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H0645...............................................by AGRICULTURAL AFFAIRS
BONDED WAREHOUSES - Amends, repeals and adds to existing law relating to
bonded warehouses to authorize annual inspections; to revise license
provisions and fees; to revise provisions relating to bonds; to provide for
examination of seed crops and records; to clarify and revise provisions
relating to departmental action in the event of noncompliance or failure of
a warehouse; to revise criteria relating to credit sale contracts; to
clarify records disclosure provisions; to revise provisions regarding
assessments; and to clarify the use of funds in the Commodity Indemnity
Fund.
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, Bedke, Bell, Bieter, Black,
Block, Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Clark,
Collins, Crow, Cuddy, Deal, Denney, 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 -- Ellis, 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 - 30-2-3
AYES -- Andreason, Boatright, Brandt, Bunderson, Burtenshaw,
Darrington, Davis, Deide, Frasure, Geddes, Goedde, Hill, Ingram,
Ipsen, King-Barrutia, Little, Lodge, Marley, Noh, Richardson, Risch,
Sandy, Schroeder, Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler,
Williams
NAYS -- Hawkins, Keough
Absent and excused -- Branch(Bartlett), Cameron, Dunklin
Floor Sponsor - Noh
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 259
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 645
BY AGRICULTURAL AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE BONDED WAREHOUSE LAW; AMENDING SECTION 69-202, IDAHO CODE, TO
3 REVISE DEFINITIONS AND TO PROVIDE DEFINITIONS; AMENDING SECTION 69-204,
4 IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY AND TO MAKE A TECHNICAL CORREC-
5 TION; AMENDING SECTION 69-205, IDAHO CODE, TO STRIKE UNNECESSARY LANGUAGE,
6 TO PROVIDE CORRECT TERMINOLOGY, TO AUTHORIZE ANNUAL INSPECTIONS AND TO
7 MAKE A TECHNICAL CORRECTION; AMENDING SECTION 69-206, IDAHO CODE, TO
8 STRIKE UNNECESSARY LANGUAGE, TO STRIKE REFERENCE TO REGULATIONS, TO REVISE
9 CONDITIONS FOR ISSUANCE OR RENEWAL OF WAREHOUSEMAN LICENSES, TO STRIKE
10 REFERENCE TO PENALTY FEES, TO PROVIDE FOR REINSTATEMENT FEES, TO STRIKE
11 REFERENCE TO A PENALTY PERIOD, TO PROVIDE FOR A REINSTATEMENT PERIOD AND
12 TO PROVIDE THAT CERTAIN APPLICATIONS FOR LICENSE MUST PAY A REINSTATEMENT
13 FEE AND BE ASSESSED AN ORIGINAL LICENSE FEE; AMENDING SECTION 69-207,
14 IDAHO CODE, TO STRIKE REFERENCE TO REGULATIONS AND TO STRIKE UNNECESSARY
15 LANGUAGE AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 69-208, IDAHO
16 CODE, TO STRIKE REFERENCE TO ANNUITIES IN LIEU OF BOND, TO REVISE PROVI-
17 SIONS RELATING TO BONDS OF APPLICANTS FOR LICENSURE, TO PROVIDE CORRECT
18 TERMINOLOGY, TO REQUIRE THE DEPARTMENT TO PROCURE AN ADDITIONAL BOND FROM
19 A WAREHOUSEMAN IN THE EVENT AN APPROVED BOND IS INSUFFICIENT, TO REQUIRE
20 SUSPENSION OR REVOCATION OF THE WAREHOUSEMAN LICENSE IF AN ADDITIONAL BOND
21 IS NOT GIVEN AND TO REVISE PROVISIONS RELATING TO CERTIFICATES OF DEPOSIT
22 AND IRREVOCABLE LETTERS OF CREDIT IN LIEU OF BOND; AMENDING SECTION
23 69-208A, IDAHO CODE, TO PROVIDE FOR BOND RATES WHERE A VARIETY OF COMMODI-
24 TIES ARE STORED, TO PROVIDE FOR SEPARATE ADDITIONAL BOND AND TO MAKE TECH-
25 NICAL CORRECTIONS; AMENDING SECTION 69-209, IDAHO CODE, TO PROVIDE CORRECT
26 TERMINOLOGY, TO REVISE PROVISIONS RELATED TO ACTIONS ON A BOND IN THE
27 EVENT OF A BREACH OF AN OBLIGATION AND TO PROVIDE FOR RECOVERY OF
28 ATTORNEY'S FEES BY THE DIRECTOR; AMENDING SECTION 69-210, IDAHO CODE, TO
29 STRIKE UNNECESSARY LANGUAGE; AMENDING SECTION 69-211, IDAHO CODE, TO
30 REVISE PROVISIONS RELATING TO FEES OF THE DEPARTMENT, TO PROVIDE THAT FEES
31 SHALL BE DEPOSITED TO THE COMMODITY INDEMNITY FUND AND TO MAKE TECHNICAL
32 CORRECTIONS; AMENDING SECTION 69-212, IDAHO CODE, TO PROVIDE THAT CERTAIN
33 CHARGES AND DISCOUNTS WILL BE POSTED BY WAREHOUSEMEN AND TO STRIKE UNNEC-
34 ESSARY LANGUAGE; AMENDING SECTION 69-213, IDAHO CODE, TO PROVIDE CORRECT
35 TERMINOLOGY; AMENDING SECTION 69-214, IDAHO CODE, TO PROVIDE CORRECT TER-
36 MINOLOGY, TO STRIKE UNNECESSARY LANGUAGE AND TO PROVIDE FOR THE EMPLOYMENT
37 OF INVESTIGATORS BY THE DEPARTMENT; AMENDING SECTION 69-219, IDAHO CODE,
38 TO PROVIDE CORRECT TERMINOLOGY, TO PROVIDE FOR DELIVERY OF COMMODITIES TO
39 A WAREHOUSE FOR STORAGE OR UNDER TERMS OF A CONTRACT AND TO MAKE A TECHNI-
40 CAL CORRECTION; AMENDING SECTION 69-220, IDAHO CODE, TO PROVIDE CORRECT
41 TERMINOLOGY, TO STRIKE UNNECESSARY LANGUAGE AND TO MAKE A TECHNICAL COR-
42 RECTION; AMENDING SECTION 69-222, IDAHO CODE, TO PROVIDE CORRECT TERMINOL-
43 OGY; AMENDING SECTION 69-223, IDAHO CODE, TO STRIKE REFERENCE TO REGULA-
44 TIONS AND TO STRIKE UNNECESSARY LANGUAGE; AMENDING SECTION 69-224, IDAHO
45 CODE, TO STRIKE UNNECESSARY LANGUAGE AND TO MAKE A TECHNICAL CORRECTION;
46 AMENDING SECTION 69-226, IDAHO CODE, TO STRIKE REFERENCE TO REGULATIONS
2
1 AND TO CLARIFY THAT REFERENCED RULES ARE THOSE PROMULGATED PURSUANT TO THE
2 PROVISIONS OF THE CHAPTER; AMENDING SECTION 69-227, IDAHO CODE, TO PROVIDE
3 FOR EXAMINATION OF SEED CROPS AND RECORDS PERTAINING TO SEED CROPS AND TO
4 CLARIFY THAT REFERENCED RULES ARE THOSE PROMULGATED PURSUANT TO THE PROVI-
5 SIONS OF THE CHAPTER; AMENDING SECTION 69-228, IDAHO CODE, TO STRIKE
6 UNNECESSARY LANGUAGE, TO STRIKE REFERENCE TO REGULATIONS AND TO CLARIFY
7 THAT REFERENCED RULES ARE THOSE PROMULGATED PURSUANT TO THE PROVISIONS OF
8 THE CHAPTER; AMENDING SECTION 69-229, IDAHO CODE, TO STRIKE UNNECESSARY
9 LANGUAGE; AMENDING SECTION 69-230, IDAHO CODE, TO STRIKE UNNECESSARY LAN-
10 GUAGE; AMENDING SECTION 69-231, IDAHO CODE, TO STRIKE REFERENCE TO REGULA-
11 TIONS, TO STRIKE UNNECESSARY LANGUAGE AND TO MAKE A TECHNICAL CORRECTION;
12 AMENDING SECTION 69-233, IDAHO CODE, TO STRIKE REFERENCE TO REGULATIONS
13 AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 69-236, IDAHO CODE,
14 TO CLARIFY THE BASIS FOR DEPARTMENTAL ACTION IN THE EVENT OF NONCOMPLIANCE
15 OR FAILURE OF A WAREHOUSE, TO REVISE PROCEDURES OF THE DEPARTMENT IN THE
16 EVENT OF NONCOMPLIANCE OR FAILURE OF A WAREHOUSE, TO REVISE PROCEDURES
17 FOLLOWING THE DEPARTMENT TAKING POSSESSION OF A WAREHOUSE, TO STRIKE REF-
18 ERENCE TO A SEPARATE CIVIL ACTION AND TO PROVIDE FOR RECOVERY OF DESIG-
19 NATED FEES AND COSTS IN ANY CIVIL ACTION; AMENDING SECTION 69-238, IDAHO
20 CODE, TO INCREASE THE AMOUNT OF LIQUIDATED DAMAGES; AMENDING SECTION
21 69-239, IDAHO CODE, TO CLARIFY PROVISIONS RELATING TO CERTAIN RECORDS
22 REQUIRED TO BE MAINTAINED BY A WAREHOUSEMAN; AMENDING SECTION 69-241,
23 IDAHO CODE, TO INCREASE THE PERIOD OF ADVANCE NOTICE INSURANCE COMPANIES
24 ARE REQUIRED TO PROVIDE TO THE DEPARTMENT UPON CANCELLATION OF CERTAIN
25 POLICIES; AMENDING SECTION 69-242, IDAHO CODE, TO STRIKE REFERENCE TO REG-
26 ULATIONS; AMENDING SECTION 69-243, IDAHO CODE, TO CLARIFY PROVISIONS
