Iowa 2023-2024 Regular Session

Iowa Senate Bill SSB1205

Introduced
3/13/23  
Introduced
3/13/23  

Caption

A bill for an act providing for financing of certain agricultural commodity programs, by reducing and eliminating fees imposed on licensed grain dealers and warehouse operators, replacing those moneys with moneys collected from a percentage of state assessments imposed on the sale of corn and soybeans, increasing moneys deposited into the grain depositors and sellers indemnity fund, increasing indemnification amounts, and making appropriations.(See SF 556.)

Impact

The proposed changes could significantly impact the financial dynamics within the agricultural sector. By reducing or eliminating the fees that grain dealers and warehouse operators must pay, the bill intends to ease the operational costs for these businesses. However, the shift to using checkoff moneys from state assessments introduces new revenue streams that may have implications for pricing structures and market competitiveness. The bill is designed to ensure that there are sufficient funds to cover indemnification claims, which would enhance stability for sellers in the agricultural market.

Summary

Senate Study Bill 1205 aims to provide financing for agricultural commodity programs, specifically targeting grain dealers and warehouse operators in Iowa. The central mechanism of this bill is the reduction or elimination of fees imposed on these licensed entities, which are currently used to support an indemnity fund. Instead, the bill proposes to replace this funding source with funds collected from a percentage of state assessments on the sale of corn and soybeans. By amending existing code sections, the bill seeks to enhance the financial resources available to the grain depositors and sellers indemnity fund, thereby increasing the capacity to indemnify claims related to losses experienced by sellers and depositors.

Contention

While the bill presents a forward-thinking approach to support the agricultural sector, it may also raise concerns regarding the sustainability of funding for the indemnity fund. Critics might argue that reliance on variable state assessments could create financial uncertainty, particularly in fluctuating market conditions. Additionally, there may be discussions on whether the proposed funding mechanism adequately addresses the needs of all stakeholders in the grain supply chain, or if it disproportionately favors certain commodities over others, potentially leading to inequities within the agricultural community.

Companion Bills

IA SF556

Replaced by A bill for an act providing for financing of certain agricultural commodity programs, by reducing and eliminating fees imposed on licensed grain dealers and warehouse operators, replacing those moneys with moneys collected from a percentage of state assessments imposed on the sale of corn, increasing moneys deposited into the grain depositors and sellers indemnity fund, increasing indemnification amounts, and making appropriations.(Formerly SSB 1205.)

Previously Filed As

IA HF508

A bill for an act providing for the marketing of grain by licensed warehouse operators and grain dealers, including by providing for indemnity fees and the indemnification of grain depositors and sellers for losses following the cessation of a license or bankruptcy.(Formerly HSB 131; See HF 999.)

IA HSB131

A bill for an act providing for the marketing of grain by licensed warehouse operators and grain dealers, including by providing for indemnity fees and the indemnification of grain depositors and sellers for losses following the cessation of a license or bankruptcy.(See HF 508, HF 999.)

IA HF999

A bill for an act providing for the marketing of grain by licensed warehouse operators and grain dealers, including by providing for indemnity fees and the indemnification of grain depositors and sellers for losses following the cessation of a license or bankruptcy, and including effective date provisions.(Formerly HF 508, HSB 131.)

IA SSB1131

A bill for an act regulating the marketing of grain, by providing for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund, and the payment of claims to reimburse sellers and depositors for losses covered by the fund, and including effective date provisions.(See SF 608.)

IA SF608

A bill for an act regulating the marketing of grain, by providing for fees paid by grain dealers and warehouse operators into the grain depositors and sellers indemnity fund, and the payment of claims to reimburse sellers and depositors for losses covered by the fund, and including effective date and applicability provisions. (Formerly SSB 1131.) Effective date: 05/27/2025, 07/01/2025. Applicability date: 10/24/2022.

IA SB115

Enacting the Kansas bullion depository act to authorize the state treasurer to establish, administer or contract for the administration of bullion depositories and allowing for state moneys to be deposited in such bullion depositories and invested in specie legal tender.

IA HSB132

A bill for an act relating to the powers and duties of the Iowa sheep and wool promotion board, by changing its name to the Iowa sheep promotion board, eliminating the assessment on wool, changing the assessment rate on sheep, and providing for the collection and expenditure of moneys imposed by the assessment.(See HF 800.)

IA SSB1133

A bill for an act relating to the powers and duties of the Iowa sheep and wool promotion board, by changing its name to the Iowa sheep promotion board, eliminating the assessment on wool, changing the assessment rate on sheep, and providing for the collection and expenditure of moneys imposed by the assessment.

IA HF800

A bill for an act relating to the powers and duties of the Iowa sheep and wool promotion board, by changing its name to the Iowa sheep promotion board, eliminating the assessment on wool, changing the assessment rate on sheep, and providing for the collection and expenditure of moneys imposed by the assessment.(Formerly HSB 132.)

IA HB370

Provides for the assessment rate on agricultural commodities for the Grain and Cotton Indemnity Fund (EN +$626,130 SD RV See Note)

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