Title 35, Agriculture

The short title of this article 36 is the Commodity Handler and Farm Products Act. Source: L. 2020: Entire article amended with relocations, (HB 20-1213), ch. 160, p. 715, � 2, effective June 29. Editor's note: This section is similar to former �� 35-36-101 and 35-37-101 as they …

As used in this article 36, unless the context otherwise requires: (1) Agent means a person who, on behalf of a dealer or small-volume dealer, buys, receives, contracts for, or solicits any farm products from or sells farm products for the owner of the farm products or who negoti…

(1) (a) The commissioner shall promulgate rules in accordance with article 4 of title 24 as are necessary for the administration of this article 36. On or before December 31, 2020, the commissioner must promulgate rules that include rules regarding: (I) Financial assurance requir…

(1) If the commissioner determines that there exists a violation of this article 36 or of any rule promulgated under the authority of this article 36, the commissioner may issue a cease-and-desist order, which may require a person to cease functioning as a commodity handler, smal…

(1) A person who violates this article 36 or any rule enacted pursuant to this article 36 is subject to a civil penalty as determined by the commissioner. The maximum penalty is one thousand dollars per violation per day. (2) A civil penalty shall not be imposed unless the person…

(1) A person who violates section 35-36-217 (1)(a) to (1)(e) or (1)(j) or section 35-36-313 (1)(a) to (1)(e) commits a class 6 felony and shall be punished as provided in section 18-1.3-401. A person who violates section 35-36-217 (1)(f) or 35-36-313 (1)(f) or (1)(j) commits thef…

Any action of the commissioner with reference to the administration of this article 36 may be reviewed by any court of competent jurisdiction pursuant to section 24-4-106 only after all administrative remedies have been exhausted. Source: L. 2020: Entire article amended with relo…

Source: L. 2020: Entire article amended with relocations, (HB 20-1213), ch. 160, p. 724, � 2, effective June 29. Editor's note: Subsection (2) provided for the repeal of this section, effective September 1, 2021. (See L. 2020, p. 724.)

This article 36 is repealed, effective September 1, 2032. Before the repeal, this article 36 is scheduled for review in accordance with section 24-34-104. Source: L. 2020: Entire article amended with relocations, (HB 20-1213), ch. 160, p. 724, � 2, effective June 29. L. 2025: Ent…

(1) (a) A person shall not act as a commodity handler in this state without having first obtained a license from the department. (b) A small-volume commodity handler need not obtain a license. (2) Every person acting as a commodity handler in this state shall, each year before th…

(1) The provisions of this part 2 that apply to warehouse operators do not apply to the owner or operator of a public warehouse or other facility where the owner or operator: (a) Operates a public warehouse in this state with a valid license issued either by the United States dep…

(1) (a) An applicant for a commodity handler license shall pay, for each year in which the license is to be valid, a license fee established by the commission, which license fee the department shall collect and transmit to the state treasurer, who shall credit the money to the in…

(1) To receive or maintain a license, each applicant or licensee for an initial or renewal license must satisfy the following requirements: (a) (I) Except as provided in subsection (1)(a)(II) of this section, the applicant or licensee shall furnish the commissioner with evidence …

(1) The commissioner may deny an application for a license, refuse to renew a license, revoke or suspend a license, or place a licensee on probation, as the case may require, if the licensee or applicant has: (a) Violated this part 2 or section 35-36-104 or violated any of the ru…

(1) Acceptance of commodities for storage by a warehouse operator constitutes a bailment and not a sale. Stored commodities are not subject to seizure upon process of a court in an action against the bailee, except upon action by owners of the stored commodities or the commission…

(1) When a commodity handler purchases commodities for which payment has not been made, the commodity handler, within thirty days after the receipt of the commodities, shall provide the producer or owner of the commodities with the credit sale contract. The credit sale contract m…

The department may promulgate rules concerning commodity grades in accordance with the standards established by the United States department of agriculture as the official grain standards of the United States government. Source: L. 2020: Entire article amended with relocations, (…

(1) A negotiable warehouse receipt must be either a paper or an electronic document. At no time may a paper receipt and an electronic receipt represent the same lot of the commodity. A licensee may issue warehouse receipts by use of a written warehouse receipt system, an electron…