27 RELATING TO DUTIES OF PROSECUTION; AMENDING SECTION 69-245, IDAHO CODE, TO
28 STRIKE REFERENCE TO TELEGRAMS, TO PROVIDE FOR CERTAIN NOTICE BY FACSIMILE
29 AND TO PROVIDE REFERENCE TO REINSTATEMENT OF A WAREHOUSE LICENSE; AMENDING
30 SECTION 69-247, IDAHO CODE, TO EXTEND LICENSE DENIAL PROVISIONS TO CLAIMS
31 AGAINST THE COMMODITY INDEMNITY FUND AND TO PROVIDE REFERENCE TO A LICENSE
32 REINSTATEMENT; AMENDING SECTION 69-248, IDAHO CODE, TO CLARIFY THAT DRAW-
33 ING CHECKS, DRAFTS OR ORDERS WITH INSUFFICIENT FUNDS FOR PAYMENT IN COM-
34 PLIANCE WITH A CONTRACT OR TO THE DEPARTMENT FOR FEES, ASSESSMENTS OR PEN-
35 ALTIES, SHALL CONSTITUTE A VIOLATION; AMENDING SECTION 69-249, IDAHO CODE,
36 TO REVISE CRITERIA RELATED TO CREDIT-SALE CONTRACTS AND TO PROVIDE FOR THE
37 VALUE DETERMINATION OF CERTAIN CONTRACTS FOLLOWING A DECLARED FAILURE;
38 AMENDING SECTION 69-250, IDAHO CODE, TO CLARIFY RECORD DISCLOSURE PROVI-
39 SIONS; AMENDING SECTION 69-256, IDAHO CODE, TO REVISE PROVISIONS RELATING
40 TO ASSESSMENTS AND TO REVISE PROVISIONS RELATING TO USE OF FUNDS IN THE
41 COMMODITY INDEMNITY FUND AND ACCRUING INTEREST ON THE FUND; AMENDING SEC-
42 TION 69-257, IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY, TO CLARIFY THE
43 RATE OF ASSESSMENT AND TO MAKE A TECHNICAL CORRECTION AND TO DELETE A REF-
44 ERENCE TO REGULATION; REPEALING SECTION 69-258, IDAHO CODE; AMENDING CHAP-
45 TER 2, TITLE 69, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 69-258,
46 IDAHO CODE, TO PROVIDE FOR THE COLLECTION AND REMITTANCE OF ASSESSMENTS,
47 TO PROVIDE THAT WAREHOUSEMEN AND DEALERS HOLD ASSESSMENTS COLLECTED FROM
48 PRODUCERS IN TRUST FOR THE COMMODITY INDEMNITY FUND, TO PROVIDE THAT
49 INTEREST EARNED ON COLLECTED ASSESSMENTS PRIOR TO REMITTANCE BELONG TO THE
50 WAREHOUSEMAN OR DEALER AND TO PROVIDE FOR FAILURES TO COLLECT OR REMIT
51 ASSESSMENTS; AMENDING SECTION 69-259, IDAHO CODE, TO REVISE PROVISIONS
52 RELATING TO THE FUNDING AND LIMITS OF THE COMMODITY INDEMNITY FUND; AMEND-
53 ING SECTION 69-261, IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY, TO REVISE
54 TERMS OF APPOINTMENT, TO REQUIRE THE ADVISORY COMMITTEE TO MEET AT LEAST
55 TWICE A YEAR, TO REQUIRE THAT THE COMMITTEE REVIEW THE MAXIMUM LIMITS OF
3
1 THE FUND EVERY TWO YEARS AND ADVISE THE DIRECTOR AND TO CHANGE A CODE REF-
2 ERENCE TO INCREASE COMPENSATION FOR THE ADVISORY COMMITTEE MEMBERS; AMEND-
3 ING SECTION 69-262, IDAHO CODE, TO PROVIDE FOR THE PROCESSING OF CLAIMS OF
4 PRODUCERS WHO OWE ASSESSMENTS FOLLOWING A FAILURE, TO CLARIFY THE NATURE
5 OF CLAIMS TO BE PROCESSED BY THE DEPARTMENT, TO STRIKE REFERENCE TO CER-
6 TAIN EXCLUDED CLAIMS, TO REQUIRE A CLAIMANT TO SUBROGATE CERTAIN RIGHTS
7 PRIOR TO PAYMENT FROM THE FUND, TO PROVIDE FOR THE DETERMINATION OF THE
8 VALUE OF A PRODUCER'S COMMODITY FOR PURPOSES OF DETERMINING THE AMOUNT OF
9 A PRODUCER'S CLAIM, TO PROVIDE THAT THE FUND SHALL NOT BE LIABLE FOR CER-
10 TAIN CLAIMS AND TO PROVIDE A CORRECT CODE REFERENCE; AMENDING SECTION
11 69-263, IDAHO CODE, TO EXTEND THE TIME IN WHICH A PRODUCER, AFTER NOTIFI-
12 CATION, MAY FILE A CLAIM AND TO PROVIDE THAT NO PAYMENT FROM THE FUND WILL
13 BE MADE FOR CERTAIN CLAIMS; AMENDING SECTION 69-264, IDAHO CODE, TO CLAR-
14 IFY THE TYPES OF CLAIMS FOR WHICH THE COMMODITY INDEMNITY FUND WILL BE
15 USED AND TO INCREASE THE MINIMUM BALANCE OF THE FUND; AMENDING SECTION
16 69-266, IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY, TO PROVIDE FOR STATU-
17 TORY INTEREST FOR ANY RECOVERY FOR REIMBURSEMENT TO THE FUND AND TO MAKE A
18 TECHNICAL CORRECTION; AND AMENDING SECTION 69-267, IDAHO CODE, TO PROVIDE
19 CORRECT TERMINOLOGY.
20 Be It Enacted by the Legislature of the State of Idaho:
21 SECTION 1. That Section 69-202, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 69-202. DEFINITIONS. As used in this chapter:
24 (1) "Agricultural commodity" or "commodity" means any grain, dry peas
25 wheat, barley, oats, corn, rye, oilseeds, dry edible beans, peas, lentils and
26 other leguminous or other small seeds and feeds (not including minerals or
27 seed crops) or any other commodity as determined by the director.
28 (2) "Commodity dealer" or "dealer" means any person who solicits, con-
29 tracts for, negotiates the consignment or purchase, or obtains from an Idaho
30 producer or producers, title, possession or control of any agricultural com-
31 modity through his place of business located in the state of Idaho or through
32 his place of business located outside the state of Idaho for the purposes of
33 sale or resale or who buys, during a calendar year, at least ten thousand dol-
34 lars ($10,000) worth of agricultural commodities from an Idaho producer or
35 producers of the commodities. Commodity dealer or dealer shall not mean any
36 person who purchases agricultural commodities for his own use as seed or feed
37 within his own operation.
38 (3) "Contract" means a written agreement between two (2) or more parties
39 for the sale of an agricultural commodity stipulating the terms and conditions
40 of performance of the parties and includes, but is not limited to, those con-
41 tracts commonly referred to as credit sales, deferred payment, deferred
42 delayed, production, bailment or price later contracts.
43 (4) "Deliver" or "delivery" means the physical transfer of agricultural
44 commodity from one (1) party to another.
45 (5) "Department" means the Idaho state department of agriculture.
46 (56) "Depositor" means any person who deposits an agricultural commodity
47 in an Idaho state licensed warehouse for storage, handling, processing, recon-
48 ditioning or shipment, or who is the owner or legal holder of a negotiable
49 warehouse receipt, outstanding scale weight ticket, nonnegotiable warehouse
50 receipt or other evidence of such deposit, or any person whose agricultural
51 commodity has been sold to or is under control of a warehouseman for selling,
52 processing, reconditioning or handling whether or not such agricultural com-
4
1 modity is within the warehouse.
2 (67) "Director" means the director of the Idaho state department of agri-
3 culture.
4 (78) "Failure" means the date that one (1) or more of the following
5 events occurred, as determined by the director:
6 (a) An inability to financially satisfy claimants in accordance with this
7 chapter and the time limits provided for in it;
8 (b) A public declaration of insolvency;
9 (c) A revocation of license and the leaving of an outstanding indebted-
10 ness to a depositor or producer;
11 (d) A failure to redeliver any commodity to a depositor or to pay
12 depositors or producers for commodities purchased by a licensee or to pay
13 a producer for commodity delivered under the provisions of the contract in
14 the ordinary course of business;
15 (e) A failure to make application for license renewal within sixty (60)
16 days after the annual license renewal date; or
17 (f) A denial of the application for a license renewal.
