# Indiana SB 461: Grain indemnity. Indiana SB 461, Grain indemnity., is a First Regular Session 124th General Assembly (2025) Senate bill sponsored by Jean Leising (Republican); status signed, last action 2025-04-30 (Signed by the Governor); PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/state-bill/IN-SB461-2025 - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Indiana SB 461 - State: Indiana - Session: First Regular Session 124th General Assembly (2025) - Title: Grain indemnity. - Status: signed - Chamber: Senate - Introduced: 2025-01-13 - Last action: 2025-04-30, Signed by the Governor - Sponsor: Jean Leising (Republican) - Cosponsors: 4 - Subjects: agriculture, appropriations, the house, agriculture and rural development - Touches household money: yes - Roll calls: 3 (180 yes, 4 no in all) - Economic provisions PRIA read: 30 ## Summary Defines "revocation of a license". Creates a process in which the director of the Indiana grain buyers and warehouse licensing agency (agency) determines whether a building or other protected enclosure constitutes a single warehouse that requires one or more licenses. Specifies the documents a person who desires to conduct business as a grain buyer, warehouse operator, or buyer-warehouse (licensee) must submit to the agency to renew a license to operate. Specifies how a business as a licensee may renew its license. Specifies the types of licenses the agency shall issue and how a license may be relinquished. Establishes what information must be included in a financial statement submitted by a licensee to the agency. Removes the ability of the agency to temporarily suspend a licensee's license. Specifies various matters related to on-premises inspections. Permits the director of the agency (director) to call an informal meeting with a licensee. Provides when the director may revoke, and when the director shall revoke, a licensee's license and what information the director must share with the licensee. Establishes various notice requirements. Permits the agency to adopt rules. Requires the director to inspect and test all equipment used to test the moisture content of grain purchased from producers once per year. Requires the Indiana grain indemnity corporation board to elect a chairperson and vice chairperson and take on various new responsibilities. Addresses various issues with producer premiums. Provides that a grain buyer shall keep accurate and correct records of grain purchased from producers documenting the producer premiums paid by producers. Establishes storage fees to determine storage loss. Requires the office of the attorney general to provide legal assistance if requested by the director. Requires the director to take possession of the bond or other security and all proceeds from a grain sale in the event a licensee has failed to meet its obligations under the grain indemnity chapter. Provides that the director shall provide informal conferences between agency representatives and persons who have or who appear to have grain deposited with the licensee in revocation. Makes technical and conforming changes. ## Bill overview: provisions PRIA read - Farm claims follow grain license revocation: benefit, medium. Beginning July 1, 2025, the fund compensates qualifying financial or storage losses caused by grain license revocation. For unpriced grain sold to a buyer-warehouse, the storage-obligation price applies only when ownership passed to that buyer. For other grain buyers, the agency uses its warehouse-… - Farm grain claims get recovery safeguards: benefit, medium. After a hearing finds a likely shortage and a need to distribute security, the director must take control of that security. Grain-sale proceeds stay in a separate account in the form received, and the order must provide conferences for possible depositors; sureties may participate. After revocation… - Farm contracts explain grain coverage limits: benefit, low. Beginning July 1, 2025, the director may require updated notices in grain purchase contracts, excluding flat-price and seed-production contracts. The notice explains crop-year pricing deadlines and coverage for grain delivered to a licensed first purchaser within 15 months before revocation. Seed-p… - Grain buyers and advisors lose requirements: benefit, low. Beginning July 1, 2025, the director loses authority to require risk-related training or licensing evidence from certain grain buyers. Paid grain-marketing advisors also no longer face the repealed state registration requirement. That repeal removes the requirement to give the agency proof of speci… - Grain board receives