All Roll Calls
Yes: 165 • No: 11
IowaSF 60891st General Assembly (2025–2026)SenateWALLET
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.
Sponsored By: COMMITTEE ON WAYS AND MEANS
Signed by Governor
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 3 benefits, 1 costs, 4 mixed.
Who the grain fund pays and how
The grain indemnity fund pays depositors 90% of their loss up to $300,000 per claim, with a $400,000 total cap per claimant. Sellers with deferred-pricing losses get 75%; sellers with deferred-payment losses are not covered. Claims must be timely, for losses on or after May 15, 1986, and backed by adequate documents. Loss value follows a receiver’s plan or nearby terminal prices and cannot exceed the U.S. No. 2 price; the department may adjust for grain condition. You file as the board and department require, and they may assign you a unique ID. When the fund pays, it takes over your recovery rights. Fund money goes to eligible claims and needed administrative and legal costs. The law also updates who counts as a seller and which sales count as purchased grain, including deferred-pricing but excluding deferred-payment sales.
Faster grain payments to sellers
Licensed grain dealers must pay when grain is delivered or as soon as the seller asks. If the seller does not ask, payment is due within 30 days unless the department allows a scheduled plan. Dealers cannot hold a purchase check more than 5 days after writing it and must mail it after that. If a dealer’s license ends, all credit-sale payments are due within 30 days, and unpriced grain is priced as of the license end date. Contracts can be assigned if the business is sold to another licensed dealer.
Stricter rules for dealer credit-sales
A licensed dealer cannot buy grain on a credit-sale unless it follows the law’s rules. The dealer must keep $0.50 of net worth for each outstanding bushel, or post a bond or letter of credit for $2,000 per $1,000 (or part) of any shortfall. Before using credit-sales, the dealer must notify the department if it will use deferred-pricing, deferred-payment, or both, and keep numbered contract forms and records (the department may require separate accounting). In a credit-sale, title to the grain usually passes to the dealer when the contract is signed, unless the contract says otherwise. The law also defines credit-sale, deferred-payment, and deferred-pricing contracts so everyone knows what rules apply.
New help for repayment claims in bankruptcy
The law creates a repayment-claim path for sellers who had to pay money back to a dealer’s bankruptcy estate. You must file within 60 days after the bankruptcy court finalizes your loss. It applies to dealer bankruptcies on or after October 24, 2022. For repayment losses incurred before July 1, 2025, you must file by August 29, 2025. Your loss equals what you actually paid back and did not recover elsewhere; fraudulent transfers are not covered. The fund gets your recovery rights after payment.
Indemnity fees: who pays and when
If fees are in effect, licensees must remit fees and file department forms. Dealers in credit-sale contracts owe fees on those purchases starting the September 1 after the first assessment quarter. Payments are due each quarter on Dec 15, Mar 15, Jun 15, and Sep 15; late penalties are $10 per day (minimum $10), capped at the unpaid amount. The board decides by May 1 each year to impose, change, or waive fees effective the prior Sep 1; fees are waived when fund assets exceed $16,000,000 and return at $8,000,000 or less. New applicants owe the full annual participation fee on their first anniversary, and licensees may pay that fee in one lump sum or four 25% installments (first due at the end of the assessment quarter after the anniversary). The per‑bushel fee may be charged only once per bushel.
New financial statement rules for licensees
Licensed grain dealers and warehouse operators may file a CPA review report instead of a full audit in some cases. The department may accept unavoidable audit qualifications and cannot require more than one unqualified audit each year, but it can ask for more statements for good cause. If a dealer fails to submit the last required unqualified audited statement, the dealer must file that audit or post a $100,000 bond payable to the department to protect sellers. These rules take effect May 27, 2025.
Stronger seller notices and bond safeguards
A dealer’s bond cannot be canceled without 90 days’ certified‑mail notice to the department and the dealer. If no replacement bond arrives within 60 days, the department must suspend the license and inspect; after 30 more days without a bond, it must revoke the license. When a license is revoked, the department must mail notice to each holder of a credit‑sale contract and to known sellers. For any credit‑sale, the dealer must also get your signed form saying you got written notice that credit‑sale grain is not covered by the indemnity fund. You and the dealer each get a copy.
Fast-track rules to put changes in place
The Department of Agriculture must adopt emergency rules within 30 business days. The rules take effect on filing unless a later date is set and are also published as a notice.
Sponsors & Cosponsors
Sponsor
COMMITTEE ON WAYS AND MEANS
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/14/2025
Passed Senate
Yes: 45 • No: 0
House vote • 5/8/2025
Passed House
Yes: 81 • No: 3
Senate vote • 4/7/2025
Passed Senate
Yes: 39 • No: 8
Actions Timeline
Signed by Governor.
5/27/2025GovernorReported correctly enrolled, signed by President and Speaker, and sent to Governor.
5/23/2025SenateMessage from Senate.
5/14/2025SenateImmediate message.
5/14/2025legislaturePassed Senate, yeas 45, nays 0.
5/14/2025SenateSenate concurred with S-3145.
5/14/2025SenateExplanation of vote.
5/13/2025legislatureMessage from House, with amendment S-3145.
5/9/2025HouseImmediate message.
5/8/2025legislaturePassed House, yeas 81, nays 3.
5/8/2025HouseAmendment H-1296 filed, adopted.
5/8/2025legislatureSubstituted for HF 999.
5/8/2025legislatureRead first time, passed on file.
4/8/2025legislatureMessage from Senate.
4/8/2025SenateImmediate message.
4/7/2025legislaturePassed Senate, yeas 39, nays 8.
4/7/2025SenateAmendment S-3074 filed, adopted.
4/7/2025legislaturePlaced on calendar under unfinished business.
4/3/2025legislatureCommittee report, approving bill.
3/13/2025legislatureIntroduced, placed on Ways and Means calendar.
3/13/2025legislature
Bill Text
As Introduced
Enrolled
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