18 (89) "Historical depositor" means any person who, in the normal course of
19 business operation has consistently made deposits in the same warehouse of
20 commodities produced on the same land. In addition, anyone purchasing or leas-
21 ing that particular land directly from the original depositor or receiving
22 that particular land by devise, descent, bequest or gift directly from the
23 historical depositor shall also be considered an historical depositor with
24 regard to the commodities produced on that land.
25 (910) "Person" means any individual, firm, association, corporation, or
26 partnership or limited liability company.
27 (101) "Producer" means the owner, tenant or operator of land in this state
28 who has an interest in the contract proceeds from the sale of agricultural
29 commodities produced on that land. Producer does not include growers who
30 deposit their commodity in a facility in which they have a financial or man-
31 agement interest, except members of a cooperative marketing association quali-
32 fied under chapter 26, title 22, Idaho Code.
33 (112) "Public warehouse" or "warehouse" or "warehouseman" means any eleva-
34 tor, mill, warehouse, subterminal commodity warehouse, public warehouse or
35 other structure or facility in which agricultural commodities are received for
36 storage, shipment, processing, reconditioning or handling.
37 (123) "Receipt" means a warehouse receipt.
38 (134) "Revocation" means the permanent removal of a warehouse license fol-
39 lowing a hearing on violations of this chapter by the hearing officer or
40 director.
41 (145) "Scale weight ticket" means a load slip or other evidence, other
42 than a receipt, given to a depositor by a warehouseman licensed under the pro-
43 visions of this chapter, upon initial delivery of the commodity to the ware-
44 house.
45 (16) "Seed crops" means any seed crop regulated by chapter 4, title 22,
46 Idaho Code.
47 (157) "Subterminal warehouse" means any warehouse at which an intermediate
48 function is performed in which agricultural commodities are customarily
49 received from dealers rather than producers and where the commodities are
50 accumulated prior to shipment.
51 (168) "Suspension" means the temporary removal of a warehouse license by
52 the department pending a hearing for violations of this chapter. Correction of
53 the violations prior to a hearing may result in the reinstatement of a license
54 without a hearing.
55 (179) "Termination" means the expiration of a warehouse license due to
5
1 failure to meet minimum licensing requirements, failure to renew a warehouse
2 license or as requested by the licensee, unless a complaint has been filed
3 against the licensee alleging a violation of any provision of this chapter.
4 (20) "Transfer" means, unless otherwise defined by the parties in writing,
5 the event when a producer or his agent delivers a commodity to a warehouseman,
6 who then weighs the commodity, and gives the producer or his agent a scale
7 weight ticket or other written evidence of transfer.
8 (1821) "Warehouse receipt" means every receipt, whether negotiable or non-
9 negotiable, issued by a warehouseman, except scale weight tickets.
10 (22) "Warehouseman" means a person operating or controlling a public
11 warehouse.
12 SECTION 2. That Section 69-204, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 69-204. PENALTY FOR OPERATING WITHOUT A LICENSE -- MISREPRESENTATION. (1)
15 Any person operating a public warehouse without a license or in any way repre-
16 senting, by actions or words, that the warehouse is so licensed when such
17 warehouse is not so licensed or any person who shall misrepresent, forge,
18 alter, counterfeit or falsely represent a license as required by the provi-
19 sions of this chapter shall be guilty of a felony and punished by imprisonment
20 in the state prison for not more than ten (10) years, or by a fine of not more
21 than ten thousand dollars ($10,000), or by both.
22 (2) Any person who shall issue, utter, or aid in the issuance or utter-
23 ance or attempt to issue or utter a false or fraudulent receipt for any com-
24 modity shall be guilty of a felony and punished by imprisonment in the state
25 prison for not more than ten (10) years, or by a fine of not more more than
26 ten thousand dollars ($10,000), or by both.
27 SECTION 3. That Section 69-205, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 69-205. INSPECTION AND CLASSIFICATION OF WAREHOUSES, STORAGE, WAREHOUS-
30 ING, WEIGHING AND CERTIFICATION OF COMMODITIES -- DUTIES OF WAREHOUSEMEN. Upon
31 application by any person for license to conduct a warehouse under this chap-
32 ter, the department of agriculture is authorized to investigate and determine
33 whether the public warehouse for which licenses are applied, or have been pre-
34 viously issued, under this chapter, are is suitable for the proper storage of
35 agricultural commodities and the department of agriculture is authorized with
36 or without application, to wit:
37 To inspect any warehouse licensed under this chapter; to inspect every
38 licensed warehouse at least once every calendar year; to investigate the stor-
39 age, warehousing, classifying according to grade, and otherwise weighing and
40 certification of agricultural commodities therein conducted; to classify ware-
41 houses, licensed or applying for license, in accordance with their capacity
42 and to prescribe, within the limitations of this chapter, the duties of the
43 warehousemen conducting warehouses licensed under this chapter with respect to
44 their care of and responsibility for agricultural commodities.
45 SECTION 4. That Section 69-206, Idaho Code, be, and the same is hereby
46 amended to read as follows:
47 69-206. LICENSES TO WAREHOUSEMEN -- ISSUE -- RENEWAL -- CONDITIONS PRECE-
48 DENT. The department of agriculture is authorized, upon application to it, to
49 issue or renew to any warehouseman a license for the conduct of a warehouse or
6
1 warehouses in accordance with this chapter and such rules and regulations as
2 may be made hereunder, providing the following conditions are met:
3 (1) Each person, as a condition precedent to operating a warehouse in
4 this state, shall file and maintain satisfactory evidence with the director of
5 the department of agriculture of the existence of an effective policy of
6 insurance issued by an insurance company authorized to do business in this
7 state, insuring all agricultural commodities that may be stored or accepted
8 for storage on the premises, including commodities owned by the warehouseman,
9 for which such license is sought for the full market value of such agricul-
10 tural commodities against loss by fire, internal explosion, lightning or tor-
11 nado;
12 (2) That each warehouse be found suitable for the proper storage of the
13 particular agricultural commodity or commodities for which a license is
14 requested;
15 (3) A license fee is submitted to the department as prescribed by section
16 69-211, Idaho Code;
17 (4) A current drawing of the warehouse which shows storage facilities and
18 the capacity calculations of the warehouse is submitted to and which indicates
19 commodity and seed crop storage areas, shall be approved by the department;
20 (5) A sufficient and valid bond is filed and maintained as required by
21 section 69-208, Idaho Code;
22 (6) The applicant shall submit to the department an audited or reviewed
23 financial statement prepared by an independent certified public accountant or
24 licensed public accountant showing that the licensee has and does maintain
25 current assets equal to or greater than current liabilities, a statement of
26 current assets and current liabilities, and a statement of net worth, all of
27 which shall be prepared in accordance with generally accepted accounting prin-
28 ciples;
29 (7) For a warehouseman license an applicant shall have and maintain a net
30 worth of at least fifty thousand dollars ($50,000) or maintain a bond in the
31 amount of two thousand dollars ($2,000) for each one thousand dollars ($1,000)
32 or fraction thereof of net worth deficiency financial requirement; however, a
33 person shall not be licensed as a warehouseman if the person has a net worth
34 of less than twenty-five thousand dollars ($25,000). A bond submitted for pur-
35 poses of this subsection shall be in addition to any bond otherwise required
36 under the provisions of this chapter;
37 (8) The applicant has complied with and abided by all the terms of this
38 chapter and the rules and regulations prescribed hereunder;
39 (9) That all materials required for renewal of a license shall be
40 received by the department prior to the expiration date of the warehouse
41 license. A warehouse license which has expired may be reinstated by the
42 department upon receipt of all necessary licensing materials required by the
43 provisions of this chapter and a penalty reinstatement fee in the amount of
44 fifty five hundred dollars ($500.00), providing that this material is filed
45 within thirty (30) days from the date of expiration of the warehouse license.
46 At the end of the thirty (30) day penalty reinstatement period, a warehouse
47 license shall be terminated by the department. All license applications com-
48 pleted and received after the thirty (30) day penalty reinstatement period
49 shall be considered original applications and after the five hundred dollar
50 ($500) reinstatement fee has been remitted to the department, license fees
51 shall be assessed as original fees according to section 69-211, Idaho Code.
52 SECTION 5. That Section 69-207, Idaho Code, be, and the same is hereby
53 amended to read as follows:
7
1 69-207. TERM OF LICENSE -- RENEWAL. Each license issued under sections
2 69-206 and section 69-215, Idaho Code, shall be issued for a period to be pre-
3 scribed by regulation rule by the department. of agriculture.
4 SECTION 6. That Section 69-208, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 69-208. BOND OF APPLICANT FOR LICENSE -- ADDITIONAL BOND -- ADDITIONAL
7 OBLIGATIONS -- CERTIFICATE OF DEPOSIT, ANNUITY OR IRREVOCABLE LETTER OF CREDIT
8 IN LIEU OF BOND. Each warehouseman applying for a license to conduct a ware-
9 house in accordance with this chapter shall, as a condition to the granting
10 thereof, execute and file with the department a good and sufficient bond other
11 than personal security. to the state The bond shall be in favor of the commod-
12 ity indemnity fund to secure the faithful performance of his obligations as a
13 warehouseman under all the laws of the state, including obligations arising by
14 operation of the commodity indemnity account fund program, and the rules pre-
15 scribed hereunder, and of such additional obligations as a warehouseman as may
16 be assumed by him under contracts with the respective depositors of agricul-
17 tural commodities in such warehouse. Said bond shall be in such form and
18 amount, shall have such surety or sureties, and shall contain such terms and
19 conditions as the department may prescribe to carry out the purposes of this
20 chapter. Whenever the department shall determine that a bond approved by it
21 is, or for any cause has become, insufficient, it may shall require an addi-
22 tional bond or bonds to be given by the warehouseman concerned, conforming
23 with the requirements of this section, and unless the same be given within the
24 time fixed by a written demand therefor the license of such warehouseman may
25 shall be suspended or revoked.