confidential risk reports: benefit, low. Beginning July 1, 2025, the director must report licensees facing significant revocation risk or failing minimum requirements to the indemnity board. Reports cover license status and inspection results, exclude identifying details, and occur in closed sessions. Only members who signed confidentiali… - Grain businesses must back unpaid bills: cost, high. Beginning July 1, 2025, grain licensees must keep assets free of other claims worth at least 85% of covered unpaid grain bills, combined across licenses. They also need current assets at least equal to current liabilities; having no current liabilities meets this test. Asset shortfalls allow 90 day… - Grain businesses must meet capital minimums: cost, high. Beginning July 1, 2025, minimum positive tangible net worth is $100,000 for grain banks and $100,000 plus $0.10 per storage bushel for warehouses. Grain buyers need the greater of $100,000 or $0.05 per bushel purchased in their latest fiscal year. Buyer-warehouses need the greater of a base plus $0… - Farm premiums use gross grain prices: cost, medium. Beginning July 1, 2025, the producer premium remains 0.2% of gross grain sales to a first purchaser licensee when collections are active. The base includes grain-characteristic premiums and discounts, before marketing assessments, storage, drying, cleaning, or other service charges. Buyers must sen… - Farmers face grain claim eligibility limits: cost, medium. Beginning July 1, 2025, producers lose grain indemnity eligibility when the board issues their premium refund check. The board must also deny compensation when a majority finds that unusual marketing practices substantially contributed to the loss. Those practices must differ from generally accepte… - Grain businesses face tighter license entry: cost, medium. Beginning July 1, 2025, grain buyer, warehouse, and buyer-warehouse applicants must meet business qualifications and background requirements. Specified financial crimes disqualify applicants and covered officers, directors, partners, or managers; improper business practices can also justify denial.… - Grain operators face required corrective action: cost, medium. Beginning July 1, 2025, the director must notify grain licensees that cannot meet depositor obligations or refuse lawful inspections. The notice requires one or more actions: supply fully paid grain, add bond, letter-of-credit or cash security, or allow inspection. When the director calls an inform… - Grain pricing cannot cross crop years: cost, medium. Beginning July 1, 2025, licensed grain businesses cannot make deferred-pricing agreements that extend beyond the delivered grain's crop year. They also cannot roll those agreements into new deferred-pricing agreements lasting beyond that crop year. This limits how long buyers and producers can leav… - Revoked grain businesses must stop operating: cost, medium. Beginning July 1, 2025, specified bankruptcy, receivership, creditor-assignment, insolvency, and liquidation events automatically revoke grain licenses. Revoked businesses must stop licensed work, remove license claims, turn over related records and property, and follow agency orders. They must end… - Grain business buyers need new licenses: cost, low. Beginning July 1, 2025, grain licenses cannot be transferred or assigned, including to a successor owner. The buyer must obtain a new license. The original licensee's legal duties continue until the successor is properly licensed and signs a successor agreement with the agency. - Farm loss claims follow license revocation: mixed, high. Beginning July 1, 2025, participating producers can claim unpaid grain sales and unmet storage obligations tied to license revocation. Written proof of the loss and its price replaces the former requirement for an agency-adjudicated claim; agency review still applies. Loss calculations subtract pri… - Grain moisture checks carry device fees: mixed, medium. Beginning July 1, 2025, equipment measuring moisture in grain bought from producers must be tested at least annually. Accurate devices receive state seals showing inspection and expiration dates; failed devices need accepted calibration, proof of correction, and agency approval. Inspection sites pa… - Farm claims face independent reviews: mixed, medium. Beginning July 1, 2025, the board must hire a claims manager with no association or family relationship to board members. After a payment default or license revocation, the board investigates marketing methods and losses; claimants must sign submissions under penalties for perjury. The board can su… - Farm grain