AN ACT TO ESTABLISH THE "MISSISSIPPI GRAIN INDEMNITY ACT"; TO CREATE NEW SECTION 75-46-1, MISSISSIPPI CODE OF 1972, TO NAME THE ACT AS SUCH; TO CREATE NEW SECTION 75-46-3, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR DEFINITIONS TO TERMINOLOGY USED IN THE ACT; TO CREATE NEW SECTION 75-46-5, MISSISSIPPI CODE OF 1972, TO ESTABLISH THE MISSISSIPPI GRAIN INDEMNITY BOARD, PROVIDE FOR ITS COMPOSITION AND THE INITIAL AND SUBSEQUENT TERMS OF BOARD MEMBERS; TO ESTABLISH THE MISSISSIPPI GRAIN INDEMNITY TRUST FUND AS A SPECIAL FUND IN THE STATE TREASURY; TO STIPULATE THE USES OF MONIES DEPOSITED INTO THE FUND; TO CREATE NEW SECTION 75-46-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE FUND SHALL BE ADMINISTERED BY THE BOARD, WHICH SHALL HAVE AUTHORITY TO CONTRACT WITH A THIRD PARTY TO ADMINISTER PAYMENTS AND HANDLE ALL ACCOUNTING FUNCTIONS RELATED TO THE FUND; TO CREATE NEW SECTION 75-46-9, MISSISSIPPI CODE OF 1972, TO REQUIRE GRAIN PRODUCERS TO PAY AN ASSESSMENT ON ALL MARKETED GRAIN SOLD TO A FIRST PURCHASER LICENSEE BEGINNING ON JULY 1, 2022; TO CREATE NEW SECTION 75-46-11, MISSISSIPPI CODE OF 1972, TO REQUIRE THE ASSESSMENT TO BE COLLECTED BY THE FIRST PURCHASER LICENSEE OR ANY AGENT OR REPRESENTATIVE OF THE LICENSEE, WHO SHALL DEDUCT SUCH ASSESSMENT FROM THE PURCHASE PRICE; TO ESTABLISH THE DATE BY WHICH THE LICENSEES MUST SUBMIT ASSESSMENTS TO THE BOARD FOLLOWING ITS COLLECTION; TO CREATE NEW SECTION 75-46-13, MISSISSIPPI CODE OF 1972, TO DESIGNATE THE ASSESSMENT COLLECTION PERIOD AND ESTABLISH AMOUNTS FOR THRESHOLD TRUST FUND BALANCES; TO CREATE NEW SECTION 75-46-15, MISSISSIPPI CODE OF 1972, TO REQUIRE FIRST PURCHASER LICENSEES TO MAINTAIN A LEDGER OF ALL ASSESSMENTS COLLECTED, WHICH SUCH RECORDS SHALL BE MADE AVAILABLE TO THE BOARD UPON REQUEST; TO LIMIT THE COMMISSIONER OF AGRICULTURE AND COMMERCE'S AUTHORITY TO DISCLOSE INFORMATION OBTAINED FROM THE LEDGER OF ASSESSMENTS; TO CREATE NEW SECTION 75-46-17, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT PARTICIPATION IN THE FUND IS VOLUNTARY; TO REQUIRE NONPARTICIPANTS TO NOTIFY THE COMMISSIONER BY THE PRECEDING JUNE 1 OF SUCH YEAR THAT THE PRODUCER HAS OPTED OUT; TO PROVIDE THAT NONPARTICIPATION IN THE FUND DISQUALIFIES SUCH INDIVIDUALS FROM RECEIPT OF ANY PAYMENT FOR A CONTRACT OR STORAGE LOSS OF GRAIN PRODUCED DURING SUCH CROP DUE TO THE FAILURE OF A FIRST PURCHASER LICENSEE; TO PROVIDE ADDITIONAL NOTICE TO BE GIVEN TO THE FIRST PURCHASER LICENSEE; TO ALLOW A REFUND OF ASSESSMENTS PAID TO PRODUCERS WHO OPT OUT OF THE FUND; TO CREATE NEW SECTION 75-46-19, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE COMMISSIONER SHALL DETERMINE WHEN A FIRST PURCHASER LICENSEE HAS FAILED; TO PRESCRIBE PROCEDURES TO BE FOLLOWED BY THE COMMISSIONER UPON THE MAKING OF SUCH DETERMINATION OF FAILURE; TO CREATE NEW SECTION 75-46-21, MISSISSIPPI CODE OF 1972, TO PRESCRIBE THE PROCESS TO BE FOLLOWED FOR THE TIMELY ADJUDICATION OF CLAIMS ALLEGING FAILURE OF FIRST PURCHASER LICENSEES; TO CREATE NEW SECTION 75-46-23, MISSISSIPPI CODE OF 1972, TO REQUIRE THE COMMISSIONER OR THE DESIGNEES TO MAKE A PRELIMINARY DETERMINATION OF ELIGIBILITY FOR PAYMENT FROM THE FUND RESULTING FROM SUBMITTED CLAIMS; TO PROVIDE THAT THE BOARD SHALL MAKE THE FINAL DETERMINATION ON PAYMENTS OF CLAIMS; TO AUTHORIZE THE BOARD TO SEEK ANY ADDITIONAL INFORMATION NECESSARY TO ADJUDICATE THE CLAIM; TO PRESCRIBE PROCEDURES TO BE FOLLOWED WHEN ONLY A PARTIAL PAYMENT OF CLAIM IS MADE; TO SPECIFY THE