26 The bond shall be approved by the department and shall be conditioned upon
27 the faithful performance by the warehouseman of the duty to keep in the ware-
28 house for the depositor the agricultural commodity delivered and to deliver
29 the agricultural commodity to or for such depositors. The bond shall also be
30 conditioned upon the faithful performance by the warehouseman of any addi-
31 tional obligations involving marketing transactions with a depositor.
32 The warehouseman may give a single bond meeting the requirements as pro-
33 vided in this chapter and all warehouses operated by the warehouseman shall be
34 as one (1) warehouse for the purpose of compliance with the provisions of this
35 section. Any changes in the capacity of a warehouse or installation of any new
36 warehouses involving a change in the bond liability under the provisions of
37 this chapter shall be reported to the department prior to the operation
38 thereof.
39 At the discretion of the director, any person required to submit a bond to
40 the department in accordance with this chapter, may at his option give to the
41 department a certificate of deposit, an annuity or an irrevocable letter of
42 credit payable to the director as trustee commodity indemnity fund in lieu of
43 the bond required herein. The principal amount of the certificate, annuity or
44 letter of credit shall be the same as that required for a surety bond pursuant
45 to this chapter. Accrued interest upon the certificate of deposit or annuity
46 shall be payable to the purchaser of the certificate. or annuity. The certifi-
47 cate, annuity or letter of credit shall remain on file with the department
48 until it is released, cancelled or discharged by the director The letter of
49 credit shall remain on file with the department until it is released, canceled
50 or discharged by the director or until the director is notified ninety (90)
51 days in advance, by registered or certified mail, return receipt requested,
52 that the letter of credit is renewed, canceled or amended. Failure to notify
53 the director may result in the suspension or revocation of the bonded ware-
8
1 house license. The provisions of this chapter that apply to a bond required
2 pursuant to this chapter apply to each certificate of deposit, annuity or let-
3 ter of credit given in lieu of such bond.
4 Under provisions of this chapter, an irrevocable letter of credit shall
5 not be acceptable unless it is issued by a national bank in Idaho or by an
6 Idaho state-chartered bank insured by the federal deposit insurance corpora-
7 tion. Under the provisions of this chapter, an annuity shall not be accepted
8 by the department unless it is issued by an insurance company, bank or other
9 financial institution found acceptable by the director and shall have a cash
10 value equal to the bond requirement less any penalty for early withdrawal.
11 SECTION 7. That Section 69-208A, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 69-208A. AMOUNT OF BOND -- CANCELLATION. The amount of bond to be fur-
14 nished for each warehouse shall be fixed at a rate of twenty cents (20) per
15 bushel of licensed capacity or six percent (6%) of the total value of the
16 agricultural commodities stored, whichever is greater. In the event a variety
17 of commodities are stored, the bond rate may be calculated using either factor
18 or a combination thereof. Any other bond that may be required shall be sepa-
19 rate and in addition to the bond listed here. In any case, the amount of the
20 bond shall not be less than twenty-five thousand dollars ($25,000) and shall
21 not be more than five hundred thousand dollars ($500,000). This bond shall run
22 continuously with the warehouse license until suspended, revoked or cancelled
23 canceled by the bonding company. A ninety (90) day written notice shall be
24 given to the department by the bonding company before any bond is suspended,
25 revoked or cancelled canceled. The director reserves the right to waive the
26 ninety (90) day cancellation period.
27 SECTION 8. That Section 69-209, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 69-209. ACTION ON BOND BY PERSONS PRODUCERS INJURED. Any person producer
30 injured by the breach of any obligation for which a bond is written, under the
31 provisions of section 69-208, Idaho Code, shall be entitled to sue on the bond
32 in his own name in a court of competent jurisdiction to recover the damages he
33 may have sustained by such breach, or may must petition the director to fix
34 the amount of his damages make demand upon the warehouseman, certificate of
35 deposit, irrevocable letter of credit or bond. The director may thereupon make
36 demand upon the warehouseman and his surety for payment of such damages and in
37 the event such damages are not promptly paid the director may commence an
38 action on the bond to enforce payment of such damages. The liability of the
39 surety upon the bond required to be given by warehousemen as provided in sec-
40 tion 69-208, Idaho Code, for any one (1) annual licensing period shall be lim-
41 ited to the amount specified in the bond, and in case of recoveries had by two
42 (2) or more persons for violation of the conditions of such bond in excess of
43 the amount of the bond, such recovery shall be prorated and the total recovery
44 against the surety for any one (1) annual licensing period shall not exceed
45 the amount of the bond. Any person who In the event the director sues and
46 obtains a judgment against the warehouseman and/or his surety for payment of
47 such damages under this section, he shall be entitled to recover a reasonable
48 attorney's fee.
49 SECTION 9. That Section 69-210, Idaho Code, be, and the same is hereby
50 amended to read as follows:
9
1 69-210. DESIGNATION OF WAREHOUSE AS BONDED WAREHOUSE. Upon the filing
2 with and approval by the department of agriculture of a bond, in compliance
3 with this chapter, for the conduct of a warehouse, such warehouse shall be
4 designated as bonded hereunder; but no warehouse shall be designated as bonded
5 under this chapter, and no name or description conveying the impression that
6 it is so bonded, shall be used, until a bond, such as provided for in section
7 69-208, Idaho Code, has been filed with and approved by the department, of
8 agriculture, nor unless the license issued under this chapter for the conduct
9 of such warehouse remains unsuspended and unrevoked.
10 SECTION 10. That Section 69-211, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 69-211. FEES OF DEPARTMENT. (1) The department shall charge, assess, and
13 cause to be collected an annual fee for each warehouse license or renewal
14 thereof, according to the following schedule:
15 (1) For each original application --
16 Capacity in Hundredweight Rate
17 0 to 50,000 $1080.00
18 50,001 to 100,000 20360.00
19 100,001 to 250,000 30540.00
20 250,001 to 500,000 400715.00
21 500,001 to 750,000 50890.00
22 Over 750,000 601,070.00
23 For each renewal application --
24 Capacity in Hundredweight Rate
25 0 to 50,000 $350.00
26 50,001 to 100,000 6100.00
27 100,001 to 250,000 90145.00
28 250,001 to 500,000 1290.00
29 500,001 to 750,000 15240.00
30 Over 750,000 18290.00
31 (2) The department shall assess and collect a fee of fifty one hundred
32 dollars ($5100.00) for each inspection of a warehouse or station which is done
33 for the purpose of amending a warehouse license.
34 (3) The department may shall assess and collect a fee of one two hundred
35 and fifty dollars ($1250) per day or fraction thereof for maintaining an each
36 employee of the department at a warehouse to oversee the correction of a
37 violation of the provisions of this chapter or the rules promulgated
38 hereunder.
39 (4) Upon approval by the department, a warehouseman may operate two (2)
40 or more warehouses under a single warehouse license.
41 (5) All fees shall be deposited into the state treasury and credited to
42 the general account commodity indemnity fund.
43 SECTION 11. That Section 69-212, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 69-212. SCHEDULE OF CHARGES -- POSTING. Every licensed warehouseman shall
46 annually, during the first week of July, publish by posting in a conspicuous
47 place in his warehouse, a schedule of storage, and handling, conditioning or
48 any other charges or discounts for the ensuing year, which schedule shall be
49 kept posted in a conspicuous place in said warehouse. Further, the warehouse-
50 man shall annually, during the first week in July, mail to the department, of
51 agriculture, a copy of such charges. All charges made by any public warehouse-
10
1 man hereunder for the handling and storage of agricultural commodities shall
2 be just, fair and reasonable; and the director of the department of agricul-
3 ture of the state of Idaho is hereby vested with the power and authority upon
4 the complaint of any person interested or upon his own motion, after a full
5 hearing, to declare any existing charge for the handling or storage of any
6 agricultural commodity to be unreasonable or unjust and to determine and order
7 what shall be a just and reasonable charge to be imposed or enforced in place
8 of that found to be unreasonable or unjust. Failure to file and post scheduled
9 charges for the current year will keep in full force and effect the latest
10 previously posted and filed schedule of rates.
11 SECTION 12. That Section 69-213, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 69-213. PRIVILEGE OF EXAMINING COMMODITIES STORED. Every depositor having
14 an interest in any agricultural commodity stored in any such warehouse, and
15 every state inspector authorized by the director, shall have the right to
16 examine at any reasonable time during ordinary business hours any commodity so
17 stored, and all parts of such warehouses, provided the warehouse or the agri-
18 cultural commodities stored therein is not endangered by such inspection; and
19 every warehouseman, his agents and servants employees shall furnish safe and
20 reasonable access and facilities for such examination.