(1) It is unlawful to issue paper negotiable warehouse receipts other than those furnished by the department. A licensee shall issue these receipts consecutively, as numbered, and each receipt must state the date on which it is actually issued. (2) Nothing in this part 2 prevents…

(1) Whenever it appears probable after investigation that a licensed warehouse operator does not possess sufficient commodities to cover the outstanding negotiable warehouse receipts, scale tickets, or other evidence of storage liability issued or assumed by the warehouse operato…

(1) The commission, after conferring with interested industry groups, is authorized to fix, assess, and collect fees for the inspection of commodity handlers or small-volume commodity handlers. (2) For each fiscal year, commencing on July 1, twenty-five percent of the direct and …

(1) (a) Before any license is issued to a commodity handler, the applicant shall file with the commissioner a bond executed by the applicant as principal and by a surety company qualified and authorized to do business in this state as a surety or an irrevocable letter of credit m…

(1) It is unlawful and a violation of this part 2 for a person to: (a) Make fraudulent charges or returns for the handling, sale, or storage or for the rendering of any service in connection with the handling, sale, or storage of any commodities. Violation of this subsection (1)(…

The general assembly hereby declares that farm products are commodities affected with a public interest and thus should be regulated for the protection of both the producer and the consumer. Source: L. 2020: Entire article amended with relocations, (HB 20-1213), ch. 160, p. 741, …

(1) A person shall not act as a dealer, small-volume dealer, or agent without having obtained a license as provided in this part 3. Every person acting as a dealer, small-volume dealer, or agent shall file an application in writing with the commissioner for a license to transact …

(1) (a) For filing the application described in section 35-36-302, each applicant for a license in each of the following categories shall pay to the commissioner a fee as determined by the commission, which fee shall be transmitted to the state treasurer for credit to the inspect…

(1) (a) Before the commissioner may issue a license to a dealer, the applicant shall file with the commissioner in the sum of not less than two thousand dollars nor more than one million dollars, at the discretion of the commissioner: (I) A bond executed by the applicant as princ…

(1) For the purpose of enforcing this part 3, the commissioner may receive complaints from persons against a dealer, small-volume dealer, agent, or person assuming or attempting to act as a dealer, small-volume dealer, or agent and, upon the receipt of a complaint, may make any a…

(1) The commissioner may deny an application for a license, refuse to renew a license, revoke or suspend a license, or place a licensee on probation, as the case may require, if the licensee or applicant has: (a) Violated this part 3 or section 35-36-104 or violated any of the ru…

(1) When a dealer or small-volume dealer purchases farm products for which payment has not been made, the dealer or small-volume dealer, within thirty days after the receipt of the farm products, shall provide the producer or owner of the farm products with a credit sale contract…

(1) Every dealer handling farm products for a consignor having received any farm products on commission for sale shall promptly make and keep a correct record, showing in detail the following with reference to the handling, sale, or storage of the farm products: (a) The name and …

Each small-volume dealer shall maintain records of all aspects of each purchase of farm products in the form and manner required by the commissioner. Source: L. 2020: Entire article amended with relocations, (HB 20-1213), ch. 160, p. 750, � 2, effective June 29. Editor's note: Th…

(1) When requested by a dealer's consignor, the dealer, before the close of the next business day following the sale of any farm products consigned to the dealer, shall transmit or deliver to the owner or consignor a true written report of the sale, showing the amount sold and th…

Local produce or fruit associations or other shippers located in the neighborhood where farm products are grown may receive a reasonable compensation for loading, shipping, and securing persons to handle the products on commission in markets away from the locality where grown. De…

Whenever, upon sufficient evidence satisfactory to the commissioner, the commissioner determines a person has engaged in or is about to engage in an act or practice constituting a violation of this part 3 or of any rule or order promulgated under this article 36, the commissioner…

(1) It is unlawful and a violation of this part 3 for any person to: (a) Make fraudulent charges or returns for the handling, sale, or storage or for the rendering of any service in connection with the handling, sale, or storage of farm products. Violation of this subsection (1)(…

(1) If farm products are contracted for sale to an out-of-state purchaser, the purchaser is subject to the jurisdiction of the courts of this state in accordance with section 13-1-124 (1)(a). The seller is entitled to all remedies at law in seeking the return of the farm products…