Sunset Commodity Handler & Farm Products Act

Sunset Process - Senate Agriculture and Natural Resources Committee. The bill continues the department of agriculture's (department) oversight of the "Commodity Handler and Farm Products Act" (act) for 7 years until 2032.

The bill also increases the "small-volume dealer" limit (limit) from $20,000 to $45,000. The limit is a limit on the amount of farm products or commodities that a person may buy, in aggregate, per year. The bill permits the commissioner of agriculture (commissioner) to periodically adjust the limit.

The bill explicitly excludes marijuana from the definition of "commodity" under the act.

Under current law, civil penalties collected by the department for violations of the act are deposited into the inspection and consumer services cash fund (fund). The bill requires those civil penalties to be transferred to the general fund rather than the department's fund.

Under current law, a dealer or commodity handler must file a bond or irrevocable letter of credit (bond or credit) with the commissioner. The bond or credit is intended to cover any claims of injury submitted by a producer or owner against the dealer or commodity handler. The bill prohibits a producer or owner from submitting a claim and collecting reimbursement from the bond or credit if the producer or owner is also the owner of at least 5% of the voting shares of the of the dealer or commodity handler or the dealer's or commodity handler's parent company.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)