21 SECTION 13. That Section 69-214, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 69-214. EMPLOYMENT OF INSPECTORS PERSONNEL. The department of agriculture
24 may employ such inspectors, investigators, samplers and weighers as it may
25 deem necessary.
26 SECTION 14. That Section 69-219, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 69-219. COMMODITIES DEEMED DEPOSITED DELIVERED SUBJECT TO LAW. Any person
29 who deposits delivers agricultural commodities in to a warehouse licensed
30 under this chapter, for storage or under terms of a contract, shall be deemed
31 to have deposited delivered the same subject to the terms of this chapter and
32 the rules prescribed hereunder.
33 SECTION 15. That Section 69-220, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 69-220. INSPECTION AND GRADING OF DISEASED OR INSECT INFESTED COMMODI-
36 TIES. Any diseased or insect infected infested agricultural commodity com-
37 plained of by the department or any person having interest in the warehouse
38 or agricultural commodities stored in a warehouse licensed under this chapter
39 shall be inspected and graded by a representative of the department of agri-
40 culture or a person duly licensed to grade the same under this chapter, and if
41 such inspection or grading shows such agricultural commodity to be in a condi-
42 tion that its continued storing or retention would injure or damage the ware-
43 house or other commodities stored therein the owner shall, by order of the
44 director, forthwith remove and dispose of such agricultural commodity as
45 directed. If the owner of such commodity is unknown to the inspector or ware-
46 houseman, the warehouseman shall proceed to remove or make disposition of such
47 commodity in a manner that will tend to save and realize the values contained
11
1 in such commodity by the owner, under such rules and regulations as may be
2 promulgated under this chapter or the uniform commercial code.
3 SECTION 16. That Section 69-222, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 69-222. RECEIPTS -- SCALE WEIGHT TICKETS. For all agricultural commodi-
6 ties deposited in delivered to a warehouse licensed under this chapter origi-
7 nal negotiable or nonnegotiable warehouse receipts, or scale weight tickets,
8 shall be issued by the warehouseman conducting the same, but no receipts, or
9 scale weight tickets, shall be issued except for agricultural commodities
10 deposited in delivered to the warehouse at the time of the issuance thereof;
11 provided, however, that no negotiable receipt need be issued except when
12 requested by the depositor.
13 SECTION 17. That Section 69-223, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 69-223. NEGOTIABLE WAREHOUSE RECEIPTS FOR COMMODITIES STORED -- CONTENTS
16 -- CONDITIONS -- PENALTIES. Every negotiable warehouse receipt issued for
17 agricultural commodities stored in a warehouse licensed under the provisions
18 of this chapter shall be issued in accordance with, but not limited to, the
19 following:
20 (1) Every negotiable warehouse receipt issued for agricultural commodi-
21 ties stored in a warehouse licensed under the provisions of this chapter shall
22 embody within its written or printed terms:
23 (a) All the requirements of a negotiable warehouse receipt under the Uni-
24 form Commercial Code--Documents of Title.
25 (b) A description of the agricultural commodities received, showing the
26 quantity thereof, or, in case of agricultural commodities customarily put
27 up in bales or packages, a description of such bales or packages by marks,
28 numbers, or other means of identification and the weight of such bales or
29 packages.
30 (c) The grade or other class of the agricultural commodities received and
31 the standard or description in accordance with which such classification
32 has been made: provided, that such grade or other class shall be stated
33 according to the official standards of the state applicable to such agri-
34 cultural commodities as the same may be fixed and promulgated under
35 authority of law:; provided further that until such official standards of
36 the state for any agricultural commodity or commodities have been fixed
37 and promulgated, the grade or other class thereof may be stated in accor-
38 dance with any recognized standard; provided, that unless otherwise
39 required by law, when requested by the depositor of other than fungible
40 agricultural commodities, a receipt omitting compliance with this subdivi-
41 sion may be issued if it has plainly and conspicuously embodied in its
42 written or printed terms a provision that such negotiable warehouse
43 receipt is not graded.
44 (d) A statement that the negotiable warehouse receipt is issued subject
45 to the provisions of this chapter and the rules and regulations prescribed
46 hereunder.
47 (e) Such other terms and conditions within the limitations of this chap-
48 ter as may be required by the department. of agriculture.
49 (f) All negotiable warehouse receipts issued under the provisions of this
50 chapter, shall be upon forms prepared and supplied by the department of
51 agriculture and issued upon requisition of the warehouseman at a reason-
12
1 able cost.
2 (2) Any warehouseman, agent, employee or manager of a public warehouse
3 licensed under the provisions of this chapter who shall remove or allow to be
4 removed any commodities from the facility on which the negotiable warehouse
5 receipt was issued, except to preserve the same from fire or other damage, or
6 except when an emergency storage situation exists as determined by the direc-
7 tor, without the return and cancellation of any and all outstanding negotiable
8 warehouse receipts that may have been issued to represent such commodities
9 shall be guilty of a felony and be punished by imprisonment in the state
10 prison not to exceed ten (10) years, or by a fine of not more than ten thou-
11 sand dollars ($10,000), or by both.
12 SECTION 18. That Section 69-224, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 69-224. STANDARDS FOR AGRICULTURAL COMMODITIES. The department of agri-
15 culture is authorized, from time to time, to establish and promulgate stan-
16 dards for agricultural commodities by which their quality or value may be
17 judged or determined.
18 So far as practicable such standards shall conform to the official stan-
19 dards of the United States or the state of Idaho applicable to such agricul-
20 tural commodities as the same may from time to time be fixed and promulgated.
21 No warehouseman in this state shall insert in any receipt issued by him
22 any language in anywise any way limiting or modifying his liabilities, or
23 responsibilities, as imposed by the laws of this state.
24 SECTION 19. That Section 69-226, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 69-226. RECORDS OF WAREHOUSES -- CONDUCT OF WAREHOUSES. Every warehouse-
27 man conducting a warehouse licensed under the provisions of this chapter shall
28 keep in a place of safety complete and correct records and shall conduct said
29 warehouse in all other respects in compliance with this chapter and the rules
30 and regulations made promulgated hereunder.
31 SECTION 20. That Section 69-227, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 69-227. EXAMINATION OF COMMODITIES OR SEED CROPS -- RECORDS -- PUBLICA-
34 TION OF FINDINGS. The department is authorized to cause examination to be made
35 of any agricultural commodity or seed crop deposited, or any record pertaining
36 to commodities or seed crops deposited therein, in any warehouse licensed
37 under the provisions of this chapter. Whenever, after opportunity for hearing
38 is given to the warehouseman conducting such warehouse, it is determined that
39 he is not performing fully the duties imposed on him by this chapter and the
40 rules made promulgated hereunder, the department may publish its findings in a
41 local daily or weekly newspaper in the area where the warehouse is located.
42 SECTION 21. That Section 69-228, Idaho Code, be, and the same is hereby
43 amended to read as follows:
44 69-228. SUSPENSION OR REVOCATION OF LICENSE. The department of agricul-
45 ture may, after opportunity for hearing has been afforded to the licensee con-
46 cerned, suspend or revoke any license issued to any person under the provi-
13
1 sions of this chapter, for any violation of or failure to comply with any pro-
2 vision of this chapter, chapter 7 of the uniform commercial code or the rules
3 and regulations made promulgated hereunder or upon the ground that the licen-
4 see has used his license or allowed it to be used for any improper purpose.
5 Pending investigation the department, of agriculture, whenever it deems neces-
6 sary, may suspend a license temporarily without hearing.
7 SECTION 22. That Section 69-229, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 69-229. PUBLICATION OF REPORTS. The department of agriculture from time
10 to time may publish the results of any investigations made under the provi-
11 sions of this chapter; and it may publish the names and addresses of persons
12 licensed under this chapter and a list of all licenses terminated under this
13 chapter and the causes therefore.
14 SECTION 23. That Section 69-230, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 69-230. EXAMINATION OF BOOKS. The department of agriculture is authorized
17 through officials, employees, or agents of the department designated by it, to
18 examine all books, records, papers, and accounts of warehouses relating
19 thereto.
20 SECTION 24. That Section 69-231, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 69-231. RULES. AND REGULATIONS. The department of agriculture shall from
23 time to time make promulgate such rules and regulations as it may deem neces-
24 sary for the efficient execution of the provisions of this chapter.
25 SECTION 25. That Section 69-233, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 69-233. VIOLATION OF LAW -- PENALTY. Any person who violates any provi-
28 sion of this chapter or the rules and regulations promulgated hereunder, or
29 who shall impede, obstruct, hinder or otherwise prevent or attempt to prevent
30 the director or his duly authorized representative in the performance of his
31 duty in connection with the provisions of this chapter, except as provided in
32 sections 69-204, 69-212, 69-223 and 69-248, Idaho Code, shall be guilty of a
33 misdemeanor and be punished by imprisonment in a county jail not to exceed six
34 (6) months, or by a fine or of not more than one thousand dollars ($1,000), or
35 by both.