premiums follow fund balances: mixed, medium. Beginning July 1, 2025, active collections charge producers 0.2% of gross marketed-grain sales before storage and service deductions. Collections generally stop after the fund exceeds $25 million on June 30 and remain stopped until it falls below $20 million. Collections can restart when, as of May… - Farm storage claims require paid-fee proof: mixed, medium. Beginning July 1, 2025, storage-loss claims after warehouse license revocation require proof that producers paid storage fees. Minimum monthly rates are $0.05 per bushel for barley, canola, corn, lentils, oats, rye, sorghum, sunflower, wheat, and other field crops. The minimum for popcorn is $0.10… - Farmers can repay refunds to rejoin: mixed, medium. Producers who received premium refunds after June 30, 2015, can petition to rejoin the grain indemnity program. They must deliver the required petition by hand or certified mail with return receipt requested. Reentry requires board approval and repayment of all previous premium refunds, plus intere… - Grain enforcement shifts toward license revocation: mixed, medium. Beginning July 1, 2025, grain enforcement includes informal meetings and consent agreements with compliance deadlines and requirements. After a hearing finds a violation, the director must revoke or deny the license rather than suspend it. Imminent insolvency or irreparable depositor harm requires… - Grain firms face revised financial filings: mixed, medium. Beginning July 1, 2025, initial grain license applications need reviewed-or-better financial statements dated no more than 15 months before application. The director can no longer waive that documentation for hardship. Renewals require current reviewed or audited statements from independent Indiana… - Grain firms get revised financial safeguards: mixed, medium. Beginning July 1, 2025, the law removes the former 80% unpaid-grain asset rule and the former licensing net-worth clause. Replacement rules still require minimum net worth and, upon inspection, unencumbered assets covering at least 85% of unpaid grain bills. The asset shortfall has a 90-day cure pe… - Grain inspection funding and rules change: mixed, medium. Beginning July 1, 2025, the law repeals the former moisture-equipment inspection section and supports a new inspection program. The program requires annual inspections, accuracy seals, and a $200 fee per device per inspection. The licensing fee fund receives moisture-inspection fees and can pay to… - Grain operators face licensing checks and fees: mixed, medium. Beginning July 1, 2025, nearby warehouses with the same owner and operator count as one warehouse for licensing unless contrary information exists. Buyer and warehouse applicants must provide a financial statement dated within 15 months before their first application materials, plus required securi… - Grain security failures bring fines first: mixed, medium. Beginning July 1, 2025, specified grain security or insurance failures bring a $1,000 fine instead of automatic license suspension. Failures include missing the 90-day replacement-security deadline, missing the 30-day insurance-evidence deadline, or not maintaining required coverage. The agency mus… - Grain credit security holds end sooner: mixed, low. Beginning July 1, 2025, the required hold on grain-license letters of credit falls from 18 months to 15 months. The director cannot release a party from its letter-of-credit obligations during those 15 months after license termination. Earlier release becomes possible, shortening the required perio… - Grain fines keep thirty-day deadlines: mixed, low. Beginning July 1, 2025, a net-worth deficiency found before the next agency audit must be corrected within 30 days. The director may fine an operator up to $1,000 for missing that deadline. The law removes the temporary suspension that could follow another 60 days after the fine. Fine notices must… - Grain records shorten, ticket details expand: mixed, low. Beginning July 1, 2025, grain businesses keep transaction records for at least five years after final settlement, down from six. Delivery tickets must identify the licensee, owner, delivery date, grain type, net weight, grade factors, and sale or storage arrangement. Tickets must also include direc… - Grain subsidiaries gain financial reporting options: mixed, low. Beginning July 1, 2025, subsidiaries without ordinary-course financial statements can seek approval to use specified alternatives. Options include a qualifying compilation statement or a parent's reviewed or audited statement with an unconditional guaranty