-
 33    ment of net worth, all of which shall be prepared in accordance with generally
 34    accepted  accounting  principles.  This  statement must have been prepared not
 35    more than ninety (90) days prior to the date of application and shall  conform
 36    to  the  applicable requirements of this chapter as to annual financial state-
 37    ments.
 38        Once licensed, every licensee shall annually prepare a financial statement
 39    either at the close of business, December 31, or at the end  of  their  fiscal
 40    year  and  file  the  statement with the department not later than ninety (90)
 41    days thereafter. These statements shall be prepared in conformity with  gener-
 42    ally  accepted accounting principles and shall include, but not be limited to,
 43    a reviewed financial statement prepared by  an  independent  certified  public
 44    accountant  or  licensed  public accountant, a statement of current assets and
 45    current liabilities, and a statement of net worth.
                                                                        
 46        SECTION 11.  That Section 69-522, Idaho Code, be, and the same  is  hereby
 47    amended to read as follows:
                                                                        
 48        69-522.  ACTION ON BOND BY PERSONS PRODUCERS INJURED. Any producer injured
 49    by  the breach of any obligation for which a bond is written, under the provi-
 50    sions of section 69-506, Idaho Code, shall be entitled to sue on the  bond  in
 51    his  own  name  in a court of competent jurisdiction to recover the damages he
                                                                        
                                           7
                                                                        
  1    may have sustained by such breach, or may must petition the  director  to  fix
  2    the  amount  of his damages make demand upon the commodity dealer, certificate
  3    of deposit or bond. The director may thereupon make demand upon the  commodity
  4    dealer  and  his surety for payment of such damages and in the event such dam-
  5    ages are not promptly paid the director may commence an action on the bond  to
  6    enforce  payment  of  such  damages. The liability of the surety upon the bond
  7    required to be given by a commodity dealer  as  provided  by  section  69-506,
  8    Idaho  Code,  for  any one (1) annual licensing period shall be limited to the
  9    amount specified in the bond, and in case of recoveries had by two (2) or more
 10    persons for violation of the conditions of such bond in excess of  the  amount
 11    of the bond, such recovery shall be prorated and the total recovery as against
 12    the surety for any one (1) annual licensing period shall not exceed the amount
 13    of the bond. Any person who In the event the director sues and obtains a judg-
 14    ment  against  the  commodity dealer or his surety for payment of such damages
 15    under this section, he shall be entitled to recover  a  reasonable  attorney's
 16    fee.
                                                                        
 17        SECTION  12.  That  Section 69-524, Idaho Code, be, and the same is hereby
 18    amended to read as follows:
                                                                        
 19        69-524.  RULES. AND REGULATIONS. The department of agriculture shall  make
 20    such  rules  and regulations as it may deem necessary for the efficient execu-
 21    tion of the provisions of this chapter.
                                                                        
 22        SECTION 13.  That Section 69-525, Idaho Code, be, and the same  is  hereby
 23    amended to read as follows:
                                                                        
 24        69-525.  DUTY  TO  PROSECUTE.  It  shall  be  the duty of each prosecuting
 25    attorney to whom any violation is reported by the department to  cause  appro-
 26    priate proceedings to be instituted and prosecuted without delay in a court of
 27    competent jurisdiction.

Statement of Purpose / Fiscal Impact


                   STATEMENT OF PURPOSE
                        RS11982

Amend chapter 5, title 69, Idaho Code, to expand the scope of the 
existing law to afford all producers of commodity equal protection 
under an indemnity fund. The amendment raises the license fee 
schedule in order to assist the department in doing a more 
thorough job of licensing and inspecting these facilities.


                       FISCAL IMPACT



There will be no impact to the state’s general fund. The fiscal 
impact to the Commodity Dealer program will be approx. $2,000 to 
commodity dealers due to an initial license and renewal fee increase.




Contact

Name:	Representative Doug Jones

Phone:	208-332-1137




Statement of Purpose	                         H 644