36 SECTION 26. That Section 69-236, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 69-236. NONCOMPLIANCE -- FAILURE -- REMEDIES OF DEPARTMENT. (1) Whenever
39 it appears, after any investigation, that a warehouseman does not have in his
40 possession sufficient agricultural commodities to cover the outstanding ware-
41 house receipts, scale weight tickets, or other evidence of storage liability
42 issued or assumed by him, or the ability to pay producers for contract obliga-
43 tions, or when the warehouseman refuses to submit his books, papers, or prop-
44 erty to lawful inspection, the department may shall give notice to the ware-
45 houseman to comply with all or any of the following requirements:
14
1 (a) Cover such shortage;
2 (b) Give an additional bond as requested by the department; or
3 (c) Submit to such inspection as the department may deem necessary.
4 (2) If the warehouseman fails to comply with the terms of such notice
5 within twenty-four (24) hours from the date of issuance of the notice, or
6 within such further time as the department may allow, not to exceed ten (10)
7 working days, the department may shall petition the district court in the
8 county where the licensee's principal place of business is located (as shown
9 by the license application) for an order:
10 (a) Authorizing the department to seize and take possession of any or all
11 agricultural commodities in the warehouse or warehouses owned, operated,
12 or controlled by the warehouseman, and of all books, papers and property
13 of all kinds used in connection with the conduct or the operation of the
14 warehouse business, and any materials which pertain in any way to that
15 business; and
16 (b) Enjoining the warehouseman from interfering with the department in
17 the discharge of its duties as required by the provisions of this section.
18 (3) Upon taking possession, the department shall give written notice of
19 its action to the surety on the bond of the warehouseman and may shall notify
20 the holders or producers of record, as shown by the warehouseman's records, of
21 all negotiable or nonnegotiable warehouse receipts, or scale weight tickets,
22 or contracts issued for agricultural commodities, to present their warehouse
23 receipt or other evidence of deposits or obligation for inspection or to
24 account for the same. The department may shall thereupon cause an audit to be
25 made of the affairs of such warehouse including, but not limited to, the agri-
26 cultural commodities in which there is an apparent shortage, to determine the
27 amount of such shortage and compute the shortage as to each depositor as shown
28 by the warehouseman's records, if possible. The department shall notify the
29 warehouseman and the surety on his bond of the approximate amount of such
30 shortage and notify each depositor thereby affected by sending notices to the
31 depositor's last known address as shown by the records of the warehouseman.
32 (4) The department shall retain possession of the agricultural commodi-
33 ties in the warehouse or warehouses, and the books, papers, and property of
34 the warehouseman, until such time as the warehouseman or the surety on the
35 bond shall have satisfied the claims of all holders of warehouse receipts or
36 other evidence of deposits or obligations, in case the shortage obligations
37 exceeds the amount of the bond, the surety on the bond shall have satisfied
38 such claims pro rata, or until such time as the department is ordered by the
39 court to surrender possession.
40 (5) If during or after the audit provided for in this section, or at any
41 other time the department has evidence that the warehouseman is insolvent or
42 is unable to satisfy the claims of all holders of warehouse receipts or other
43 evidence of deposits obligations, the department may shall petition the dis-
44 trict court for the appointment of a receiver to operate or liquidate the
45 business of the warehouseman in accordance with the law.
46 (6) At any time within ten (10) days after the department takes posses-
47 sion of any agricultural commodities, or the books, papers, or property of any
48 warehouse, the warehouseman may serve notice on the department to appear in
49 the district court of the county in which the warehouse is located, at a time
50 to be fixed by the court, and show cause why the agricultural commodities,
51 books, papers and other property should not be restored to his possession.
52 (7) All court costs, attorney's fees, other professional fees and neces-
53 sary expenses incurred by the department in carrying out the provisions of
54 this section may be recovered in a separate any civil action brought by the
55 department in district court or recovered at the same time and as part of the
15
1 receivership or seizure action filed under the provisions of this chapter.
2 (8) As a part of the expenses so incurred, the department or the receiver
3 is authorized to include the cost of adequate liability insurance necessary to
4 protect the department, its officers, and others engaged in carrying out the
5 provisions of this section.
6 (9) The provisions and remedies of this section are not limited to a
7 warehouse shortage.
8 SECTION 27. That Section 69-238, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 69-238. WAREHOUSEMAN'S OBLIGATIONS -- DUTY TO DELIVER DEPOSITED COMMODI-
11 TIES -- DAMAGES. (1) The duty of the warehouseman to deliver agricultural com-
12 modities deposited shall be governed by the provisions of this chapter and the
13 requirements of the uniform commercial code. Upon the return of a properly
14 endorsed negotiable warehouse receipt to the warehouseman, and upon payment or
15 tender of all advances and legal charges, agricultural commodities of the
16 grade and quantity named therein shall be delivered to the holder of the nego-
17 tiable warehouse receipt, except as provided by the uniform commercial code.
18 (2) A warehouseman's duty to deliver any agricultural commodity is ful-
19 filled if delivery is made pursuant to the contract with the depositor, or if
20 no contract exists, then to the several owners in the order of demand as rap-
21 idly as it can be done by ordinary diligence. When delivery is made within
22 thirty (30) days from date of demand, or as agreed upon in writing by all par-
23 ties concerned, such delivery is deemed to comply with the provisions of this
24 section. An extension of the delivery period may be granted by the department
25 upon written request.
26 (3) A warehouseman shall not fail to deliver an agricultural commodity as
27 provided in this section, and delivery shall be made at the warehouse or sta-
28 tion where the agricultural commodity was received, unless otherwise agreed.
29 (4) In addition to being subject to penalties provided in this chapter
30 for a violation of the provisions of this section, any warehouseman failing to
31 deliver agricultural commodities within the time provided in this section is
32 subject to suit by the person entitled to delivery of the agricultural commod-
33 ities and may be ordered by a court of competent jurisdiction to pay actual
34 damage or liquidated damages of one-half (1/2) of one percent (1%) of the
35 value for each day's delay.
36 SECTION 28. That Section 69-239, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 69-239. DUTIES OF WAREHOUSEMAN -- CONTENTS OF RECORDS. (1) The warehouse-
39 man shall maintain current and complete records at all times with respect to
40 all agricultural commodities handled, deposited, shipped or merchandised by
41 him, including agricultural commodities owned by him. Such records shall
42 include, but are not limited to, a daily position record showing the total
43 quantity of each kind and class of agricultural commodity received and loaded
44 out and the amount remaining on deposit at the close of each business day, and
45 the warehouseman's total deposit obligation, including agricultural commodi-
46 ties owned by him, for each kind and class of agricultural commodity at the
47 close of each business day.
48 (2) Every warehouseman purchasing any agricultural commodity from a
49 depositor thereof shall promptly make and keep for five (5) years a correct
50 record showing in detail the following information:
51 (a) The name and address of the depositor;
16
1 (b) The date purchased;
2 (c) The terms of the sale; and
3 (d) The quality and quantity purchased by the warehouseman and, where
4 applicable, the dockage, tare, grade, size and net weight.
5 (3) Records required by this section shall be legible and kept in a place
6 of safety in this state. If a person operates at more than one (1) location,
7 records of each location's transactions must be identifiable.
8 SECTION 29. That Section 69-241, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 69-241. INSURANCE -- CANCELLATION PROCEDURE -- SUSPENSION OF LICENSE.
11 With the existence of an effective policy of insurance as required by section
12 69-206(1), Idaho Code, the insurance company involved shall be required to
13 give thirty ninety (390) days' advance notice to the department by registered
14 or certified mail, return receipt requested, of cancellation of the policy. In
15 the event of any cancellation, the department shall immediately terminate the
16 license of such person without a hearing, and the termination shall be in
17 effect until satisfactory evidence of the existence of an effective policy of
18 insurance complying with the requirements of this chapter has been submitted
19 to the department.
20 SECTION 30. That Section 69-242, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 69-242. INJUNCTION. Any violation of the provisions of this chapter or
23 the rules and regulations promulgated hereunder may be enjoined upon complaint
24 by the director.
25 SECTION 31. That Section 69-243, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 69-243. DUTY TO PROSECUTE. It shall be the duty of each prosecuting
28 attorney to whom any violation is reported by the department to cause appro-
29 priate proceedings to be instituted and prosecuted without delay in a court of
30 competent jurisdiction.
31 SECTION 32. That Section 69-245, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 69-245. DIRECTOR'S AUTHORITY. The director may, upon his own motion,
34 whenever he has reason to believe the provisions of this chapter have been
35 violated, or upon verified complaint of any person in writing, investigate the
36 actions of any warehouseman licensed under the provisions of this chapter, and
37 if he finds probable cause to do so, shall file a complaint against the ware-
38 houseman which shall be set down for hearing before the director upon thirty
39 (30) days' notice served upon such license holder by personal service, regis-
40 tered mail or telegram facsimile.
41 The director shall have the power to administer oaths, certify to all
42 official acts and shall have the power to subpoena any person in this state as
43 a witness; to compel through subpoena the production of books, papers, and
44 records; and to take the testimony of any person on deposition in the same
45 manner as prescribed by law in the procedure before the courts of this state.
46 A subpoena issued by the director shall extend to all parts of the state and
47 may be served by any person authorized to do so.
17
1 All powers of the director herein enumerated in respect to administering
2 oaths, power of subpoena, and other powers in hearings on complaints shall
3 likewise be applicable to hearings held on applications for the issuance,
4 reinstatement or renewal of a warehouse license.