lasting at least one year. Another option… ## Sponsors and cosponsors - Sponsor: Jean Leising (Republican), Senate - Cosponsor: Beau Baird (Republican), House - Cosponsor: Kendell Culp (Republican), House - Cosponsor: Mike Aylesworth (Republican), House - Cosponsor: Susan Glick (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-04-16 | Senate | Senate concurred with House amendments | pass | 41 | 0 | | | 2025-04-09 | House | Third reading: passed | pass | 95 | 0 | | | 2025-02-11 | Senate | Third reading: passed | pass | 44 | 4 | | ## Actions (26) - 2025-04-30: Signed by the Governor (Senate) - 2025-04-30: Public Law 114 (Senate) - 2025-04-23: Signed by the President of the Senate (Senate) - 2025-04-22: Signed by the Speaker (House) - 2025-04-17: Signed by the President Pro Tempore (Senate) - 2025-04-16: Senate concurred with House amendments; Roll Call 464: yeas 41, nays 0 (Senate) - 2025-04-10: Motion to concur filed (Senate) - 2025-04-10: Returned to the Senate with amendments (House) - 2025-04-09: Third reading: passed; Roll Call 413: yeas 95, nays 0 (House) - 2025-04-07: Second reading: ordered engrossed (House) - 2025-04-03: Committee report: do pass, adopted (House) - 2025-04-01: Representative Culp added as cosponsor (House) - 2025-03-20: Recommitted to Committee on Ways and Means pursuant to House Rule 126.3 (House) - 2025-03-20: Committee report: amend do pass, adopted (House) - 2025-03-03: First reading: referred to Committee on Agriculture and Rural Development (House) - 2025-02-12: Referred to the House (Senate) - 2025-02-11: House sponsor: Representative Baird (Senate) - 2025-02-11: Third reading: passed; Roll Call 112: yeas 44, nays 4 (Senate) - 2025-02-11: Cosponsor: Representative Aylesworth (Senate) - 2025-02-10: Second reading: amended, ordered engrossed (Senate) - 2025-02-10: Amendment #2 (Leising) prevailed; voice vote (Senate) - 2025-02-06: Committee report: amend do pass, adopted (Senate) - 2025-01-30: Senator Glick added as second author (Senate) - 2025-01-28: Committee report: amend do pass adopted; reassigned to Committee on Appropriations (Senate) - 2025-01-13: First reading: referred to Committee on Agriculture (Senate) - 2025-01-13: Authored by Senator Leising (Senate) ## Bill text - Engrossed Senate Bill (H): [PDF](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.04.ENGS?format=pdf) - Enrolled Senate Bill (S): [PDF](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.07.ENRH?format=pdf) - Introduced Senate Bill (S): [PDF](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.01.INTR?format=pdf) - Senate Bill (H): [PDF](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.05.COMH?format=pdf) - Senate Bill (S): [PDF](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.02.COMS?format=pdf), [PDF](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.03.COMS?format=pdf), [PDF](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.06.COMH?format=pdf) ## Related bills - SB 231: Various corrections matters. (signed) - SB 324: Criminal procedures. (signed) - SB 80: Code publication. (signed) - SB 453: Various tax matters. (signed) - SB 464: Financial institutions and consumer credit. (signed) - SB 371: Workforce matters. (signed) ## Sources - [Engrossed Senate Bill (H) (PDF)](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.04.ENGS?format=pdf) - [Enrolled Senate Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.07.ENRH?format=pdf) - [Introduced Senate Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.01.INTR?format=pdf) - [Senate Bill (H) (PDF)](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.05.COMH?format=pdf) - [Senate Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.02.COMS?format=pdf) - [Senate Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.03.COMS?format=pdf) - [Senate Bill (S) (PDF)](https://api.iga.in.gov/2025/bills/SB0461/versions/SB0461.06.COMH?format=pdf) ## Related - [SB 231: Various corrections matters.](https://policyrisk.com/state-bill/IN-SB231-2025) - [SB 324: Criminal procedures.](https://policyrisk.com/state-bill/IN-SB324-2025) - [SB 80: Code publication.](https://policyrisk.com/state-bill/IN-SB80-2025) - [SB 453: Various tax matters.](https://policyrisk.com/state-bill/IN-SB453-2025) - [SB 464: Financial institutions and consumer credit.](https://policyrisk.com/state-bill/IN-SB464-2025) - [SB 371: Workforce matters.](https://policyrisk.com/state-bill/IN-SB371-2025) - [Indiana bills](https://policyrisk.com/states/indiana/bills) - [Indiana state hub](https://policyrisk.com/states/indiana) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/IN-SB461-2025 (as of 2026-10-17).