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HB20-1213

Sunset Commodity Handler And Farm Products Acts

Concerning the continuation of the department of agriculture's regulatory functions related to persons who work with agricultural products, and, in connection therewith, implementing recommendations contained in the 2019 sunset report by the department of regulatory agencies concerning the "Commodity Handler Act" and the "Farm Products Act".
Session:
2020 Regular Session
Subject:
Agriculture
Bill Summary

Sunset Process - House Rural Affairs and Agriculture Committee. The bill implements recommendations of the department of regulatory agencies' sunset review and report on the licensing functions of the commissioner of agriculture (commissioner) regarding the "Commodity Handler Act" and the "Farm Products Act" by:

  • Continuing the commissioner's licensing functions for 11 5 years, until 2031 2025 ;
  • Combining the "Commodity Handler Act" and the "Farm Products Act" in one article;
  • Creating a new type of license for small-volume commodity handlers for those commodity handlers who buy less than $250,000 worth of commodities and farm products per year, exempting small-volume commodity handlers from certain financial assurance requirements, and prohibiting small-volume commodity handlers from offering credit sale contracts ;
  • Requiring rule-making regarding bond schedules, record keeping, minimal financial requirements, initial and renewal license requirements, credit sale contract requirements, and standard warehouse operation requirements and requiring the department of agriculture to convene a stakeholders' group to work on drafting the rules ;
  • Requiring that financial statements submitted to the commissioner be prepared by a certified public accountant;
  • With regard to the date on which an action is commenced, extending the period of liability for which a surety on a bond or an issuer of a letter of credit is required to pay a claim from up to 180 days after the date of the transaction to up to 548 days after the date of the transaction;
  • Requiring the department of agriculture, on or before November 1, 2021, to submit a report to the committees with jurisdiction over agricultural issues summarizing the department's progress toward implementing the bill;
  • Increasing the maximum bond amount that farm products dealers must file from $200,000 to $1 million; and
  • For the definition of "small-volume dealer", repealing the limitation that a small-volume dealer cannot purchase $2,500 or more worth of farm products or commodities in a single transaction.

(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.)

Status

Introduced
Passed
Became Law

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