5 SECTION 33. That Section 69-247, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 69-247. LICENSE DENIAL. (1) Any person against whose warehouse bond or
8 the commodity indemnity fund a claim has been ordered collected or has actu-
9 ally been collected shall not be licensed by the department for a period of
10 three (3) years from the date of such order or collection. License denial may
11 be waived if the person can show to the satisfaction of the director that full
12 settlement of all claims against the bond and the commodity indemnity fund has
13 been made. A change in a person's business name shall not absolve any unset-
14 tled claim against that person's prior bond or the commodity indemnity fund.
15 (2) The director shall, after a public hearing, have the right to deny or
16 refuse to issue a license, reinstatement or renewal thereof to an applicant
17 when it is determined that public interest is best served by that denial or
18 refusal.
19 (3) Upon refusal or denial pursuant to subsection (2) above, an applicant
20 may reapply for a license, reinstatement or renewal after a period of ninety
21 (90) days, at which time a new hearing will be held to review the application.
22 (4) The applicant shall have the right of appeal on any decision to
23 refuse or deny a license under subsection (2) above to a court of competent
24 jurisdiction.
25 SECTION 34. That Section 69-248, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 69-248. DRAWING CHECKS INSUFFICIENTLY COVERED A VIOLATION. Any person
28 engaged in business as a warehouseman, as defined in this chapter, who shall
29 make, draw, utter or deliver any check, draft or order for the payment of
30 money upon any bank or other depository, in payment to the seller of the pur-
31 chase price of any agricultural commodity or any part thereof or in compliance
32 with a contract or to the department in payment of any fee, assessment or pen-
33 alty, upon obtaining possession or control thereof, when at the time of such
34 making, drawing, uttering or delivery the maker or drawer does not have suffi-
35 cient funds in or credit with such bank or other depository for the payment of
36 such check, draft or order in full upon its presentation, shall violate the
37 provisions of this chapter. The word "credit" as used herein shall mean an
38 arrangement or understanding with the bank or depository for the payment of
39 such check, draft or order.
40 SECTION 35. That Section 69-249, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 69-249. CREDIT-SALE CONTRACTS. (1) A warehouseman who purchases agricul-
43 tural commodities by credit-sale contracts shall maintain books, records and
44 other documents as required by the department to establish compliance with the
45 provisions of this section.
46 (2) In addition to other information as may be required, a credit-sale
47 contract shall contain or provide, for all of the following but not be limited
48 to:
49 (a) The seller's name and address;
18
1 (b) The conditions of delivery;
2 (c) The amount, and kind and class of agricultural commodities delivered;
3 (d) The price per unit or basis of value; and
4 (e) The date payment is to be made; and
5 (f) Any enhancements to the value of the contract, which may include, but
6 are not limited to, transportation, premiums of any nature, or producer
7 provided services, must be listed separately and apart from the price per
8 unit of the commodity.
9 (3) Title to all agricultural commodities sold by credit-sale contract is
10 in the purchaser as of the time the contract is executed, unless the contract
11 provides otherwise. The contract must be signed by both parties and executed
12 in duplicate. One (1) copy shall be retained by the warehouseman and one (1)
13 copy shall be delivered to the seller. Upon revocation or termination of a
14 warehouseman's license, the payment date for all credit-sale contracts shall
15 be advanced to a date not later than thirty (30) days following the effective
16 date of the revocation or termination and the purchase price for all agricul-
17 tural commodities without a price shall be determined as of the effective
18 date of revocation or termination in accordance with all other provisions of
19 the contract. In the event claims are submitted to the commodity indemnity
20 fund following a declared failure, the value determination of contracts will
21 be controlled by the provisions of section 69-262, Idaho Code, and the rules
22 promulgated pursuant to the provisions of this chapter. However, if the busi-
23 ness of the warehouseman is sold to another licensed warehouseman, credit-sale
24 contracts may be assigned to the purchaser of the business.
25 SECTION 36. That Section 69-250, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 69-250. RECORDS. All financial statements of warehousemen required under
28 the provisions of this chapter shall be subject to disclosure according to
29 pursuant to the provisions of chapter 3, title 9, Idaho Code., except as fol-
30 lows: Provided however, that a warehouseman may provide written permission for
31 disclosure of any of the warehouseman's financial statements.
32 (1) Upon written permission by the licensee;
33 (2) In actions or administrative proceedings commenced under the provi-
34 sions of this chapter or chapter 5, title 69, Idaho Code;
35 (3) When required by subpoena or court order; or
36 (4) Disclosure to law enforcement agencies in connection with the inves-
37 tigation or prosecution of criminal offenses.
38 SECTION 37. That Section 69-256, Idaho Code, be, and the same is hereby
39 amended to read as follows:
40 69-256. CREATION OF INDEMNITY FUND -- USES. (1) There is hereby estab-
41 lished within the dedicated fund a fund to be known as the commodity indemnity
42 fund. The commodity indemnity fund shall consist of assessments remitted by
43 producers pursuant to the provisions of this chapter and any interest or earn-
44 ings on the fund balance.
45 (2) All assessments shall be paid to the department and shall be depos-
46 ited in the commodity indemnity fund. Assessments shall be paid solely by pro-
47 ducers who deposit or deliver a commodity with a warehouse or sell to a dealer
48 and in no event shall be paid by a person who deposits commodities or other
49 agricultural products with a warehouse. or dealer under a bailment,
50 entrustment, consignment, sale and return, or similar contract A delivery of
51 commodity between producers, none of which are commodity dealers or warehouse-
19
1 men, is exempt from the collection and payment of assessment. The state trea-
2 surer shall be the custodian of the commodity indemnity fund. Disbursements
3 shall be on authorization of the director. No appropriation is required for
4 disbursements from this fund.
5 (3) The commodity indemnity fund and accruing interest shall be used
6 exclusively for purposes of paying claimants pursuant to this chapter and
7 chapter 5, title 69, Idaho Code, and paying necessary expenses and costs of
8 administering the commodity indemnity fund,. Pprovided however, that up to
9 one-half (1/2) of each year, accrued interest for that year shall be applied
10 to pay necessary expenses and costs of administering the fund, regardless of
11 the amount, to the extent of available accrued interest. In the event the
12 accrued interest is insufficient to pay the necessary expenses and costs of
13 administering the fund in any particular year, then accrued interest shall
14 first be applied to those costs and expenses. The remaining costs and expenses
15 will be paid with principal from the commodity indemnity fund. In no event,
16 however, shall payments from principal in any given year exceed the sum of
17 two hundred fifty thousand dollars ($250,000). Tthe interest accumulated by
18 the fund may be paid to the department and to the state treasurer to defray
19 costs of administering the warehouse and dealer indemnity program and the com-
20 modity indemnity fund. The interest accumulated by the fund and, if necessary,
21 a portion of the fund, may be used to defray the cost of reinsuring the fund
22 at the discretion of the director. The state of Idaho shall not be liable for
23 any claims presented against the fund.
24 SECTION 38. That Section 69-257, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 69-257. ASSESSMENT -- RATE -- MINIMUM AND MAXIMUM ASSESSMENT. (1) Every
27 producer shall pay an assessment to the department for deposit in the commod-
28 ity indemnity account fund according to the provisions of this chapter and
29 rules and regulations promulgated by the department to implement the provi-
30 sions of this chapter.
31 (2) Except as provided in this subsection, the rate of the assessment
32 shall be established by rules promulgated by the department. The producer's
33 annual assessment shall not exceed two-tenths of one per cent percent (.2%) of
34 the total value gross dollar amount, without deductions, due the producer, as
35 determined at the time of first sale, of the commodities.
36 SECTION 39. That Section 69-258, Idaho Code, be, and the same is hereby
37 repealed.
38 SECTION 40. That Chapter 2, Title 69, Idaho Code, be, and the same is
39 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
40 ignated as Section 69-258, Idaho Code, and to read as follows:
41 69-258. COLLECTION AND REMITTANCE OF ASSESSMENTS -- PRINCIPAL AMOUNT HELD
42 IN TRUST -- INTEREST EARNED -- FAILURE TO COLLECT OR REMIT ASSESSMENTS CONSTI-
43 TUTES A VIOLATION -- INTEREST AND PENALTIES FOR UNPAID ASSESSMENTS. (1) The
44 department shall promulgate rules to provide a procedure for the collection
45 and remittance of the producer's assessments. Any warehouseman or dealer who
46 owes producers for the sale or transfer of a commodity, or have stored for
47 withdrawal a commodity, shall be responsible for the collection of the
48 producer's assessments and the remittance of the assessments collected to the
49 department.
50 (2) Warehousemen or dealers shall remit to the department assessments
20
1 collected according to the provisions of this chapter. Payments will be made
2 no later than the twentieth day of the month following the close of the calen-
3 dar quarter on a form prescribed by the department. There are four (4) calen-
4 dar quarters in the year, beginning on the first day of the months of January,
5 April, July and October. Assessment reports shall be submitted even though
6 assessments for the period have not been collected. Failure to do so will
7 result in a penalty of one hundred dollars ($100).
8 (3) The principal amount of assessments paid by, or deducted from, pay-
9 ments to producers by warehousemen or dealers, are held in trust for the com-
10 modity indemnity fund immediately upon collection by any warehouseman or
11 dealer and are not property of the warehouseman or dealer.
12 (4) Interest earned on assessments prior to remittance to the department
13 belongs to the warehouseman or dealer.
