HSB 572

BILL’S PROVISIONS. This bill amends provisions in Code chapter 203D that provide for two associated fees (indemnity fees) deposited into the grain depositors and sellers indemnity fund (indemnity fund) administered by the department of agriculture and land stewardship (DALS) and the Iowa grain indemnity fund board (indemnity board). _____ grain from a seller transferring title under one of a number of different types of sales contracts (see Code chapter 554, Articles and 7). The indemnity fees are subject to two triggers: the first trigger waives existing indemnity fees and the second trigger reinstates those fees that were waived. The waiver or reinstatement is triggered by the balance in the indemnity fund. The bill adjusts both triggers by (1) increasing from $8 million to $16 million the balance required to trigger the waiver and (2) increasing from $3 million to $8 million the balance required to trigger the reinstatement. BACKGROUND.6). The two indemnity fees used to support the indemnity fund include (1) a participation fee imposed on both licensees and (2) a per-bushel fee imposed only on grain dealers.5).014 cents per bushel of bulk grain storage capacity, or $500, whichever is less, with a minimum of $50.25 cents per bushel on all such purchased grain.3).5). If there is a trigger, the waiver or reinstatement is effective on the first day of the following assessment year (September 1). If a waiver is triggered, a licensee is subject to pay the outstanding amount of the participation fee that is otherwise owing for the current assessment year.5). APPLICABLE CIVIL PENALTIES.36A). EFFECTIVE DATE. The bill takes effect upon enactment.