TIMELINE FOR CERTAIN RESPONSES AND ACTIONS BY THE BOARD AND CLAIMANT; TO PROVIDE CLAIMANTS WITH AN OPTION TO REQUEST A REVIEW OF THE BOARD'S FINAL ADJUDICATION OF THE CLAIM; TO PROVIDE FOR ADMINISTRATIVE PROCEDURES PROCESS FOR APPEALS OF THE BOARD'S FINAL ADJUDICATION; TO CREATE NEW SECTION 75-46-25, MISSISSIPPI CODE OF 1972, TO PRESCRIBE THE METHOD OF CALCULATING THE PAYMENT OF CLAIMS FOR STORAGE OR CONTRACT LOSSES SUFFERED; TO CREATE NEW SECTION 75-46-27, MISSISSIPPI CODE OF 1972, TO REQUIRE THE BOARD TO MAKE PAYMENTS OF CLAIMS ON A PRO RATA BASIS AT ANY TIME THE TOTAL AMOUNT OF ELIGIBLE CLAIMS EXCEEDS THE AMOUNT OF FUNDS AVAILABLE; TO CREATE NEW SECTION 75-46-29, MISSISSIPPI CODE OF 1972, TO PROVIDE THE COMMISSIONER WITH THE AUTHORITY TO REVOKE THE LICENSE OF A FIRST PURCHASER LICENSEE FOR FAILURE TO TIMELY COLLECT AND SUBMIT ASSESSMENTS TO THE BOARD; TO CREATE NEW SECTION 75-46-31, MISSISSIPPI CODE OF 1972, TO REQUIRE THE COMMISSIONER TO ESTABLISH A TOLL-FREE HOTLINE AND OTHER INFORMATION COLLECTION PROCESSES FOR THE PURPOSES OF RECEIVING INFORMATION ON LICENSEE FAILURE TO PERFORM; TO CREATE NEW SECTION 75-46-33, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE INSPECTION OF THE BOARD'S RECORDS, ACCOUNTS AND OTHER DOCUMENTS BY THE OFFICE OF THE STATE AUDITOR; TO CREATE NEW SECTION 75-46-35, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE BOARD TO ADOPT ANY RULES AND REGULATIONS DEEMED NECESSARY TO ADMINISTER THE ACT; TO CREATE NEW SECTION 75-46-37, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE BOARD TO ADOPT NECESSARY RULES AND REGULATIONS TO CARRY OUT THE PROVISIONS OF THIS ACT; TO AMEND SECTIONS 75-44-29, 75-44-31, 75-44-35, 75-45-304, 75-45-305, 75-45-307 AND 75-45-311, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PRECEDING PROVISIONS; AND FOR RELATED PURPOSES.
House Bill 1647, known as the Mississippi Grain Indemnity Act, establishes a framework for compensating grain producers in the event of financial failure by licensed grain purchasers. The bill calls for the creation of the Mississippi Grain Indemnity Trust Fund, which will be funded through a mandatory assessment on all marketed grains sold to first purchaser licensees. This assessment will be collected by these licensees and will serve as a safety net for producers who may suffer losses due to the failure of these purchasers to fulfill their financial obligations.
The sentiment surrounding HB 1647 appears to be largely positive among agricultural stakeholders, as it seeks to protect producers from financial instability caused by the default of buyers. Supporters argue that this act fills a crucial gap in current regulations and helps stabilize the agricultural market. However, there are concerns voiced by some licensees worried about the financial implications of the mandatory assessments, as they could affect their competitive edge in the grain market.
Notable points of contention include concerns over the financial burden the assessment may impose on both producers and licensees. Some lawmakers and agricultural associations debated the necessity and fairness of the assessment, citing the potential for adverse impacts on small-scale producers who may struggle with additional costs. Additionally, how the assessment amount is determined, alongside the overall effectiveness and efficiency of the trust fund in delivering timely compensation, has been a focal point of discussion during the bill's deliberation in the legislature.