14 (5) If a warehouseman or dealer fails to collect or remit assessments as
15 required, it shall be considered a violation of this chapter and shall subject
16 the warehouseman or dealer to suspension or revocation of any license issued
17 to the warehouseman or dealer under the provisions of this chapter.
18 (6) The department shall collect, on assessments unpaid within the time
19 limits specified in this chapter, interest at the rate of ten percent (10%)
20 per annum until the assessments are remitted together with a penalty of five
21 percent (5%) each month on the unpaid assessment due until the maximum penalty
22 of twenty-five percent (25%) is reached.
23 SECTION 41. That Section 69-259, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 69-259. FUNDING AND LIMITS OF FUND. The assessments imposed pursuant to
26 section 69-257, Idaho Code, shall be imposed under rules promulgated by the
27 department, until such time as maximum amount of the commodity indemnity fund
28 reaches shall be maintained between ten million dollars ($10,000,000) and
29 twelve million dollars ($12,000,000). If the commodity indemnity fund balance,
30 less any outstanding claims, exceeds ten million dollars ($10,000,000) on an
31 assessment date, no assessment shall be imposed by the department, except as
32 provided in section 69-258, Idaho Code.
33 SECTION 42. That Section 69-261, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 69-261. ADVISORY COMMITTEE -- TERMS -- COMPENSATION. (1) There is hereby
36 created a commodity indemnity account fund advisory committee consisting of
37 nine (9) members to be appointed by the director. Appointments shall be for up
38 to three (3) year terms, each term ending on the same day of the same month as
39 did the term preceding it. Any member appointed to fill a vacancy occurring
40 prior to the expiration of the term for which the member's predecessor was
41 appointed shall hold office for the remainder of the predecessor's term.
42 (2) The committee shall be composed of six (6) producers primarily
43 engaged in the production of commodities, and three (3) licensed bonded ware-
44 housemen or licensed commodity dealers.
45 (3) The committee shall meet at such places and times as it shall deter-
46 mine and as often as necessary to discharge the duties imposed upon it, pro-
47 vided, it shall meet not less than once twice per year. Each committee member
48 shall be compensated in accordance with section 59-509(gi), Idaho Code, for
49 travel and subsistence expense. The expenses of the committee and its opera-
50 tion shall be paid from the commodity indemnity account fund.
51 (4) The committee shall have the power and duty to advise the director
21
1 concerning assessments, administration of the commodity indemnity account
2 fund, and payment of claims from the account fund. Every two (2) years the
3 committee will review the maximum limits of the fund and give advice to the
4 director.
5 SECTION 43. That Section 69-262, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 69-262. PROOF OF CLAIMS -- PROCEDURE -- HEARING -- INSPECTION OF WARE-
8 HOUSE. In the event a warehouse or dealer fails, as defined in section
9 69-202(78), Idaho Code, the department shall process the claims of producers
10 who have paid or owe assessments as required by this chapter. Claims against a
11 failed warehouse or dealer shall include written evidence disclosing a storage
12 obligation or a sale or delivery of commodities. For the purpose of this stat-
13 ute, a storage obligation or a sale of commodities shall not include any com-
14 modities deposited with a warehouse or dealer under a bailment, entrustment,
15 consignment, sale or return, or similar contract.
16 (1) The department shall give notice and provide a reasonable time of not
17 less than thirty (30) days and not more than sixty (60) days to producers to
18 file their written verified claims, including any written evidence, with the
19 department.
20 (2) The department shall investigate each claim and shall notify each
21 claimant, the warehouseman or dealer, and the advisory committee of the
22 department's determination as to the validity and amount of each claimant's
23 claim. A claimant or warehouseman or dealer may request a hearing on the
24 department's determination within twenty (20) days of receipt of written noti-
25 fication and a hearing shall be held by the department pursuant to chapter 52,
26 title 67, Idaho Code. Upon determining the amount and validity of the claim,
27 the director shall pay to the claimant an amount equal to ninety percent (90%)
28 of the approved claim from the commodity indemnity fund. Prior to any payment
29 from the fund to a claimant, the claimant may shall be required to subrogate
30 and assign his right to recover from any other source. The department may then
31 pay up to ninety percent (90%) of the approved claim to the claimant. The
32 department shall have a priority claim for that amount. The claimant shall be
33 entitled to seek recovery of the remaining ten percent (10%) which was not
34 originally assigned to the department. For the purpose of determining the
35 amount of the producer's claim, the value of a producer's commodity shall be
36 the lesser of: (a) the value of the commodity on the date the director
37 declared the warehouse or dealer to have failed or to have failed to comply
38 with the provisions of this chapter or rules promulgated thereunder; (b) the
39 contract price as listed on a valid contract; or (c) the value of the commod-
40 ity represented on the contract on the date the contract was signed. The value
41 shall be determined by a survey of the available market price reports or mar-
42 kets of similar facilities within the same geographic location as the failed
43 facility.
44 (3) The department may inspect and audit a failed warehouseman or
45 dealer. In the event of a shortage, the department shall determine each
46 producer's pro rata share of available commodities and the deficiency shall be
47 considered as a claim of the producer. Each type of commodity shall be treated
48 separately for the purpose of determining shortages.
49 (4) The director shall not approve or pay any claim made on the commodity
50 indemnity fund if the claim is based on losses resulting from the deposit,
51 sale or storage of commodities in an unlicensed warehouse or dealer.
52 (5) The fund shall not be liable for claims filed against a warehouse or
53 dealer in good standing who has voluntarily relinquished their license if such
22
1 claims are not filed with the department within six (6) months of the closing.
2 SECTION 44. That Section 69-263, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 69-263. FAILURE TO FILE -- LOSS OF CLAIM ON FUND. If a producer, after
5 notification, refuses or neglects to file in the office of the director his
6 verified claim against a warehouseman or dealer as requested by the director
7 within sixty ninety (690) days from the date of the notice, the director
8 shall thereupon be relieved of responsibility for taking action with respect
9 to such claim later asserted and no such claim shall be paid from the commod-
10 ity indemnity fund. No claim shall be paid from the fund if a producer files
11 his claim more than two (2) years from the date of sale of the commodity.
12 SECTION 45. That Section 69-264, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 69-264. MINIMUM BALANCE -- SUBSEQUENT PAYMENTS. The minimum balance in
15 the commodity indemnity fund, which shall be used exclusively for purposes of
16 paying claimants pursuant to this chapter and chapter 5, title 69, Idaho Code,
17 shall be one million two hundred fifty thousand dollars ($1,00250,000). At no
18 time shall the balance be allowed to fall below the minimum balance. The
19 director may pay claims, on a pro rata basis if necessary, until the minimum
20 balance is reached. If the director cannot fully pay a claim before the mini-
21 mum balance is reached, he shall, when the commodity indemnity fund contains
22 sufficient funds, pay off the claim.
23 SECTION 46. That Section 69-266, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 69-266. PAYMENT FROM ACCOUNT FUND -- DEBT OF WAREHOUSEMAN OR DEALER OR
26 SURETY -- REIMBURSEMENT -- ACCRUAL OF CAUSE OF ACTION. Amounts paid from the
27 commodity indemnity account fund in satisfaction of any approved claim shall
28 constitute a debt and obligation of the warehouseman, dealer, or surety
29 against whom the claim was made. The director may bring suit on behalf of the
30 commodity indemnity account fund in the district court of Ada county to
31 recover from the warehouseman, dealer, or surety the amount of the payment
32 made from the commodity indemnity account fund, together with costs and attor-
33 ney's' fees incurred in maintaining the suit. In the event the department ini-
34 tiates an action against a warehouseman, dealer, or surety the department's
35 claim is deemed to accrue and relate back to the time that each producer who
36 received a commodity indemnity account fund payment incurred a loss in the
37 facility. In no event shall a commodity indemnity account fund payment be
38 deemed to be beyond the reimbursement from the warehouseman, dealer, or surety
39 merely because the payment may have occurred after the facility closed. Any
40 recovery for reimbursement to the fund shall bear interest at the statutory
41 rate from the date of failure.
42 SECTION 47. That Section 69-267, Idaho Code, be, and the same is hereby
43 amended to read as follows:
44 69-267. CLAIM AGAINST WAREHOUSEMAN OR DEALER -- DIRECTOR'S REMEDIES. The
45 department may deny, suspend, or revoke the license of any warehouseman or
46 dealer against whom a claim has been made, approved, and paid from the commod-
47 ity indemnity account fund. Proceedings for the denial, suspension, or revoca-
23
1 tion shall be subject to the provisions of title 67, chapter 52, Idaho Code.
STATEMENT OF PURPOSE
RS RS11983
Amend Chapter 2, 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. The amendment also
makes changes to the Commodity Indemnity Fund porting of the law
to clarify questions raised as a result of recent warehouse failures.
FISCAL IMPACT
There will be no impact to the state's general fund. The fiscal
impact to the Bonded Warehouse program will be approximately $5,000
to the warehouses due to an initial license and renewal fee increase.
The department also requests an additional FTP to carry out the
duties set forth in Chapter 2 and 5 Title 69, Idaho Code. Accrued
interest from the commodity indemnity fund will be utilized to
defray the personnel and overhead costs of the additional FTP.
Contact
Name: Representative Jones
Phone: 208-332-1137
STATEMENT OF PURPOSE/FISCAL NOTE H 645